Specifics of the CEE- SEE talent market. Western-Balkan region countries -Region has more than 20...

Specifics of the CEE- SEE talent market

Western-Balkan region countries

-Region has more than 20million population

-High GDP growth before the economic-crisis, major privatizations still underway

-Region attracted above 10 billion EUR FDI’s/year

-Countries are allready members of the EU and NATO

-Several countries are using the same language

Eastern-Balkan region countries

-Region has similarly 29 million population

-High GDP growth expectations before economic-crisis,

-Major privatizations still underway

- Countries are already members of the EU and NATO

Current economic figuresGDP per capita in US$

COUNTRY 2006 2007 2008 2009(estimated)

Slovenia 21.000 25.426 27.511 29.500

Croatia 9.426 10.974 12.114 16.100

BiH 3.154 3.615 3.154 6.500

Serbia 4.216 5.270 5.838 10.900

Montenegro 3.693 4.363 4.828 9.700

Macedonia 3.010 3.220 4,6 9.000

Romania 10.700 11.400 12,600 11.755

Bulgaria 11.3 12.1 12.9 12.296

Hungary 19.3 19.6 19.8 19.044

Current economic figuresGDP per capita in US$

0

5

10

15

20

25

30

2006 2007 2008 2009

Slovenia

Croatia

BiH

Serbia

Monten.

Macedon

Romania

Bulgaria

Hungary

GDP growthReal GDP growth (%)

COUNTRY 2006 2007 2008 2009(estimated)

Slovenia 5,8 6,8 3,5 -7,4

Croatia 4,8 5,7 2,4 -5,8

BiH 6,2 5,5 6,0 -3,0

Serbia 5,7 7,0 6,0 -2,0

Macedonia 3,1 4,6 4,7 -2,0

Montenegro 6,8 6,0 6,0 -4,2

Romania 4,1 7,7 6,0 -8,0

Bulgaria 6,3 6,2 6,0 - 6,3

Hungary 4,0 1,0 0,6 - 7,20

GDP growthReal GDP growth (%)

-8

-6

-4

-2

0

2

4

6

8

2006 2007 2008 2009

SloveniaBiHMacedoniaSerbiaCroatiaMontenegroRomaniaBulgariaHungary

Demographic data 2009

Slovenia Croatia Serbia Montenegro BiH Mace-donia

Romania Bulgaria Hungary

Population (in million)

2.05 4.49 7.37 0.62 4.55 2.05 21.5 7,61 10,02

Median age (years)

41.7 41 41 36.7 39.8 35.1 37.7 41,1 39,4

Population growth rate (%)

+1.4 -0.03 0 +0.2 +0,4 +1.1 -0.127 -0,79 0,139

Birth rate / 1.000 population

8.97 9.64 9.19 11.14 8.85 11.97 10.7 10.2 9,9

Death rate / 1.000 population

10.62 11.75 13.86 8.63 8.63 8.83 11.77 14.5 13,0

Life expectancy at birth (years)

76.92 75.35 73.90 75.20 78.50 74.68 72.18 73.09 73,3

Labor force (in million)

0.920 1.781 2.961 0.259 1.196 0.900 9.705 2.338 4,195

Unemployment rate (%)

6.6 9.6 19.0 11.2 31.1 35.0 6.7 7.0 9.9

0

100

200

300

400

500

600

700

800

900

1000

EUR netamount

SerbiaMontenegroBiHCroatiaSloveniaRomaniaBulgaria

Average Salaries’ Comparison

Retirement age

Slovenia Croatia Bosnia & H. Serbia Macedonia Montenegro Romania Bulgaria Hungary

Women

56-if at least 36 years + 9 months of completed service61 + 20 years of completed service63 + 15 years of completed service

60 + at least 15 years of completed service

When 40 years of service is completed-age not important.In case 40 years are not completed than the limit is 65 years + minimally 20 years of completed service

58 and 6 months or after 35 years of service completed

In 2011 the level will be 60

After 35 years of completed service, if they had at least 30 years of service can be at 62

57-with the minimal of 18 years of service completed

Standard retirement age in present is 57According to the law till 2013 standard retirement age will gradually reach age 60 years

Standard retirement age 60

Standard retirement age 62

Men

58 + 40 years of completed service63 + 20 years of completed service65 + 15 years of completed service

65 + at least 15 years of completed service

When 40 years of service is completed –age is not important.In case 40 years are not completed than the limit is 65 years + minimally 20 years of completed service

