Romanian Salaries To Grow By At Most 10% In ’09

"Salaries have grown too fast in Romania and I believe the current crisis will ease the situation. For example, the salaries of people in Bucharest have grown, from one year to the next, by 10%-20%, depending on sector and level. I expect the increase to slow down considerably in 2009 and 2010," said Steve Moroz, country manager with recruitment company Hudson.

 

He added the current financial crisis determined a large part of the companies to stop hiring, and the sectors with the most visible tendencies in this respect are banking, real estate, construction and human resources consultancy, respectively recruitment and training.

 

According to HR specialists, companies will try to pressure the results of employees, and focus less on their stimulation through salary hikes and other benefits.

 

"Companies will realize they need competent specialists to navigate this crisis well,” according to Silviana Boian, head of the research department within the executive search consultancy company Alexander Hughes.

 

According to an analysis by Ernst&Young, published in October, the share held by bonuses in the staff remuneration structure in a large company in Romania will reach 30% this year.

 

Oana Bolotan Datki, country manager within consultancy company Consulteam, said most companies will replace fixed benefit packs with flexible benefits, which will cut costs on the variable side by up to 50%.

 

She mentioned in the next year salary hikes will not be higher than 10%.

 

In her turn, Irina Vasile, master franchisee within recruitment company Antal International Network Romania, said salaries will not be negotiated next year.

 

She estimated salaries grew by some 20-30% this year, but the forecasts for next year show a growth of 10% at most.