The Human Resources in Romania before and during

The Human Resources in Romania before and during the crisis Survey – July – September 2010

The objectives of this initiative To see what changed, what’s new and what… disappeared from the HR landscape in Romania in terms of strategic HR processes and activities from January 2009 to date To see what our Clients need and want during these hard times for HR To see what trends our peers anticipate and what they need for the coming period of time (6 months – 1 year)

Content Section 1: General information on responding companies Section 2: Comparison Before and After January 2009 Section 3: Trends and directions after January 2009 (market response to crisis)

Section 1: General Information on the 21 Responding Companies

Who participated? Responding companies in numbers and percentage of total respondents a) b) c) d) e) f) g) h) 1 3 0 1 2 1 3 10 4. 76 14. 28 0 4. 76 9. 52 4. 76 14. 29 47. 6 B 2 B, Real Estate, Security, Oil & Gas, FMCG & Agribusiness, Services, Production.

Who participated? (2) Responding companies in numbers and percentage of total respondents a) b) c) d) a b c d 4 11 2 4 3 17 0 1 19. 05 52. 38 9. 52 19. 05 14. 29 80. 95 0. 00 4. 76

Who participated? (3) Responding companies in numbers and percentage of total respondents a) b) c) d) a b c 3 11 0 5 7 14 0 14. 3 52 0 23. 81 33. 3 66. 7 0

Opinions about the survey Q 18. About this survey: was it worthwhile? Do you think the answers will be helpful to you and you want to join our future round tables after processing the results? a) Yes I think the results will be helpful and the survey items are pertinent for the actual HR market in Romania. I will join the group events and round tables. b) I think it's a good study but I am not sure how much I will get involved in the future. I just want the survey results for the information purpose. c) I don't believe the results will be helpful in any way. Responding companies in numbers and percentage of total respondents a) b) c) 15 6 0 71. 43% 28. 57% 0

Section 2: Comparison Before and After January 2009

Before January 2009 Q 6: HR Processes and Activities The following processes and activities are in place within my organization: a) Recruitment and selection 21 100% b) Employee Induction (organized by HR, with a minimum duration of 3 days) 16 76. 2% c) Performance Management 18 85. 7% d) Career Management 14 66. 66% e) Employee Satisfaction Survey 14 66. 66% f) Comp & Ben (other than salaries) 17 80. 95% g) Training and professional development 20 95. 24% h) Other 5 23. 81%

Before January 2009 Q 7: From these activities, the following were in place before the crisis (January 2009) and were outsourced, rolled-out internally or both Outsourced 1 (4. 76%) Performance Management Career Management 8 (38. 10%) 14 (66. 66%) 11 (52. 38%) 2 (9. 52%) 7 (33. 33%) 2 (9. 52) 9 (42. 86) 1 (4. 76%) 2 (9. 52%) Employee Satisfaction Survey Comp & Ben (other than salaries) 1 (4. 76%) Training and professional development Other Both 10 (47. 61%) Recruitment and selection Employee Induction (organized by HR, with a minimum duration of 3 days) Rolled-out internally 14 (66. 66%) 4 (19. 04%) 12 (57. 14%)

Before & After January 2009 Q 8 & Q 11 The following HR activities were considered strategic: Before January 2009 After January 2009 a) Recruitment and selection 18 85. 71% 14 66. 7% b) Employee Induction (organized by HR, with a minimum duration of 3 days) 7 33. 33% 6 28. 6% c) Performance Management 15 71. 42% 16 76. 2% d) Career Management 10 47. 61% 11 52. 38% e) Employee Satisfaction Survey 6 28. 57% 10 47. 62% f) Comp & Ben (other than salaries) 12 57. 14% 13 61. 90% g) Training and professional development 16 76. 2% 15 71. 43% h) Other (None, Key Employee Retention) 2 9. 52%

