Insights about data to consider for your compensation plan and retention strategy in Romania
When considering business contexts, the decisions should be data-driven. It’s not a secret anymore that data sharing and HR analytics have become a business necessity. In this article, our Edurom Consultancy specialists wrote and compiled some insights regarding data. It could be helpful for your compensation plan and retention strategy in Romania.
First of all, why is data important?
Having access to the right data will give you the most relevant insights, which will help you maximise the results of your actions and decisions. And more than ever, you can have access not only to the data inside your company. After all, continuous benchmarking and evaluation of salary and incentive levels are key to stay on target in attracting and retaining the best talent in your industry.
Showcase of costs increase in compensation
According to the last statistics published by INSSE, the overall labour cost for IT&C industry increased by 8,83% (2020 fourth quarter vs 2021 first quarter).
The category with the highest average monthly net earnings situated above the average in the national economy, was Information and Communications (+ 89.0% above the national average).
Today’s data. Future’s trends.
It is critical to get the data of today, but it is also important to observe the trends: how technologies are changing, which is the “hottest” technology in the market today, and which one was a few years ago.
For example, the migration of the employees is a phenomenon, and in post-pandemic times it appears in social media as #TheBigShift or #TheGreatResignation. Studies show that 1 out of 4 employees take into consideration quitting their job…
…which will cause an enormous impact for the teams, as well as for the companies. Imagine losing 25% of the employees you have right now, losing 25% of the knowledge and experience… Here the right usage of data information can have an important impact – to find out how, continue reading.
Food for thought: Did you know that you can get information about the net salaries
for each technology from each major IT hub in Romania by paying less than the national average cost of labour?!
How to capture compensation and benefits data?
Open studies / Secondary research
These are the well-known studies where anyone can fill in some information and then receive the results for their area of expertise.
The results from the open studies usually have lower reliability compared to the reported studies (data gathered from the companies). Because in the open studies, the data from the market can’t be validated and even if we exclude the outliers, you can’t know the level of accuracy.
Internal survey from hiring interviews
Offering a bigger salary is one of the key factors for creating dynamism in the market. Employees move from one company to another taking into consideration, among other things, a bigger compensation package.
With each move, they naturally expect a salary increase as well. Even if the seniority/ complexity levels are similar between their current and future jobs. This is why they can “artificially” raise the financial level, and the new employer does not have access to their current and real compensation package for comparison.
Recruitment and consultancy agencies
They have a good overview of the market, but their knowledge is focused on the clients with whom they work. Also, recruitment agencies tend to work mostly with higher-complexity positions (either higher seniority or requiring specific skills-sets) and interact less with easier positions to fill, such as juniors.
Your own network
It’s always good to keep in touch, and the information received can be reliable most of the time. But it’s not statistically relevant compared to the total number of specialists available on the market.
Less than 5% of data-sharing programs will be able to correctly recognize trusted data and locate trusted data sources, through 2022 – according to Gartner, global research and advisory firm.
External salary survey
Today, it’s critical to use the most up-to-date compensation information from trusted sources/ data. Among other advantages, external salary surveys offer highly representative data and take into consideration multiple dimensions of the employee-related costs for the company.
Is it worth investing in an external salary survey, conducted by a consultancy team?
Receive a personalized answer by starting a discussion with our data specialists:
- email@example.com/ LIn – Adrian has experience in performance improvement, leadership training and emotional intelligence coaching
- firstname.lastname@example.org/ LIn – Georgiana has experience in market research and is passionate about data analysis
Insights written and compiled by EDUROM Consultancy, division of EDUROM, Human Resources and Management Consulting Group present on the market since 2002, with offices in Bucharest and Iași.