PwC study: Human capital return, slightly improved by 4 pc, higher than the European average
Human capital return on investment in Romania (HC ROI) – calculated as the number of monetary units generated by each employee for each monetary unit invested in its salary – is 1.30, according to the PwC Saratoga 2014 study released on Thursday, 4 percent higher than 2013 and 16 percent higher than the European average.
“While the revenues of Romanian companies did not increase significantly last year and the remuneration costs have been relatively constant, the slight increase of human capital return on investment compared to last year was generated by the optimization of indirect costs for companies, although we have also noted some remarkable investment in modern information systems such as ERP and CRM programs, that lead to an increase in productivity”, stated Hora?iu Cocheci, Senior Manager, Human Resources Consulting Services team leader, PwC Romania, a press release informs.
Human capital return on investment in Romania is higher than the EU average (1.12) and the CEE countries average (1.28).
In terms of industry sectors, there was a positive evolution of the HC ROI in financial services (from 0.92 to 1.97). On the other hand, HC ROI decrease in the pharmaceutical sector (1.60 compared to 2.01 last year), FMCG (1.23 vs. 1.50 last year) and industrial products (1.11 vs. 1.34), and maintained at the same level in the retail sector (1.03).
Companies continued to invest in employee development, with an increase in the number of training hours per employee (18 hours, compared to 15 last year). On the other hand, the costs allocated for these kind of activities decreased (105 EUR per employee vs. 135 EUR last year).
„This shows that companies understand the need to invest in their employee’s development, but have become more innovative in terms of specific programs involved, using more cost efficient methods of training such as e-learning platforms and long distance classes”, stated, in her turns, Nicoleta Dumitru, Manager, Human Resources Consulting services, PwC Romania.
The number of training hours offered by Romanian companies is in line with the European average (18 hours of training per employee on a European level and 19 hours in CEE countries), while the costs are lower (105 EUR per employee in Romania compared to 210 EUR in Europe and 170 in CEE).
The PwC Saratoga Romania 2014 survey presents comprehensive data on specific Human Capital indicators based on data collected from 80 participating companies from five industry sectors (pharmaceuticals, FMCG, industrial products, retail and financial services).