63 + 6 months or after 40 years of service completed

In 2011 the level will be 65

Standard retirement age 64

62-with the minimal of 18 years of service completed

Standard retirement age at present is 63According to the law till 2013 standard retirement age will gradually reach age 65 years

Standard retirement age 63

Standard retirement age 65

Labour conditions

Slovenia Croatia Bosnia & H. Macedonia Montenegro Serbia Romania Bulgaria Hungary

Length of work week

40 hours 40 hours 40 hours 40 hours 40 hours 40 hours 40 hours 40 hours 40 hours

Holidays min 20 days

min 18 days

min 18 days min 18 max 26 days

min 18 days min 18 days min 21 days min 20 day min 22 day

Unemploy-ment benefits (from 3 - 24 months)

first 3 months 70%, than 60 % (average wage for the last 12 month)

80% for first 78 days; than 60% (average wage for the last 3 months)

30 per cent of the state average wage – in the BiH are only available for six months – although these are available longer for those who had been in continuous employment for more than five years.

40% of net average monthly wages in the first 6 months of benefits and to 30% of net average monthly wages there after in the next 6 months.

60% of the insured's average earnings in the last 6 months and is paid for up to 3 months; thereafter, the benefit is equal to 50% of the insured's average earnings.

60% of the insured's average earnings in the last 6 months and is paid for up to 3 months; thereafter, the benefit is equal to 50% of the insured's average earnings.

minimum 75% value of reference indicator (minimum brut salary (600 de lei)

The average daily unemployment benefit equals 60 % of the applicant’s average daily wage during the last 9-month period in which they made social insurance contributions. The monthly benefit is calculated by multiplying this average daily amount by the number of working days in the given month. There is a minimum and a maximum amount of unemployment benefit payable and each year these limits are adjusted.

first 91days 60%fromaveragebrut salary,than 179day60% frommin salary

Labour conditions

Slovenia Croatia BiH Macedonia

Montenegro Serbia Romania Bulgaria Hungary

Sick-ness benefits

80 to 100 % - otherwise 90 % per illness (employer pays first 30 days)

between 70% and 100% , The employer pays for the first 42 days

n/a n/a The insured receives 65% of the calculation base; 100% for a work injury or an occupational disease; 100% for a blood or organ donation. The employer pays benefits for the first 30 days

The insured receives 65% of the calculation base; 100% for a work injury or an occupational disease; 100% for a blood or organ donation. The employer pays benefits for the first 30 days

For normal disease 50%, 65%,75%,85% base salary + benefits if the worked 2 years, 2-5 years, 5-8 years and over8 years

The benefit is equal to 80% of the insured's earnings and is paid for up to 90 days.

for the first 30 days, 60% from brut salary

Labour conditions

Slovenia Croatia Bi H Macedonia Montenegro Serbia Romania Bulgaria Hungary

Maternity benefit

100% (average wage for the last 12 month)

100% of salary payable until the child is 6 months . Additional benefit payable until the child attains the age of 1 year (for the first and second child) or age 2 (for twins).

100 % salary

n/a 100% of earnings are paid with 6 months of continuous insurance coverage; 60% with more than 3 but less than 6 months; 30% with at least 3 months. The benefit is paid monthly.

100% of earnings are paid with 6 months of continuous insurance coverage; 60% with more than 3 but less than 6 months; 30% with at least 3 months. The benefit is paid monthly.

120 days, 85% from media of last 6 months total income all payments are supported by the state budget

Social security beneficiaries are entitled to maternity benefits, provided they have length of service of not less than 6 months. The daily amount is equal to 90 % of average daily wages or insurance base. Maternity benefits are payable for 315 calendar days, of which 45 before giving birth. The mother / other parent is entitled to 6 months of unpaid leave till the child reaches 2 years of age.

24 weeksMax 70% from minimum wage

What are corporate challenges in the region?

Managing through recessionSecuring the business, obtain financingDealing with redundant employeesPressure to recruit and retain the best-especially

difficult in some countries as the pool of talented individuals is very small

Responding to candidate needsMaking HR a strategic partner to managament-too

often HR still seen as an administrative rather than strategic function

Global war for talent in recession times-is region any different?

