Budapest Business Journal 3008

VOL. 30. NUMBER 8

APRIL 22 – MAY 5, 2022

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SPECIAL REPORT INSIDE THIS ISSUE

Human Resources

Equal Opportunities: 3 Years Maternity Leave is a ’Double-edged Sword’ Former top exec Edina Heal co-founded the Equalizer Foundation (Egyenlítő Alapítvány) in 2016 to remove the obstacles that women face in pursuing a career in Hungary. What’s the picture today?  13

Market Talk: Growth Expected Despite Uncertainties Four top players from Budapest-based temp agencies give us their overview of the trends and challenges in the market in 2022.

Are we post-pandemic?

Is the war in Ukraine impacting the market?

What else should we look for, and what are the expectations for 2022?  15

Earth Day: Sowing ESG Seeds

BUSINESS

Earth Day has always been an essential event for the Vodafone Group, never more so than in 2022, Vodafone Hungary CEO Amanda Nelson tells us. In this exclusive interview, she discusses how it seeks to bring staff, customers and partners along with it on its net-zero journey.7

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Budapest Business Journal | April 22 – May 5, 2022

IMPRESSUM

THE EDITOR SAYS

TOURIST MARKET FALLING VICTIM TO RUSSO-UKRAINE WAR

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

Czifra, Kester Eddy, Bence Gaál, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Gergely Sebestyén, Robert Smyth.

LISTS: BBJ Research (research@bbj.hu)

The first day back in the office after the long Easter weekend brought some sobering news about what appears to be the first effects of the Russo-Ukrainian war on tourism here. The findings were based on a report by Hungary’s leading business daily Világgazdaság [Global Economy], and featured in our Hungary A.M. newsletter on April 19.

In case you missed it or don’t subscribe to Hungary A.M. (and if not, let me give it a hearty recommendation as a great way to keep up with the water cooler conversations of your staff), you’ll find an outline on page four, but let me give you a little more detail here. The subject, it seems, might be more complex than at first sight.

The first thing that becomes clear is that the North American market seems increasingly concerned by a war which, while undoubtedly in our neighborhood, is really quite far distant. Air Canada announced it would resume its nine-hour Montreal-Budapest flight from May to February. The connection was one of 34 returning in its summer 2022 schedule, with the Canadian flag carrier saying the resumption of services dropped during the COVID-19 pandemic was a sign the “recovery is well underway.” Sadly, it didn’t last long, and Világgazdaság says Air Canada quietly canceled the route again in the days following the start of the war.

Many Canadians and Americans are reportedly either postponing trips or preferring to travel to the United Kingdom and France instead, both of which have seen an uptick in North American bookings and are presumably deemed to be at a safe distance from the front lines. While that news is disappointing, it probably isn’t that surprising. North America is a long way from Hungary and lacks a detailed perspective, but the war is in a neighboring country, and we are one of several

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countries playing host to a growing number of refugees.

Stranger than that, though, is the reaction of German tourists, with Világgazdaság writing that several experts from Budapest and its surroundings have reported that bookings in Hungarian hotels and restaurants from several prominent German groups have been canceled, with the armed conflict cited as the reason.

If the Germans are staying away now, that does not bode well for the high season, when it was already certain the packs of wealthy tourists from Russia and Ukraine were unlikely to show up. For years, German, Russian and Ukrainian accents have filled the air at destinations like Lake Balaton or Hévíz. That they will be harder to spot in 2022 will not be welcome news for a sector that thought it was finally getting back on its feet as COVID restrictions waned and the world seemed more willing to live with the pandemic and travel once more.

That might also have implications for the hotel investor market, at least in the short term. Since the pandemic first reared its ugly head and brought the world to a near tourist halt, the hospitality sector had at least been able to console itself with the knowledge that the underlying fundamentals remained sound. Budapest is an “A-list” destination with its architecture, history, vibrant nightlife and booming culinary scene. That remains true, but a third year of restricted trade, whatever the cause, might prove the end for some businesses. There are all sorts of humanitarian reasons to hope the war will come to a swift conclusion and that peace will be restored.

