Budapest Business Journal 2808

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BUSINESS JOURNAL BUDAPEST

VOL. 28. NUMBER 8

APRIL 24 – MAY 7, 2020

SPECIAL REPORT

Human Resources

SPECIAL REPORT

Uncharted Waters: HR in Challenging Times In such uncertain times, employees isolated at home in front of their screens or in fear of losing their jobs are under serious pressure that HR departments must try to alleviate. 10 -11 NEWS

It Will Hurt, all Agree, but How Much?

Opinions – even among government members – vary about the scale of the unavoidable setback COVID-19 will deal the economy, although many think Hungary will be one of the least badly affected. 3 SOCIALITE

Virtually Touring Budapest’s Art World David Holzer decides to take advantage of the “stay at home” orders by embracing culture coronavirus-style; going on a virtual tour of some of Budapest’s best loved museums and galleries. 20

Leading and Learning to Adapt

INE BUS

SS

Romke Noordhuis, ExxonMobil’s lead country manager and head of its Global Business Center, discusses management, being a runner up in the Expat CEO of the Year awards and, of course, COVID-19.  8

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News THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Balázs Barabás, Zsófia Czifra,

Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Ekaterina Sidorina, Robert Smyth, Zsófia Végh.

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BBJ-PARTNERS

The economic shutdown remains in place but, whisper it who dares, the early shoots of life (if not recovery) are discernable, appropriately enough post-Easter and well into spring. The thing to watch for is that there is no frosty coronavirus bounce back to kill off that new growth and send us all back under the duvet. Managing that kind of situation is well above my pay grade, but it is a matter of grave concern for all of us.

These are early days; we are far from the end of the crisis.

Hungarian modeling (and if there is one thing Hungarians are good at, it is mathematical modeling; just ask Morgan Stanley) indicates that the current COVID-19 infection peak will be on May 3. By that date (or at the latest May 4), Prime Minister Viktor Orbán has promised what he calls a “full self-defense plan”, building in part on the experiences of other states, to “present to the country a sober, reassuring plan of consequence.”

Of major interest to many businesses, not to say the wider public, will be when we might see a lifting of the “stay at home” orders (confusingly, the government insists on using the word “curfew” in its official English language communication, although that is clearly the wrong word since there is no compulsory overnight “lock down”) and in what format. Will children be able to return to school before the end of the academic year on June 15? Will those aged 30 and under be able to return to non-essential work, or those who have a certificate of clean health, or who have had the virus and therefore have some immunity?

While we wait to hear the detail of the return to work, the good news for the Hungarian economy is that one of its major driving forces, automotive, is beginning to shake off its unsolicited hibernation. Daimler and Suzuki have said they will restart production in a limited way at their units in Kecskemét and Esztergom later this month. Audi went back to work in Győr last week, though it has cautioned it will take a number of weeks before it is at anything like full production. PSA Group’s Opel engine factory at Szentgotthárd says it is ready to restart production as and when market circumstances and regulations allow. Component supplier Hankook Tire has restarted work at its factory in Rácalmás, south of Budapest, while Denso has also started to resume production in Székesfehérvár.

These are only baby steps, but they are at least steps, and the stride pattern will lengthen over time as work levels increase and more calls are made to the local supply chain to ramp up their own production output.

One can but worry what the casualty levels might be among Hungary’s SMEs, but that is a situation the country, and the automakers, will simply have to face once the time comes.

Until then, I hope your own business contingency planning is going well, and that we will all be back to work soon. Keep well and stay safe.

Robin Marshall Editor-in-chief

Photo: Fortepan.hu/László Fábián

VISIT US ONLINE: WWW.BBJ.HU

PATIENTLY AWAITING THE SLOW AWAKENING

THEN & NOW

To the right, in the color photo, members of the Marcal Dance and Folk Art Association engage in Easter sprinkling, a traditional Hungarian folk celebration of fertility, in 2020 coronavirus style, wearing face masks and rubber gloves. To the left, the black and white photo from the Fortepan public archive was taken in another, much older crisis: the crew of the Austro-Hungarian dreadnought battleship SMS Viribus Unitis (meaning With United Forces) gathers aboard the vessel to celebrate the Easter of 1917, somewhere in the Adriatic sea.

Photo: MTI/Csaba Krizsán

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News///macroscope

That it Will Hurt, all Agree, but Opinions Vary as to How Much

The government has been fine-tuning its economic plan to weather the crisis, and further steps are yet to be seen. The novel coronavirus pandemic will take its toll on the Hungarian economy, but opinions – even among government members – vary about the extent of the unavoidable setback.

ZSÓFIA CZIFRA

Although the Prime Minister Viktor Orbán’s response to the pandemic — to rule by decree indefinitely — has been criticized in Europe, the government’s economic rescue package and the current state of the Hungarian economy has been recognized by several international institutions.

The International Monetary Fund (IMF), for one, said in its revised World Economic Outlook that the Hungarian economy would contract by 3.1% in 2020, but put it as the second least-affected economies in the European Union.

The Fund projects that the Hungarian economy will rebound in 2021 and will expand by 4.2%. In its last previous forecast, released in the fall, the IMF had put Hungary’s GDP growth at 3.3% for this year and 2.9% for the next. The IMF’s latest forecast now sees Hungary registering the second smallest economic drop in the European Union this year after Malta, whose economy is seen contracting by 2.8%. Outside the bloc, only Serbia is seen as doing better, with a contraction of 3%.

In order to fight the economic impacts of the virus more effectively, the government said it would expand its governmentsubsidized scheme for shorter working hours, presented on April 6. The government’s stimulus package will move some

18-20% of GDP,

the equivalent of around HUF 9.5 trillion, to jump-start the economy once the pandemic is under control.

The package includes tax breaks, wage contributions and lending subsidy

Prime Minister Viktor Orbán (left) during an interview with monk Milán Lukovits, the program director of Mária Rádió, on April 20. The PM told listeners Hungary would would reach “full self-defense capability” on May 3, after which time a gradual return to normal routines would be possible. Photo by MTI / Prime Ministerʼs Press Office / Zoltán Fischer programs, as well as a kurzarbeit scheme, based on a German model used to help struggling businesses furlough workers rather from than laying them off, in exchange for job guarantees.

Fine Tuning

The measures have been criticized by some business leaders, who argue they have been too narrow in scope. “We announced the shortened labor regulation last week.[...] Now we will specify certain aspects so it is easier to take advantage of,” Minister for Innovation and Technology László Palkovics told Hír TV television in an interview.

Palkovics said the government would extend to two years the time period during which businesses can require employees to put in the hours later in exchange for wages paid while work is suspended.

While analysts close to the government voice opinions that Orbán’s economic package is well-founded and carries no risk in the long run, others warn about possible side-effects.

Conservative economist and journalist Csaba Szajlai wrote in an editorial article in pro-government national daily Magyar Nemzet that the “Orbán package” will help the Hungarian economy recover without creating long-term systemic risks.

He recalled the results of the past 10 years, saying that, as a result of low deficits and shrinking public debt over the past decade, the Hungarian economy is in a much healthier state than it was at the time of

the

2008

global financial crisis, and therefore the government has more elbow room to boost the economy through public spending.

Others, while acknowledging the package’s positive effects, are more cautious. Associate professor at the department of economics at the National University of Public Service Krisztián

Kertész told business portal portfolio. hu that, while he finds the government’s proactive policies reasonable and wellbalanced, loose monetary policy and increased welfare spending may prove counterproductive.

He also fears that the cheap money may not go to sectors that are most harmed by the coronavirus emergency, but instead will boost less risky businesses.

All in all, he welcomed the government intervention to shore up the exchange rate of the forint, along with the recentlyannounced loan repayment moratorium and tax cuts as the best tools to keep the economy afloat.

Opposition View

Opposition newspaper Népszava quotes István Csillag, who served as Free Democrat (SzDSz) Minister of Economy and Transport in the socialist-liberal coalition government of Péter Medgyessy ADVERTISEMENT

from 2002-2004, as saying that the subsidies announced by the government to mitigate the impact of the coronavirus are too little too late to help Hungarian businesses avoid insolvency. Instead, he called for increased welfare benefits to help Hungarians in need.

Opinions on the government’s side also vary on how much the current lockdown and the impacts of the pandemic will hurt Hungary’s economy.

Minister of Finance Mihály Varga expects a

3%

recession

this year. Orbán, in its latest regular radio interview, said he would consider it a feat to keep the growth rate around zero, but also said that the recession would be smaller than most observers have forecast, while the rebound could be slower than the most optimistic projections.

National Bank of Hungary’s governor György Matolcsy, on the other hand, was typically optimistic, saying he still envisions a “V-shaped” crisis, and he expects the economy to keep growing in 2020. Furthermore, he wrote in an opinion piece on növekedés.hu that Hungary could replicate Singapore’s success model after the recent crisis, noting that Hungary should follow a European, and specifically Central European version of that model.

The national news agency cited Orbán as saying in an interview with Catholic Mária Rádió that, by May 3, Hungary would be prepared to handle any rise in infections and that from that point onwards it could afford to seek ways to get back to normal, step by step. According to the modelling, the epidemic will peak on that day.

Numbers to Watch in the Coming Weeks Figures to be published in the coming weeks will finally begin to show signs of the recent pandemic. First, the Central Statistical Office (KSH) will publish unemployment figures for the January-March period on April 28. On May 6, March retail trade data will be released, followed by the first estimate of the industrial production in March on May 7 and the April consumer price index on May 8.

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News

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Do you know someone on the move? /// Send information to news@bbj.hu

SAP Hungary Appoints Sector Heads

He joined the company in 2011, working as delivery manager for Hungary for four years, before becoming delivery execution head DBS CEE in 2015. In the latter position, he was responsible for 14 countries, including Hungary.

During his career, spanning more than 25 years, he has worked in a variety of positions at companies like IBM, PwC, and Dynasoft, before arriving at SAP.

Sales Director Announced at Dreher

Béla Takács SAP Hungary announced the appointment of two new sector heads, with Béla Takács becoming the company’s financial services industry (FSI) head, and István Tóth taking the position of head of digital business services (DBS).

Béla Takács: As sector head, Takács will be responsible for assisting the digital transformation of domestic banks and insurers through the widespread deployment of SAP developments, business process automation, machine learning, artificial intelligence, smart expense management, and cost optimization solutions.

The expert joined the company 10 years ago and, as an industry expert in the field of pre-sales, provided banking and insurance clients with reporting and decision support solutions. Prior to that, he worked as an analyst, consultant, and controller for several companies in the ICT sector.

He received his degree in economics from the University of Szeged, complemented with a specialization in social security at the university’s Faculty of Law. István Tóth: In addition to his new role, Tóth will also be responsible for the development of SAP’s CEE project management team.

István Tóth

Dreher Breweries announced the appointment of Györgyi Gyovai as its new sales director starting this year, with the expert becoming a board member as well.

She earned a BSc in economics and trade at the College of Foreign Trade in Budapest, and a master’s degree in economics and marketing at the University of Pécs.

Over the course of her career, she has worked in a variety of marketing and buying positions at Mars Petcare in Hungary and Poland, and also acted as Danone’s baby food marketing director before joining Nestlé Hungária in 2013. She was appointed business executive officer at Nespresso in 2015.

Viktor Łuszcz

He regularly speaks at conferences and has authored a number of articles in these fields. He is also a lecturer at the Pázmány Péter University giving a postgraduate course on the EU Court of Justice.

Prior to joining Danubia Group, Łuszcz was the president of HIPO. He introduced in 2019 a legislative reform to allow for the examination of patent applications filed in English with the HIPO even before filing their Hungarian translations.

In 2017, he was elected the deputy chairman of the Boards of Appeal Committee of the European Patent Office.

Previously he worked for 11 years at the General Court of the EU as a legal secretary and drew up drafts of judgments.

In particular, he drafted 10 judgments in the so-far largest petrochemical cartel case that involved issues related to fine reduction on judicial review. Łuszcz’s past working experience also includes the European Commission’s Competition Directorate-General where he handled merger and cartel cases in construction and distributive trade sectors.

He was awarded Master of European Law degree (LL.M.) by the College of Europe (Belgium) and the University of Rennes (France), after graduating Györgyi Gyovai from Miskolc University and spending a research semester at the Technical University of Vienna.

“It is a great pleasure for me to take over “With the joining of Viktor we can the sales tasks of a company with such a further increase the complexity of longstanding tradition,” Gyovai says. “All services offered by the Danubia Group, in 165 years of tradition and innovation of particular Danubia Legal,” notes Árpád brewing masters are present in Dreher Pethő, managing partner of Danubia. products. It is no wonder that the company “I am convinced that the expertise and is a leader on the beer market and I will also exceptional foreign experience of Viktor be looking to further expand the domestic will be an important component in the market for the brand and its products.” high-level extension of the complexity of services offered by Danubia Legal.”

The recently appointed Łuszcz says, Former HIPO President “It is a great honor to join Hungary’s Joins Danubia first established patent and law office.

Legal as Partner During my time at the Hungarian Danubia Legal announced the Intellectual Property Office, I met many appointment of former Hungarian colleagues from Danubia and I knew that Intellectual Property Office (HIPO) I would become member of a team with president Viktor Łuszcz as partner. outstanding knowledge and expertise.”

According to the company, Łuszcz has extensive experience in cartel, merger, Kapitány Named abuse of dominance and state aid cases, President of Hungarian as well as in trademark registration, Association of Executives opposition and cancellation proceedings.

István Kapitány, global executive vice He also has in-depth practical knowledge of litigation before the EU Court of Justice president for Shell’s retail business, was elected the new president of the and in EU law enforcement.

Hungarian Association of Executives with 100% of the votes at the association’s extraordinary general meeting in January.

The president’s mandate began on March 8 and lasts three years. The formal transfer of the presidency took place on March 7, at the 26th Executive of the Year Awards Gala.

“It is a great honor for me to be elected president of the organization by the general meeting of the Association of Executives,” said Kapitány.

He said his goal is to encourage top executives in Hungary to join the association, mentor and support emerging Hungarian executives to become key players in regional and international business in an even larger number.

