Companies plan to pay more year-end benefits
While most businesses granted lower salary raises this year than planned, they are generally calculating with significantly higher end-of-year bonuses and premiums, according to research by job search portal Profession.hu.
Besides extra remuneration, providing mobile phones, training opportunities and catering support are among the most popular benefits provided to employees.
According to Profession.hu, surveyed companies planned to increase wages by 9.1% on average in 2019, but have only raised them by 8.3%. One-third of employees received no raise at all. On the other hand, 28% of companies plan to hand out a 13th month salary, with 56% of businesses aiming to distribute bonuses, and 37% to grant premiums. All of these rates are above those of last year.
Most businesses are calculating with wage increases of 8.2% in 2020, the report adds.
Among fringe benefits, most employers (60%) opt to hand out mobile phones. Bonus training and development opportunities are also popular, present at 40% of businesses. A little more than a quarter of companies also offer catering support to employees.
The research also reveals that 75% of companies say some job applicants send their CVs without possessing the necessary experience and knowledge to be able to fill a given position. While still high, this rate is down from 82% last year.
On the other hand, the number of those who say that applicants ask for unreasonably high salaries is on the rise, standing at 68% of the surveyed, compared to 38% two years ago. The overwhelming majority (82%) of companies say they are planning to either increase or keep steady the number of their employees.
"Some 93% of job seekers start to look at job postings when looking for employment, so itʼs not a coincidence that 86% of businesses still think of advertising on job search portals as their primary and best recruitment tool," says Imre Tüzes, head of business development and product management at Profession.hu. "Besides, an increasing number are trying to involve social media in their search. In order to enhance recruitment efficiency and success, ensuring the strategic role of HR and a well thought-out strategy is more important than ever," he adds.
Only 45% of surveyed companies have an HR team, and just 28% have an HR strategy, the research shows. Still, about 25% of businesses are planning to introduce such planning. More than half of respondents say they have a fixed recruitment and selection process, and a further 18% are planning its introduction. On the other hand, while some three-quarters of employers had a conscious wage policy in 2017, the rate stands at only 65% today.
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