Increasingly, there are also economic imperatives at play.

Robin Marshall Editor-in-chief

Why Support the BBJ? • Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities.

Now, more than ever, factual business reporting is vital to good decision-making.

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THEN & NOW The Nyírség Dance Ensemble revives the Easter water “sprinkling” tradition and folk dances at the Sóstó Open Air Village Museum in Nyíregyháza (247 km east of Budapest) on April 18. The black and white image from the Fortepan public archive shows a child’s Easter presents in 1966.

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Budapest Business Journal | April 22 – May 5, 2022

News macroscope •

Analysts Warn Core Inflation Remains High

While the significant acceleration of core inflation indicates considerable inflationary pressure, the March figure was somewhat lower than analysts’ expectations. The data reflects the government’s price cap on certain food products, as well as the high fuel prices seen last year, analysts say.

International Monetary Fund Global Economic Outlook (2021-2023) April forecast, economic growth, percentage 2021 Estimate

2022 Forecast

2023 Forecast

World

World

United States

United States

Euro area

Euro area

Japan

Japan

China

China

Russia

Russia

Hungary

+7.1

+3.7

+3.6

Hungary

Source:

ZSÓFIA CZIFRA

Consumer prices were 8.5% higher on average in March than a year earlier, accelerating from 8.3% in February.

According to the latest data released by the Central Statistical Office (KSH), the last time inflation was this high was in June 2007. The highest price rises in the previous 12 months were measured for food. In one month, consumer prices increased by 1% on average.

Food prices increased by 13% as the cost of bread jumped 27.9% and poultry prices rose by 21.4%. In the category of goods that includes vehicle fuel, prices increased by 8.9%, with vehicle fuel prices up 11.4%. Prices of spirits and tobacco products increased by 7%.

The harmonized consumer price index, a measure of inflation that is adjusted for better comparison with other European Union member states, was 8.6%. Core inflation, which excludes volatile fuel and food prices,

was

9.1%.

According to ING Bank chief analyst Péter Virovácz, the good news is that the annual inflation rate has been lower than expected, but the bad news is that the pace of price increases has continued to accelerate. It is not the soaring price of a single product or service that is responsible for high inflation, but inflationary pressures are extremely widespread.

The last time core inflation was over 9% was in the summer of 2001, more than 20 years ago, he said. He forecasts

that, even with a possible extension of the government-mandated fixed prices, inflation will peak above 9% sometime in June or July. This year’s average annual inflation is expected to be in the range of 8-9%.

The MNB’s cycle of interest rate hikes may continue in the coming months, with the effective interest rate rising to 8-8.25% by the middle of the year.

According to ING Bank, it is becoming less and less likely that inflation will return to the 3% target in 2023.

The Ukraine Effect

Dániel Molnár, a macroeconomic analyst at research company Századvég, said that compared to the previous month, the rise in fuel prices slowed down substantially, which can be traced back to the higher base last year in addition to the price cap. Although double-digit inflation is not likely to occur in Hungary, if the conflict in Ukraine is not resolved in the short term, inflation could be expected to rise further, Molnár claimed.

According to Gergely Suppan, a senior analyst at Takarékbank, inflation accelerated in March despite the fact that the jump in fuel prices a year ago and the price cap introduced in the second half of November alone could have reduced inflation by 0.3-0.4 of a percentage point.

The surge in core inflation has exceeded expectations, which indicates growing inflationary pressure. Since the outbreak of the war in Ukraine,

gas, electricity and oil prices have rocketed, causing economic hardship to the whole economy. A

50-60% increase

in wheat prices could have a severe impact.

Another upside risk is the secondround effects of commodity prices and the expected surge in wages due to labor shortages, so the MNB may continue the cycle of raising interest rates, the analyst said.

Takarékbank has raised its inflation expectations for this year to 8.2% due to much wider-than-expected and steeper price increases, but Suppan noted that inflation could be much higher than this due to global shortages of raw materials and spare parts and the global energy crisis.