“My career started in Hungary, so naturally I would like to share my 30 years of international business experience with talented Hungarian executives. I also have an ambition to establish the most efficient cooperation with Hungarian and European partner organizations in order to strengthen the corporate social responsibility of executives,” he added.

According to the Hungarian Association of Executives, it has undergone a major transformation over the past five years under Botond Szirmák. It has focused on recruiting new members, increasing the prestige of the executive profession and the active advocacy of executives.

The outgoing president worked on increasing the visibility of the organization and further promoting its high profile events, which have been renewed in recent years. New programs such as the Future Executive Program, Mentor Program, and Business Menu were introduced during his tenure.

István Kapitány Furthermore, CEC European Managers officially accepted the application of the Hungarian Association of Executives for full membership at its meeting in Belgrade on May 20, 2019.

Outgoing president Szirmák said, “I feel we have renewed the association over five years, giving it a boost. We have made great strides forward on the digital front and have changed our communication; as a result, our membership has also become younger.”

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Atenor Completes Construction of 1st Phase of Aréna Business Campus Atenor has finished the construction of the 21,000 sqm first phase of the Aréna Business Campus; the company has met the deadline according to the original schedule and the official handover will be in June, the Belgium-based developer says.

GARY J. MORRELL

The phased, BREEAM “Excellent” accredited Campus in District VIII on the outer boulevard of Budapest will consist of 80,000 sqm of office and retail space. Essentially, the development is due to complete one of its four phases every year for four years.

“The leasing of Building ‘A’ is in an advanced phase; we have signed lease contracts and letter of intents on nearly 40% of it. Building ‘B’ is due to be completed in

Aréna Business Campus by Atenor. the the second quarter of 2021,” says Zoltán Borbély, country director of Atenor Hungary.

Cushman & Wakefield believes the Budapest office market (along with the logistics sector) will remain in a relatively favorable position in the face of the coronavirus and subsequent governmental shutdown measures to combat this.

“Business as usual: Q1 transactional activity is not affected. Ongoing transactions proceed towards closing and the

Q2-Q4 period

is expected to be dominated by renewals,” the consultancy says in its latest overview of the office market.

“Ongoing development schemes are proceeding with no delays reported.

Permitting processes have slowed down. Due to solid fundamentals with no oversupply threat and current low availability levels, the Budapest office market enjoys stable rental levels in the short term,” it adds.

No Negative Impact

This sentiment is echoed from the developer perspective by Atenor. “We have seen no negative impact from the

increase in the next three months, saying that, among companies with more than five employees, another

90,000-100,000 people

could lose their jobs, after at least 50,00060,000 people were laid off last month.

As Minister of Finance Mihály Varga stressed, job retention is of the utmost importance and to that end the Hungarian government has announced that it will take over 70% of the wages of employees who have been furloughed or moved onto reduced work hours, in an attempt to prevent mass redundancies. Support for the furloughed workforce, also known as kurzarbeit (“short-time working”), first came to prominence in Germany during the financial crisis that began in 2008.

is leasable class ‘A’ and ‘B’ complexes, according to the Budapest Research Forum (consisting of CBRE, Cushman & Wakefield, JLL, Colliers International, Eston International and Robertson Hungary).

The overall vacancy rate stands at 6.2% as of the first quarter of the year.

Around 55,000 sqm of office space was delivered in Q1: the first 27,000 sqm phase of the Budapest ONE Business Park by Futureal, that will form part of the Kelenföld urban redevelopment project, and the 18,000 sqm BudaPart Gate at the BudaPart mixed-use complex

by Property Market on the southern Buda bank of the Danube.

Cushman & Wakefield have traced an improved pipeline of 230,000 sqm for 2020, although 60% of this space is already pre-let. With the current crisis, virtual viewings are becoming more frequent and there is new demand for flexible space in the current environment.

Coronavirus ///roundup

Businesses can apply for job protection wage “Stay-at-home” restrictions due to the coronavirus outbreak subsidies through the Economic Protection were extended by the government for another week Action Plan, according to origo.hu. The support period can be three months, but the from April 18, with Gergely Gulyás, the head of the Prime employer must undertake to keep the number Ministerʼs Office, saying at an online press conference that of employees for at least one month after the application is submitted and to maintain them the situation will be reviewed again at the government for at least one month after the final payment. meeting due as we went to print (Wednesday, April 22), Simplified Application which will become the general practice from now on.

The Ministry of Innovation and

Meanwhile, the Prime Minister himself spoke about his expectations regarding the progression of the epidemic. Viktor Orbán said in an interview with broadcaster Maria Radio that the country would reach “full self-defense capability” on May 3, when the COVID-19 epidemic is expected to peak in Hungary, after which time a gradual return to normal routines would be possible.

Although no figures have been officially released yet, according to government signals, the number of unemployed increased by at least 30,000 in March, leaving the number of unemployed at 300,000 at the end of last month, says portfolio.hu.

Additionally, GKI Economic Research Zrt. expects forced leave and dismissals to

Coronavirus in the letting process so far, as we have just signed a 7,500 sqm lease at Váci Greens and additional transactions are coming soon in both Váci Greens ‘E’ and ‘F’ and Aréna Business Campus,” comments Nikolett Püschl, leasing and development director at Atenor Hungary.

“Further, we are successfully maintaining our rental levels. Definitely there are many sectors that are already fighting to stay alive. But the office market is not expected to be deeply affected,” she explains.

Total modern office stock in Budapest now stands at 3.74 million sqm,

3.1 ofmillion which

Restrictions Extended but is That Light at the end of the Tunnel?

NICHOLAS PONGRATZ

News | 5

Technology, announced that the application process for job protection wage support will be simplified and the number of beneficiaries will be expanded.

Those affected can apply for the support easily and quickly by filling in the forms available at https://nfsz.munka.hu/.

Despite the precarious economic environment, there is still some light in the darkness, as some firms have adjusted their operations to support the fight against the disease, while others are on the verge of returning to operation.

For the past three weeks MOL has been producing disinfectants at one of its plants, delivering nearly

500,000 liters

to institutions designated by the Operations Council, writes portfolio.hu. Some 45,000 liters arrived at the Chemical Defense

Battalion of the Hungarian Defense Forces in Székesfehérvár (65 km southwest of Budapest), while MOL has delivered 42,000 liters of hand and surface disinfectants to the State Healthcare Center, and MÁV Zrt. received 24,000 liters.

Győr-based (120 km west of Budapest) Graboplast is working in similar vein and producing 50,000-80,000 products per day of hand and object disinfectants. This particular disinfectant takes the form of a gel, but the company also produces selfdisinfecting floor and wall coverings. Even Pizza King Express is re-appropriating its resources, hiring unemployed seamstresses to sew facemasks for delivery.

Speaking of German-origin and Győrbased firms, Audi Hungaria partially restarted production last week the company told state news agency MTI. Work restarted at the engine plant, with a single shift of 100 workers at an assembly line for six-cylinder engines, although the company said it would take several weeks to ramp back up to full production.

Several other automotive manufacturers have also started the process, with Hankook in Rácalmás (68 km south of Budapest) having already started and Suzuki in Esztergom (45 km northwest of Budapest) resuming production from April 27 and Mercedes in Kecskemét (88 km southeast of Budapest) from April 28.

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Business

How the Crisis Could Speed up Society’s Ultimate Digital Shift

Hungary’s ICT sector is far from immune to the devastating impact of the COVID19 emergency.

Until a muchawaited targeted stimulus package arrives, the local IT community says it is busy making the large-scale digital upgrade of society and the economy happen.

BÁLINT SZŐNYI

If you think that the information technology sector is pandemic-proof, since IT guys can work from anywhere anyway, you are wrong.

As the latest survey of the ICT Association of Hungary (IVSZ) shows, 70% of local IT firms have reported canceled or delayed orders, nearly one-quarter has cut capacity, and one-third have already introduced shortened work hours. The future looks just as grim. Sectoral revenues are expected to plummet by 71% of those polled.

The experts say the figures clearly demonstrate that government intervention is badly needed in this segment of the economy as well. Accordingly, on the basis of the findings of the survey, IVSZ has put together a set of proposals for the government.

Proposed measures include the need to help keep employees on payroll, boost competitiveness by providing dedicated R&D&I funds and cutting red tape around EU funds allocation, and launch programs to spread digital competences.

As an IVSZ statement puts it, “a digital relaunch of the Hungarian economy is of the essence in order to put it back on a new growth track that could add thousands of billions of HUF to the national GDP within a few years.”

Joining Forces for Change Strengthening the sector is even more important because IT businesses are playing a crucial role in the battle against

Roland Jakab, AI Coalition president and managing director of Ericsson Hungary.

COVID-19. They not only develop solutions that will help society adapt to the crisis (see Hack me if you Can, below), but they are also the main pillars of the largescale digital shift the entire economy was forced to embrace overnight. They provide essential extra computing capacities and support those at work, in their immediate environment and in education, that are eager to prevail in the digital world.

These efforts drew the attention of political decision makers. It dawned on the government shortly after the pandemic started to turn serious that it requires a joint effort to draw up a comprehensive digital battle plan. Hence, the so-called Digital Solidarity program was initiated by the Ministry for Innovation and Technology, which invited the digital sector to offer tools, solutions, and services to the public.

In a matter of weeks, 190 offers were made available from which one million workers, 1.6 million students, 200,000

Hack me if you Can While local IT businesses continue to flood society with freely available digital tools, services and solutions under the Digital Solidarity initiative, individual developers have proved themselves to be worthy for praise as well.

More than 800 participants signed up for the Hungarian edition of “Hack the Crisis”, a hackathon launched originally in Estonia and now organized in 30 countries.

The purpose of the 48-hour coding marathon was to come

teachers and two million elderly citizens can benefit, whether it comes to distance learning, teleworking, connecting with family or caring for the elderly.

The effort, which was coordinated by the Digital Success Program (DJP), is gaining traction not least because leading sectoral organizations have joined forces to mobilize their members such as the Hungarian 5G Coalition (5GK), the Artificial Intelligence Coalition (AI Coalition), the Communications Conciliation Council (HÉT), IVSZ, the Informatics Association for Society (Infotér) and the János Neumann Computer Science Society (NJSZT).

Turning Crisis into Opportunity A digital skills boost is long overdue in Hungary anyway. The country ranks 19th in the EU in the human

up with solutions that help healthcare workers, communities, businesses, and education to fight the current emergency.

The 12 prize winners were selected from 134 applications, with work assisted by more than 70 mentors. The Ministry for Innovation and Technology, together with the Digital Success Program, gave prizes for four solutions, while corporate sponsors included Magyar Telekom, T-systems, IT Services Hungary, Docler, OTP Mobil and Janssen.

capital dimension of DESI, the Digital Economy and Society Index, meaning there is plenty of room for improvement in terms of internet and advanced computer user skills.

As Roland Jakab, AI Coalition President and managing director of Ericsson Hungary says, the process of digitization now has the chance to speed up, so we might be able to leap forward some fiveto-eight years in just a few months. As a result, the moonshot projects of the national AI country strategy could also be implemented faster.

“We want to make sure that automation and other AI-driven tech benefits the people and the economy so that economic efficiency and competitiveness can improve nationwide,” Jakab said.

“By joining the Digital Solidarity effort, our goal is not only to survive this critical period, but rather to accelerate the widespread adoption, and earn visibility for, AI technology. This way we can go back to normal even sooner.”

“We want to make sure that automation and other AI-driven tech benefits the people and the economy so that economic efficiency and competitiveness can improve nationwide. By joining the Digital Solidarity effort, our goal is not only to survive this critical period, but rather to accelerate the widespread adoption, and earn visibility for, AI technology. This way we can go back to normal even sooner.”

However, the proliferation of artificial intelligence is just part of the deal. People have started to use many new applications on a daily basis, and Big Tech has made a lot of digital solutions available as well.

“This period is set to present a fantastic opportunity to make the digital shift reality, not least because a generation will grow up that learns at school how to cooperate with one another online,” added Jakab.

Among the winners, Covidbed came up with a digital hospital bed log system that provides real time data about ward occupancies, while Cognitive Creators’ NoCrowd app enables users to monitor crowds in nearby stores, making social distancing easier.

A special prize was awarded by Ericsson for the best AI solution, which was an online Math exercise generating platform. Winners received cash and other in-kind services that hope to propel their ideas to the next level.

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Budapest Business Journal | April 24 – May 7, 2020

Even among the grimly rising number of deaths globally, financial markets seem to have recovered some of their vim following the initial shock in the wake of the coronavirus pandemic. But, columnist Les Nemethy wonders, is that optimism premature?

Despite the number of cases and deaths rising to approximately 1.99 million and 127,000 respectively, as at the time of writing of this article, there has been considerable good news on the coronavirus during the past week or two: • Numbers of new cases and deaths seem to be declining in the current hotspots, namely Italy, Spain, and New York; • Personal Protective Equipment and new tests are coming on line with rapidity; • At least 70 contenders are barreling forward to develop a vaccine; • Big Tech is mobilizing in the fight against the virus, and despite privacy concerns, may help identify and trace cases.

Financial markets have also recovered roughly two-thirds of their precipitous

30%+ drop

in the days around March 23. I am, however, surprised at the number of investors with whom I speak, or whose opinions are expressed in the media, who are optimistic that this will be a short-lived “V-shaped” recovery; most seem swayed by the aforementioned developments.

In my last column, I expressed the opinion that the potential bad news is not priced into markets. Two weeks later, despite further rises in financial markets, I am even more convinced that there is way more short-term downside than upside. (It reminds me of the joke: what is an optimist? A poorly informed pessimist).

What Could go Wrong?

So, forgive me if I proceed to provide a fairly lengthy summary of things that could go wrong in the short- to mediumterm. The likelihood of all the individual items on the list occurring might be low, but the likelihood of at least several of them happening is quite high:

The Corporate Finance Column Graphic by SergeyBitos/Shutterstock.com

Coronavirus: Are Financial Markets out of the Woods?

