Start-up projects

The first half of this decade saw the culmination of a wave of foreign investment in the Czech Republic. The majority of this investment was implemented through the investment incentives provided by the government agency CzechInvest. The main objective of these incentives was to channel this foreign investment into regions with high unemployment, however this unfortunately did not always succeed. The main reasons behind this were poor infrastructure, especially the lack of high-quality transport links between regional centres and industrial zones not being properly prepared. We shouldn’t be afraid of stating that foreign investment, in particular investment in the construction of factories, comes to the Czech Republic for three main reasons:

• A relatively cheap workforce
• The high technical knowledge and education level of Czech workers
• Investment incentives and tax relief

The structure of foreign investment over time (and with increasing wage costs) has begun to orient towards activities with a higher added value – renowned multinational companies have begun operating in the Czech Republic and have opened centres for Central and East Europe, as well as research and development centres.

Representatives of foreign investors coming to the Czech Republic face not only substantial cultural differences but they must also find and build up a team of experts who will take responsibility for implementing the plans of the investors in a relatively short time.

The search and selection of workers for such projects requires not only a knowledge of the local market, but especially a knowledge of regional specifics which are given by the local traditional sectors and the number of available candidates with the necessary requirements, salary level, the flexibility of the work force etc. Neglecting or badly reading these factors before beginning the project can lead to significant complications, an unnecessary waste of resources and delays which can lead in extreme cases to the conditions necessary for the payment of investment incentives and tax relief not being fulfilled.

The aim of Nicholson International Czech Republic, s.r.o. is to assist foreign investors in understanding cultural, market and regional specifics, thus eliminating any possible negative outcomes resulting from being in a foreign environment. In the next phases, we are able to assist in searching for management and selecting start-up teams, setting up organisational structures and evaluations including looking at work-legal issues and where necessary drawing up job descriptions and the preparation of worker and management contracts.