The Price Cap Effect

According to K&H Bank chief economist Dávid Németh, the development of inflation in Hungary also largely depends on how long official price caps remain in force. Based on the current outlook, the average annual inflation could be 9%; at the end of the year, the indicator may still be above 7%, he said.

Hungary is far from being alone in struggling with high inflation and an economic slowdown. According to the International Monetary Fund, the outlook for the global economy in 2022 has deteriorated significantly since its previous forecast in January.

According to the IMF’s latest

assessment released on Tuesday, the global economy will grow by 3.6 % this year, down from the 4.4% expected in January, with next year’s GDP growth figure cut from 3.8% to 3.6%.

As for Hungary, the IMF estimates that gross domestic product will grow

by

3.7%

this year and 3.6% next year. In its October report for Hungary, the IMF expected 5.1% growth in 2022 after last year’s 7.1% expansion.

The IMF predicts 5.7% inflation in developed countries this year and 2.5% next year. This year’s inflation forecast has been revised upwards by 1.8 percentage points and by 0.4 of a percentage point next year. The IMF expects inflation in the eurozone to be 5.3% this year and 2.3% next year, 0.8% this year and next in Japan, and 7.7% and 2.9% in the United States in 2022 and 2023, respectively. The IMF expects inflation to be 8.7% this year and 6.5% next in developing countries.

Numbers to Watch in the Coming Weeks A relatively light period ahead, with February earnings data to be released on April 26, followed by the March labor market figures on March 28.

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Budapest Business Journal | April 22 – May 5, 2022

Orbán Offers to act as the Peacemaker

Ukraine

Crisis

Roundup

Prime Minister Viktor Orbán has reaffirmed Hungary’s future as a member of the European Union and NATO at an international press conference on April 6 while restating the government’s position on the war.

NICHOLAS PONGRATZ

“We continue to see Hungary’s future within the EU and want to play an active role in shaping the future of the European Union,” Orbán said. “We are and will remain a NATO member, and want to build a stronger army, thus strengthening NATO, too,” he added.

The prime minister also said he would use all of Hungary’s influence to bring about a ceasefire in Ukraine, prioritizing the safety of the more than

200,000 ethnic

Hungarians living in Transcarpathia, Ukraine’s westernmost region.

During the same press conference, Orbán revealed that he had proposed an immediate ceasefire to Russian President Vladimir Putin during a lengthy phone conversation. Orbán told the press that he suggested that Putin come to Budapest for talks with the Ukrainian and French presidents and the German chancellor with the goal of reaching terms for an immediate ceasefire. Orbán described Putin’s response to the proposal as “positive.”

Minister of Foreign Affairs and Trade Péter Szijjártó referenced the proposal during a meeting with other NATO

Minister of State for Church and Ethnic Relations of the Prime Minister’s Office Miklós Soltész, who is also chairman of the National Humanitarian Coordination Council, talks with staff of the Hungarian Maltese Relief Service in Beregsurány (316 km northeast of Budapest, close to the border with Ukraine) on April 13. Hungary has done a remarkable job in assisting refugees from Ukraine, he said, adding, “there have been many times when some Ukrainian politicians, including the Ukrainian president, have made unkind attacks on Hungary.” Photo by Attila Balázs / MTI. members’ foreign ministers in Brussels, also on April 6. The ministers agreed that ties between NATO and Russia “have never been as bad” and need to be “redefined,” Szijjártó said.

He added that “most members” agreed that cutting off all ties with Russia would be even more detrimental. Stressing that the alliance would not participate in the conflict, Szijjártó said there was a “broad consensus” among the allies on preventing the spread of the war beyond the borders of Ukraine.

Refugee Totals

Meanwhile, 601,000 people fleeing the war in Ukraine had arrived in Hungary so far, the prime minister’s chief advisor for internal security, György Bakondi, said on TV news channel M1 on April 14.

