Employee Sentiment Study: What Plans and Expectations Do Employees Have in 2024?

Key findings from the MKOR Employee Sentiment 2024 study:

• 7 out of 10 individuals prefer to work remotely.
• 2 in 10 employees are considering changing their job within the next 6 months.
• 3 out of 10 people believe that the situation of their organization will deteriorate in 2024.

In 2024, employees in Romania will face various challenges and expectations regarding the workplace and the evolution of their careers.

The MKOR study on employee status conducted a comparative analysis between 2022 and 2023, with projections for 2024.

The 2023 versus 2022 analysis for Romanian employees followed the evolution of salary packages, benefits, flexibility, workload, team structure, and morale, professional development, and job security.

As the professional environment evolves and adapts to socio-economic and technological changes, employees in Romania face a series of challenges regarding working conditions and career progression.

Salary packages and extra benefits represent an important factor in retaining and attracting employees within an organization. Salary evolution reflects economic changes, the job market demand, and company strategies.

Meanwhile, workplace flexibility has become increasingly important for employees, especially in a world where technology enables remote work and flexible schedules.

Workload and team structure significantly impact employees’ experience regarding stress levels, job satisfaction, and performance. A balanced workload can improve productivity and morale among employees, while a well-defined team environment creates a positive work atmosphere.

Professional development remains an important aspect for employees, who desire to improve their skills and advance in their careers. Opportunities for growth significantly influence job satisfaction and loyalty within an organization.

Lastly, job security remains a fundamental aspect for employees, as it can have a significant impact on the financial and emotional stability of the employees.

The MKOR Study has monitored and analyzed the plans and expectations of Romanian employees and managers for the year 2024 through the examination of:

• Intentions to change jobs
• Motivational factors for changing jobs
• Profile of loyal employees vs. non-loyal employees
• Expectations regarding the evolution of unemployment rates and the organizational situation

Consequently, this research on the romanian job market provides a deep insights into employees’ and managers’ perspectives regarding their careers and work environment.

The intention to change jobs is a significant indicator of employee satisfaction and engagement with their current workplace. Understanding the motivational factors behind this intention allows companies and organizations to identify the needs and concerns of employees to develop effective retention strategies.

The profile of loyal versus non-loyal employees offers a detailed view of behavior and attitudes concerning involvement within the organization.

Expectations about the evolution of unemployment rates and the organizational situation give insights into the perceptions and forecasts of employees and managers about the state of the job market and their organizations. This information can be used to anticipate changes and to develop strategies for adaptation and risk management.

The year 2023 has been for employees a year of…

• less stability – 20% (up by 8% compared to 2022) feel that job security has decreased;
• more work – 49% (up by 8% compared to 2022) have experienced an increased workload compared to the previous year;

but also with:

• salary increases and benefits – 40% (up by 7% compared to 2022) received salary raises, while 18% (+5%) enjoyed an expansion of benefits;
• professional development – 24% (up by 7%) have had opportunities for development (training, promotion, etc.);
• flexibility – 67% (up by 4%) had a work regime just as flexible as the previous year;
• a stable team – 54% (up by 5%) stayed with the same number of colleagues.

4 out of 10 employees benefited from salary increases in 2023

Salary increases have mostly benefited full-time employees, particularly those born between 1981 – 1996, that is, the millennial generation.

However, 16% of respondents indicated they experienced salary cuts, particularly those in the freelance category.

At the same time, 24% of respondents, especially women and part-time workers ahead of Gen Z, reported they had access to more workplace development opportunities. This reflects the diverse experiences and challenges encountered in the Romanian job market.

Moreover, the preferences and priorities of Generation Z are beginning to distinctly shape the landscape of the modern work environment.

Flexibility has become a central element for this generation, representing a non-negotiable aspect regarding their workplace.

Additionally, physically going to the office is no longer an attractive option for this generation, in contrast with previous generations. The MKOR study reveals that 7 out of 10 young people prefer to work remotely, adopting remote work as their preferred mode of operation.

It can be asserted that this paradigm shift reflects not only Generation Z’s adaptability to technology and socio-economic changes but also their preference for a balance between professional life and personal life.

Furthermore, 2 out of 10 wish to have the possibility of working from home at least a few days per week. This desire underscores the increased demand of Generation Z for flexibility and autonomy in the workplace.

The Workload Has Increased in 2023

This is the perception of 49% of millennials and individuals with high incomes. This observation indicates a reality where many professionals have experienced increased pressure in terms of workload and responsibilities.

Surprisingly or not, 8% of those with lower incomes report a decrease in workload.

Understanding the impact of workload on employees allows organizations to develop more efficient strategies to create a balanced and productive internal work environment.