Business | 7

• During my 35 years of working in financial markets, I have yet to see such a divergence between Wall Street and Main Street. In the United States alone, close to 10% of the work force applied for unemployment insurance, in the past three weeks alone, according to a report on cnbc.com. Many countries are forecasting GDP declines of 20-30% for Q2 2020 compared to Q2 2019; • Waves of bankruptcies are likely to hit, government stimuli being insufficient or too late to stem the tide.

Hotels, restaurants, airlines, cruise lines and automotive industries are some of the obvious sectors, but there are many others; • China and other countries are fighting a possible resurgence of COVID-19. New hotspots are sure to emerge. This and the previous two points are likely to cause sustained “demand side” shock to the world economy; • As the world goes through de-globalization, supply chains may break down. At the very least, input costs may be expected to go up and productivity come down, further contributing to a supply side shock.

• Company earnings announcements will provide a steady diet of negative news in the coming months, as losers to coronavirus outnumber winners by a wide margin; • More than USD 100 billion of portfolio capital has been withdrawn from emerging markets over the past two months. More than 90 countries have applied to the IMF for assistance. The pandemic has not even begun to run its course in emerging markets (India, subSaharan Africa, etc.), where population density is high, sanitation poor and resources low; • The oil and gas sector will remain in deep crisis, despite the recent agreement between Saudi Arabia and Russia. Given the high level of indebtedness in the sector, a wave of energy sector bankruptcies is expected in the coming quarter; • Bankruptcies across numerous sectors could lead to a banking crisis in one or more countries. Global corporate and consumer indebtedness is much higher

today than it was in 2008, not just in absolute terms, but also relative to GDP. The need for detailed disclosure of derivatives was unfortunately not a lesson learned from the 2008 economic crisis. Despite many banks being better capitalized than in 2008, the parallel supply and demand side shocks may also prove larger. Ultimately, it will boil down to confidence in the banking sector;

My message is not to sell, let alone sell everything.

As the saying goes, “buy when there is blood on the streets, even if it is your own.” So, prudent buying for knowledgeable investors is probably justified. But exercise extreme caution in identifying opportunities. Are they really opportunities, or are you catching a falling knife?

• The possibility of sovereign bankruptcies cannot be discounted either; • The lack of solidarity of the northern European countries behind the COVID19 outbreak has recently brought impassioned pleas from the prime ministers of Spain and Italy, bringing into question the very survival of the European Union. The EUR 500 bln solidarity fund announced by the European Union may well prove too little, too late; • Iran is moving missiles to provide greater coverage of the Straits of Hormuz. China has mobilized an aircraft carrier in the Pacific, while the two U.S. aircraft carriers in the area are at port, due to COVID-19. Might there be a regional war or land grab, taking advantage of the weakness of the United States in lockdown?

Deflation vs Inflation

While in the short-term, increases in unemployment and bankruptcies, along with massive declines in energy prices will lead to strong deflationary pressures, in the longer term massive global monetary and fiscal stimulus may lead to even more massive inflationary pressures.

Lockdowns should not be viewed as an end, but as a way to bring down the number of cases to a level where cases may be tested, traced and isolated.

Unfortunately, available testing is still woefully inadequate in most countries, so we are paying the high economic price of lockdown, without deriving the benefit, contributing to new hotspots emerging.

And then there is always the possibility of a dangerous viral mutation.

My message is not to sell, let alone sell everything. As the saying goes, “buy when there is blood on the streets, even if it is your own.” So, prudent buying for knowledgeable investors is probably justified. But exercise extreme caution in identifying opportunities. Are they really opportunities, or are you catching a falling knife?

“Average in” over at least several months of purchasing, and hedge your bets (e.g. with gold). But remember, there is still more risk on the downside than upside.

Disclaimer: Information, data, and analysis in this article should not serve as advice to any investment decision.

Neither Euro-Phoenix Ltd nor any of its officers and directors make any representations or warranties, express or implied, as to the validity and/or accuracy and/or completeness of the information set forth in this article.

Les Nemethy is CEO of EuroPhoenix (www.europhoenix. com), a Central European corporate finance firm, author of Business Exit Planning (www. businessexitplanningbook.com) and a former president of the American Chamber of Commerce in Hungary.

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Business

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

ʼProud of What we Have Achieved, Impressed by how we Reactedʼ The Budapest Business Journal sat down (virtually, observing social distancing norms) with Romke Noordhuis, ExxonMobil’s lead country manager and head of its Global Business Center Hungary, to discuss his management philosophy, being a runner up in the BBJ Expat CEO of the Year awards and, of course, COVID-19.

ROBIN MARSHALL

BBJ: Congratulations on being a runner up at the BBJ Expat CEO of the Year awards. In your introductory video, you talked a lot about your colleagues at ExxonMobil. Would you say this is, at least in part, recognition for them too?

Romke Noordhuis: It was an honor to be nominated for this prestigious award and yes, I definitely see this as recognition for our team in Budapest. We have grown to be a high quality organization of more than 1,800 people and it is impressive to see what we have achieved together. I am proud of the fact that we have managed to create an environment where people can have an attractive career in a global organization, where we value everybody’s contributions and maintain an inclusive work environment.

BBJ: Since we held the gala at the end of January, the world has changed. How has the COVID-19 pandemic affected ExxonMobil, how are you combating that, and what has the company done to support the local community?

RN: These are indeed unprecedented times and it is incredible how quickly the virus has changed the way we live. A situation like this brings out the best in people and I’m really impressed with how we have responded. We have formed an emergency support group, which is tasked with supporting our organization during this situation and to keep our operations running as best as possible. Almost all

Flashback: Romke Noordhuis, of ExxonMobil Hungary (left), receives his runner up certificate from Robin Marshall, BBJ editorin-chief and host of the awards event. Photo by Marianna Sárközy our people have been working from home since the middle of March and, generally, we have been able to keep our operations running effectively.

Although the oil and gas business is heavily impacted by the reduced demand, our key focus right now is on the safety of our people. This includes programs to help our employees with their home setup and to provide mental health support.

In every country where ExxonMobil operates, we have introduced donation and support campaigns.

Globally, ExxonMobil is the largest producer of isopropyl alcohol and in the countries where we produce this, donations have been made for the production of hand sanitizer. Our chemical company has also increased the production of raw materials that are used for the production of masks, gowns and gloves for medical professionals.

In Hungary, we have launched a matched donation program with our employees to purchase life-saving equipment for three hospitals heavily involved in the COVID19 pandemic (the Dél-Pesti Centrum, Miskolc, and Kiskunhalas hospitals) and we have also donated furniture to Dél-Pesti Centrum to fit out its patient screening facility. Currently, we have a laptop loan program to help the kids of employees with home education. Also, employees can donate personal laptops to children’s homes and we will be launching our annual laptop donation program for schools later this year.

BBJ: ExxonMobil has a much longer history in Hungary than many realize.

How long has it been here, what brought the company to the country initially, and what keeps it here?

RN: Predecessor companies of ExxonMobil were actually active in Hungary in the first half of the 20th century, but in more recent times, ExxonMobil opened a marketing office in Hungary in 1993 and started selling Esso fuels and Mobil1 lubricants. This business was divested in 2006. In 2009, ExxonMobil and MOL partnered on a gas exploration project in the south of Hungary but this was abandoned as no commercial quantities were found.

The Business Support Center was established in 2004 and has grown over the years to an organization of more than 1,800 people now. Last year, we renamed it a “Global Business Center” to reflect the strong reputation and integration with our businesses world-wide and we expect ongoing success in future years.

BBJ: What would you say characterizes your leadership philosophy?

RN: My leadership focus is to create a work environment that provides everybody in the organization with an opportunity to excel. I believe in continuous development and want to make sure everybody reaches their full potential in a long-term career. I try to be very approachable and flexible,

listening to people and letting them share their ideas and suggestions. I love to work with highly motivated and hardworking people.

BBJ: You are Dutch, ExxonMobil is American, your business support center is based in Budapest. How do these different international backgrounds blend together?

RN: The oil and gas business is obviously global and I very much enjoy working in such an international environment. I see myself as a global citizen and love to work with people from different backgrounds and cultures. I joined the company in the Netherlands almost 25 years ago and have had assignments in six different countries and been on business trips to more than 30 different locations. Our Hungarian employees often speak several foreign languages and many have studied or worked abroad. We currently have more than 60 Hungarian employees out on expatriate assignments around the world.

In our Budapest office we also employ quite a few foreign nationals, over 80 nationalities are represented in total. We have a strong company culture where inclusion is highly valued. And somehow, Dutch directness seems to combine well with the Hungarian culture!

BBJ: What would you change about doing business in Hungary?

RN: Over the last 16 years, Hungary has been a good host for our Global Business Center and the Hungarian government’s business-friendly policies make a real difference. We signed a strategic partnership agreement with the government in 2018 and the collaboration with the Hungarian Investment Promotion Agency has been excellent. A key focus for an organization like ours is to have direct access to highly educated talent and keeping the Hungarian universities competitive internationally will be very important in the future. Fiscal and macroeconomic stability and remaining well-embedded in the European Union will be an important basis for further success.

BBJ: What is next for ExxonMobil in Hungary?

RN: The reputation of our Global Business Center is strong and we expect our organization to play an important role supporting ExxonMobil’s businesses in the future. We still expect some additional growth and most of our functions continue to hire, also during the current situation.

We have signed a lease on a new building with our current landlord GTC and expect to move in by 2022, creating the necessary space to grow to well over 2,000 people.

However, more important than the number of employees is the ongoing value that our organization is adding to ExxonMobil globally, which is especially critical in the current business climate.

BBJ: Is there anything else you would like to add?

RN: My family and I have been in Budapest for four years now and really love living here. I’m proud of what we have been able to achieve in our organization, including significant growth, strong partnership with governments and universities, strengthening external communication and employer branding, and it was great to celebrate the 15-year anniversary as a major milestone in this journey.

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Budapest Business Journal | April 24 – May 7, 2020

Business | 9

Photo by New Africa/Shutterstock.com

Hungarians’ Internet Access Among the Least Restricted How free is access to the world wide web in Hungary? A recent report looks at a number of sources to compile a global internet censorship ranking, based on stateapplied restrictions.

ROBIN MARSHALL

It would have been better for all if COVID19 had never appeared, but if it had to, it is probably good that it did so now. Home office and digital classrooms are a viable, if sometimes lonesome, alternative to more Technology and Innovation Foundation communal settings because of widely report “The Normalization of Website available technology and the ubiquity of the internet.

Blocking Around the World in the Fight But just how easy is it to access the web?

Against Piracy Online”, and the Freedom Or, to phrase the question slightly differently, House “Freedom on the Net 2018” report, how unfettered is that access? And how “The Rise of Digital Authoritarianism.” does access in Hungary compare to the rest of the region and, indeed, globally.

“Hungary enjoys uncensored access to the internet with very few restrictions.

People in Hungary can engage in politics, watch porn, participate in social media, and use VPNs without worrying about any High Scores not Wanted legal consequences,” says, Paul Bischoff, Each country was scored on five criteria, editor of Comparitech. each worth two points. One point was The U.K.-based company describes itself earned if torrents (a format used for quickly as customer-centric website “providing downloading files with a lot of data, such as information, tools, and comparisons to help music or films), pornography, news media, consumers in the U.S., U.K. and further afield to research and compare tech services.” social media or VPNs (a virtual private To that end, it set out to measure internet network that allows users to securely browse and access personal data through public censorship in 2020 in networks) are restricted but accessible, and two points if they are banned entirely. The countries, higher the score, the more censorship. producing what it calls a “global map of In Hungary’s case, for example, Bischoff internet restrictions.” says, “Although the distribution and To create that, the company’s researchers resale of copyrighted materials is officially looked at a number of sources, including illegal, torrenters in Hungary rarely, if the Reporters Without Borders “World ever, face consequences for digital piracy.

Press Freedom Index 2019”, the Information Most EU countries enjoy similar freedoms,

181

but some are stricter about enforcing piracy laws, such as Germany.”

There were no huge shocks about the five worst countries for Internet censorship: North Korea (which had the dubious honor of being the only country to score the

maximum

10

points), followed by China (9/10), and then Russia, Turkmenistan and Iran (8/10).

Hungary did, perhaps, surprisingly well, placed among a swathe of 39 countries jointly ranked in first place with a score of one. While many regional and European Union peers were alongside the country,

not all were. Austria, Albania, Bulgaria, Poland and Romania were among 45 countries ranked joint second with a score of 2/10, as were Belgium, Denmark, Finland, Germany, the Netherlands, Norway, Portugal and Sweden, along with Japan and the United States.

For the most part, that was because torrent sites were not just restricted, but were banned outright. In the case of Japan, the second point was down to pornography restrictions; however, in the case of Albania, Bulgaria, Romania and the United States, the second point was awarded because political media was deemed to be restricted.

“Hungary enjoys uncensored access to the internet with very few restrictions. People in Hungary can engage in politics, watch porn, participate in social media, and use VPNs without worrying about any legal consequences.”

According to the Comparitech report, “the United States continues to fall down the World Press Freedom Index rankings due to an increasingly hostile environment.

This trend only looks set to continue as President Trump repeatedly states the press is an ‘enemy of the American people’.”

The full report is available on Comparitech’s website, comparitech.com.

Hungary in Top 10 With Fastest Internet Speeds In related but unconnected news, Hungary was ranked one of the 10 fastest countries in the world in terms of internet network speed in 2019, according to an analysis

by Datareportal.com. Domestic bandwidth, which was in any case already very good in Hungary in global comparisons, must now

also be able to withstand recordlevels of data traffic in the current epidemiological situation. The average domestic bandwidth reached 128.07 Mbps last year, an almost 20% increase compared to 2018. Just in front of Hungary, the United States ranks ninth, with a bandwidth of 130.79 Mbps.

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Budapest Business Journal | April 24 – May 7, 2020

Special Report Human Resources

The economic and business repercussions of the COVID19 pandemic are hard to assess at this point. Pundits are at odds as to how long will it take sectors to recuperate, and how deep the financial pit will actually be. In such uncertain times, employees isolated at home in front of their screens or in fear of losing their jobs are under serious pressure that HR departments must try to alleviate.