Bakondi added that some 9,000-10,000 refugees from Ukraine are arriving in Hungary daily. From the beginning of

the conflict until April 18, the National Directorate General of Immigration had registered 16,347 asylum applications in Hungary, according to a statement sent to state news agency MTI. Accordingly, the continually growing number of refugees from Ukraine has started impacting the rental market in Budapest in recent weeks, Rentingo.com stated in its latest analysis on April 9. As supply prices had minimally adjusted to January levels, Budapest landlords asked for an average

of

HUF 158,000

for an apartment to rent in March.

According to the analysis, this could cause a significant increase in apartment prices in the coming months.

Yet, as rents seem to be increasing as a consequence of the conflict, interest in second-hand properties for sale in Hungary

declined by almost 30% in March compared to February. “The war situation is not only not diminishing, it is getting worse,” said Gábor Csizmazia, sales director of real estate brokerage Livlia. “It may follow that it will have stronger economic effects in the long run,” he added.

According to an April 19 report from business daily Világgazdaság, the proximity of the conflict is also adversely affecting domestic tourism.

For instance, Air Canada, which only recently announced the resumption of its Montreal-Budapest flight, decided to cancel it in the days following the start of the war. Most Canadians and Americans are reportedly either postponing their trips or are instead traveling to England and France, which are at a safer distance from the war. Additionally, several large German groups in Hungarian hotels and restaurants have been canceled, citing the nearby armed conflict.

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Budapest Business Journal | April 22 – May 5, 2022

News | 5

CEE Attracting Investors Despite Market Uncertainty Colliers has recorded total investment for Central and Eastern Europe (Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia) for 2021 at around EUR 11 billion. EUR 1.2 bln of that was for Hungary, compared to EUR 6.3 bln for Poland and EUR 1.8 bln for the Czech Republic.

GARY J. MORRELL

Lower investment levels are seen as being due to the lack of shopping center and big hotel deals in the region.

However, office transactions for CEE are predicted to remain constant, while the industrial sector could see increases.

“The German funds are essentially on hold, although this could be a short-term hesitation,” comments Kevin Turpin, head of commercial real estate at Colliers. “In the CEE region, we are registering some investors returning to a wait-and-see approach before making investment decisions.

Similarly, we have seen some leasing deals put on hold or completely withdrawn,” he explains.

you are buying, holding, or selling, you will perceive real estate transactions in quite different ways regarding this term.

Conducting an ESG review during the due diligence process can help investors identify deal threats and key opportunities for improvement post-acquisition while highlighting deficient standards and identifying regulatory liability, she argues

“There will always be those who continually look for and find opportunity, even in the most challenging of times.”

Colliers worked on the recent R70 office transaction.

“Some of these are claimed to have been related to Russian companies being involved and others due to the uncertainty of the war and its physical proximity. At the same time, there will always be those who continually look for and find opportunity, even in the most challenging of times,” Turpin adds.

The conventional wisdom is that despite the pandemic and now the war in Ukraine impacting the commercial property market, there is still a large amount of capital looking to be invested and Hungary and Central Europe are attractive investment destinations that offer an appropriate yield spread.

Colliers puts prime office yields for Budapest at 5.25% and stable, industrial

at

5.75%

and falling, and shopping centers at 6.5% and constant. Limited movement

has been recorded in many markets in CEE due to the ongoing lack of transactional evidence to support further shifts.

Incorporating ESG

There is seen to be an increasingly urgent need to integrate environmental, social and governance factors into investors’ decision-making, especially given the variations in ESG benchmarking and implementation within the region.

Oana Stamatin, ESG chief officer for CEE & Romania at Colliers, comments that depending on whether

“With the geopolitical and health-related crises, the global economic outlook continues to change frequently and is extremely difficult to predict. The current situation is highly complex, impacts on a broad spectrum of the economy, and is most likely to worsen

throughout

2022

before getting any better,” assesses Turpin.

“The war in Ukraine and related sanctions, on top of pandemic and ESG drivers and disruptions, will impact property markets in terms of supply, demand and affordability.

Not all of these impacts are negative, but they will differ between property sectors,” he says.