2 in 10 Employees Might Change Their Job in the Next 6 Months

The intention of employees to change their job is an essential source for understanding the trends and motivations behind their decisions. According to the MKOR study, it appears that 2 in 10 employees in Romania are predisposed to change their job in the next six months.

The reasons for this intention are varied and reflect the individual needs and aspirations of the employees. Notably, a higher salary, opportunities for more fringe benefits, and greater job security are the main factors influencing this decision.

80% of those considering a job change would do it mainly for a higher salary. This significant percentage underscores the importance of financial factors in professional decision-making. Moreover, the MKOR study has shown that those employees who are predisposed to change their job for a higher salary are mostly men, over the age of 26, and parents with children under 18.

Workplace Priorities Differ for Gen Z

For Generation Z, flexibility and career advancement are priorities compared to the benefits and job security. We are witnessing a shift in the mindset of young professionals, who place an emphasis on autonomy and personal development within their careers.

Competitive financial offers remain the main motivation for 8 out of 10 young individuals. This emphasizes the importance of financial compensation in attracting and retaining young talent in the professional field.

A flexible work schedule (37%) and career advancement opportunities (27%) are key criteria for Generation Z individuals when choosing a job. Flexibility in the work schedule and growth prospects are considered essential for their job satisfaction and commitment.

On average, young individuals expect to stay in the same position for approximately one year before being promoted. Today’s youth aspire to rapid career development.

The Likelihood of Changing Jobs

Individuals who consider it less likely to change their current job (57%) are primarily men over 43 years old, belonging to Generation X (born between 1965 – 1980), who have family responsibilities, including children. These are full-time employees with a monthly income ranging between 3000 and 6000 lei. During 2023, they have enjoyed job stability and continued to work in a flexible environment without being pressured to work additional hours.

Half of these loyal employees experienced salary increases during 2023, and one in four was rewarded with additional benefits, indicating recognition and appreciation for their contributions to the organization. Also, 30% of these employees who exhibit a reduced likelihood of leaving their current job consider that opportunities for advancement and professional development improved in 2023, making them less inclined to seek other career opportunities. These aspects contribute to a sense of loyalty and job satisfaction, decreasing the probability of looking for a new position in the future.

A small but significant percentage, approximately 23%, consider it highly probable they will change their current job, a sentiment particularly expressed among Millennials, aged between 27 and 42, the majority of whom are without children. This tendency could be attributed to a combination of factors that include financial aspects, workplace stability, and professional development opportunities.

Four out of ten employees earning under 3000 lei per month, and the financial situation has not significantly changed compared to the previous year. Salaries and benefits remain similar to those in 2022. This financial stagnation can fuel a sense of insecurity and may stimulate the search for other career opportunities.

Furthermore, in the course of 2023, these employees have witnessed an increase in job instability due to changes reflecting a decrease in team size and morale within the organization. This instability makes them more inclined to consider looking for a new job with a better environment. The absence of opportunities for professional development at the current workplace is a crucial factor that contributes to the decision to seek alternative career paths.

Also, MKOR’s data analysis revealed that Millennials are predisposed to seek a salary increase in the following year, trying to improve their financial situation and face increased living costs.

In the same period, four out of ten individuals in the Millennial category express intentions to seek alternative ways to supplement their income, including through secondary jobs or independent work activities.

Pessimistic Expectations Regarding the Evolution of the Romanian Labor Market

67% of employees (14% less than in 2022) and 59% of managers consider the number of unemployed to increase in 2024. 5% of respondents believe the general unemployment rate will decrease. Thus, there’s a prevailing sense of concern regarding the general outlook and perspectives on the labor force in the upcoming year.

32% of employees believe that the situation will worsen in 2024

According to the MKOR study, employees are more pessimistic than managers regarding the evolution of the unemployment rate for the current year. Nonetheless, only 4% of employees expect to change their workplace in 2024.

Managers tend to be more categorical regarding the organization’s evolution: 4 out of 10 believe that the situation of the organization they are part of will deteriorate in the following year.

Only 13% of employees, and 26% of managers, consider that the situation of the organization they work for will improve in 2024.

Information about the study

The results are extracted from the MKOR studies Employee Sentiment and Consumer Sentiment.

Information about Gen Z was taken from the study PulseZ – Portrait of Gen Z, conducted in partnership with VSFA (I Want to Be an Entrepreneur), a Romanian Business Leaders project.

Sample size:

• N respondents Employee Sentiment=1000
• N respondents Consumer Sentiment=2486
• N respondents PulseZ=1038

Sample characteristics: nationally representative by gender, age, and geographic distribution

Research method: opinion survey (CAWI)

Instrument: questionnaire

Approach: online, via the MKOR research panel

Period:

• Employee Sentiment – November 2023
• Consumer Sentiment – December 2023
• PulseZ – October 2023

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