Photo by tomertu/Shutterstock

Uncharted Waters: HR in Challenging Times

“Most companies were not ready for WFH, neither technically nor mentally,” Patrik Molontay, managing director of HumanField Executive Search, tells the Budapest Business Journal.

After a few weeks of working from home, Hungarian companies have found that remote working is just not as efficient as working in an office with colleagues, as maintaining motivation

and bonding between team members is a challenge for leaders.

Sándor Baja, Randstad’s managing director for Hungary, Romania and the Czech Republic, told the BBJ that some companies tackled shifting to WFH seamlessly. He believes, however, that the real challenge will come after 12-15 weeks.

“How will people tolerate isolation? We see that our colleagues in Singapore are suffering a lot as they have been at home since February,” Baja points out.

Remote working challenges are different for managers and employees. “Having trust in your team members and using

CHRISTIAN KESZTHELYI

Working from home may sound like a blessing, but if handled carelessly, it can easily become a curse not only for management but also for employees.

Yet, the landscape of work-life balance in Hungary is changing, just as it is globally.

Blue collar workers are facing redundancies and furloughs, and white collar workers need to juggle the comfort of remote working and time gained due to the lack of a commute with efficiency difficulties due to distractions of home schooling and the mental challenges that arise from being isolated from team members.

Less Productive?

Patrik Molontay

A survey by Grafton Recruitment found that not everybody appreciates WFH. “It is not obvious that everyone has a suitable environment for remote work,” György G. Palásti, managing director of Grafton Recruitment Kft., says. A lot of employees also find phone or video conferencing far less productive, especially in fields where creative cooperation is essential.

György G. Palásti the right communication channels and tools are essential for managers and team leaders to maintain productivity and high morale,” Rita Cséke, director at Reed Specialist Recruitment Hungary, notes.

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Managers need to educate staff on how to structure their WFH routines and employees need to focus on planning each day, prioritizing their tasks. Cséke, however, adds that there are companies moving away from the more traditionally number of worked hours to the “job shall be done” model.

Communication should be transparent and consistent so employees can feel they can trust their employers.

“The key messages should be clearly communicated from all levels of the management, so the employees can undoubtedly see what efforts are taken,” she adds.

The closure of schools and universities further complicates the WFH scenario. “Parents are in a tough position too, as they have to study with their children in addition to working from home. They have to perform on several fronts and often in unfamiliar situations,” Csongor Juhász, managing director of the Prohuman Group, says.

Maintaining focus and remaining a strong figure for the younger generation under such a pressure is a truly demanding task.

and video interviews.” However, he adds that such practices are often impossible for blue collar jobs.

Quick online communication channels are pivotal in countering the sentiment of isolation, especially as it leads to mental difficulties.

“Uncertainty causes anxiety, fear, anger, and significantly increases stress levels, so it is a good idea to make available an employee assistance program or a professional, such as a psychologist or coach, who employees can turn to if needed, free of charge,” Lili Melinda SimonGöröcs, head of HR at job portal Profession.hu, says.

Recruiting Online

This alien climate does not only upend retention but also recruitment. “Most of our clients have not cancelled recruitment yet, but the process is getting longer.

Some companies still do personal interviews, but most carry it out online via phone interviews,” Molontay of HumanField says.

“To die in fever or from hunger; that is the question.

We must find a safe way to return to work. The world will change a lot after the crisis. The ‘pause’ button is now pushed, but when we release it, another film will start playing.”

“What is common and key for all companies is how they communicate,” Réka Tamás, people and organization manager at PwC Hungary, explains.

Social distancing itself has sparked a sudden shift. “Companies needed to quickly and effectively switch to online facilitation of interviewing and onboarding processes,” Cséke of Reed points out.

“On many occasions we can now shorten the recruitment process, as candidates and clients can be available at shorter notice than for face-to-face processes,” she added.

Virtual Existence

Managerial Support

Managers need to support their staff in these times, strengthening their sense of belonging, as it boosts performance and commitment, and elevates employee experience levels. Indeed, clear and honest communication is imperative.

Sándor Baja Baja of Randstad believes human resources departments have come to a fork, and they need to make a change in how they operate. “HR is redefining itself. In most companies there is a hiring freeze or people are being laid off. What was a candidate market in most cases is becoming an employer market. The new role of HR is difficult: to find the balance between the company interest – survival – and protecting the employees is not easily found,” Baja points out.

“A significant number of companies have introduced a hiring freeze and put some investments on hold, resulting in a huge drop of open positions,” Palásti of Grafton agrees.

“Those companies that continue hiring try their best to implement social distancing during recruitment, by using digital solutions, like phone

and bars closed and airplanes were grounded. Temporarily, of course, but for how long? Nobody really knows.

“Most companies were not ready for WFH [Work From Home], neither technically nor mentally.”

Csongor Juhász

Rita Cséke

Special Report | 11

It is not only job interviews that have found a new home in the cloud, however.

“All employer branding events, job fairs or job advertisements are also running online,” PwC’s Tamás says, adding that some companies are ready to hire people without meeting them face-to-face, under the current circumstances.

While some white collar jobs in certain sectors, such as telco, IT, FMCG and pharma, are hardly at risk, for obvious reasons, cash flow issues in other sectors will result (if they have not already done so) in redundancies and furloughs.

The most visibly shaken field globally is hospitality and tourism, as hotels sealed their doors, restaurants

Lili Melinda Simon-Göröcs

“The immediate impact of COVID-19 had a detrimental effect on certain sectors. [...] We are yet to see and fully understand how this crisis will affect the economy and business in the long-term; once the pandemic comes to an end, we will know what positive and negative lessons we can learn from it,” Cséke of Reed says.

Réka Tamás Baja insists that life will find a “new normal” after the worst of the pandemic passes, foreseeing that businesses will need to learn how to work with social distancing in the long-term and establish which business models are applicable in such a scenario.

“Uncertainty causes anxiety, fear, anger, and significantly increases stress levels, so it is a good idea to make available an employee assistance program or a professional, such as a psychologist or coach, who employees can turn to if needed, free of charge.”

“To die in fever or from hunger; that is the question. We must find a safe way to return to work. The world will change a lot after the crisis. The ‘pause’ button is now pushed, but when we release it, another film will start playing,” Baja concludes.

Special Report

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

INSIDE VIEW

Legal Implications of Home Office: Opportunity or Threat?

Dr. Dániel Gera Counsel SCHOENHERR HETÉNYI ATTORNEYS AT LAW

NOTE: ALL ARTICLES MARKED INSIDE VIEW ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

What seemed hardly imaginable some months ago suddenly became reality due to the COVID-19 pandemic: Sizeable teams had to switch to remote working within a few days and have been working remotely for weeks now.

This situation poses challenges to both employees and employers.

Companies need to find new ways to establish efficient cooperation, foster information flow, and prevent team members from social isolation.

Although employing workers at least partially in home office has been a widespread practice for a long time, its legal basis and concept was not precisely regulated. Hopefully, the current experience will help to develop more accurate regulations.

Legal Concept: Place of Work Though the current Labor Code does not require parties to agree on the place of work in employment contracts, it still often forms a part of that. Thus, it is still debated how to interpret the concept of home office. We see various approaches in European countries such as: • an “allowance” for employees to freely choose their place of work; • an order by the employer to assign the employee to temporarily work from another location; • a specific form of teleworking which is already an existing form of employment.

Some countries’ legal systems require a mutual modification of the employment contract to (even occasionally) change the place of work. In some of them, employment contracts may provide a unilateral “relocation clause” in favor of the employer which may serve as a basis for ordering home office.

Due to the current state of emergency in Hungary, employers have the right to unilaterally order home office. Such an order is only effective until 30 days from the declared end of the state of emergency.

Work Safety The employer needs to make sure that the home office is “fit for purpose” (i.e. it is compliant with health-andsafety law requirements), as it is the

employer’s obligation to provide a safe workplace. Employers are required to check the workplace and authorize its use in advance. They also need to check the appropriateness of the equipment provided, prepare a risk assessment, and raise employees’ awareness of risks and on potential ways to avoid or mitigate them.

In the current situation, many employers were not in a position to fulfil these obligations and physically inspect employees’ home workplaces. Some employers asked employees to take photos of their workplaces and provide a description of the equipment used.

While that is to be appreciated, it does not substitute for a proper inspection and risk assessment. That said, authorities are expected to be more forgiving with employers who were not in a position to completely fulfil their above duties.

Privacy and Control: Working Time On the one hand, employers remain obliged to organize work, administer, record and monitor working times and rest periods. In the case of remote work, employees naturally have a higher flexibility with respect to working time.

While it seems simple to set out a fixed working time, the administration of the actual working time, the breaks and potential overtime may be troublesome.

Potential solutions include allowing a partial flexibility of the working time contractually (if possible), or the implementation of certain IT tools to measure working time.

On the other hand, such IT tools must be used carefully. According to the guidelines of the Hungarian Data Protection Authority (NAIH), constant monitoring or surveillance methods (e.g. webcams, live chats and the like) disproportionately restrict an employee’s right to privacy. Similarly, a constant collection of data from the IT tools used by the employees may be regarded as disproportionate. Employees must be informed in advance of all monitoring and surveillance methods and employers may need to prepare a data protection impact assessment before implementing them.

Working from home can also be a risk for employers, as they need to set up and operate systems which provide for increased IT security. Employees need to be trained on how to preserve the confidentiality of corporate information while working from home and informed on precautionary measures. In this regard, employers enjoy a great level of freedom and employees are obliged to cooperate.

The extended use of home office will certainly provide an opportunity to establish new, economically more sustainable and more “user-friendly” working methods for each involved and create new platforms for work in the 21st century.

www.schoenherr.eu

Better Data Needed on Foreign Workforce To fully tap into the potential of the foreign workforce, a more transparent, up-to-date system is needed that provides information on both the necessary skills needed and the available jobs in a region.

Less red tape when employing foreign labor would also be welcome, experts tell the Budapest Business Journal.

ZSÓFIA VÉGH

In the age of data abundance, one field that lacks proper information is foreign labor. Scarcity of reliable figures makes it difficult to gauge the effect foreign workers have on the economy and also for employers to find the workforce with the skills they need.

The exact number of foreign workers in Hungary is hard to estimate as EU-residents can work in member states with no permit. Those coming from a third (non-EU) country are issued a residence permit, so their numbers can be traced, but not all come to Hungary to work.

Still, the majority of permits are issued for employment purposes although there is discrepancy between figures different authorities provide. According to the Central Statistical Office (KSH), last year

66,660 people

stayed in the country for employment purposes while according to data from the National Employment Service (NFSz) from two years earlier, 22,330 foreigners worked in Hungary in 2017 of which some 13,000 came from the EU. “We believe that the data on EU-citizens is significantly lower than the reality,” Péter Honyek, tax director at PwC told the BBJ. As for geography,

most come from Romania, the United Kingdom, Slovakia, Italy, Germany, and Poland, while Asia takes the lead outside the EU. In general, the farther a foreign worker comes from, the more highly-qualified they are. This makes sense as their chances of being employed will improve with better qualifications. Workers from neighboring countries tend to be less well qualified and often work in unskilled positions.

“We need data that is up to date. A regional job-specific monitoring system would also allow for people to work on projects.”

Three Groups

Based on statistics from NFSz and also from PwC’s own experience, foreigners working in Hungary can be divided into three groups.

“Many come from Ukraine, Romania and Serbia to work in hospitality, trade and seasonal agricultural work in unskilled positions,” Honyek says.

Their income is usually lower than the national average.

Photo by bizvector/Shutterstock

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employs

130,000

more people than at its lowest during the years of recession; of these, 15,000-18,000 may be foreign nationals. To improve the number of “matches”, more transparent legislation and less red tape are needed, the experts agree.

“We need data that is up to date,” Rédei says. “A regional job-specific monitoring system would also allow for people to work on projects,” she explains. This would be more ideal than being employed by a Péter Honyek company and then sometimes have work and sometimes not, she says.

There have been some supportive The second group is workers coming measures in the few past years though. from neighboring or other EU countries “One such is a legal provision which to meet the temporary labor needs of allows that Ukrainian and Serbian Hungarian companies facing skills nationals residing in Ukraine and Serbia shortages in, for example, IT or assembly fill certain bottleneck job vacancies jobs, he adds. without a work permit requirement,” The third category is foreign managers says Kata Magyar, immigration senior at local subsidiaries of international consultant at PwC Hungary. companies who perform high-level expert work. Their income may significantly exceed the national average.

Finding a job abroad is similar to finding a partner. On one side is one’s skillset, on the other is the job to be done.

“If the two match, the job seeker will find employment, otherwise they won’t,” Mária L. Rédei, doctor of the Hungarian Academy of Sciences and a retired associate professor of Eötvös Loránd University tells the BBJ. What is needed, says Rédei, an expert in migration, is a regional, jobspecific monitoring system that provides information on what skills are needed and in which part of the country. Such systems work in several countries, where the regions regularly submit information on what they need, and this information is available in labor offices, Rédei explains.

What and Where

The problem is that in Hungary there is not sufficient information on what skills are needed, exactly, and in precisely which part of the country. Labor agencies tend not to pay attention to demand (and/or simply are not aware of it) and will recruit workers whose skills are not in synch with employers’ expectations.

“The practice that construction companies would tell agencies what they

The BSS Barometer The shared or business services sector is a good gauge in general of the performance of the economy.

It is also a sector that employs a lot of international workforce.

Due to special language requirements, SSCs and BSCs will employ people with less experience, often fresh graduates.

“The sector has been growing and employs 50,000 people across

Kata Magyar In practice, this means that Ukrainian and Serbian citizens can work in Hungary for 90 days without a work permit. And, in their case, the procedure for longer-term employment also takes significantly less time than for thirdcountry nationals in general.

the country, offering expertise in various industries including automotive, healthcare, oil and gas and retail to name the main ones,” Balázs Horváth, director of advisory at KPMG Hungary told the BBJ. The reasons why foreigners find Budapest and the country as a whole attractive comes down to the favorable cost structure and quality of life here, he adds.

