Hays reports one in every three professionals is dissatisfied with their current salary; yet pay rises – still a tricky subject for employees
According to a study conducted by Hays Romania, the leading recruiting experts, 32% of professionals declared they are dissatisfied with their current salary.
Hays Romania, part of Hays plc, the world’s largest specialist recruitment agency for qualified, professional and skilled workers, analyses the market situation, recruiting trends, salaries dynamics, benefits packages for the Hays Romania Salary Guide. The research is based on the perspectives of 350 employees and employers across Romania and Hays consultants expertise.
This year, there have been major changes in the labour market with many organisations halting hiring during the peak of the Covid-19 crisis. However, as markets recover, employers have put hiring firmly back on the agenda.
Nine out of ten employers are hiring for staff with more than half expecting permanent hiring to increase next year.
Timur Makhmutov, Managing Director Hays Romania, comments:
“Our study confirms the first signs of business recovery from the Covid-19 crisis. In Romania, like in many other locations worldwide, employers and employees are making up for the time they spent on hold, reluctant to recruit and change jobs. The majority of professionals we surveyed (88%) are open to considering new job opportunities (both passively and proactively) fueled by an unfulfilled appetite for salary increases. Moreover, nine out of ten respondents are hiring at the moment, with more than half expecting permanent hiring to only increase next year.”
According to the research, over half (58%) of employers are also optimistic about the wider economic climate and employment opportunities. Furthermore, 82% of employers said they did not have to lay off employees in 2020, and 63% of employers report that organisation is in a growth phase.
SALARY SATISFACTION & EXPECTATIONS
SIMILAR EXPECTATIONS, DIFFERENT DESIRES
In the eight specialisms analyzed by Hays Romania, wages have stagnated in 2021, with only slight increases of between 5% – 15% seen in some specialised roles. However, salary satisfaction is high with close to a third (32%) dissatisfied with their current salary. A fifth (40%) of those surveyed said they are open to considering new job opportunities or changing jobs next year.
The majority of employees (41%) feel that wages are not aligned with other organisations, and a further 40% who say they don’t think their salary reflects their individual performance.
Close to half of the Romanian employees surveyed still do not feel they can ask for a salary increases (49%). Our study shows that the success rate of applying for a salary increase is quite good (25%), which means that employers are open and take into account the wishes of employees and want to increase their retention.
Looking ahead, here we have noticed the biggest discrepancy between the expectations of employees’ vs employers. Although they both expect about the same percentage increase in salaries in the next review (3-6%), the value of those increases will be far less significant than employees think they deserve. Employees believe their individual performance is not appreciated and should be paid more for their efforts – 43% of employees feel their increase should be around 10-20%.
TODAY’S MOST WANTED SKILLS
SOFT SKILLS IN HIGH DEMAND
In 2021, technical, operational, managerial, IT/digital and sales skills are in the top five most needed skills. Compared to last year, there are three major changes: operational skills are more needed now than in the previous year, and sales skills are more critical. If last year finding people with the right attitude and advanced managerial skills was a challenge for employers, operational and sales skills are much more difficult to find in a market where processes and e-commerce are booming.
Moreover, soft skills are becoming more important to employers. The most wanted by employers are teamwork, adaptability, problem-solving, communication and growth mindset.
THE TRADITIONAL WORKING MODEL LEFT BEHIND
HYBRID MODEL – THE NEW REALITY
Employers and employees agree: both prefer a hybrid working model from now on. Employees feel that working from home led to higher productivity (53%) or did not affect it (32%). For them, working two days at the office and three days remote is the optimal split for the new era of work. Employers are on the same boat regarding productivity, considering overtime didn’t increase considerably (in general up to 5%). As for the best hybrid work structure, employers favour the ‘3-2-2’ work week – three days in the office, two days remote and two days off.
“It’s clear from our research that the financial package remains the most important aspect for employees and candidates when searching for a new job – however aspects such as offering hybrid working are particularly important. In order to secure top talent to fulfil specific roles and projects, our recommendation is to make sure you have a strong and up-to-date attraction and retention strategy, communicate salary set-up and pay rises criteria to employees and always reward individual performance.” comments Timur Makhmutov.
ABOUT THE REPORT
The Hays Romania Salary report has been based on research into the perspectives of 350 employees and employers across Romania, data from recruitment processes carried out by Hays Romania in 2021 and insights and opinions from industry experts.