In the first nine months of 2017, average salaries in the private sector increased by 5%, and bonuses awarded by employers grew by 12%. According to the Smartree Workforce Index, an analysis conducted by Smartree Romania, employees in the private sector benefited from higher salaries and bonuses compared to the same period last year.
Average salaries in the private sector increased by 5% during the January-September 2017 period compared to the same timeframe in 2016. This growth was mainly supported by the increase in the gross minimum wage at the beginning of the year, which positively impacted salary trends. The distribution of this growth was uneven across the three quarters, with an average increase of 12% in the first quarter compared to the same period last year, a 2% increase in the second quarter, and stable average salaries in Q3. Although salaries remained constant in the third quarter, bonuses increased by 9% compared to the same period in 2016, leading to higher overall earnings for Romanian employees.
Regarding the first nine months of 2017, the value of bonuses offered by companies followed the same positive trend, recording a 12% increase. This was also reflected in the positive evolution of the employee well-being index, which grew by the same percentage.
“The Smartree Workforce Index data shows a positive trend across the entire market for the first nine months of the year. Of course, we identified varied evolutions in the indicators analyzed throughout the period. These differences are due to various factors, from the implementation of legislative changes to the introduction of specific organizational programs. An example would be bonus programs. We are seeing more companies offering real-time bonuses to employees to retain them and motivate them to be as efficient as possible at work,” said Adrian Stanciu, CEO of Smartree.
The number of hires increased by 13%
Additionally, the number of hires increased by an average of 13% during this period, driven by a favorable macroeconomic environment and economic growth recorded in the first part of the year. The distribution across the three quarters shows over 10% growth in the number of hires in each quarter. According to Smartree data, the industries with the highest number of hires were in the pharma, medical equipment, telecommunications, software development, and automotive components manufacturing sectors.
“The labor market remained dynamic in the third quarter of the year, even though this period coincided with the vacation season. Employers continued to recruit heavily, and the increase in hires during this time aligns with a positive employment forecast for the coming period. In other words, Romanian employers will increase their workforce as part of their organizational development plans,” added Adrian Stanciu, CEO of Smartree.
Among the companies analyzed, the economic condition indicator, comprising the evolution of the number of employees and salary trends, increased by 10%. The Smartree index also considers the situation of vacation days and sick leave, the two indicators that influence employee well-being. The number of vacation days taken increased by 5% in the first nine months of 2017 compared to the same period in 2016, while the number of sick leave days taken by employees increased by 3%.
Source: Adevarul