Top manager salary 14 times higher than that of a regular employee

Publish date: 28-08-2009
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 In spite of weak economic performance, the Romanian state is delaying the adoption of principles which are making the private system more efficient. As such, while private company salaries of top managers are 14 times higher than those of unqualified workers, according to the latest study by the Mercer advisory company, with the difference at the state level at least 1 to 30.

Furthermore, the number of employees who are working for the company known as "the Romanian state" is oversized compared to western states, said an A.T. Kearney report. The ratio of employees working in Romania's public sector is far greater than Western European countries, but comparable to other Eastern countries. While the ratio in Italy is 61 state employees for every 1,000 inhabitants, 65/ 1,000 in Spain, and 69/1,000 in Germany, in Romania the ratio is 80/1,000.

"The main management problems in the public sphere comes from excessive politization and a lack of clients. A top manager in a private company receives constant feedback from clients and is obliged to ensure that his business becomes more efficient. If sales do not go well, he will be changed. At the state level, this "invoice" does not come, except based on political criteria, with no direct connection to performance," said Kurt Weber, Managing Director of the Horvath&Partners management consulting company. Weber added that the state also has other management problems, in the form of lack of continuity. "Every new director abandons the projects of the previous manager, and initiates new ones," he said.

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