The RCI for the Greek labor market remains low for the 1st half of 2010

Monday, 25/01/2010

Reduction in recruiting processessalary increases of no more than 4% and fear for the repercussions of the financial crisis, still remain some of the findings of the Recruitment Confidence Index survey which is carried out every six months. The results for the 1st half of 2010 show that a 40% of Greek companies have proceed in layoffs, while one out of four companies is expected to reduce its manpower.

The survey is carried out by the Applied Research & Innovation Department of ALBA Graduate Business School, and its main objective is to explore the perceptions and trends of companies regarding their recruitment processes and methodologies over the next 6 months. 

The results of the survey were presented on January 21, during a special event organized by ALBA and chaired by ALBA Professor, Dr. Olga Epitropaki. The event included a panel discussion by HR Directors of renowned Greek companies who showcased their HR practices during the crisis.

A great number of General Managers and HR Directors of Greek companies attended the event and had the opportunity to exchange interesting views concerning the impact of the current financial crisis as well as possible ways to overcome it, during the discussion that took place before the conclusion of the event.  

The main area under discussion at the event was the rather noticeable decrease of the Recruitment Confidence Index, which is adjusted every six months through the survey. The 1st round (1st half) of 2010 was carried out in the time period December 2009 – January 2010 with the support of ECDL Hellas. Eurobank Business Services sponsored the Special Theme of the survey entitled “The Financial Crisis and its Repercussions”, while the special event was sponsored by Continental tyres. More than 2,400 invitations were sent to HR departments, Recruitment and Selection Managers, CEOs, etc. of companies in Greece.

The main findings of the survey can be summarized as follows:

  • Stagnancy in recruitment and selection of new personnel remains for the next six months
  • The majority of companies is expected to reduce all respective activities concerning recruitment and selection of new personnel during the next 6 months.
  • Almost half of the companies that are operating in Greece are expected to maintain their number of employees, while 1 out of 4 (26.3%) is expected to reduce it.
  • 40.2% of the companies have been affected either a lot or dramatically by the current financial crisis, while only 3.8% state that they have not been affected at all.
  • Concerning the next 6 months, 42.5% of the participating companies expect to be affected a lot or dramatically by the current financial crisis. On the other hand, 25.8% remain optimistic and expect that will be slightly affected by the crisis.
  • 45% of the companies have decreased bonuses, 40.7% have not given any salary increases whereas employees' executive training has also been negatively influenced during the last six months. The same trends are expected for the next six months and education is expected to be even more negatively influenced.  
  • Salary increases in nearly 65.5% companies that participated in the survey will be around 4% for the next year. 0.5% of the participating companies are not expected to give any increases.
  • Greek companies, in comparison with multinational ones, appear to be more intimidated by the repercussions of the financial crisis, while dramatic implications are primarily expected in the fields of Commerce and Tourism. Moreover, one out of two banks believes that it will be largely influenced from the crisis.
  • 61.6% of the companies employ personal interviews as the main employee selection tool, while 29.7% of the companies employ other tools as well, such as psychometric tests and assessment centres.
  • The most notable implications are expected in the Construction and Education industry sectors , followed by the Services, Retail and Manufacture sectors. On the other hand, Pharmaceutical and Telecommunication/IT companies seem more optimistic for the 1st half of 2010.
  • Despite the general negative climate, 64.6% of participants seem to be rather optimistic concerning the future of their company, a percentage, however decreased compared to the previous year.
  • 21.5 of the companies have assigned their payroll to outsourcing companies for cost reduction purposes.
  • The tendency towards recruiting young employees and alumni is still high during this half.
  • 57.9% of the companies consider a postgraduate degree as a prerequisite for the selection of new personnel. 
  • Concerning IT knowledge, basic or advanced certification is required for almost all positions, except for Sales Employees as well as Reception and Warehouse Employees, where IT knowledge is desired without any certification.

From the 209 companies that participated in the survey, 51% were Greek, whereas 49% were multinational.

The collection of data for the 2nd half of 2010 will take place during May -June 2010. You may download the complete report with the results of the survey, as well as the analysis concerning the repercussions of the financial crisis here

Event Presentations

  • Mr. Panagiotis Tarsinos, RCI Project Manager, ALBA Graduate Business School
  • Dr. Olga Epitropaki, The Stavros Costopoulos Chair in Human Resource Management and Development, ALBA Graduate Business School
  • Ms Elina Psimiti, President & CEO, Psimiti S.A.
  • Ms Vicky Bouzouki, HR Director Greece, Coca-Cola HBC
  • Mr. Thomas Kougoulos, Human Resources Director, Abbott Hellas S.A.

For more information on the survey please contact Mr. Panagiotis Tarsinos, e-mail: RCIHellas@alba.edu.gr, tel.: 210 8964531.