Latest News  

Private sector in Romania records higher salaries than estimated for 2017

The average salary increases budgeted in the private companies for 2017 are higher than those initially estimated, according to the data of the PwC study HR Barometer (which is an update of the information included in the yearly HR surveys undertook by PwC-PayWell and Saratoga).

2017-02-22 12:08:31

According to the PwC report, the companies that took part in the HR Barometer study indicated an average salary increase of 4.5 per cent for 2017, compared to 3.8 per cent estimated in April 2016. The highest average salary increase was reported in the Retail&Distribution sector (5.6 per cent), while the lowest was in the banking sector (2.5 per cent). With the exception of the banking sector, the salary increases budgeted for 2017 by the private companies are higher than those initially estimated (i.e. in April 2016) for all sectors analysed in the survey.

"The Government's decision to increase the minimum wage, both in 2016, as well as in 2017, had a major impact in the economic sectors where there is a high percentage of employees paid with the minimum wage. That is the main reason why Retail&Distribution companies reported the highest average wage increases, as well as why the highest salary increases were recorded for the blue collar segment, compared with the market average for all staff (5.9 per cent compared to 4.5 per cent). Such measures generate also risks for the business sustainability, especially in situations where the increase in salary costs is not correlated with the organizational performance. In this context, it is necessary for organizations to create the proper contexts to enable the increased performance of the employee and, at the same time, to define proper programs for recognition and reward" stated Horaţiu Cocheci, Senior Manager, Leader of the Human Resources Consulting Team of PwC Romania.

As for salary increases in 2016, these have also proved to be higher than initially planned (4.2 per cent compared to 3.9 per cent). Also, the data of HR Barometer 2017 indicate an increase in the termination rate for labor contracts compared to last year (20.7 per cent versus 18.7 per cent).

"The increased dynamic of the labor force is also a phenomenon that puts pressure on wages, with companies having to adapt their budgets and salary policies to attract the employees they
need in order to meet their business objectives. More than that, counterbalancing such dynamics has also an impact on the HR processes and activities – for example, the increase in the termination rate for labor contracts has also lead to an increase in the external recruitment rate (24 per cent in 2016, compared to just 18.7 per cent in the previous year). In other words, the volume of recruitments from outside the organization increased compared to previous year. As such, it is advisable for measures adopted at organization level (such as salary increases) to be linked with similar measures undertaken within the HR function (ensuring the alignment with the general business strategy of the firm, the flexibility and the alignment of policies and practices, the streamlining of the specific processes) in order to provide a substantial contribution to the organizations' performance" stated Nicoleta Dumitru, Manager, Human Resources Consulting Services, PwC Romania.

The HR Barometer study was undertaken by PwC between January and February 2017, on the basis of the information provided by 59 participant companies from 5 economic sectors – banking, pharma industry, retail and distribution, technology and BPOs, as well as industrial production.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
The most appreciated companies from the outsourcing industry, awarded at ABSL Gala 2018 Romania

The most appreciated companies in the outsourcing industry were awarded last night, at the ABSL Romania Awards Gala, a recent announcement of the company stated.

 Read Full article »
Cybersecurity Tech Accord: 34 leading companies sign pledge to fight cyberattacks to promise equal protection for customers worldwide

Companies across every layer of internet communication vow to defend against misuse of their technology; promise to protect all customers regardless of nationality, geography or attack motivation.

 Read Full article »
Accenture study finds 87 percent of focused cyberattacks are prevented

With ransomware and distributed denial of service (DDoS) attacks on the rise, the average number of focused cyberattacks per organization has more than doubled this year compared to the previous 12 months (232

 Read Full article »
Romanian software group expands to Bulgaria

Romanian group Global Technical Systems, which specializes in software development and providing technological solutions for building efficiency and security infrastructures, aims to double its turnover this ye

 Read Full article »
Vodafone Survey: Romanian youngsters would rather work for themselves, than for a company

Romania ranks first in terms of percentage of youngsters who would rather work for themselves/be an entrepreneur than for a company, with 51 percent expressing this preference, according to Vodafone survey.

 Read Full article »
Bucharest office market: Over 30 per cent of the demand came from the companies that moved from old buildings in modern projects

Companies have rented in the first quarter almost 70,000 square meters of office space in Bucharest, one third of the demand came from companies that formerly had its headquarters in old, small buildings or in

 Read Full article »
ABSL Romania: The Business Services sector has thousands of jobs available for young professionals

The Association of Business Service Leaders in Romania (ABSL) announces thousands of positions available for young professionals with little to entry-level experience in the business services sector. Accounting

 Read Full article »
Zitec rents 1,700 sqm at Vastint's Timpuri Noi Square

Vastint Romania has leased 1,700 sqm of office space to Zitec, in the mixed-use development project at Timpuri Noi Square in Bucharest, the developer recently announced.

 Read Full article »
Ness Digital Engineering reached 100 employees in Timişoara and 2,800 sqm in the UBC 2 building in the Openville mixed-use project

In March, Ness Digital Engineering reached a 2,800 sqm area in the United Business Center 2 (UBC 2) building located in the Openville Timişoara development, after taking over a new floor of the office building

 Read Full article »
Timpuri Noi Square awarded the highest LEED certification

Vastint Romania was awarded LEED Platinum certification for the first two office buildings of Timpuri Noi Square.

 Read Full article »
 
 
MOST READ ARTICLES
» Romanian software group expands to Bul...
» The most appreciated companies from th...
» Romania, Europe's third and world's 13...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» DTZ: Office demand outside Bucharest t...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Large office space leases dominate the...
» BPO: the ideal breeding ground for BPI
» Deloitte opens European Regional Deliv...
» Romanian Outsourcing & Shared Services...
 
EDITOR CHOICE
The voting for The Brand of the Year 2018 in Outsourcing and Shared Services is now open!

Outsourcing Today presents the fourth edition of the annual Romanian Outsourcing & Shared Services Awards, the event that recognizes, rewards and celebrates the success of the most prominent companies acting in

 Read Full article »
Romanian Outsourcing & Shared Services Summit: The very definition of millennials is change

Adapting to future workforce trends whilst balancing intelligent automation, digitalization, and millennial teams was one of the most discussed topic of the second session of the Fourth Edition of Romanian Outs

 Read Full article »
Stefanini invests in AI and reinforces Sophie's capabilities

Recently, Stefanini announced it is reinforcing its investments in Sophie, an artificial intelligence platform with the ability to turn data into valuable solutions. Fully developed within Stefanini's research

 Read Full article »
Romanian Outsourcing & Shared Services Summit: Diversity is value

The second session of the recently ended Romanian Outsourcing & Shared Services Summit highlighted topics on the future workforce trends such as digital transformation, automation, the repositioning of the impo

 Read Full article »
ROMANIAN OUTSOURCING & SHARED SERVICES SUMMIT, with Irina Sersun-Gürtler, Noerr: Bringing the employees on board

This March, the professionals, leaders and key voices in the outsourcing and business shared services industries joined for three rounds of lively knowledge exchange within the Fourth Edition of Romanian Outsou

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events