Articol de: Constantin Măgdălina, Emerging Trends & Technologies Expert
The number of employees is hard to raise
In the second half of 2018, 46% of CEOs say they do not expect any increase in the number of employees this year compared to 25% at the beginning of the year. At the same time, only 41% of companies compared to 66% previously say they expect their staff to grow this year. Moreover, 13% of companies now expect their number to drop, compared with 9% at the beginning of the year.
Wages are rising, but not the productivity
If at the beginning of 2018, 16% of the CEOs said they would not make wage increases, in the second half the percentage is 25%. Increases by 3pp the percentage of decision-makers who say they raise salaries by 1%-5% in 2018 compared to the previous semester, but decreases the percentage of CEOs that expect salaries to grow by 5%-10% (-9pp) and those who wage increases of 10%-20% (-7pp) are expected. Given that productivity and competitiveness are major challenges for the domestic business environment, wage increases are added to the list of issues on the agenda of local top managers.
Top 5 challenges and opportunities
The most important challenges for companies, according to the general managers’ responses to the second half of 2018 research, are the following: labor shortage (61% vs 59%), productivity growth (48% vs 37%), rising costs (41% vs 21%), employee motivation (37% vs. 25%) and tax changes (21% vs. 62%).
The most important opportunities for companies mentioned by general managers for the second half of 2018 are: economic growth (60% vs 72%), growth in consumption (69%), growth in exports and the opening of other markets (45% vs 52% %), digitization and online opportunities (40% vs 41%) and access to European funds and SME funding (29% vs 36%).
The Gvernment has imposed a drastic regulation of taxes and excise duties. Companies reacted with investment reduction, and a loss of confidence in the future. The growth of Romania’s economy has hit the brake at from a 7% to a 4% growth rate. Everybody asks why this slow down. The rulers of the country are puzzled, do not consider themselved guilty of these results, and look for the source of the ”growth engine” failure. The EU is regarded as a bad policeman who prevent them to successfuly run the country. But the people have started to ask if the ”driver” can drive (at all). ”Where do we all go?”, they wonder.
Foto: Pixabay
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