Managers' salaries are expected to increase by 9 to 15% this year, thus slowing down the recent growth, when the market average stood at 30-40%, and even doubled for certain positions and fields.
Considering a general manager earned an average gross salary of 12,000 euros per month in 2007, and the salary increase for this position is put at 9.3 to 12%, the heads of organisations could earn up to 13,500 euros on average in 2008, according to the forecasts by the experts of human resources consultancy Mercer.
Mihaela Damian, partner and associate of executive search firm Stanton Chase Romania believes the increase margins for the top management positions will range between 10-15%. She adds that factory manager salaries should go up, too, because the managers in the manufacturing field have been neglected when it comes to salary increases over the last few years.
At the same time, the middle management salaries will increase at about the same rate, so that a sales & marketing manager will make 6,300 euros on average per month, while a chief financial officer will make more than 6,000 euros. However, considering that the base salary is complemented by the compensation and benefits package, the total income of a person on a managerial position may end up much higher. The biggest bonuses are awarded to the heads of organisations, and amount to approximately 30% of the base salary. The senior management category on the domestic market gets up to 25% of its base salary as bonuses, while the average bonus amounts to 15% of the base salary.
The salaries of the heads of organisations will increase by 9% to 12%, those of executives will rise by up to 11%, while the employees that fill other management positions and specialists will receive up to 12% higher salaries, Mercer officials say.
Although the increases in managers' incomes were significant in 2007, the gap between salaries and those of their counterparts working in Western Europe is still quite wide. Whereas a middle manager that works in a multinational present on the Romanian market earns a net amount of 2,820 euros per month, their Austrian counterpart earns 5,230 euros, 128.8% more, whilst a German makes 5,846 euros, 146.6% more. Romanian managers have left Bulgarian managers behind in terms of salaries, and registered 37.4% higher incomes in 2007. A Romanian middle manager also earns more than their Hungarian or Czech counterparts when it comes to net salary-15.6% and 3.9% more. On the other hand, the situation is completely different when analysing the gross salary, with middle managers in multinationals in Romania lagging behind their Hungarian and Czech counterparts.
At the other end of the hierarchy, wages for unskilled positions are expected to go up by 25% this year as a result of the increase in the minimum wage. In 2007, the minimum wage stood at 390 RON (115 euros), and the Government decided to raise it to 500 RON (150 euros) at the beginning of this year. A second raise is considered for the second half of the year, if the macroeconomic parameters maintain within the boundaries set in the budget.
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