The lack of specialists is one of the top concerns of Romanian entrepreneurs and SMEs, according to the report “Talent Insight. The Workforce and SMEs” developed by Pluxee Romania and Ipsos Romania.
The study was designed to provide an in-depth analysis of how SMEs recruit and motivate employees and pinpoint the main challenges, trends, and dynamics in the entrepreneurial labor market environment.
As it was revealed, SMEs rank the workforce among the top three factors influencing company growth, with significantly more emphasis on entrepreneurial companies that exceed 50 employees. Moreover, employee recruitment and retention are the second major concern for entrepreneurs regarding the workforce market, closely followed by salary expectations that do not match candidate experience.
“A robust entrepreneurial sector is crucial for a thriving economy. In the context of the global economy, 70% of the workforce is employed by the SME sector. The sustainable development goals set for 2030 can only be achieved with the help of this sector, through fulfilling job demand, contributing to people’s well-being, and providing solutions for sustainable transformation. From this perspective of SME representation, Romania aligns with the global average,” said Doris Dezzani, Chief Marketing Officer of Pluxee Romania.
Inflation, affecting 52% of SMEs, tax changes felt by 45%, and workforce shortages, which hinder operations for 33% of SMEs, are the most significant external factors influencing the performance of SMEs in Romania.
Almost half of SMEs with over 50 employees consider the lack of specialists the main factor impacting their performance. Additionally, salaries not aligned with candidate experience, a problem for 32% of employers, employee retention and motivation, and discrepancies between CVs and actual experience, each cited by 30% of SMEs, are the main challenges faced by employers in the SME sector in the workforce market.
In terms of candidate selection, job postings on dedicated recruitment platforms, used by 58% of SMEs with more than 50 employees, collaborations with recruitment agencies (39%), employee referrals (38%), and postings on new job announcement platforms (36%), are the most commonly used methods.
On the other hand, 42% of smaller SMEs (under 50 employees) primarily prefer internal recommendations from employees, followed by posting on traditional recruitment platforms, used by 41% of them. About a quarter of entrepreneurs reported using internship opportunities within the company as a method to train and recruit future employees.
From the employees’ perspective, large companies offer more financial benefits, development opportunities, and the chance to work for renowned companies, a diversity of projects, greater capacity for digitalization and AI adoption, as well as access to more resources for employees.
On the other hand, working in an SME provides advantages such as a friendly work environment, direct access to management through an informal culture, the ability to directly influence decisions and strategy, direct and frequent feedback, and the opportunity for their achievements to be recognized.
The study reveals that one in two Romanian employees in SMEs feel that the imbalance between professional and personal life is the main challenge at work, and a similar percentage of employees desire more opportunities for development or advancement. Additionally, about half of the Romanian employees feel that they work in unstructured conditions and with limited resources.
At the top of the motivational factors identified by employees in SMEs, job security, mentioned by nearly a third of employees, overtime pay, valued by over a quarter of them, and employee benefits, appreciated by nearly one in five employees, rank highest.
“Talent Insight. The Workforce and SMEs” is part of Pluxee Romania’s long-term strategy to bolster the Romanian entrepreneurial sector.
In 2023, Pluxee collaborated with Startarium to support “Romanians are entrepreneurs,” a competition that celebrates the spirit of the business environment in Romania and is dedicated to both early-stage entrepreneurs and those wishing to develop their ideas. Starting in March this year, support for the entrepreneurial environment also includes Pluxee SME Connect, a platform dedicated to entrepreneurial education and inspiration.
(Photo source: Sebnem Ragiboglu | Dreamstime.com)
