The productivity of the Romanian workforce has improved

Written by: Bridgewest

The_productivity_of_the_Romanian_workforce_has_improved.jpgLast year, the productivity of the Romanian workforce grew by 4% to 1.3. This indicator measures the gross income generated by each employee for each unit of currency (euro, dollar or lei) paid by the employer as compensation. At a European level, the Romanian workforce is 16% more productive than the European average (which has an average of 1.12) and also when compared to the average recorded in Central and Eastern Europe (1.28). This illustrates a previously acknowledged fact, well known even by foreign investors - the Romanian workforce is highly qualified and productive.

A positive evolution in the financial sector

In terms of employee productivity in business sectors, the financial sector in Romania seems to have the most productive employees. The indicator in this sector grew from 0.92 to 1.97. However, the productivity decreased in other business sectors like the pharmaceutical sector, consumer goods and industrial products. The productivity index remained unchanged in the retail sector (1.03).
This evolution is impressive given the economic situation in the country: the salaries have remained relatively constant and the company incomes have not grown significantly from 2013 to 2014. The growth seems to have been caused by a more efficient management of indirect costs incurred by the companies. Another significant matter was the large amount of investments in modern information systems that lead to an improvement of employee productivity.

Investing in the employees

Companies in Romania continued to invest in the development of their employees and registered an increase in the number of training hours per each employee (18 hours in 2014 compared to just 15 hours in 2013). However, the costs associated with employee training seem to have been lower in 2014 than in 2013 (105 euros per employee versus 135 euros).
This shows that Romanian employers understand the value of their employees and the importance of investing in their constant development. Companies are looking for more cost-effective ways to train their employees such as e-learning platforms and distance learning courses.
If you would like to know more about the costs incurred by the employer for offering various training services for its employees, please contact our Romanian accountants.