Over 60% Of Romanian Pvt Cos To Fire Staff In ’09 – Survey

The budget cuts forecast for 2009 are due to the expected impact of the economic crisis upon the company, anticipated by 71% of the respondents, and in order to lower overall expenses.

In order to cut expenses, 63% of the respondents said they will resort to layoffs, and 47% will cut variable payments.

Also, 29% of the companies will promote less employees, 25% will cut bonuses for executive staff, and 4% will cut the managers’ basic salary budget.

Altogether, the companies in the region will make lower salary hikes compared with the initially planned values, especially in Romania, Hungary, Poland and Bulgaria.

In Romania, salaries will increase by 5% or 7%, according to the sector, half of the value forecasted in 2008 of 10% or 15%, the metallurgy being the most affected by the recession. The strategic sectors such as the energy and utilities will account for the most significant salary hikes.

As for proficiency variable bonuses, 50% of the companies aim to decrease them by over 10%.

The survey was made in November 2008, on a sample of 400 local and multinational companies throughout Austria, Belgium, Bulgaria, Czech Republic, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Romania, Slovakia, Spain, Sweden, Switzerland, Turkey and Great Britain.

Hewitt’s strategic partner on the Romanian market is Monday Insight Consulting.