INSIDE VIEW

Better Leveraging the Capabilities of ManpowerGroup in Hungary Tamás Fehér Managing Director MANPOWERGROUP HUNGARY

The Budapest Business Journal spoke with Tamás Fehér, the recently appointed managing director at ManpowerGroup Hungary.

After working on various international projects for three years, he returned to the Hungarian market just before the COVID-19.

How will it change the labor market here, and what are his plans with Manpower?

BBJ: What was your primary motivation in becoming the company’s managing director?

Tamás Fehér: During my 17 years spent in recruitment, I already had the chance to manage two top companies on the Hungarian market. However, during the last three years I was responsible for permanent recruitment business in 16 countries. I chose to continue my career at ManpowerGroup because I have always believed that industry specialization is crucial for providing high quality services. ManpowerGroup has three specialized business units: the Manpower team serves manufacturing and logistics, Experis has specialists focusing on professionals in the IT, engineering and finance sectors, while TalentSolutions provides IT contractors as an interim solution for our clients.

These are supported by the robust international structures of the group. In Hungary, we are not yet fully leveraging the fantastic group capabilities. I am here to make that happen and to show the market that we are here to provide the highest quality services.

BBJ: ManpowerGroup Hungary was founded in 1990, meaning this year it celebrates its 30th anniversary.

How did labor market trends change in the past three decades?

TF: Recruitment and temporary staffing were brand new services in 1990, with only a few providers on the market. The industry developed rapidly and, by the time of the 2008 financial crisis, there were about a thousand competitors.

Since then, companies have turned to agencies with very special search needs that require a deep knowledge of the industry concerned as well as extensive

use of active sourcing techniques.

There are “hot skills” on the market like IT developers, engineers or even blue collar jobs like welders or forklift drivers. In these fields, it is always hard to find the candidate that matches all the criteria and would be satisfied with the compensation offered. The “ job market” transformed into a “candidate market.” The big question in the light of the recent events is: How will the labor market change after COVID-19?

BBJ: You joined ManpowerGroup only a few weeks before COVID-19 reached Hungary. What is your prediction about the recruitment market?

TF: I only had four weeks to get familiar with the team and the business before the government declared an emergency situation. Fortunately, we are fully prepared to run our business from home office. Our clients reacted in various ways; in most cases companies wish to continue the recruitment process, but only a few hire new colleagues. Based on the reactions we received from employers, I believe that as soon as the virus starts to disappear the market will slowly get back on track.

The question is: How quickly? There are industries like food production, retail or pharmaceutics that are already under pressure, while others like the automotive will most likely recover slowly. We already see many people losing their jobs and becoming available on the market. Therefore, we have started to focus on talking to potential candidates with special skills. When everything goes back to normal, we will have a large pool of people eager to take the next career step.

BBJ: How will this change ManpowerGroup’s strategy in the future?

TF: We are going to focus on further specialization and invest in our people.

Our Experis brand is already a major player within the IT recruitment market, which will enable us to further grow in this field. Moreover, we are launching engineering, finance and accounting practice groups this year. Our consultants will focus on experienced professionals and managers within the three industries. Our Manpower brand will be extended with a shared service center specialization and our youngest brand, TalentSolutions, will also play a major role. While we will focus more on the IT contractor business to provide more flexibility to our clients, we are introducing our RightManagement portfolio in Hungary as well.

RightManagement has a long track record in providing career transition services. This, I believe will be a hot topic for the rest of the year.

www.manpowergroup.hu

NOTE: ALL ARTICLES MARKED INSIDE VIEW ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

need has yet to happen,” László Koji, president of the National Federation of Hungarian Building Contractors (ÉVOSZ) told the BBJ. “If there is someone we cannot employ [due to skills gap], there won’t be a forced marriage, of course,” he adds.

Currently, or more accurately just before the coronavirus pandemic hit, the sector

Special Report | 13

14 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

Temp Agencies

A

A

A

A

A

A

Profólió Projekt Tanácsadó Kft. (19.78) Work Service S.A. (80.22)

5

5

75

–

2

3

10

–

1990 8 12

Péter Berta (40), Zoltán Tóth (30), Viktor Göltl (30) –

péter berta – –

1074 Budapest , Rákóczi út 70.

(1) 787-8399 whc@whc.hu

21

A

A

A

A

A

A

A

A

1991 10 5,300

– Adecco Group AG (100)

florin godean Oltita Kupas-Spunei Anna Fodor

1134 Budapest, Váci út 45. G/7.

(1) 323-3500 adecco@adecco.hu

68

32

A

A

A

A

A

A

A

A

1993 7 7

Videoton Holding Zrt. (100) –

Attila molnár – –

8000 Székesfehérvár, Berényi út 72–100.

(22) 554-170 info@pannonjob.hu

65

75

25

✓

✓

✓

✓

✓

✓

✓

✓

2004 16 18

Grosvenor Kft. (100) –

géza homonnay, péter laczi Andrea peka makkosné Marianna Baksy

1114 Budapest, Bartók Béla út 15/D (1) 381-1048 budapest@pannonwork.hu

ConsTRuCTion indusTRy

AgRiCulTuRe

sAles/TRAde

heAlThCARe/ phARmACeuTiCAl

TouRism

pRoduCTion

iT/TelCo

bReAkdoWn of Temps supplied by seCToRs in 2019

offiCe/finAnCe

WhiTe CollAR

A

2004 14 98

blue CollAR

oWneRship (%) hungARiAn non-hungARiAn

peRmAnenT

yeAR esTAblished no. of offiCes in hungARy WoRldWide inCluding offiCes in hungARy

bReAkbReAkdoWn of doWn of plACeType of menT in WoRk in 2019 (%) 2019 (%)

TempoRARy

ToTAl neT Revenue in 2019 (huf mln)

ToTAl numbeR of TempoRARy WoRkfoRCe in 2019 no. of billed houRs in 2019

neT Revenue fRom TempoRARy plACeRmenT in 2019 (huf mln)

CompAny WebsiTe

AveRAge sTATisTiCAl heAdCounT in 2019 no. of full-Time employees on mARCh 1, 2020

RAnk

Ranked by average statistical headcount in 2019

pRohumán 2004 munkAeRő szolgálTATó és TAnáCsAdó kfT. 1

www.prohuman.hu

6,834 233

32,839

18,186 13,468,960

34,328

90

10

3,024 152

19,516

8,033 6,314,100

21,031

70

30

90

10

2,238 84

11,433

26,791 3,013,972

11,933

90

10

79

11,984

A A

12,639

A

A

11,428

35

85.40 14.60 A

Top loCAl exeCuTive Cfo mARkeTing diReCToR

AddRess phone emAil

béla ignácz, Csongor Juhász, sándor zakor, Jacek lorek Tamás Kutassy –

1144 Budapest, Hungária körút 140-144.

(1) 432-1280 prohuman@prohuman.hu

WhC kfT.

www.whc.hu 2

AdeCCo kfT. www.adecco.hu 3

4

pAnnonJob humán szolgálTATó és TAnáCsAdó kfT.

2,098

pAnnon-WoRk zRT.

2,039

A

www.pannonjob.hu

5

www.pannonwork.hu

A

10,761

1,892 A

hsA kfT.

www.hsakft.hu 6

HSA TRenkWAldeR hR soluTion kfT.

7

http://hu.trenkwalder.com

1,784 22

7,551

5,149 2,956,983

7,813

20

80

80

20

8

–

76

4

–

6

5

1

2000 14 15

László Mátyás (89) Erika Dékány (11) –

lászló mátyás Erika Dékány László Zsilka

4024 Debrecen, Batthyány utca 12/1.

(52) 446-991 info@hsakft.hu

1,719 6

8,967

1,853 2,928,423

8,983

90

10

89

11

10

–

88

–

–

2

–

–

2018 1 300

– Trenkwalder Group AG (100)

balázs g. nagy Henrietta Tóth András Csizmadia

1134 Budapest, Váci út 22–24.

(1) 354-0933 infohungary@ trenkwalder.com

Trust that transcends borders Prohuman provides tailor-made HR solutions to over 900 clients in 8 European countries.

At the forefront of HR services since 2004.

3

www.bbj.hu

pRoduCTion

TouRism

heAlThCARe/ phARmACeuTiCAl

sAles/TRAde

AgRiCulTuRe

ConsTRuCTion indusTRy

yeAR esTAblished no. of offiCes in hungARy WoRldWide inCluding offiCes in hungARy

761 45

oWneRship (%) hungARiAn non-hungARiAn

iT/TelCo

1,121 53

offiCe/finAnCe

6,595

WhiTe CollAR

1,388 6

blue CollAR

8,056

peRmAnenT

1,460 81

TempoRARy

6,540

ToTAl neT Revenue in 2019 (huf mln)

1,498 53

bReAkbReAkdoWn of doWn of plACeType of menT in WoRk in 2019 (%) 2019 (%)

Special Report | 15

ToTAl numbeR of TempoRARy WoRkfoRCe in 2019 no. of billed houRs in 2019

neT Revenue fRom TempoRARy plACeRmenT in 2019 (huf mln)

CompAny WebsiTe

AveRAge sTATisTiCAl heAdCounT in 2019 no. of full-Time employees on mARCh 1, 2020

RAnk

Budapest Business Journal | April 24 – May 7, 2020

3,408 2,368,560

6,996

75

25

92

8

A

A

A

A

A

A

A

A

2003 10 10

Róbert Csákvári (100) –

Róbert Csákvári – Miklós Dulkai

1134 Budapest, Váci út 49.

(1) 354-3434 titkarsag@work-force.hu

8,969

A

A

95

5

A

A

A

A

A

A

A

A

1998 6 6

Volano Kft. (100) –

Csaba ottó Orsolya Horvai Módné –

8272 Óbudavár, Fő utca 31.

(20) 929-2430 info@manatwork.hu

1,704 2,692,948

6,664

90

10

100

–

1

–

99

–

–

–

–

–

2018 1 300

– Trenkwalder Group AG (100)

balázs g. nagy Henrietta Tóth András Csizmadia

1134 Budapest, Váci út 22–24.

(1) 354-0933 infohungary@ trenkwalder.com

4,795

3,794 2,156,471

4,944

3

97

95

5

✓

✓

✓

–

–

✓

–

–

2004 10 10

– Graph Investment Solutions AG (100)

ákos Jáhny Lázár Krisztina –

1023 Budapest, Árpád fejedelem útja 31.

(1) 766-5626 getwork@getwork.hu

5,014

1,750 1,240,974

5,333

90

10

82

18

4

10 82

–

2

2

–

–

1990 3 2,600

– Manpower France Holding SAS (100)

Tamás fehér – Saadah Rena

1133 Budapest, Váci út 76.

(1) 411-1590 manpower@manpower.hu

4,038

A A

4,620

A

A

85

15

A

A

A

A

A

A

2001 18 19

Individuals (100) –

zoltán márkus Henrietta Gyurkóczi Zsuzsanna Werner-Tóth

1118 Budapest, Előpatak utca 78.

(1) 248-2010 info@humaniahrsgroup.hu

2001 12 12

Via Pannónia Kft. (46), Zoltán Egerszegi (18,9), Gábor Csizmadia (18,9), Erika Pintér (11,2), Péter Vida (5) –

gábor Csizmadia, péter vida László Pintér Mátyás Stankovics

1013 Budapest, Pauler utca 18.

(20) 242-2138 info@viapan.hu

bReAkdoWn of Temps supplied by seCToRs in 2019

Top loCAl exeCuTive Cfo mARkeTing diReCToR

AddRess phone emAil

WoRk foRCe személyzeTi TAnáCsAdó és szolgálTATó kfT. www.workforce.hu 8

9

mAn AT WoRk kfT. www.manatwork.hu

3,999 A

TRenkWAldeR leAsing kfT. 10

http://hu.trenkwalder.com

geT WoRk TRend kfT. www.getwork.hu

11

mAnpoWeR munkAeRő szeRvezési kfT. www.manpowergroup.hu 12

13

humániA hRs gRoup zRT. www.humaniahrsgroup.hu

719 A

A

A

viApAn dologidő kfT. www.viapan.hu 14

700 8

3,900

2,134 1,214,707

4,017

15

85

90

10

✓

✓

✓

✓

–

✓

✓

✓

Viapan is an expert HR supplier with a wide range of solutions.

37 years experience, 4 countries, transparent services. #weareviapan Find us and get in touch! info@viapan.hu •

Special Report

peRmAnenT

blue CollAR

WhiTe CollAR

offiCe/finAnCe

iT/TelCo

pRoduCTion

TouRism

heAlThCARe/ phARmACeuTiCAl

sAles/TRAde

AgRiCulTuRe

ConsTRuCTion indusTRy

632 140

4,352

973 894,258

6,239

70

30

19

81

✓

✓

✓

✓

✓

✓

✓

✓

479 55

2,654

1,804 804,817

2,929

A

A

90

10

✓

✓

✓

–

✓

–

–

–

371 12

1,893

895 667,363

1,955

242 –

1,020

273 482,640

1,146

90

10

92

8

208 24

1,700

337 273,760

1,931

41

59

–

100

139 4

508

400 148,499

513

95

5

95

5

✓

✓

✓

–

–

–

A A

A

A A

2,188 (2018)

A

A

A

A

A

A

A

A

A

A A

A

A A

1,468 (2018)

A

A

A

A

A

A

A

A

12

A

A A

283

A

A

A

A

✓

✓

✓

yeAR esTAblished no. of offiCes in hungARy WoRldWide inCluding offiCes in hungARy

TempoRARy

www.randstad.hu

ToTAl neT Revenue in 2019 (huf mln)

RAndsTAd hungARy kfT.

