The decision by the European Parliament that salaries will no longer be confidential will change the way companies and employees are paid. Productivity will increase: the salary for the same position will be the same, but depending on the results from month to month, some will receive more money and others less.

Salaries will be announced from the beginning of the recruitment process.

“I believe that this is one of the best decisions: to announce the salary from the moment of recruitment. This is due to the fact that very often at the end of the hiring process, a man refuses an offer because of salary,” said Leonard Riza, HR expert.

• If a person knows the salary from the very beginning, he does not waste either his time or the time of the recruiter: so that we do not wake up in a month or two weeks, while the process continues, that the person’s salary does not suit him. .

“If this is removed, the processes will be much faster in an era where things have to happen much faster with us,” he said.

Why salary in Romania is confidential

“If we are talking about the company’s employees, then clear and transparent communication about remuneration is very good. It is confidential with us, because the work is not paid by results,” he says.

In developed economies, Rizoiu says, job postings are required to include an hourly rate or a monthly or annual salary.

• We don’t have anywhere that says, look, we hired you for $9 an hour, and if you meet certain performance metrics, you can get another 50 cents an hour.

“Salaries are confidential. In one accountant position, where two do the same thing, one can have 3,500 lei, and the other 4,300 lei. Hence the confidentiality: so that the one with 3,500 lei does not get upset that another was hired with 4,300 lei,” said the HR expert.

Each will have measurable performance indicators that will differ from what we currently see in contracts

“In some countries, it is illegal to post job ads or hire someone with salary confidentiality. The salary, rewards and benefits policy is very transparent and easy to understand for everyone in the company,” Rizay explained.

• Many leave after 3 months because they are not satisfied with the salary. 3 months ago it suited you, but not now? Practically, the problem faced by HR personnel has been removed.

“Each will have measurable performance indicators. What is currently in the contracts is subject to review. In principle, it will change. For 20-30 years, in our mentality, everything did not progress so quickly that everything was transparent,” he said.

• The salary will be introductory, and then the variable part – based on the results of the work. This will be salary X plus the variable part, which can be two-thirds of the permanent part. They will be paid by results. This will significantly increase productivity and employee engagement.

Employees will be able to better evaluate their work

“When I, as an employee, want to know the remuneration that my colleague receives, I can evaluate my work. I can know how the work I’m doing is getting paid for what I’m worth, or getting paid more or less,” Dan Orlandea, founder of Soft Skill Clinic, told us.

According to him, there are people who do not look at their work that way.

“I am faced with the following situations: when I want to hire a new person in the company, I often increase the salary. I have to pay the new employee better than the old one who works in my company. There are disagreements with the idea of ​​declassifying people’s salaries,” Orlandea clarified.

He considers such a decision a plus for an employee who is older: then he reevaluates his work.

“The decision was made not only on the grounds of gender discrimination. I would see no reason why a man and a woman, in the same position, the woman should receive less money. In Romania, there are women capable of leading a team, department, or company. I see no reason why a woman should be paid less than a man,” concludes Dan Orlandea.

Employee benefits will become increasingly important

The directive recently voted by the European Parliament, which stipulates that salaries will no longer be secret, will increase transparency in every industry, according to Ciprian Dan, president of ABSL (Association of Business Services Leaders of Romania).

“In the business services sector, where the cost and availability of labor remains challenging, this measure will increase competition between companies to attract and retain employees,” he says.

According to him, competition between companies will grow on other levels as well.

“For example, employee benefits will become increasingly important as a differentiator, whether fixed or flexible.

Similarly, companies will pay even more attention to employee retention, their active participation in company actions (increased engagement, as we call it in corporations), their continuous professional training,” explains Dan.

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