Analytic Vision

The Romanian Market of Compensations and Benefits

Posted by Ştefan Alexandrescu on 25/01/2010

[Note: All the articles linked in this post are from business portals in Romanian.]

I’ve been asked what other benefits are there in the Romanian HR market besides insurance.I admit in my mind “benefits” rimes with “insurance”. Even for companies, besides the legislation (scroll down. scroll down, even more, yes, please…).

If this was the situation before the crisis, things have changed. They said, back then, that the professional development is more important than the salary. In 2008, Capital, the financial offline publishing leader in Romania, was publishing the last edition for Romania’s top 100 best employers. I was curious how come they haven’t released it in 2009 again. I know, I know, Radu Ionescu hated the idea, but still… I remember there was a top there of the best methods of recompensating your employees.

The PriceWaterHouseCoopers study from 2007 and also from 2008 said that there was a tendency for the fixed income to drop to 69 % of the gross value of the compensation for the employees. I’m curious weather this tendency will fall or if it will drop.

It might drop even more for the sector of selling and result-based evaluations of the industries that pay by commission and can afford to say: “you get payed as long as you work”. It might go the other way if companies cut the costs with the  benefits and compensations practices. Which they already begun. If you read the main business publications, you’d picture the apocalipse of the industry. But what is bad news for big business might be good news for niched businesses.

Capital and Business Magazin explain how companies cut costs with employees’ benefits. Some companies think of innovative solutions, like for example coupons, which might be a good idea for the Marin husbants’ Cuponix. But a truly innovative idea is to have flexibility. Some other companies prefere flexible benefits policies.

I don’t know how the things are for benefits, but the things suraly turn green for the insurance companies. And not in the CSR way. A normal consequence to the situation described above, whoever negotiates better will survive. Another question is weather the health insurance will develop or fall. The tendencies are, especially with the new viruses, that people (please read: uninformed people) would get frightened by the whole hoax [WATCH this video NOW in English , it’s CAPITAL, and, if you want to read more].The things might go either way, although I would be curious on a comparative cross-cultural study.

Anyway, it’s good to know there is who to get advice from, both for employers, and for employees, to negotiate. Ernst & Young says it’s a good idea. PriceWaterHouseCooper’s studies and manager say the numbers were up for benefits even at the end of 2008.

To end in a funny note, continuing the idea from this forum, I wonder weather the personal computer the employees will work on, 2 years from now will be considered a benefit or a necessity… For more on the difference between possibility, necessity and desire, read here.

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One Response to “The Romanian Market of Compensations and Benefits”

  1. […] The Romanian Market of Compensations and Benefits (25.01.2010) […]

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