New report says Romanian entrepreneurs’ biggest concern is lack of expertise
According to the report “Human Resources Insights. Workforce and SMEs” prepared by Pluxee Romania and Ipsos Romania, the shortage of professionals is one of the biggest concerns of Romanian entrepreneurs and SMEs.
The survey was designed to provide an in-depth analysis of how SMEs recruit and motivate employees and to identify the main challenges, trends and developments in the entrepreneurial labour market environment.
As revealed, SMEs rank workforce as one of the top three factors influencing company growth, with its importance even increasing for entrepreneurial companies with more than 50 employees. Moreover, employee recruitment and retention is entrepreneurs’ second biggest concern regarding the labor market, followed by salary expectations that are not commensurate with candidates’ experience.
“A vibrant entrepreneurial sector is essential for a thriving economy. In the context of the global economy, 70% of the workforce is employed in the SME sector. The Sustainable Development Goals set for 2030 can only be achieved with the help of this sector, by meeting employment demand, contributing to people’s well-being and providing solutions for a sustainable transformation. In terms of the representation of SMEs, Romania is in line with the global average,” said Doris Dezzani, Chief Marketing Officer of Pluxee Romania.
Inflation, which affects 52% of SMEs, tax changes felt by 45% and labour shortages, which hinder the operations of 33% of SMEs, are the most important external factors affecting the performance of Romanian SMEs.
Almost half of SMEs with over 50 employees consider the shortage of specialists to be the main factor affecting their performance. Furthermore, salary in line with the candidate’s experience is an issue for 32% of employers, while employee retention and motivation, as well as the mismatch between CV and actual experience (all cited by 30% of SMEs) are the main challenges facing employers in the SME sector in the talent market.
When it comes to selecting candidates, the most commonly used methods are posting jobs on dedicated recruitment platforms used by 58% of SMEs with 50 or more employees, working with recruitment agencies (39%), employee referrals (38%) and posting on new job advertising platforms (36%).
Meanwhile, 42% of small businesses (fewer than 50 employees) primarily prefer internal employee recommendations, followed by postings on traditional recruiting platforms at 41%. Nearly a quarter of entrepreneurs say they use internship opportunities within their companies as a way to train and hire future employees.
From an employee’s perspective, larger companies offer more economic benefits, development opportunities, the chance to work for well-known companies, more diverse projects, greater capacity for digitalization and AI adoption, and give employees access to more resources.
On the other hand, working for an SME has its advantages such as a friendly work environment, direct access to management through an informal culture, the ability to directly influence decisions and strategies, direct and frequent feedback, and the opportunity to be recognized for achievements.
The survey revealed that one in two Romanian employees in SMEs feel that an imbalance between work and personal life is their main challenge at work, and a similar proportion of employees would like more opportunities for growth and advancement. Furthermore, almost half of Romanian employees feel that they work in an unstructured environment and with limited resources.
The top motivating factors cited by employees of small and medium-sized companies are job stability, cited by about one-third of employees, overtime pay, cited as important by more than a quarter, and employee benefits, cited as important by about one in five employees.
“Talent Insights. Workforce and SMEs” is part of Pluxee Romania’s long-term strategy to strengthen the entrepreneurial sector in Romania.
In 2023, Pluxee partnered with Startarium to celebrate the spirit of the Romanian business environment and support the “Romanians are Entrepreneurs” competition aimed at both early-stage entrepreneurs and those wanting to develop their ideas. Since March this year, support for the entrepreneurial environment also includes Pluxee SME Connect, a platform dedicated to entrepreneurial education and inspiration.
radu@romania-insider.com
(Photo by Sebnem Ragiboglu | Dreamstime.com)
