Replacing a middle manager costs twice as much as his annual wage

Replacing a specialist or a middle manager can reach some €7,000, according to estimates made by Madalina Popescu, General Manager of Pluri Consultants Romania. The replacing of a specialist includes the recruiting cost, some 20 percent of gross annual wage, the cost of a training program, plus a period of between 3-6 months, in which the employee produces no results.

Replacing a specialist can cost up to 200 percent of his annual wage, says Stelian Marian, Managing Director of Human Capital Solution, HR advisory company.

According to estimates made by Charlie Crocker, CEO of the Barnett McCall HR recruitment and advisory company, costs for replacing managers stand at some 130 percent of annual wage.

Amalia Picleanu Savinescu, Managing Partner of HR advisory company Tandem Consulting, believes that the costs have increased due to higher wages and recruiting costs.

“Recruitment procedures have become diversified and it is necessary to use several channels simultaneously,” Amalia Picleanu Savinescu said. She added that the cost for internet announcements has also risen, and that it is difficult to attract candidates from large cities for an interview, because people with experience often receive multiple offers at the same time.