“However, it is both rising inflation and interest rates that are being very carefully monitored as they will bring an end to the longrunning ‘low for longer’ period, which will not only impact the cost of debt and pricing but also multiple other costs for real estate investors, developers, occupiers and consumers,” Turpin concludes.

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Budapest Business Journal | April 22 – May 5, 2022

ESG and Sustainability Central to the Full Life-process of a Development Project

This article is supported by:

The concepts of ESG and sustainability are increasingly a central issue with regard to tenant specification and staff requirements in the current office market environment.

This applies from the inception and design of a project to the leasing strategy, property management (PM) and facility management (FM) to an exit with a sale to an investor.

GARY J. MORRELL

Environmental, Social and Governance issues are becoming more prominent. It is becoming an essential requirement for tenants, so if investors are thinking longterm, they need to switch to the same system. ESG is, therefore, a system-wide change, according to DVM group.

“ESG is becoming increasingly important for tenants, with some companies aligning their entire strategy to the 2030 sustainability standards, while others are still struggling to interpret the word,” comments Ida Kiss, design director at DVM group.

“The market value of large companies (especially those listed on the stock exchange) can be positively impacted, or even negatively impacted by their lack of certification. Responsible companies ensure their operations by hiring environmental experts and independent consultants They constantly consult with activists and organizations, sometimes even integrating such experts into top management,” she explains.

“ESG principles guide their practical operations, for example, in their supply chains. In supply chains, smaller companies that comply with ESG criteria have an advantage,” Kiss says.

DVM group has been operating as a design, architectural, general contractor and project manager in Hungary since 1985. It utilizes LEED, BREEAM and WELL in its office maintenance and sustainable energy work.

An example of a DVM group designed interior.

Sustainability is seen as impacting the role of actors across the market, whether builders, construction supervisors, architects, interior designers, property managers and even investment analysts.

Ida Kiss, design director at DVM group.

Individual Responsibility “These groups always have different interests, but it is now clear that sustainability is everyone’s individual responsibility,” Kiss notes.

“Architects have a huge responsibility in this, and they have to be at the drawing board, watching what they design and how they design it. But investors and real estate agents must also take on increasing responsibility, as they are the ones who create the demand,” she argues.

“It is at that level that the protection of our environment must come into play. Builders work with the material itself, so they are the ones who make what is a principle only at the top level a reality,” Kiss adds.

She sees three crucial levels: vision, mission and action. At the highest level, investors and real estate agents are more important because they define the level of demand. The architects have to translate this demand into architecture, which the builders then translate into materials. The whole chain must have a common interest in building a more sustainable world.

Concerning the future role and design of the office, this is seen as more of a place for the community to come together and less of a place to work. In addition to collaborative work, the office of the future can also provide space for very deep work, and these functional simplifications must also be reflected in the mapping. The open office is no longer regarded as practically applicable to any form of working and may disappear as a consequence.

Understand Your Clients

“To make an office space better, you need to understand how your clients operate, their business goals and culture. If the space supports and complements the company’s business, I call that good design,” says the design director.

With regard to location issues, the conventional wisdom is that real estate projects should contribute to and even improve the surrounding city environment. In the case of regeneration projects, the need for the project must be assessed, which is first and foremost the responsibility of the investors and those involved in the development of the city.

If a project is necessary, it can improve the thermal balance, livability, image and function of the urban environment, argues Kiss.

When it comes to the question of whether sustainability specifications increase pressure on pricing, the argument is framed in a different way by the DVM group, approaching it from an environmental perspective.

“I think the right way to ask the question is: do we want to create a better environment for our children or for future generations? All that said, it does not always put pressure on the face of things, but rather it affects perceptions,” Kiss concludes.

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Budapest Business Journal | April 22 – May 5, 2022

Business

been able to enjoy services using wind and hydro energy only.

We are also trying to engage our customers through additional green measures. In early 2020, for example, we halved the size of our SIM card holders, saving more than two tonnes of plastic, and in 2021 we reached another milestone: we made eco-friendly eSIMs available to customers purchasing compatible devices, and we provide ecoSIMs made from 100% recycled plastic for non-eSIM-compatible machines.

