Press Release
April 22 nd, 2024
Bucharest
Recent fiscal measures changed methods of remuneration in business services industry
The evolution of salaries in the business services industry follows the general market trend, with a 4% increase for industry specialists recorded in March 2024 compared to September 2023, based on an identical company sample, according to the HR Barometer study conducted by ABSL (Association of Business Service Leaders) and PwC Romania.
At the regional level, Bucharest leads in salary increases, with a 4.7% rise, while Banat and Transylvania saw a more modest 2.1% growth. The most significant salary increases were observed for executive managers (9.8%), followed by team leaders (3.8%), specialists (3.9%), administrative staff (4.4%), and operators (1.9%).
The highest salary adjustments were granted to employees working in finance & accounting, HR, and support functions.
The business services sector aligns with the general market trend of an 8% projected salary budget increase in 2024, with one in three companies already implementing these adjustments in the first quarter.
“Salary dynamics have slightly slowed compared to previous years, even in industries where talent competition remains high. Amid macroeconomic uncertainty and the expansion of automation across an increasing number of processes, labor demand is decreasing, as is individual employee mobility. In the short term, we are witnessing a normalization of labor market dynamics, hich had become extremely challenging for employers in recent years,” states Oana Munteanu, Director, People & Organisation, PwC Romania.
The increased taxation of popular industry benefits, such as meal vouchers, vacation vouchers, and sports subscriptions, has negatively impacted both companies’ operations and HR policies. Four out of five employers now grant these benefits at gross value, with taxation costs being transferred to employees. Only a small percentage of companies intend to fully or partially compensate employees for these tax increases (4% in the case of vacation vouchers and 34% in the case of meal vouchers). However, companies in the industry will continue to offer benefits such as sports and medical subscriptions, as well as private pensions, even though the tax reductions are not at the same level as before. While parental benefits are gaining interest among employees, only 4% of companies grant additional leave days for parents, and 3 out of 4 companies grant paid paternity leave beyond the legally required minimum.
“The business services industry is a significant contributor to Romania’s GDP, ranking among the country’s top five industries. The quality of the workforce relative to its cost has long been a competitive advantage in attracting investors to Romania. However, in recent years, rising taxes and an unpredictable fiscal environment have become discouraging factors for businesses already facing a complex set of risks. These challenges impact both the growth of existing companies and new investments—some investors are now favoring Eastern European countries with lower taxation or investment incentives. In this context, the increasing discussions about progressive taxation, without consulting the business environment, without predictability, and without a national strategy to support economic growth and retain highly skilled labor, are negatively affecting us,” says Cătălin Iorgulescu, Vice President of ABSL.
Only 18% of companies in the business services industry are considering reducing HR costs, with most opting for salary cost containment rather than layoffs. The majority of industry players continue to invest in employee training, employer branding, and retention initiatives.
According to the HR Barometer, the business services industry is a market leader in implementing gender equality measures in salary policies and ranks among the top three industries for diversity, equity, and inclusion (DEI) policies. More than half of companies in the industry have already implemented or are considering adopting ESG (Environmental, Social, and Governance) standards this year, in line with EU sustainability reporting requirements.
Additionally, more than half of companies require a minimum number of office workdays (1-3 days per week), while flexibility remains a priority for another third of employers.
The HR Barometer for the business services industry was conducted by PwC Romania in partnership with ABSL in March 2024, based on a sample of 50 companies. The study captures salary trends, key HR indicators, and companies’ readiness to comply with EU-mandated sustainability (ESG) reporting requirements.