Before & After January 2009 Q 9 & Q 10: Before January 2009 the size of the HR budget was a fixed amount or it was related to the company turnover as a percentage. In case of the last situation, Before please specify the percentage in the After January "Other" January 2009 box. Less than 50. 000 Euro 7 7 50. 000 - 100. 000 Euro 6 6 100. 000 - 300. 000 Euro 1 2 300. 000 - 500. 000 Euro 1 0 Over 500. 000 Euro 2 3 Other (10%) 1 1 Other (No budget just for HR) 3 1 No responses 1

After January 2009 Q 12: After January 2009 the outsourcing budget was kept (at least for a part of the outsourced activities), other activities are rolled-out internally and others are no longer part of our HR activities: Recruitment and selection Out. Sourced 1 4. 76% Employee Induction (organized by HR, with a minimum duration of 3 days) 1 4. 76% 14 66. 66% 1 4. 76% 12 57. 14% 1 4. 76% 15 71. 43% Comp & Ben (other than salaries) Other (special projects and hard skills training, key employees retention) 6 28. 57% 16 76. 2% Career Management Training and professional development Both (internal and outsourced) 12 57. 14% 15 71. 43% Performance Management Employee Satisfaction Survey Rolled-out internally No longer performed 3 14. 29% 1 4. 76% 10 47. 61% 2 9. 52% 1 4. 76% 5 23. 81%

After January 2009 Q 13: After January 2009 the following HR processes and activities were introduced and they are outsourced or rolled-out internally or both: Introduced after Jan 2009 Recruitment and selection Employee Induction (organized by HR, with a minimum duration of 3 days) 1 4. 76% Performance Management 2 9. 52% Career Management 6 28. 57% Outsourced Rolledout internally Both (internal and outsourced) 1 4. 76% 6 28. 57% 1 4. 76% 2 9. 52% 1 4. 76% Employee Satisfaction Survey 2 9. 52% 1 4. 76% Comp & Ben (other than salaries) 2 9. 52% Training and professional development 1 4. 76% Other (Employee recognition program) 1 4. 76%

Section 3: Trends and directions after January 2009

After January 2009 Q 14: After January 2009 we are doing internally HR processes and activities to an extent of (please chose the percentage) and hired extra people to ensure the necessary resources (please tick the option if applicable): Less than 25% 2 9. 52 25 - 50% 0 0. 00 50 - 75% 6 28. 57 75 - 100% 11 52. 38 We hired extra people to be able to do it Internally 1 4. 76 No responses 1 4. 76

Focus for next 6 – 12 months Q 15: In the next short term period (6 months – 1 year) the focus is on the following HR activities, internal or outsourced or both: Internal Outsourced Both Recruitment and selection 7 2 5 Employee Induction (organized by HR, with a minimum duration of 3 days) 8 1 0 Performance Management 10 4 3 Career Management 10 2 1 7 3 2 Comp & Ben (other than salaries) 10 3 1 Training and professional development 10 2 8 Consultancy on HR process effectiveness 4 3 0 Other (Work H & S, Key Employees Retention) 2 Employee Satisfaction Survey 71 – 80% of companies focusing on Recruitment and Training will keep on outsourcing as well as rolling these processes internally.

Round tables subjects Q 16: In the following areas the HR department has a need for external interventions and/or experience exchange with other companies through meetings or round tables: External Interventions Experience Exchange Recruitment and selection 3 3 0 Employee Induction (organized by HR, with a minimum duration of 3 days) 0 4 2 Performance Management 0 11 3 Career Management 1 8 4 Employee Satisfaction Survey 0 6 3 Comp & Ben (other than salaries) 2 8 3 Training and professional development 4 2 6 Consultancy on HR Process effectiveness 1 6 4 Both

Round tables subjects (2) Q 17: Other aspects you consider relevant for this analysis and which weren’t included in the survey topics list (therefore they will be subjects of future round tables): 1. ROI in soft skills training 2. Retention programs, not necessarily the ones included in induction programs 3. Aspects related to building and promoting an employer's brand 4. Managing the organizational climate