We try to involve our employees as well as our customers in our environmentally friendly operations.

We have started replacing our entire fleet of more than 400 vehicles with environmentally-friendly models.

Vodafone Using Earth Day to Inspire Itself and Others Earth Day has always been an essential event for the Vodafone Group, never more so than in 2022. The Budapest Business Journal discusses why, and what to look for from the Hungarian business with its CEO Amanda Nelson.

ROBIN MARSHALL

BBJ: Let’s start with the obvious question. This year’s Earth day falls the day this paper is published, April 22. How will Vodafone Hungary be marking it?

Amanda Nelson: The Vodafone Volunteer Community, under the leadership of horticulturalist Mariann Beh (owner of the Bazsalikomoskert [Basil Garden] webshop), will plant 2,000 yellow and 1,000 blue flowers in Kecskemét. The message is clear: let’s bring an end to the war. The flowers will be planted in the shape of a peace symbol to reinforce this message.

BBJ: On April 6, Vodafone Group held its Digital Enabler Showcase in Brussels. Who was the audience, and what was the purpose?

AN: Decision-makers from EU institutions, university professors, and media representatives, among others, attended the event and were presented with real-life examples showing how the EU is going through the digital and green transitions. Participants were shown how the latest 5G technologies are being used in healthcare, agriculture, education, smart cities and SMEs. To give just a few examples, live 3D heart modeling could have an important place in future healthcare, along with connected hospital equipment, IoT solutions, cloud-based sustainable management and smart transport safety technologies.

BBJ: Ahead of the Brussels showcase, Deloitte drafted research for Vodafone Group to update progress toward the European Union’s Digital Decade targets. What were the results?

AN: This EUR 7.5 billion European Commission program aims to accelerate digital transformation by co-funding the research, development and deployment of innovative technologies from 2021 to 2027. The research showed that while significant progress has been made in

BBJ: Can we expect further green announcements, globally and locally?

AN: Our goal is to reduce the group’s carbon footprint to net-zero by 2030 and extend this to our whole network of suppliers and partners by 2040. We also have several local targets, including a commitment to turn our entire fleet of cars electric by 2025.

recent years, both in Hungary and in the European Union, much more work is still to be done. We must not stall the development of high-capacity networks and 5G; we need to continue to pay particular attention to developing the digital skills of the adult population and, in this context, boosting the number of IT professionals. Last but not least, we must also support the digitalization of SMEs, as well as the digital advancement of various public services.

BBJ: What is Vodafone doing to reach the Digital Decade goals?

AN: We are trying to do our utmost to make the above goals realistically achievable for both businesses and society at large; as a technology company, we have a crucial role and responsibility in this. We are continuously developing our digital infrastructure network: our ultrahigh capacity, ultra-fast and secure network is available in an ever-larger part of the country. In recent years, we have made significant advances in 5G developments, whether increasing public coverage or private 5G network investments that bring about a new era in industry. We also support the development of 5G-based innovations through university collaborations and 5G labs.

Digital skills development also plays a key role in our company’s operation: in recent years, Vodafone Hungary Foundation has launched e-learning courses for children, teachers and parents to improve their digital competencies, and we are also supporting boosting the number of IT professionals through our university partnerships.

Similarly, we are also paying particular attention to the digitalization of SMEs in Hungary. We have recently launched V-Hub, a business advisory team and platform designed to help Hungarian entrepreneurs exploit the opportunities offered by the digital world. We’re also very proud that Vodafone was the first in Hungary to launch a “Marketplace”

Amanda Nelson digital platform. This website provides essential services to Hungarian businesses, is easy to use, and facilitates the flexible customization of business applications, allowing entrepreneurs to spend more time focusing on their business. In addition, we have joined the Hungarian Chamber of Commerce and Industry’s Modern Enterprises Program as an expert service partner. Under this partnership, companies registered for the program get unique discounts on a range of services, including cloud-based solutions, as well as vehicle and fleet tracking services.