ToTAl numbeR of TempoRARy WoRkfoRCe in 2019 no. of billed houRs in 2019

15

bReAkbReAkdoWn of doWn of plACeType of menT in WoRk in 2019 (%) 2019 (%)

neT Revenue fRom TempoRARy plACeRmenT in 2019 (huf mln)

CompAny WebsiTe

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

AveRAge sTATisTiCAl heAdCounT in 2019 no. of full-Time employees on mARCh 1, 2020

RAnk

16 | 3

oWneRship (%) hungARiAn non-hungARiAn

Top loCAl exeCuTive Cfo mARkeTing diReCToR

AddRess phone emAil

2004 4 4,861

– Randstad Holding Luxembourg S.a.r.l.

(100)

sándor baja Lívia Tóth Ágnes Szokody

1024 Budapest, Lövőház utca 39.

(1) 411-2090 info@randstad.hu

A

– Kelly Services Management Sarl (100)

péter kóthay József Verebélyi –

1085 Budapest, Kálvin tér 12.

(1) 301-7800 info@kellyservices.hu

–

2001 5 7

MELÓ-DIÁK Holding Zrt. (100) –

péter megyeri Gyula Serfőző Zoltán Kott

2724 Újlengyel, Kossuth utca 138.

(1) 456-0700 info@starjobs.hu

– SATRK GmbH (100)

balázs g. nagy Henrietta Tóth András Csizmadia

1132 Budapest, Váci út 22–24.

(1) 354-0933 infohungary@ trenkwalder.com

bReAkdoWn of Temps supplied by seCToRs in 2019

kelly seRviCes hungARy kfT.

www.kellyservices.hu 16

2004 7

sTARJobs mAgyARoRszág humánszolgálTATó kfT. www.starjobs.hu

17

TRenkWAldeR személyzeTi 18 szolgálTATó kfT. http://hu.trenkwalder.com

Job személyzeTi

19 TAnáCsAdó kfT. www.job.hu

munkA-eRő kölCsönző és 20 közveTíTő kfT. www.munka-ero.hu

esense humAn ResouRCes

NR szolgálTATó zRT. www.esense.hu

7

93

40

60

✓

11

✓

2

52 15

✓

✓

–

✓

–

87

–

–

–

–

–

1995 1 300

–

–

13

20

–

–

1992 2 2

László Hadi, Botond Csordás, Attila Pál, Attila Dobár (100) –

Tímea harnisfőger György Thury –

1094 Budapest, Angyal utca 24.

(1) 239-9922 job@job.hu

–

–

2005 12 12

Bence Vida (50), Milagroso Gerifalte Szolgáltató és Tanácsadó Kft. (50) –

bence vida Péter Vida Dániel Fatuska

2724 Újlengyel, Ady Endre utca 11.

(82) 423-104 info@munka-ero.hu

A

A

A

Individuals (100) –

dénes osztroluczky – –

1138 Budapest, Madarász Viktor utca 47–49.

(1) 555-1585 esense@esense.hu

A

A

A

A

Individuals (100) –

zoltán pataki – Nikoletta Rumpf

2724 Újlengyel, Nyári Pál utca 65.

(1) 225-7313 eucsoport@eucsoport.hu

✓

✓

✓

–

✓

Tímea Bíró (100) –

Tímea bíró – –

1138 Budapest, Váci út 135-139.

(1) 336-2910 info@focusconsulting.hu

(100) –

géza homonnay – –

1114 Budapest , Bartók Béla út 15/D (1) 381-1040 recepcio@gamax.hu

– Hays Plc. (100)

Tammy nagy-stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

(1) 501-2400 hungary@hays.hu

Individuals (100) –

katalin bor, Róbert göbl, zsuzsanna szabó – –

1077 Budapest, Wesselényi utca 11.

(1) 877-0900 info@humancentrum.hu

– Reed Specialist Recruitment (Global) Ltd. (100)

nigel marsh – –

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 883-3500 info.hungary@reedglobal.com

2007

2005

NR

eu-Jobs kfT.

NR

foCus ConsulTing kfT.

NR

gAmAx kfT.

A A

A

A A

14,355 (2018)

A

A

A

A

A

A

A

A

A

A

A

A

NR

hAys hungARy kfT.

A A

2,009

A A

3,131(1)

A

A

–

100

A

A

A

A

A

A

A

A

A A

A

A A

6,317 (2018)

A

A

A

A

A

A

A

A

A

A

A

A

A A

246

A A

527(1)

20

80

–

100

✓

✓

✓

–

✓

✓

–

–

www.eujobs.hu

www.focusconsulting.hu

www.gamax.hu

www.hays.hu

humán CenTRum kfT. NR www.humancentrum.hu

NR

Reed mAgyARoRszág kfT. www.reedglobal.com

A = would not disclose, NR = not ranked, NA = not appliacable

A

A A

A A

1997 1 1

1990 A A

2007 1 257

1993 A A

2008 1 102

This list was compiled from responses to questionnaires received by April 22, 2020 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies' voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

noTes: (1) Data of business year July 1, 2018-June 30, 2019.

3

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

Special Report | 17

Recruitment Agencies middle mAnAgement

bAnking And finAnCe

pRoduCtion/engineeRing

touRism

sAles/tRAde/mARketing

it/teleCom

pHARmA/CHemiCAl

ssC/bsC

top loCAl exeCutive Cfo mARketing diReCtoR

lAW

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

oWneRsHip (%) HungARiAn non-HungARiAn

otHeR

1,887 6,239

50

20

20

10

1,464 112

7

18

75

3-6 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

2004 4 4,861

– Randstad Holding Luxembourg S.a.r.l. (100)

sándor baja Lívia Tóth Ágnes Szokody

1024 Budapest, Lövőház utca 39.

(1) 411-2090 info@randstad.hu

HAys HungARy kft.

1,017 3,131(1)

A

A

A

A

A A

A

A

A

3-6 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

2007 1 257

– Hays Plc. (100)

tammy nagy-stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

(1) 501-2400 hungary@hays.hu

45

15

35

5

434 28

10

30

60

3 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

1996 1 500+

– GI Group (100)

györgy g. palásti Szabolcs Németh Zsolt Pető

1053 Budapest, Károlyi utca 12.

(1) 235-2600 info@grafton.hu

5

35

60

3 months 1-8 weeks

✓

✓

✓

✓

✓

✓

✓

✓

2018 18 300

– Trenkwalder Group AG (100)

balázs g. nagy Henrietta Tóth András Csizmadia

1134 Budapest, Váci út 22–24.

(1) 354-0933 infohungary@ trenkwalder.com

1991 10 5,300

– Adecco Group AG (100)

florin godean Oltita Kupas-Spunei Anna Fodor

1134 Budapest, Váci út 45. G/7.

(1) 323-3500 adecco@ adecco.hu

Beáta Fürjész (50), Gabriella Ruff Berzéthyné (50) –

beáta fürjész – –

1075 Budapest, Madách Imre út 13-14.

(1) 354-2060 info@ karrierhungaria.hu

– Manpower France Holding SAS (100)

tamás fehér – Saadah Rena

1133 Budapest, Váci út 76.

(1) 411-1590 manpower@ manpower.hu

– Kelly Services Management Sarl (100)

péter kóthay József Verebélyi –

1085 Budapest, Kálvin tér 12.

(1) 301-7800 info@kellyservices.hu

www.hays.hu

guARAntee peRiod ReCRuitment time

top mAnAgement

no. of CAndidAtes plACed in 2019 no. of employees in seARCH And Consulting on mARCH 1, 2019

otHeR

RAndstAd HungARy kft.

totAl net Revenue in 2019 (Huf mln)

plACement fRoim dAtAbAse

industRy speCiAlizAtion in 2019

AddRess pHone emAil

CompAny Website

www.randstad.hu

2

peRCentAge of CAndidAtes plACed in 2019 (%)

AdveRtising

bReAkdoWn by seARCH metHods in 2019 (%)

diReCt seARCH

1

net Revenue fRom ReCRuitment in 2019 (Huf mln)

RAnk

Ranked by net revenue from recruitment in 2019 (HUF mln)

gRAfton ReCRuitment kft. www.grafton.hu

531

3

4

tRenkWAldeR ReCRuitment kft.

http//hu.trenkwalder.com

543

525

2,096

40

25

25

10

1,244 25

484

11,933

55

15

15

15

828 29

15

40

55

3 months 1-6 weeks

A

A

A

A

A

A

A

A

407

439

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

319

5,333

60

20

20

–

470 28

6

16

78

3 months 1-6 weeks

✓

✓

–

✓

✓

✓

✓

✓

276

2,929

19

46

35

–

133 21

1

5

94

3 months 3-4 weeks

✓

✓

–

✓

✓

✓

✓

✓

AdeCCo kft. www.adecco.hu 5

6

kARRieR HungáRiA kft.

www.karrierhungaria.hu

2007 A A

mAnpoWeR munkAeRő szeRvezési kft. www.manpowergroup.hu 7

1990 3 2,600

kelly seRviCes HungARy kft.

www.kellyservices.hu 8

2004 7 A

For some, the changing world of work can be a difficult conversation.

Talk to us! ertekesites@kellyservices.hu I +36 30 581 9820

35

20

256 5

5

177 12

A

A

A

30

60

10

10

30

60

✓

✓

–

✓

✓

✓

✓

AddRess pHone emAil

✓

2008 1 102

– Reed Specialist Recruitment (Global) Ltd. (100)

nigel marsh – –

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 883-3500 info.hungary@ reedglobal.com

–

2000 14 15

László Mátyás (89), Erika Dékány (11) –

lászló mátyás Erika Dékány László Zsilka

4024 Debrecen, Batthyány utca 12/1.

(52) 446-991 info@hsakft.hu

✓

1997 1 1

Tímea Bíró (100) –

tímea bíró – –

1138 Budapest, Váci út 135-139.

(1) 336-2910 info@ focusconsulting.hu

– CPL Resources Ireland Holdings Limited (100)

simone olivo Katalin Gombos-Cziria –

1062 Budapest, Teréz körút 55.

(1) 501-5460 budapest@cpljobs.hu

lAW

ssC/bsC

pHARmA/CHemiCAl

it/teleCom

sAles/tRAde/mARketing

touRism

pRoduCtion/engineeRing

bAnking And finAnCe

guARAntee peRiod ReCRuitment time

otHeR

middle mAnAgement

top mAnAgement

no. of CAndidAtes plACed in 2019 no. of employees in seARCH And Consulting on mARCH 1, 2019

otHeR 5

www.reedglobal.com

3–6 months 1–6 weeks

top loCAl exeCutive Cfo mARketing diReCtoR

25

261 15

industRy speCiAlizAtion in 2019

oWneRsHip (%) HungARiAn non-HungARiAn

35

plACement fRoim dAtAbAse

527

AdveRtising

276

(1)

peRCentAge of CAndidAtes plACed in 2019 (%)

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

Reed mAgyARoRszág kft.

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

bReAkdoWn by seARCH metHods in 2019 (%)

diReCt seARCH

CompAny Website

totAl net Revenue in 2019 (Huf mln)

8

Special Report net Revenue fRom ReCRuitment in 2019 (Huf mln)

RAnk

18 | 3

HsA kft.

www.hsakft.hu 10

HSA

262

7,813

30

10

40

40

40

20

A

1–6 weeks

–

✓

–

✓

✓

✓

✓

foCus Consulting kft.

www.focusconsulting.hu 241

11

283

45

15

35

Cpl Jobs kft.

12

240

4,225

A

A

A

A

A A

iseeQ kft.

237

240

50

–

30

20

132 8

A

A A

5

125 12

www.cpljobs.hu

13

www.iseeq.hu

pAnnonJob Humán szolgáltAtó és 14 tAnáCsAdó kft.

233

12,639

A

A

A

10

A

40

A

50

A

3-6 months 1-6 weeks

3-6 months A

3 months 2-4 weeks

3-6 months A

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

2009 2 36

15

–

–

20

65

–

–

–

2012 1 1

Corporate (100) –

balázs bondici – –

1075 Budapest, Madách Imre út 13–14.

– hello@iseeq.hu

✓

1993 7 7

Videoton Holding Zrt. (100) –

Attila molnár – –

8000 Székesfehérvár, Berényi út 72–100.

(22) 554-170 info@ pannonjob.hu

5

1992 2 2

László Hadi, Botond Csordás, Attila Pál, Attila Dobár (100) –

tímea Harnisfőger György Thury –

1094 Budapest, Angyal utca 24.

(1) 239-9922 job@job.hu

béla ignácz, Profólió Projekt Csongor Juhász, Tanácsadó Kft. sándor zakor, (19.78) Jacek lorek Work Service Tamás Kutassy S.A. (80.22) –

✓

✓

✓

✓

✓

✓

✓

www.pannonjob.hu

Job személyzeti 15 tAnáCsAdó kft.

204

1,931

50

25

20

www.job.hu

10

30

60

3-6 months 2-5 weeks

A

A

A

A

A

A

A

A

2004 14 98

–

✓

✓

✓

✓

–

✓

–

2012 1 1

15

5

–

20

15

25

15

pRoHumán 2004 munkAeRő szolgáltAtó és tAnáCsAdó kft.

16

www.prohuman.hu

183

A

A

A

A A

1

10

89

3-6 months 1-12 weeks

10

87

1-12 months 1-5 weeks

10

30

–

20

20

20

–

181

34,328

A

A

A

A

180

180

10

60

30

–

470 16

3

A

1144 Budapest, Hungária körút 140-144.

(1) 432-1280 prohuman@ prohuman.hu

fp invest tRAde kft. www.tesk.hu 17

PéterTokár (47) EszterTokár (47), other (6) –

péter tokár Hajnalka Bánovics Kinga Zentai

1062 Budapest, Aradi utca 8.

(1) 279-0706 info@tesk.hu

–

2004 10 10

– Graph Investment Solutions AG (100)

ákos Jáhny Lázár Krisztina –

1023 Budapest, Árpád fejedelem útja 31.

(1) 766-5626 getwork@ getwork.hu

1990 8 12

Péter Berta (40), Zoltán Tóth (30), Viktor Göltl (30) –

péter berta – –

1074 Budapest, Rákóczi út 70.

(1) 787-8399 whc@whc.hu

Gabriella Ruff Berzéthyné (50), Beáta Fürjész (50) –

gabriella Ruff berzéthyné – –

1075 Budapest, Madách Imre út 13–14.

(1) 354-2060 –

Via Pannónia Kft. (46), Zoltán Egerszegi (18,9), Gábor Csizmadia (18,9), Erika Pintér (11,2), Péter Vida (5) –

gábor Csizmadia, péter vida László Pintér Mátyás Stankovics

1013 Budapest, Pauler utca 18.

(20) 569-7006 info@viapan.hu

get WoRk tRend kft. www.getwork.hu

18

148

4,944

60

10

30

–

213 4

138

21,031

50

20

20

10

203 16

5

35

60

3-6 months 2-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

120

121

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

WHC kft.

www.whc.hu 19

20

kARRieR Rent kft.

