Partner Series | Insights into Romania's Evolving Labor Market

In our ongoing ENEX Partner series featuring our global firms and the people behind, we now turn our spotlight to HILL International Romania.

Adapting to Change: Insights into Romania's Evolving Labor Market

We are pleased to speak with Anca Raican, who offers her expert insights into the dynamic economic landscape and labor market trends currently shaping Romania.

How would you describe the current economic situation and the labor market in your country? 

Change, transformation, fluctuation, and (im-)migration could be said to have been portraying Romania over the last few years, both when dealing with the economic situation and the labor market. The pandemic has significantly reshaped businesses, the market, and job demands, and currently, we are in a continuous process of redefining, rewriting, and adapting to the new normal, which is constantly transforming and becoming each day’s new reality. The GDP is expected to grow by 3.3% currently and 3.1% in 2025. The aging population is increasing, while Generation Z is emerging more prominently. We are fortunate; Romania has a strong population mastering foreign languages, sometimes with a mix not easily found, enabling the younger generation to easily access preferred opportunities for entry-level roles (the call centers/BPO businesses still rank in the top three; these are, for many of them, a stepping stone for the development of a successful professional track and open doors to a wide range of industries). The generation gap is present, and organizations are in the process of adopting the most appropriate plans for securing sensitive lines of management; thus, more and more outstanding opportunities will address youngsters for succession planning programs. 2024 is marked by the continuous necessity of coping with uncertainty, and the overall global context will surely influence 2025 as well.

What are the main characteristics of the labor market in your country?

In a nutshell:

• Enhanced population aging process (nevertheless common to all of Europe), accompanied by the scarcity of youngsters in the job market
• Currently, three generations are active and coping with the challenge of working together
• Romania ranks globally among the first 20 countries regarding population migration; the attraction and “adoption” of non-EU labor force is becoming more and more not only a necessity but a practice to cover mainly unskilled workers
• Accelerated business automation and digitalization are reshaping the required competencies
• Employment opportunities: Public vs. Private/Corporate – Public institutions are quite attractive

How do you currently view labor mobility regarding people in your country? 

Increased mobility has changed the workforce market across Europe, and now it is happening at every workforce level. For Romania, the first impact was felt in blue-collar roles, but now challenges arise at all levels, with a special focus on highly specific technical roles. It could be said that labor mobility occurs internally within the country, as well as externally between EU countries; therefore, recruitment and selection are becoming more global and creative, regardless of where the opening exists.

How are employers responding to a shortage of employees with the right skills and qualifications?

It is becoming more of a "walking on thin ice" approach, as the shortage of well-qualified people impacts almost all organizations, and companies are more or less addressing the same pool of potentials. The topic covers multiple facets (some of which require resources, both human and financial investments) that vary from one company to another. We can talk about the "attractiveness and visibility" of the employer in the job market, employer branding actions, the Employee Value Proposition (EVP), organizational culture, salary, and benefits, etc. Solutions could be identified; what is relevant is how efficiently they can cover an existing, concrete situation. Constantly screening the market, investing in potentials, reconversion programs, and adopting more inclusive hiring policies (e.g., for employees aged 45+) might contribute. At the same time, the response time during the recruitment process needs to be significantly shortened, as promptness in providing feedback to appropriate and interested candidates becomes crucial for the decision-making process on both sides.

What trends characterize working conditions and corporate culture in your country? What motivates a manager/employee to change jobs?

When it comes to the motivational pillars, it’s not easy to present a common response. Nevertheless, the higher the role and the more sophisticated the seniority level - mainly in top and senior management positions - the more attractive the opportunity to manage teams—not necessarily larger ones, but being empowered to drive the organization to the next level. On the other hand, when it is about specialists - and now we are talking about a candidate-driven market - they are at stake as everyone is competing against the same limited pool of good professionals. The processes are triggered mainly by salary and the compensation and benefits package (which has become increasingly "creative," complex, and sophisticated, with the freedom to change between perks within certain limits). Mental health support as a benefit has gained significant ground over the last few years, along with work conditions. Of course, professional development is also important, but it seems to rank lower in priority.

As HILL International in your country, what is your contribution to making companies more successful?

First of all, “Chapeau bas!” to the HR consultancy role, to the job itself, as it is about facilitating direct connections and rapport with really fascinating people, some of them leading professionals and personalities in their fields of activity - relationships that we build to last over time. Touching on this point, it is to be mentioned that we’ve witnessed, in more than 30 years of presence in the Romanian market, the entire chain of market development. Being locally present quite soon after the 1989 Romanian revolution, it could be said that we’ve grown with the market and accessed a variety of businesses once the multinational companies decided to enter Romania. Our service portfolio has also expanded to align with new trends and practices, from executive search and personnel evaluations to management audits, career counseling, outplacement, and coaching. Thus, our local area of expertise has continuously developed not only through the services portfolio but also through the fact that acting as HR generalist consultants has significantly contributed to strong market know-how and a diverse and complex network of professionals.

Want to learn more? Go to https://www.hill-international.com

Want to meet team Romania? Go to https://www.hill-international.com/en-RO/the-team