15.2 C
Bucharest
October 26, 2020
ECONOMY FINANCE&BANKING

PwC Romania: Average salary increases of 4.5 pct in 2017 in private companies

The average budgeted wage increases in the private companies for 2017 are higher than those originally estimated, with an average growth rate of 4.5 pct, compared with a rate of 3.8 pct estimated in April 2016, according to a study carried out by a consulting company, sent to Agerpres on Tuesday.

Companies that took part in the HR Barometer study indicated that the highest rate of wage growth was reported in the Retail and Distribution sector (5.6 pct) and the lowest in the banking sector (2.5 pct). With the exception of the banking sector, the salary increases budgeted for 2017 are higher than those initially estimated (in April 2016) for all sectors analysed in the survey.

“The decision to increase the minimum wage, both in 2016 as well as 2017 had a major impact on the economic sectors in which employees paid at this level have a significant share in the total labor force. That is the main reason why Retail&Distribution companies reported the highest average wage increases, as well as why the highest salary increases were recorded for the blue collar segment, compared with the market average for all staff (5.9 percent compared to 4.5 percent). Such measures generate however risks for the sustainability of the business, especially in situations where the increase in salary costs is not correlated with the organizational performance. In this context, it is necessary for organizations to create appropriate contexts to facilitate the increased performance of employees and at the same time, define adequate recognition and reward programmes,” specified Horatiu Cocheci, Senior Manager of PwC Romania.

As regards 2016, salary increases that were implemented proved higher than originally planned (4.2 pct compared to 3.9 pct).

The HR Barometer study was conducted by PwC in January through February 2017 based on information provided by companies in five sectors – banking, pharmaceutical, retail and distribution, technology and outsourcing hubs, and the manufacturing industry.

Related posts

Colliers International: The Romanian investment market grew in the first half of the year, despite the pandemic context

NINE O'CLOCK

National Bank Governor on wage rise: In wrong dose, medication can do more harm than good. BNR targets 4.2 percent inflation for end of year

NINE O'CLOCK

RBL entrepreneurs and executives – very cautious optimism over Romania’s macroeconomic future

Nine O' Clock