–

2012 A A

viApAn dologidő kft. www.viapan.hu 21

116

4,017

20

30

45

5

296 12

5

30

65

3-6 months 1-6 weeks

3

73

4

2

2

3

13

–

2001 12 12

3

www.bbj.hu

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

oWneRsHip (%) HungARiAn non-HungARiAn

top loCAl exeCutive Cfo mARketing diReCtoR

(100) –

orsolya Cseh, veronika varga – –

1117 Budapest, Nádorliget utca 5/A (20) 746-8296 info@ visionrecruitment.hu

1

2004 16 18

Grosvenor Kft. (100) –

géza Homonnay, péter laczi Andrea peka makkosné Marianna Baksy

1114 Budapest, Bartók Béla út 15/D (1) 381-1048 budapest@ pannonwork.hu

–

5

2005 1 1

Péter Bogdanovits (60), Anikó Pethő (40) –

péter bogdanovits – –

1143 Budapest, Gizella út 42-44.

(1) 225-1079 office@aarenson.hu

lAW ✓

2013 1 1

ssC/bsC

1053 Budapest, Veres Pálné utca 9.

(1) 614-6582 info@carbyne.hu

pHARmA/CHemiCAl

péter sitte – –

it/teleCom

Individuals (100) –

sAles/tRAde/mARketing

2017 1 1

touRism

40

pRoduCtion/engineeRing

45

Special Report | 19

AddRess pHone emAil

bAnking And finAnCe

15

industRy speCiAlizAtion in 2019 guARAntee peRiod ReCRuitment time

–

otHeR

25

middle mAnAgement

5

peRCentAge of CAndidAtes plACed in 2019 (%)

top mAnAgement

otHeR

70

no. of CAndidAtes plACed in 2019 no. of employees in seARCH And Consulting on mARCH 1, 2019

plACement fRoim dAtAbAse

115

AdveRtising

115

bReAkdoWn by seARCH metHods in 2019 (%)

diReCt seARCH

totAl net Revenue in 2019 (Huf mln)

CompAny Website

net Revenue fRom ReCRuitment in 2019 (Huf mln)

RAnk

Budapest Business Journal | April 24 – May 7, 2020

–

✓

–

✓

–

✓

–

–

CARbyne kft. www.carbyne.hu 22

50 5

5

85 11

6

162 18

15

3-6 months 1-4 weeks

55

3 months 1-4 weeks

70

3 months 2-8 weeks

35

50

3-9 months 1-4 weeks

5

40

–

25

20

5

vision ReCRuitment kft. www.visionrecruitment.hu

115

22

pAnnon-WoRk zRt. 24 www.pannonwork.hu

AARenson Consulting kft.

25 www.aarenson.hu

26

mAn At WoRk kft. www.manatwork.hu

tRenkWAldeR személyzeti

27 szolgáltAtó kft. http://hu.trenkwalder.com

seleCt HumáneRőfoRRás

28 kft. www.select.hu

NR

bdo mAgyARoRszág (HR személyzeti tAnáCsAdás)

106

115

11,428

80

55

5

28

10

11

15

8

30

22

✓

9

✓

45

✓

–

✓

10

✓

22

✓

1

✓

12

105

105

80

10

10

–

83 8

98

8,969

10

46

44

–

225 7

10

20

70

1-6 months 1-12 weeks

–

80

–

10

–

5

5

–

1998 6 6

Volano Kft. (100) –

Csaba ottó Orsolya Horvai Módné –

8272 Óbudavár, Fő utca 31.

(20) 929-2430 info@manatwork.hu

75

1,146

40

25

25

10

153 –

5

35

60

3 months 1-8 weeks

✓

✓

✓

✓

✓

✓

✓

✓

1995 1 300

– SATRK GmbH (100)

balázs g. nagy Henrietta Tóth András Csizmadia

1132 Budapest, Váci út 22–24.

(1) 354-0933 infohungary@ trenkwalder.com

26

29

A

A

A

A

2

30

20

50

3-6 months 1-6 weeks

20

20

10

10

20

–

10

10

1994 2 2

Noémi Csaposs noémi Csaposs (100) – – –

1093 Budapest, Lónyay utca 34.

(1) 456-0700 office@select.hu

A

3,800 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

476 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

290 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

950 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

6,317 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

729 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

2,325 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

109 (2018)

A

A

A

A

A A

A

A

A

A A

A

A

A

A

A

A

A

A

A

2007

www.bdo.hu

dekRA ARbeit NR mAgyARoRszág kft. www.dekra-arbeit.hu

NR

exACt solutions személyzeti tAnáCsAdó kft.

2004

HRCv személyzeti

Humán CentRum kft.

NR www.humancentrum.hu

NR

JobsgARden kft. www.jobsgarden.hu

pRodukteAm vállAlkozásszeRvező NR kft.

t-HR kft.

www.t-hr.hu

A = would not disclose, NR = not ranked, NA = not appliacable

A A

2000 A A

1993 A A

2001 A A

1995

www.produkteam.hu

NR

A A

2007

www.exactsolutions.hu

NR szolgáltAtó kft. www.hrcgroup.hu

A A

A A

2000 A A

(100) –

Andrea Jamniczky, szabolcs Jordán – –

1103 Budapest, Kőér utca 2/A (1) 235-3010 recruitment@bdo.hu

– DEKRA Arbeit GmbH (100)

Radoslav sekerka – –

1062 Budapest, Andrássy út 97.

(80) 315-096 dekra@ dekra-arbeit.hu

Gábor Béres (100) –

gábor béres Ádám Hoffmann Annamária Miklós

1053 Budapest, Ferenciek tere 5.

(1) 200-2823 hr@exactsolutions.hu

Csilla Vidó (100) –

Csilla vidó – –

1117 Budapest, Móricz Zsigmond körtér 14. 4/1.

(1) 878-0145 info@hrcv.hu

Individuals (100) –

katalin bor, Róbert göbl, zsuzsanna szabó – –

1077 Budapest, Wesselényi utca 11.

(1) 877-0900 info@ humancentrum.hu

(100) –

zsuzsa gárdus, éva paulovics – –

1037 Budapest, Montevideo utca 16/B (1) 439-2940 office@jobsgarden.hu

Individuals (100) –

lászló szűcströmbőczki – –

6722 Szeged, Vitéz utca 22.

(1) 267-9010 produkteam@ produkteam.hu

Borbála Invest Kft. (100) –

eszter mező – –

2800 Tatabánya, Szent Borbála tér 6.

(34) 511-734 thr@t-hr.hu

This list was compiled from responses to questionnaires received by April 22, 2020 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies' voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

notes: (1) Data of business year July 1, 2018-June 30, 2019.

4

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

Socialite Photo by Quisquilia/Shutterstock

Armchair Culture: Virtually Touring Budapest’s Museums and Galleries David Holzer decides to take advantage of the “stay at home” orders by embracing culture coronavirus-style; going on a virtual tour of some of Budapestʼs best loved museums and galleries.

“Our [Museum of Fine Arts] online content is rather popular. Searches have almost doubled.”

My last tour before I retired for the day was of Budapest’s Museum of Applied Arts, which I’ve never visited in reality.

I was immediately fascinated by a bright orange chair designed by Marcell Breuer. This came from the collection of Hungarian architectural connoisseur Borbiró and was made in 1930. Seeing the chair reminded me I’ve yet to visit any of Budapest’s Bauhaus architectural gems, particularly the Pasarét Franciscan Church in Pasaréti tér, built in 1933 in Buda’s District II. I didn’t know Bauhaus did churches.

DAVID HOLZER

You don’t need to be a genius to realize that the amount we’re all spending online has skyrocketed during lockdown.

Museums and art galleries all over the world that have been forced to close their doors as a result of COVID-19 are seeing the numbers of people taking virtual tours surge.

And why not? A virtual tour of the world’s great museums or galleries is the perfect way to cleanse one’s palate of the nasty taste left by watching the entire series of Netflix’s Tiger King in one sitting.

Taking a virtual tour also doesn’t have to be a poor cousin to visiting a museum or gallery and seeing exhibits in the flesh. In the real world, the most popular exhibitions are often so packed with culture vultures it’s impossible to spend more than a couple of minutes in front of an artwork stroking your chin and pretending you know something about art without a chorus of loud harrumphing from behind. That’s if you can even get anywhere near it at all.

Viewing artworks online means you can’t reach out and touch them. This might seem, at best, a minor benefit. But, as someone who nearly got arrested in Vienna last year when I couldn’t stop myself from touching an especially tempting daubing, I’m happy that the only thing my fingers touch is my keyboard.

Being an armchair art lover or a couch potato connoisseur also spares your feet while broadening your mind. The intensive research for this article consisted of me

unlikely to visit in reality. Of these, I’d recommend Paolo Ventura’s “A Venetian Story: The Automaton and Olga Tobreluts’ New Mythology.”

If you want to be baffled, take a tour of David Lynch’s Small Stories. When I saw this exhibition in the flesh, as it were, last year I had no idea what I thought about it. It still bewilders me, but it was nice to see again.

As an admirer of the great Hungarian writer Magda Szabó, I was delighted to discover I could take a virtual tour of the exhibition devoted to her life at the Petőfi Literary Museum. If you don’t know Magda Szabó, I’d highly recommend you pick up a copy of her book “The Door.”

This was made into a 2012 movie starring Helen Mirren which you can watch on Amazon Prime.

When you arrive at the start of the virtual tour, you’ll read a quote from Szabó.

“I have kept so many secrets,” it says.

Unfortunately, the secrets of the exhibition were safe from me as I couldn’t figure out how to cyber-stroll through it. Mind you, I have plenty of time on my hands to get to grips with that particular challenge.

Missing the Commute?

taking several virtual tours of Budapest museums and galleries. Although I was somewhat goggle-eyed by the end, I was fresh as a daisy.

Fine Arts and Beards

I started with the Museum of Fine Arts, Budapest. This offers tours on the themes of Motherhood, Angels, Perspective and, my favorite, “From False Beards to Hipster Beards,” a selection of paintings and sculptures of dudes throughout the ages sporting…, well, you’ve guessed it.

This made me wonder whether the current vogue for beards will survive lockdown. According to a blog post on the U.S. Centers for Disease Control and Prevention website, a beard can interfere with the efficacy of a tightfitting respirator.

It’s not surprising, then, that the Live Bearded website hastened to reassure its readers that “unless you work in a hospital, or somewhere that requires a fully sealed respirator, a beard will not increase your chances of exposure to the virus.”

If your chin does sport, let’s say, a Van Dyke, Garibaldi, Old Dutch or Soul Patch, Live Bearded’s advice is to avoid stroking your “killer beard” and wash with an allnatural beard wash. Now you know. Back to virtual tours.

I was curious to discover whether Hungarian museums and galleries were experiencing the same kind of increase in virtual tourists as big hitters like the Louvre. Dávid Szabó, in the PR department of the Museum of Fine Arts, Budapest told me, “Our online content is rather popular.

Searches have almost doubled.”

(Incidentally, the Louvre’s virtual tours of exhibitions are a bit boring but there’s something called youvisit.com that lets you look around from all kinds of weird and wonderful psychedelic perspectives.)

The Automaton

From the Museum of Fine Artists, I cyber-sauntered over to the MűcsarnokKunsthalle on Heroes’ Square. Here I checked out exhibitions by artists I’d never heard of that I would have been highly

If you’re missing your Budapest commute, I discovered it’s possible to take a virtual tour of some of the stations on the M4 metro line, thanks to our friends at welovebudapest.com.

I have no idea what was going through the mind of the marketing genius who thought up this one. Especially as one of the benefits of lockdown is not having to get on crowded trains.

But, there’s something enormously soothing about pictures of empty metro stations. I was startled to discover I’d spent 30 minutes staring at images of Keleti, Kálvin tér and other stations I’m never likely to alight at.

The Museum of Fine Arts is at mng.hu. Műcsarnok is at mucsarnok.hu. The Magda Szabó tour is at szabomagda.pim.hu. Go to artsandculture.google.com/ partner/iparmuveszeti-museum for the Museum of Applied Arts and virtualis-seta.hu/budapest/ metro4data/ for commuting nostalgia.

4

www.bbj.hu

Budapest Business Journal | April 24 – May 7, 2020

Socialite | 21

Increasingly Elegant Eger Delivers Time and Again Eger Gives Blood in Fight Against COVID-19

With many of us in stayat-home mode, and unnecessary travel discouraged, the Budapest Business Journal’s regular wine column heads off on a virtual grand tour around some of the country’s leading wine areas.

János Bolyki

ROBERT SMYTH

The Eger wine region, located in the relatively cool climes of northeastern Hungary, is viticulturally very well endowed and can swing both ways with equally exciting results in terms of producing both white and red wine. It is the land of blends: its red Bikavér (Bull’s Blood) is the stuff of legend, while Egri Csillag (Star of Eger) is a more recent addition to the Eger fold.

Not only is the city of Eger a genuine baroque beauty, it also has an imposing castle that is itself legendary; it is here that brave Hungarians are said to have held the fort and eventually repelled invading Ottoman forces in 1552 (remember that date, it will be important later).

The marauding Turks apparently declared that the mighty Magyars were fueled for the big fight by drinking the blood of bulls and thus inspired the name of the region’s signature wine. The southern Hungarian region of Szekszárd, 130 km away, also claims to have been the first to make Bikavér, but that’s another story.

