Workforce Retention Has Become a Key Issue

Companies will put much more focus on retaining their workforce than in the past. With labor shortages still persisting in Hungary, larger employers are typically attracting labor away from each other, an expert told the business news site napi.hu.

This trend is particularly noticeable at the beginning of the year, as there is a greater willingness to change jobs, especially in manufacturing and skilled jobs. Workers are watching wages, and in these positions, they are more likely to change jobs and move more easily if offered a better benefits package, the managing director of Jobtain HR Services Ltd., Magdolna Mihályi said.

The rise in the cost of living has clearly made workers more mobile, even within the country. Wage demands will continue to grow this year, with a spike already visible in the second half of 2022, she added.

Increasing inflationary pressures will hit both the employer and employee side hard. As firms siphon laborers from each other, wages and benefit packages will continue to be the key determinants of competitiveness this year. This includes travel and housing allowances, which can make jobs very attractive. "In addition to wages, the other ways in which employers benefit their employees play a key role in retaining staff. This could be other financial benefits, assistance with living expenses or even extra gifts to support relaxation and recreation," Magdolna Mihályi stressed.