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Romania is ten times cheaper than Western Europe on salary spending

de A.C.     HotNews.ro
Joi, 13 martie 2008, 20:30 English | Business

Romania is ten times cheaper than Western Europe on salary and non-salary spending incurred by a company for one employee, a PricewaterhouseCoopers study shows. Moreover, the study reveals that for 1 invested euro into salaries, a company receives 1.4 euro in Romania. Thus profits are higher than those in Western Europe where for 1 euro invested, the return is 1.1 euro.

Moreover, a company in Romania spends, per total, about 10000 euro as far as costs per employee are concerned, while in Central and Eastern Europe the numbers grow to 15000 and now reach 100000 in Western Europe. Since labor force weights more on spendings, these might pressure for radical business decisions, from significant technological investments to relocation, PwC Human Resources director Ruxandra Stoian told HotNews.ro.

She adds that Romania's efficiency is due to low salary costs and the tendency to increase salaries questions whether this trend will be able to maintain itself. She points that in Romania, there is already a tendency of investors to reach for higher added value investments so that, if spending increases, the profits be balanced.




















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