We are also launching or partnering in several other initiatives to make people’s lives easier through digitalization. We believe that through all this, we are moving closer day by day to a more digital and sustainable way of operation.

BBJ: What specific green targets have Vodafone and Vodafone Hungary set themselves, and what is the progress towards achieving these?

AN: We are supporting the protection of our planet through several initiatives both globally and locally, and I would just highlight the most important ones.

In 2020, Vodafone Group announced that it would run its European network 100% on renewable energy by July 2021, at the latest. We are very proud that Vodafone Hungary was the first to deliver on this commitment: since October 2020, our customers have

BBJ: Finally, unrelated to Earth Day, but concerning the neighboring war in Ukraine, what is Vodafone doing to help those affected.

AN: Practically since the day the war broke out, we have been working to support those affected by the war in Ukraine, as well as refugees. We have made roaming, calls and SMS messaging free for our customers in Ukraine, as well as calls and SMS messages from Hungary to Ukraine.

We have installed Wi-Fi hotspots and phone charging stations at border crossing points, railway stations, and refugee shelters and set up temporary Vodafone stands at key junctions, where we give free SIM cards to Ukrainian refugees. We also considered it key to provide access to relevant information, so we made Ukrainian-language TV channels available on Vodafone TV; 1+1 International, Ukraine 24 and Nickelodeon Ukraine Pluto TV. We also try to help financially and by way of physical volunteering.

The Vodafone Hungary Foundation is providing a total of HUF 55 million to support the work of charity organizations and the integration of refugees staying here in the long run. We felt that it was important to involve our colleagues in the aid effort; therefore, we gave them the opportunity to help by providing financial support or physical volunteering.

We also try to support those who decide to settle in Hungary and want to work here. We are offering fasttrack recruitment for Ukrainian or other nationals who have been displaced due to the crisis and are suitable candidates for specific jobs. We also want to help Ukrainian entrepreneurs start a business in Hungary in the hope of a fresh start between March and May. They will be able to use specific unlimited mobile voice and internet packages free of charge for the first six months, thus making it easier to start their new business.

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Budapest Business Journal | April 22 – May 5, 2022

Prepare for Monetary Climate Change: Is This the end of Pax Americana?

Monetary Climate Changes

Monetary climate change (to borrow a phrase from author and columnist Ron Stoeferle) is happening far faster than environmental climate change.

Les Nemethy looks at some of the forces in action.

In the past decades, we have had an enormously positive economic tailwind from globalization. There was a seemingly infinite low labor cost manufacturing base in China, which became the “world’s factory,” creating a global deflationary bias. This process is now reversing, providing a tailwind to global inflation.

In the post-World War II era, the United States’ percentage of global GDP, imports, exports, and so on has been steadily declining, whereas similar indicators for China have been steadily increasing, even overtaking America on some measures. The world is no longer unipolar; Pax Americana can no longer be taken for granted.

Globalization seems to have reversed gear as the world moves towards trade blocs. To list a few recent events: • Dozens of multinationals recently withdrew from Russia; • Trade between Russia and China is becoming closer; • Threats of sanctions are leading Chinese companies (most recently Sinopec) to divest assets in the West; • Chipmakers are now investing heavily into U.S. production; • Everyone is seeking food and energy security.

Past decade(s)

Coming decade(s)

Unipolar world/globalization

Multipolar world/regional blocs

Deflationary bias

Inflationary bias

Positive real interest rates

Negative real interest rates

Rising debt levels spurring growth

Real debt stops increasing or declines, providing a headwind to growth

Financialization

Value shifts to “real” things and commodities

The “Fed Put” (the widespread belief that the U.S. Federal Reserve can always rescue the economy and financial markets) encouraged “risk-on” investments

Central banks lose effectiveness and become a source of uncertainty

Supply chain security and duplication of supply chains are inflationary. This reorganization accentuates hoarding, supply bottlenecks, and the like. While I don’t believe we will see hyperinflation (defined as prices rising

by

50%

States, perpetuating negative interest rates for most of the coming decade.

