OTP Bank: Banking labor market totally changed

Overall salaries will be frozen at the current level, although those of some employees will rise based on performance.

Within OTP Bank Romania, the number of employees will decline by 5 percent in 2009, due to difficult economic conditions, although the lender is to open a further five offices. “The strategic changes we are considering for next year, and the centralization of certain operations will lead to less jobs at OTP Bank. We also plan to relocate at least 30 employees, to new positions in banking units” Diosi said.

In the financial-banking system, personnel turnover is likely to drop and competition will increase between employees, leading to improved performance, according to Diosi.

“While turnover was some 20 percent in previous months, it has currently declined, which proves people are more cautious about switching their job,” he added.

The average increase of employment costs at OTP Bank was 7 percent in 2008. Among non-financial benefits provided by the lender are meal tickets, health services, and holiday bonuses. The bank has some 1,100 employees and 105 branches in Romania.