average in the first 6 months of 2020
increased expected in 2021
The wage increases in the first half of this year were based on good performance in 2019. The trend seems to be continuing, but not at the same pace, as most companies are preparing more conservative budgets for 2021 due to the global economic uncertainty generated by the current pandemic.
In the current situation, organisations need to remain sustainable in the long term, so cost reductions are inevitable. The adjustments differ depending on the industry, the market position and each company’s resilience, but it is increasingly likely that the economic situation will remain difficult next year.
Of the industries represented in the study, the retail sector recorded the highest average wage growth, of 9.87%, followed by banking with 7.39%.
The pharmaceutical sector recorded a below survey-average increase of 4.17%.
The trend of increasing wages amongst unskilled or low-skilled personnel (workers, operators) continues, as an average of 7.32%, but even that is a reduction from last year’s growth rate in excess of 10%.
In 2020, operational management position salaries increased by 7%, with top management’s growing by 6.72%. At the other end of the scale, administrative staff, technicians and employees with little experience saw their salaries rise by 6.6%.
To reduce costs since the COVID-19 pandemic outbreak, 49% of the companies surveyed implemented work from home policies, 29% worked in shifts, 5% reduced working time and 5% implemented furloughs.
We will certainly see the continuation of these trends in the future and even accelerated by the pandemic: digital transformation, the development of skills for the future labour market, working-time flexibility, versatility of professions/ positions and, last but not least, for the good of the people.
PwC conducted the survey on 52 private companies from the Banking, Pharmaceuticals and Retail sectors. Participation in the survey implies provision of information on salary levels and compensation and benefits policies currently in place within the surveyed organisations.
The report is available on PwC's PayWell platform. Here, besides the benchmark data, you can also access executive summary reports, market insights reports including macro-economic and labour force indicators, remuneration trends and updated HR Barometer reports.
Senior Manager, People and Organisation, Romania