The study was designed to provide an in-depth analysis of how SMEs recruit and motivate employees, and also to pinpoint the main challenges, trends, and dynamics in the entrepreneurial environment of the labour market. "Talent Insight. The Workforce and SMEs" is part of Pluxee Romania's long-term strategy to bolster the Romanian entrepreneurial sector, with the company currently serving over 25,000 SMEs and supporting more than 500,000 employees who work for these enterprises.
"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 wellbeing, and providing solutions for sustainable transformation. From this perspective of SME representation, Romania aligns with the global average. Nearly 7 out of 10 Romanian employees work in an SME. 1 in 5 employees in a local SME receives monthly benefits from the Pluxee ecosystem, enhancing their quality of life. As a partner in employee benefits and engagement solutions for over 25,000 SMEs, we are committed to supporting the entrepreneurial sector with a thorough analysis of its position in the workforce market.
Our analysis indicates that SMEs rank the workforce among the top three factors influencing company growth, with significantly more emphasis in 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.
The 'Talent Insight. The Workforce and SMEs' report, which we are releasing today, is a crucial endeavor at a time when the SME sector is expected to elevate the economic level of the country as well as the quality of life for a large portion of the population. Furthermore, it assists companies in the SME environment to better understand their current position and what they can do to develop employer brands that respond effectively and positively to employee concerns and expectations, and to remain competitive in the market.", states Doris Dezzani, Chief Marketing Officer of Pluxee Romania.
Pluxee has strengthened its commitment to the Romanian entrepreneurial environment through numerous actions and initiatives aimed at supporting it. In 2023, the company collaborated with Startarium to support "Romanians are entrepreneurs," a competition that celebrates the spirit of the business environment in Romania, 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.
"The 'Talent Insight. The Workforce and SMEs' report is a comprehensive analysis of the relationship between SMEs and their employees, highlighting the solid foundation of a partnership based on mutual trust and respect, as well as the challenges faced. It is remarkable how entrepreneurs, sometimes perhaps intuitively, create an informal, creative, and dynamic climate that inspires and helps talented employees to discover and fully utilize their potential and skills.
The study poses a challenge for Romanian entrepreneurs to seize the opportunity presented to them: to reinvent the rules of the game in the workforce market, to build strong employer brands that attract and inspire an entire generation of professionals to define the future of work in Romania. The results provide a clear, comprehensive, and useful perspective on the tools that SMEs have at their disposal to correctly recruit and retain talent in an increasingly dynamic and challenging workforce market.", states Alina Stepan, CEO of Ipsos Romania.
Workforce shortage, among top 3 challenges for entrepreneurial companies
Inflation, affecting 52% of SMEs, tax changes felt by 45% of these, 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 the SMEs with over 50 employees consider the lack of specialists as the main factor impacting their performance.
Additionally, salaries not aligned with candidate experience, a problem for 32% of employers, employee retention and motivation, as well as 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.
Employee referrals, the preferred recruitment method for small companies
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, chosen by 39%, employee referrals, used by 38%, and postings on new job announcement platforms, adopted by 36% of these, 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.
Reasons why Romanian employees choose SMEs
For Romanian employees currently working in SMEs, these companies are attractive due to their organizational culture, appreciated by over half of them, career advancement opportunities, valued by nearly four out of ten, and professional development possibilities, relevant for more than a third of the employees.
Reasons that would lead Romanians working in other types of companies to choose a job in an SME include: a competitive salary, a decisive factor for 75% of them, an attractive package of employee benefits, important for 62% of respondents, an organizational culture that meets their expectations, valued by 61%, career development opportunities, appreciated by 57%, and a flexible work schedule, attractive to 41% of them.
Advantages of working in an SME versus a corporation
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.
Status of Romanian employees in SMEs in 2024
The study reveals that 1 in 2 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.
Sources of motivation for employees in SMEs
One in three employers in SMEs prefer the following methods to motivate employees: employee benefits, performance-based bonuses, overtime pay, and providing feedback and open communication.
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.
Methodology
The "Talent Insight. The Workforce and SMEs" study was conducted by Pluxee Romania, in collaboration with Ipsos Romania, during April - May 2024. The sample includes 300 entrepreneurs or managers from the SME environment and 500 employees from SMEs or those who intend to work in an SME, both categories predominantly from urban areas. Data were collected through online surveys, as well as on-site at company locations.
