Costs can be cut by 40% by relocating operations to cities with lower salaries

“Costs are cut by as much as 40 percent when relocating, but this depends on the city to which operations are transferred. Salaries are different in Iasi, Cluj, or Timisoara, as well as rents, and the price of land. Moreover, access to airports or transport routes can influence these costs,” said Sorin Roibu, Managing Director of the Arthur Hunt executive search company.

Blue Air has 90 employees outside Bucharest, of which 30 at its Bacau-based call center, and the rest involved in ground ticketing, check-in, and handling operations. The company also has operations in Sibiu and Arad.  “We took this measure in the second half of last year, when we realized that we had to expand the Bucharest call center, where the personnel turnover was very high. Last year, employees could change their workplace very easily, for higher salaries. We decided to direct ourselves towards Bacau, where salaries are lower than in Bucharest,” said Teodora Draghici, Blue Air’s HR Manager. 

“Salaries in Bucharest are some 15-20 percent higher than in the country’s western region,” said Cristina Savuica, Managing Partner of the Lugera&Makler recruiting company.