NEW TRENDS
Today, the compensation practice in the central and Eastern Europe are changing with new job definitions and pay scales being created in response to a global economy.
NEW JOB DEFINITION
Western job evaluation and grading systems require a participative environment at all levels. In this context, an emphasis is placed on clarifying job responsibilities and activities. Jobholders are heavily involved in the design of jobs and structures.
SALARY INCREASE
The process of salary increase contrast with the current Human Resources approach to line management versus general employee management, decreasing the percentage difference between salary increases of manager and subordinates. In previous years, salaries of senior management always increased at a much higher rate, in both absolute and relative terms, than wages of administrative and bluecollar workers.
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Today, the difference in compensation for bluecollar workers and administrative that of their superior can be tenor even twenty fold. It is currently unclear whether this is due to :
REJECTION OF COMMUNISM
A rejection of the temporary, artificial communist egalitarian system
A mimicking of common Western European and US practices
Because the diversified investment in new forms of technology and the growth of services industries
FOREIGN COMPANIES
The foreign companies still offer better salaries; it is not unusual to see, for similar jobs, three to five fold differences in pay between privatized, foreignowned companies and stateowned enterprises.
If we take the case of Hungary, foreign companies offer, on average, higher salaries than locally owned companies, even for comparable positions. Salaries for senior and middle managers, and for some special positions, are significantly higher than for