Whoever got there first is not that important, but it is notable that the Bikavérs from the two regions are quite different from each other, with Eger’s more linear, acid-driven and elegant style nicely contrasting with Szekszárd’s more sunkissed ripeness and roundness.

The difference is not only climatic. Eger is based on volcanic rhyolite tuff topped by brown forest soils and clay, plus some

limestone, while warmer Szekszárd has loess and red clay that yield chunkier wine, with some pockets of limestone.

Eger is famous, and for a time perhaps infamous, even beyond Hungary, for its Bikavér, but the region is slowly taking the bull by the horns and succeeding in distancing itself from the bottom-shelf Bikavérs associated mainly, but unfortunately not exclusively, with the mass production philosophy of the communist past.

The region’s vintners are putting increasingly sophisticated and complex Bikavérs on the table from lower yields that reflect the attributes of its relatively cool northern climate, based on vibrant acidity, as well as restrained alcohol and tannins.

Backbone

The backbone for Bikavér comes from the local Kékfrankos grape, which is the most planted red wine variety in Hungary and is the same grape as Austria’s Blaufränkish.

The Bikavér blend is fleshed out and beefed up by other grape varieties, including the Bordeaux varietals, with a minimum of three grapes required for the entry-level “Classic” category and a minimum of five for the more yield-restricted “Superior” category, with no one grape supposed to dominate.

“Grand Superior” is a single vineyard Bikavér from low yields. St. Andrea’s earthy, spicy and fruity Hangács Bikavér Grand Superior (HUF 5,800 from Bortársaság) is from a 17-hectare vineyard in Demjén, and positively oozes a sense of place.

A recent development is that the spicy but hard to cultivate Kadarka grape, which

was grubbed up during the former system, is making a comeback in Eger and many winemakers have started to use a small percentage of the grape to liven up the blend (such as in the aforementioned Hangács).

In contrast, Kadarka has never gone away in Szekszárd and its use in Bikavér is de rigueur. In 2010, Egri Csillag (Star of Eger) became the white equivalent of Bikavér.

Local flavor is guaranteed by the requirement that the wine must be composed of at least 50% of the Carpathian basin grape varieties, such as Olaszrizling, Hárslevelű, Leányka, Királyleányka, Zengő and Zenit. Aromatic varieties like Cserszegi Fűszeres, Zefír, Irsai Olivér, Tramini and Muscat Ottonel are limited to a maximum of 30% in the blend. The same categories apply to Egri Csillag as to Bikavér.

Tibor Gál’s Egri Csillág is my go-to in the “Classic” category, but it came out even better than usual – a bit fuller, softer and rounder – in the warm but balanced 2018 vintage. His “Titi” Egri Csillág 2018 (HUF 2,250 from Bortársaság) is totally made in the tank and is a blend of Királyleányka, Viognier, Pinot Gris, Tramini, Pinot Blanc, Zenit and Cserszegi fűszeres.

When you can travel again and are next in Eger, look out for the impressive Nagy Eged Hill, which rises majestically above the city. It has the highest vineyards in Hungary and the wines from here typically possess extra layers of elegance and complexity, with prices to match. That said, Egri Bikavér Grand Superior NagyEged 2015, a field blend of Cabernet Franc, Kadarka, Kékfrankos, Merlot and Syrah,

Eger winemakers are literally giving their Bull’s Blood (and more) in the battle against coronavirus, by helping to finance catering for medical workers, who are unable to leave hospitals or clinics for long stretches.

The Eger Wine Workshop (which includes all the wineries and winemakers mentioned in this article) and the local Lions Club have joined forces to support Eger medical workers with free meals. Members of the Eger Wine Workshop have donated 1,552 bottles of wine for sale and are dedicating the income to finance the “1552 initiative” (named for the year the Siege of Eger took place), with local restaurants making and delivering food at cost for any of those medical institutions.

“It’s astounding to see that in the present situation, when everybody is full of fear and uncertainty, health workers march into the lion’s den with no complaints and for the sake of our community expose themselves to the dangers of infection,” says winemaker János Bolyki, the originator of the initiative. “Being winemakers, our way of helping is by donating wine.”

The wines are purchased by making a donation of a minimum of HUF 2,000 per bottle, with the bottles handed over once the pandemic is over. The wines can be viewed and bought at www.1552segitseg.hu.

from the Thummerer winery is great value at HUF 6,400 from Borbolt.hu.

One indicator of how the Eger region is developing is Szépasszonyvölgy (Valley of the Beautiful Women), which was formerly a bastion of wine of below bottom shelf quality. Now, however, the overall quality is much improved at this charming and atmospheric extended cellar row, and several of the region’s leading lights, like St. Andrea and Tibor Gál have a presence there.

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Budapest Business Journal | April 24 – May 7, 2020

30 YEARS OF FREEDOM:

THE LAST CONGRESS OF THE HUNGARIAN SOCIALIST WORKERSʼ PARTY

Delegates of the Hungarian Socialist Workers Party (MSZMP) meet at the Budapest Congress Center in Budapest on October 8, 1989. The congress was the last held by the MSZMP, and saw the birth of the Hungarian Socialist Party (MSZP) and the overtly communist Hungarians Workers Party (MPP). MTI Photo: László Varga

The Party’s Dilemma: Reform, Renew or Reject The history of the communist state party, re-established after the 1956 Uprising and known as the Hungarian Socialist Workersʼ Party (MSZMP), had reached its final chapter in 1989. Renew the party, abolish the old or reject reform: this was what was at stake at the party congress convened in early October.

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When the 14th MSZMP meeting took place in the early fall of 1989, it has been 16 months since Károly Grósz (General Secretary of the Hungarian Socialist Workers’ Party from 1988 to 1989) had successfully deposed

János Kádár (who, as General Secretary, had presided over the country from 1956 until his “retirement” in 1988).

The change at the top of the MSZMP could not have happened without the consent of the Soviet Union; USSR leader Mikhail Gorbachev hoped his reform policy would find a supporter in Grósz.

At the time, the new general secretary was more concerned with who would bear the responsibility for the long overdue austerity demanded by Hungary’s economic crisis that had been escalating from the mid-1970s onwards.

A young 40-year-old politician, Miklós Németh was elected to serve as prime minister from November 24, 1988, a position he was destined to hold until May 23, 1990. However, Németh refused to play the role intended for him, just as Grósz had chosen not to dance in the manner Kádár had wanted before him.

Reformist Elements

Németh, Imre Pozsgay (Minister of Culture from 1976-1980, Minister of Education from 1980–’82 and Minister of State from ’88-’90 and Rezső Nyers (Minister of Finance from 1960 to 1962 and, for a few months in 1989, the country’s last Communist leader) were all much more pro-reform than Grósz.

Pozsgay cooperated most closely with the political opposition, Németh formed relations with the opponents of the MSZMP during the reburial of Imre Nagy and his companions, and did his best to create the image of a government of technocrats, rather than ideologues. Nyers was seen as a link between the Reformers and the Conservatives.

For the more advanced theorists and economists of the MSZMP, Nyers had a serious reputation as the author of what was known as the “new economic mechanism” in 1968 (subsequently dismantled between 1972 and 1974), while the party’s traditionalists trusted him as a founding member of the MSZMP. Room for maneuver in the early autumn of 1989 was difficult to find, however, with the leadership of the MSZMP more than ever before constrained by the dynamics of the “shock” of the new era.

The political conciliation negotiations of the National Round Table (see “The

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Budapest Business Journal | April 24 – May 7, 2020

Opposition Roundtable” in the March 27 issue) were laying the groundwork for a multi-party election. In addition, ever more strident calls were being heard in public for a referendum on what to do with the party’s assets, the abolition of the Workers’ Militia (the Munkásőrség, a paramilitary organization in the Hungarian People’s Republic from 1956 to 1989), the exclusion of party members from jobs and the best way to elect the president of the republic.

Internal Dynamics

There was an internal tension pulling the Socialist Workers’ Party in opposite directions: would the party leadership continue to operate on the basis of the roundtable discussions and various reform platforms, or revert to the ideology of the conservative “proletarian dictatorship”, “democratic centralism” and “class politics”?

Pozsgay cooperated most closely with the political opposition, Németh formed relations with the opponents of the MSZMP during the reburial of Imre Nagy and his companions, and did his best to create the image of a government of technocrats, rather than ideologues.

Rezső was seen as a link between the Reformers and the Conservatives.

Could “old school” party members such as János Berecz, Károly Grósz and Róbert Ribánszki, and the “reformers” led by Nyers, Németh and Pozsgay move forward together in the slowly emerging pluralist democracy under new and changed circumstances?

The conservatives were interested in whether the “reform communists” would remain or breakaway. The same question was asked by the reform forces, with a different emphasis, while yet more considered themselves neither reformist nor traditionalists. With all this internal tension, it seemed inconceivable that the differences of opinion within the party could be bridged smoothly.

There was enormous pressure on Németh. According to the prime minister’s recollection, Grósz had warned Németh in advance that he should prepare thoroughly before the congress because delegates wanted to hear from the PM the night before the opening what the government intended in terms of party assets, the Workers’ Militia and the party organizations in workplaces.

The prime minister found himself in a difficult position, judging that the reformers remained in the minority.

Government decisions and their explanations were not accepted. Nor did many members of the party like the fact that, according to Németh’s plans, some of the property belonging to the party would be redistributed by the government among the opposition parties, so they could have their own headquarters.

Forerunner

On October 6, 1989, at the Budapest Convention Center, the 14th and last Congress of the MSZMP began. Above the dais, delegates could read a slogan in the spirit of the new times: “Democracy, Rule of Law, Socialism!” It was a foretaste of everything the future founders of the new party wanted to show to the public.

In his opening speech, Nyers addressed the risks of founding a new “democratic socialist” party, saying it would have electoral opponents with the same opportunities and constitutional guarantees who would look to support democracy without socialism. He explained that the new party could not be communist. But he suggested maintaining friendly relations with the reform communists, socialists and social democrats in both the East and the West.

His words in support of the creation of the new party were given particular weight because they came from one of the founding members of the MSZMP. Secretary-General Grósz, although he too emphasized the need for reforms and “democratic socialism”, did not agree with everything Nyers had argued for.

He stressed that there was no need to deny “communist ideals” and sought to put an end to the constant mention of the mistakes and sins of the past. He argued not for a new identity, but a renewed party.

Pozsgay, like Nyers, voted in favor of founding a new party, expressing the opinion that “despite all its values, the history of the MSZMP is the history of the party-state, the state party structure”.

Sensing that the membership of the MSZMP “carried the idea of reform”, he said it must create a new socialist party, with “the history of the MSZMP, together with the history of the party-state, ended at this stage.”

On the first day of the congress, it became clear that there were serious disagreements among the delegates. These continued to play out on October 7 as well.

Then, on behalf of the “Reform Alliance”

formed within the MSZMP, Iván Vitányi explained that something “radically new” must be formed from the old.

Legal Successor

He argued that the new party must be the legal successor, or at least one of the legal successors, of the MSZMP. For legal reasons, he said it was also a question of inheriting and taking over party property and infrastructure.

Finally, through the efforts of the People’s Democratic Platform and the Reform Alliance, the congress voted for the formation of a new party, the Hungarian Socialist Party (MSZP).

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where the history begins of the Hungarian Workers’ Party, led by Gyula Thürmer (a communist politician and former diplomat who has been the chairman of the MMP since its formation on December 17, 1989).

Moreover, according to Németh, on the evening of October 7, reformers who were disappointed that those who voted against the establishment of the MSZP could remain in the congress in the raised the possibility of Pozsgay and Németh forming another social democratic party.

However, this was rejected; the prime minister did not want to risk the overnight government collapse that could be triggered by such a move, as it could not be judged how the MSZP would have reacted.

Sensing that the membership A Broad Church the MSZMP, unlike Gaul, was not of the MSZMP “carried the idea Thus divided into three parts, although the of reform”, he [Pozsgay] said political differences among the delegates have justified it. As a result, the it must create a new socialist would MSZP became a broader gathering place for several left-wing ideologies, while party, with “the history of doing its best to leave its Kádár-era past to the MSZMP, together with the Workers’ Party.

The Socialists did not, however, become a the history of the party-state, mass party in the way the MSZMP had been; ended at this stage.” despite Népszabadság repeatedly asking Népszabadság, the official organ of the MSZMP, had to react to all this as well.

The next day, October 8, it published an extraordinary Sunday issue. The nameplate on the first page no longer carried the slogan of Marx and Engels, “Workers of the world, unite!”, replacing it instead with the words “Socialist Daily News”. That day the inscription “XIVth Congress of the MSZMP” was also removed from above the dais at the Budapest Congress Center.

Németh recalled that neither Grósz nor Berecz voted for forming a new party, nor did they join the MSZP. Nyers was elected its president. Ten percent of the delegates, 159 people, voted against its formation. This grouping held a renewed 14th congress a few weeks later, which is

former MSZMP members to join MSZP ranks, they did not. Thus the Socialists fought the 1990 spring general election with a few tens of thousands of members.

The new party would struggle with the past: the memory of the Kádár-era and the retaliation after 1956 had not been erased by the October congress.

But just as Németh had wrestled with Hungary’s economic inheritance, the party that won that first democratic election, the right-ofcenter Hungarian Democratic Forum, would also find itself facing difficult choices.

Four years later, the 1994 elections would see the Socialists, now led by Gyula Horn, the communist-era foreign minister who had cut the barbed wire border fence with his Austrian counterpart (see “Pan-European Picnic” in the April 9 issue) voted into power.

But that is a story for another issue.

October 8, 1989: From left, Imre Pozsgay, Minister of State, Gyula Horn, Minister of Foreign Affairs (later to become Hungary’s second democratically elected Prime Minister) and Miklós Németh, Chairman of the Council of Ministers at the final Congress of the Hungarian Socialist Workers Party (MSZMP) that saw the birth of the Socialist Party (MSZP) at the Budapest Congress Center. MTI Photo: László Varga.