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September 29, 2022

E&Y: Confidence in business, pessimism in salary growth

The gap between the confidence in industry and company growth forecast remains quite remarkable in 2014 as well, which could show that companies place an important trust in their strategies. A notable increase is seen in the “very confident” section, from 25 percent in 2013 to 40 percent in 2014, which may be due to companies feeling better prepared to deal with the challenges in business environment, according to “A vision for growth” EY survey that explores the perceptions of top executives from major companies operating in Romania regarding the business outlook for this year. 28 percent of respondents foresee a significant growth of +10 to +30 percent for their company’s turnover in 2014 compared with 25 percent in 2013, while 67 percent expect a growth rate of +5 to +10 percent, compared with just 51 percent at the beginning of last year. At the beginning of this year, 80 percent of respondents say their company’s strategy to increase sales consists of introducing new products/services for existing clients (compared to 75 percent in 2013), while only 10 percent say they will be cutting prices (compared with 18 percent in 2013). Unlike last year, when most companies (76 percent) said that they would continue to stay on the market if it declined, in 2014 only 56 percent say the same. At the beginning of 2014, 2 percent of respondents say the salary increase in their company is expected to exceed 10 percent, the same percentage as last year. Most importantly, while 42 percent said there would be no salary increase for them in 2013, only 19 percent say the same at the beginning of 2014.

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