Half Of Romanian Cos May Consider Layoffs In ‘09 – Survey

A total of 2,589 organizations from 91 countries across six continents participated in Hay Group’s Global Employee Pay and Staffing Survey in November 2008. Data collected include organizational changes to base salary increases, variable pay programs, and long-term incentives as well as planned changes to other reward-related programs.

 

In Romania, 24% of participating companies stated their results will be below their target, while 65% managed to reach their 2008 targets, according to the survey.

 

As for salaries, Romanian companies estimate increases below 9% next year, compared with 12.8% in 2008, while 18% of them consider “freezing” salaries.

 

Moreover, 47% of the local companies plan to keep their current structure or even to lower the number of employees.

 

Alina Popescu, reward information services manager within Hay Group Romania, stated that companies should focus on performance management systems, helping companies to invest their much lower salary budget more efficiently and to motivate employees.

 

The number of organizations worldwide that expect business results to be significantly worse than targeted levels for 2008 has more than doubled since March, according to the study.

 

Retail is one of the hardest-hit sectors, with 63% of retail respondents expecting poor business results due to reduced consumer spending and a tightened credit market.

Europe is the most affected by the economic crisis, thus, over 57% of organizations plan to "freeze" or cut the number of employees.

 

Hay Group has 88 offices in 47 countries and employs over 26,000 people. The group’s client are from the private, public, and not-for-profit sectors, across every major industry and represent diverse business challenges.