Cyprus is seeing historically low unemployment, but employers are struggling to fill roles- prompting a wave of new incentives aimed at attracting and retaining staff.
According to financial analyst Yiangos Hadjiyiannis, speaking to Mesimeri kai Kati, Cyprus’s unemployment rate has now dropped below 5%. While this is a positive sign for the economy, it also creates challenges, especially for businesses that need to fill both low-wage and high-skilled positions.
Hadjiyiannis notes that many younger job seekers now prioritise competitive benefits, not just salary. This includes 14th-month pay, flexible working hours, hybrid or remote options, study support, and career development opportunities.
Changing expectations in the workplace
Cypriot companies are feeling pressure to adapt to modern work cultures, particularly as international firms bring new standards. Wellness, work-life balance, and a more relaxed approach to dress codes and hierarchy are becoming key factors in recruitment and retention.
One example: Some companies, in partnership with business leaders like Christos Papaellinas, are now offering to cover university tuition, allowing employees to study while working, at no personal cost.
The term “employer of choice” is becoming more relevant than ever, with research showing candidates prioritise:
- Competitive salaries
- Bonus structures like the 14th salary
- A pleasant work environment
- Opportunities for professional growth
Retail and service sectors under strain
Retail and supermarket employers are especially affected. According to Andreas Hadjiadamou, executive secretary of the Supermarket Association, it has become increasingly difficult to attract Cypriot workers to certain roles- particularly those seen as less desirable. Language barriers also complicate hiring foreign workers for customer-facing roles.
As a result, some businesses are offering extra perks and incentives, even for entry-level roles.
A shift in power dynamics
Hiring interviews are no longer one-sided, Hadjiyiannis adds. Candidates- especially those in their early 20s- expect flexibility, purpose, and progression. Many stay in a job for only 2–3 years before moving on, often preferring remote work or even working from abroad.
Cypriot businesses must now compete not just with each other, but with international expectations. If they want to keep up, they must evolve- and quickly.
Also read: Low-paid public workers seek second jobs amid economic pressure
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