Dynamics of the Romanian labor market
The Romanian labor market has experienced a sharp increase in the supply of work versus demand by potential employees.
Foreign companies opening an office in Romania have saturated the market with job offers, outnumbering the potential employees, leaving certain posts vacant. Employees therefore have a large range of offers to choose from.
Unlike other European countries, employees generally do not stay in a position for more than 3 years.
A study regarding turnover revealed the causes of resignation:
For non-management positions:
- 61% reported the salary package;
- 13%, their relationship with a higher up;
- 9%, the work routine, the lack of career development opportunities.
For managment positions:
- 35% cited the management;
- 33%, the lack of career development opportunities;
- 18%, a lack of balance between career and personal life, commuting issues, a long workday and too many issues to handle, difficult changes to assume at the workplace;
- 10%, the salary package.
Compared with other European countries, salary is not a taboo topic for discussion. Even if the management attempts to implant confidentiality regarding employees salaries, this is very difficult to enforce and is not frequently respected. This results in employee dissatisfaction and leads them to search for another, better paying job.
Romanians have not easily forgotten living under a dictatorship, and this frequently results in an “authority complex”. In other words, employees are highly sensitive to rules or controls handed down by management. Since the job market offers many opportunities, employees who have issues with their director can easily find a new position and resign.
Another consequence of the dictatorship and communist period is the attraction to the new, diversity, and people's interest in exercising their right to choose, whether it be their computer, car or new job.
Another factor which explains the high turnover rate in Romanian companies is the lack of career development opportunities. Employers must take this into account and promote their employees through development programs, additional benefits, training or educational programs.