Employment turnover in Romania stable at 16%, Korn Ferry survey shows

The sectors of activity with the highest employee turnover rates in Romania last year were those of shared service centers (services in the outsourcing industry) with a voluntary termination rate of 21%, followed by the financial - banking sector with a rate of 21%, the automotive industry with 20% and the IT&C sector with a 20% rate, according to information provided by the executive search and management consulting firm Korn Ferry, local Ziarul Financiar reported.

In the consumer goods sector, the employee turnover was only 16% in 2019.

Overall, the employee turnover rate in the local economy reached 16% in 2019, increasing by 1 percentage point compared to 2018 and by 2pp compared to 2017.

Korn Ferry argues in its report that wage levels don’t significantly influence the employee turnover. The salary influences the termination rate only if it is below 80% of the market level, said Liviu Grigorescu, Senior Principal, Head of Rewards & Benefits solutions CEE within Korn Ferry. He added that 60% of the employees in the financial-banking sector are between 40 and 65 years old, and in the automotive industry 50% of the employees are between 40 and 65 years old.

“This points to the need for investment in professional development and reconversion. In dynamic sectors such as SSC or IT we have the opposite: 34% of the employees are between 24 and 30 years old, but in this case, we can also see a decrease in their share in the workforce compared to 5 years ago, putting pressure on the policies of attracting and retaining talents in the organization,” explained Liviu Grigorescu.

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