Hewitt: 85% of real estate players will operate personnel cuts

Ziarul Financiar 23.02.2009

85% of real estate companies on the Romanian market have personnel cuts planned for this year, while all players will reduce the variable component of incomes in the entire organisation, reveals a survey conducted in December last year by HR consultancy Hewitt Associates. The fall of the real estate market has prompted increasingly more companies in the sector to restructure and resize their business over the last few months. One of the latest to announce restructuring measures is real estate developer European Future Group, which ended up with 90% fewer employees over the last six months, while CBRE Eurisko laid off one in three employees in the same period. "This year, the base salary will rise by a very small percentage in the real estate sector, with some companies freezing salaries for some business lines, or even for the entire company, as opposed to reports in September 2008, which provided for increases ranging from 10% to 15%, or even 20% in some cases," says Geanina Rindasu, Total Compensation Measurement Romania Lead with Monday Insight Consulting, strategic partner of Hewitt Associates on the Romanian market.