Not just among companies but among countries

For 75% of HR executives, attracting and retaining talent is a No.1 priority

40% of employers worldwide having difficulty finding talent

Restrictive immigration conditions in place to protect nation’s assets

New type of jobs in demand for anti crisis business models

Source: Peter Felix, President, AESC

Main challenges for HR managers

Domestic talent without necessary skills Low mobility, little international experiences Difficult hire-fire policy Aging populations-negative demographics

Important issues

company anti-crises measures in 2009

Governmental programs during the recession

Slovenia: 60 EUR donation/person for shortening the working week to 36 hours, additional 60 EUR if shortened to 32 hours, state guarantees for banks (12 billion EUR)

Croatia: no concrete actions yet defined Serbia: temporary stopped income tax on stocks (2012) and saving

deposits, freezing price increases on gas + electricity for individuals Bosnia & Herzegovina: no concrete actions yet defined Montenegro: no concrete actions yet defined Macedonia: 10 measures adopted. Total aid 330 million euros (four years

grace period for healthcare contributions, write-off interest on personal income tax, reduction of customs duties…)

Romania: Among measures announced, two are seen as very important for business: a six month delay for fiscal obligations that were not paid in due time because of the economic crisis payment within 45 days of state arrears to companies, such as the reimbursement of value added tax (VAT)

Most wanted profiles - Slovenia

Managament consultantsIT expertsHR ManagersSales directors-accross all industriesManufacturing heads of departmentsReal estate development engineersCFO’s in industrial sectorsSAP consultantsPharmaceutical industry experts

Most wanted profiles-Bulgaria

Financial Services – Risk Managers, Debt CollectorsInsurance – all leves BPO and Offshoring positions across the boardSales directors-accross all industriesRetail – across the board

Most wanted profiles-Croatia

Machine EngineersConstructing EngineersExperts in Finance AccountantsHR Managers and ExpertsVarious Sales Profiles and ManagersStore ManagersComputer Engineers and DevelopersManagers in Tourism

Most wanted profiles-Serbia

Plant ManagersReal estate-all functions as real estate development

is boomingInternational Financial Experts Accountants and Tax ExpertsHR Managers Retail Directors and Heads of DepartmentsCIO’s and IT developersManagers in Tourism

Most wanted profiles-Romania

 CEO &  CFO - Strategic senior BOA and top

management positions Sales Directors KA Director Retail Management Aquisition and  Senior Buyers Banking - Recovery and Work Out positions

About us

One of the first executive search firms established in Hungary 1991;

Strictly retained; Fully operational in the Adriatic region since 2000; 90% of our clients are international or regional companies

active in the region; Has operations in in Hungary (Budapest),Ljubljana (Slovenia),

Zagreb (Croatia), Belgrade (Serbia)an Bucharest (Romania)and in Bulgaria;

Assignments completed also in Czechia Slovakia, Bosnia & Herzegovina, Serbia and Macedonia;

Member of global executive search umbrella organization Cornerstone International Group (www.cornerstone-group.com)

Our services

Executive Search & SelectionInterim managamentAssessment, sucession planningManagement AuditOutplacmentAssessment CenterOrganisation DevelopmentExecutive Coaching

Completed assignments by industry 2008-2009 in the Adriatic

IT, ICT (19) Automotive (5)

Industry, Constructing (10) Life Science (3)

Finance Ind. (5) FMCG, Retail (4)

Other (5)

Completed assignments during 2006-2009 in the Adriatic

7522

3

195

Slovenia (40)Croatia (12)Bosnia & Herzegovina (3)Serbia (5)Macedonia (5)

Our strenghts

Knowledge of the region Effective cross-border

capability Language capabilities-we are

serving the clients in English, Hungarian, German, Slovene, Croatian, Serbian and Romanian language + understand Macedonian

We are highly transparent We offer strongest off-limits on

the market-24 months Our guarantee is 12 months

Sources

Factiva, Dow Jones See News Economist Intelligence Unit - Business Eastern Europe The Central Intelligence Agency (CIA), USA Bank of Slovenia European Pensions & Investments News AII Data Processing Ltd. National Bank of Serbia Central bank of Montenegro Central Bank of BIH Agency for restructuring and foreign investments of Montenegro JAPTI ,Public Agency for Entrepreneurship and Foreign Investments of Slovenia Hewitt Associates SEEurope.net National Employment Relationships Acts CIA World facebook 2009 German Trade Invest, DUIHK, Tradingeconomics See Biz

Contact

Sándor SöpkézManaging Director

EastEuroCoExecutive Search GroupTel: (+36)-1-363-5624Fax: (+36)-1-363-7228

Mobile: (+36-70-978-2807e-mail: sandor.sopkez@easteuroco.hu