Labour market analysis: Recruitment volume increases, optimized productivity, new competencies required

  • The number of recruitment for middle and top management roles could increase in the next 3-6 months.
  • The main trend among companies is the focus on employees wellbeing, which will increase in the second half of 2022. Valuable employees will make the difference between companies that will be able to adapt to the unpredictable and those that will not.
  • Although 3,801 Romanian companies suspended their activities in the first 3 months of the year (representing a 19% increase compared to the same period in 2021), both local business and international companies active in Romania continue the transformation processes started in 2020, accelerating a systemic restructuring with the post-pandemic relaxation.

 

In the next 3-6 months, the recruitment pace for middle and top management positions could increase in companies active in Romania, as an adaptation mechanism of the business environment to the recent macroeconomic and geopolitical developments, reveals an analysis by the HR solutions company K2S – Key2Success.

Although according to the Trade Register data, 3,801 Romanian companies suspended their activity in the first 3 months of 2022 (almost 19% more than in the same period last year), this is a natural evolution and will be followed by a period that will bring new business ideas, expansion of existing businesses into new markets or launches of new divisions. Recently, the EBRD – European Bank for Reconstruction and Development has adjusted its estimates for Romania’s economic development in 2022 and 2023, so that the projected growth rate has decreased by 0.3% for 2022 and 1.2% for 2023, according to the latest EBRD report. Developments in renewable energy and the Offshore Law may also boost recruitment in Energy and related fields, according to K2S specialists.

“The volume of recruitment for middle and top management roles has increased over the last 2 months and we believe it will continue on an upward trend, at least for the next half of the year. Companies are also looking for solutions to optimize employee productivity – either through better HR management or solutions to reward competitive employees. This is a form of adaptation to the systemic transformation we are all witnessing,” says Valentin Dima, Senior Consultant at K2S – Key2Success.

Some sectors (such as retail) have already seen wage increases to boost employee productivity. Also, periodic pay adjustment mechanisms in Romanian companies could be accessed at shorter intervals than usual (i.e. annually or every two years), K2S specialists say.

How has the business environment changed in the last 2 years and what’s next?

  • New lines of business have been created and have grown rapidly and companies now need adequate human resources to continue growing.
  • Business models have changed, in pandemic and/or post-pandemic contexts, requiring new skills that did not previously exist in those companies.
  • The energy industry is experiencing a boom after several years of stagnation. In other industries, some companies that entered the Romanian market in 2019-2021 have halted development, so job offers are now available that can catch up the gap between these 2 years.

Last but not least, a major trend among companies is the focus on employee wellbeing, which will increase in the second half of 2022, K2S specialists note. In most companies, employees work in a hybrid format and a key concern for business leaders will be to maintain the emotional balance and the employees wellbeing.

businesscompaniescompetenciesHRincreasejobsK2Sproductivityrecruitmentretailtop management positionswellbeing
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