Efforts to attract and retain workers in an increasingly competitive labor market have been intensified in recent years by inflationary pressures on wage budgets and the prospect of legislative changes planned by the government.

People and organization PwC Romania: “Transformations in the labor market and in HR: where are we and what awaits us in 2024?”Photo: PwC Romania

More than 40% of companies affected by the reduction/elimination of tax incentives in the IT/construction/agriculture sectors surveyed in the HR Barometer survey conducted by PwC in Romania in September indicate that they are fully (23%) or partially (18% ) compensate the difference to preserve the net income of the employees. Meanwhile, 18% say they will use different approaches to compensation, 31% have not yet considered the issue, and only 8% will take no action on compensation.

Regarding the introduction of the payment of medical contributions by food stamps, 40% of respondents say that they will continue to issue them under the same conditions, and 35% have not yet analyzed the situation.

The survey also shows that 55% of all respondents plan to increase the number of employees and only 11% plan to reduce.

The results of the survey, as well as other main trends in the labor market, were discussed during the second annual People & Organization conference of PwC Romania: “Transformations in the labor market and in HR: where are we and what is in store for us in 2024?”, which can be viewed here.

Key statements of the conference

Daniel Angel, Partner and head of tax and legal services at PwC Romania: “According to the CEO Survey report, 70% of CEOs in Romania believe that the lack of labor and skills will be the main factor affecting the company’s profitability. the industry in which they work in the next decade. Labor concerns are not new, but they are becoming more pronounced as demographic changes and the impact of new technologies become apparent. In a study we conducted for Amcham, we found that the sectors with the greatest shortages were manufacturing, transportation, and IT. The estimated labor shortage for 2022 was 145,000 workers. In many companies, available jobs cannot be filled due to the lack of certain qualifications. 70% of the labor shortage is concentrated in developed regions: Bucharest, Ilfov, Cluj, Timis, Arad, Brasov, Sibiu and Prahova. These are the largest investment centers. To the extent that we do not correct these aspects in the short term, in the medium to long term the deficit will continue to worsen.”

Read the rest of the article on the PwC Romania blog

Article supported by PwC Romania