The Romanian Market of Compensations and Benefits

[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.

If this was the situation before the crisis, things have changed. They said, back then, that 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 there a top 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 whether 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 paid as long as you work”. It might go the other way if companies cut the costs with the benefits and compensation practices. Which they already have begun. If you read the main business publications, you’d picture the apocalypse of the industry. But what is bad news for big business might be good news for niche 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 prefer flexible benefits policies.

I don’t know how things are for benefits, but the things surely turn green for the insurance companies. And not in the CSR way. A normal consequence of the situation described above, whoever negotiates better will survive. Another question is whether 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 about 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 whether the personal computer the employees will work on, 2 years from now will be considered a benefit or a necessity…

Marcus Victor Grant

Copyright © Marcus Victor Grant, 2010-present

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