Company salary budgets up 50% in 2007

The study, carried out on some 10,000 employees in the production, services, retail, banking and pharmaceutical sectors, also indicates that the number of overtime doubled last year.

The growth of salary budgets was due to both higher incomes (up 25 percent on average) and a rise in the number of employees (21 percent year-on-year).

“It is interesting that in the western region, where competition between employers is powerful, the number of employees has risen, albeit below the national average,” PayLogic’s General Manager, Mihaela Udrescu, said.

The highest personnel turnover was registered in non-banking financial institutions, retail and financial services.

“Personnel turnover varies from one industry to another. In FMCG [fast moving consumer goods], turnover is 20 percent,” said HR Manager for cosmetics producer Avon Romania, Andrei Golesteanu.

Due to this high turnover, employers have also increased their budgets for bonuses by 25 percent. The average salary also rose some 25 percent.