Negative real interest rates are a form of hidden taxation and represent the only politically viable way most countries can reduce real indebtedness by inflating it away. That’s a disaster for anyone who is a saver, bondholder, retiree, etc. America had a similar period of negative real interest rates in the decade following World War II.

per month), I do think we will see superinflation (prices rising at 10% The Paper Gold Trail per annum).

Over the past decades, there has been Since Paul Volcker squeezed inflation out of the U.S. economy with 16% interest a trend towards financialization (much rates in the early 1980s, nominal interest more rapid growth of the financial rates have steadily declined over the past economy than the real economy). For example, there is more than USD 40 years. In most developed countries, they reached the “zero bound”; a sizeable 100 trillion of “paper” gold (futures portion of global sovereign debt had zero contracts, exchange-traded funds, etc.) and only some USD 7 tln of actual gold. percent or lower nominal interest rates.

Bullion banks and others have made This is a trend that has reversed over fortunes via factional reserve trading the past months, with nominal interest rates moving marginally higher, but there of paper gold, but if there were a run on gold, there would not be enough real is a limit to how high rates can increase (given the USD 360 trillion of global debt). gold to back all the paper gold.

Whereas today global equities are Inflation is likely to remain far higher estimated at about USD 115 tln, the than interest rates. In my opinion, year pendulum may swing back towards the treasuries at 4-5% could already trigger 1980 crisis situation, where equities and a recession. Official inflation could well gold were at comparable levels (each remain over 7% in the EU and United

The Corporate Finance Column capitalized at approximately USD 2.5 tln).

Historically, the commodities to equities ratio is at an all-time low.

Holders of fiat currencies may lose confidence due to money printing –

40% of

U.S. dollars were “printed” over the last two years – and there are early indications of a trend whereby central banks and investors alike seek refuge in tangible stores of value (for example, gold and other commodities).

In summary, we are entering a new monetary era characterized by inflation, negative real interest rates, and the re-emergence of “real” assets, likely a long-term commodity cycle.

Sadly, there is an increasingly common view that central banks are becoming part of the problem rather than the solution. Economist Russell Napier believes central banks are irrelevant because the primary method of monetary expansion is through government guarantees of bank lending.

Financial markets expert Mohammed El Erian believes the Fed, after several mistakes, has lost control of the inflation agenda: Delayed action against inflation means that the Fed will have to slam on the monetary brakes, causing a significant recession or allow inflation to accelerate out of control. The proverbial “soft landing” is becoming increasingly elusive.

Disclaimer: This article is intended for educational and (hopefully) entertainment purposes, not investment advice. Conduct your own due diligence before any investment decision.

Les Nemethy is CEO of Euro-Phoenix Financial Advisers Ltd. (www.europhoenix.com), a Central European corporate finance firm. He is a former World Banker, author of Business Exit Planning (www.businessexitplanningbook. com), and a previous president of the American Chamber of Commerce in Hungary.

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Budapest Business Journal | April 22 – May 5, 2022

Business | 9

‘Innovating and Investing’ Toward Greater European Self-reliance in Food BBJ: What plans do you have for growing the business?

GP: The economy is concentrating continuously, and the size of significant players is getting larger.

I do not necessarily agree with this trend, but this is the reality we have to accept. If we look at our markets and customers, they are mainly multinational retailers and HoReCa [hotel, restaurant and catering] chains.

They are constantly growing, and we must grow as well to keep our role as a strategic supplier. Back for a moment to Hungary: we want to be a key player in European food production. We want to contribute to the self-reliance of Europe regarding food safety, and in Hungary, we can play an important role in achieving this goal. We want to do it both through innovation and investment, as well as growth in the size of the business.

Giacomo Pedranzini, winner of the Expat CEO of the Year Award 2022, talks with the Budapest Business Journal about the Italian expat business community in Hungary, life in Kaposvár, and the future of the country’s food industry.

ROBIN MARSHALL

BBJ: Congratulations on your win.

What went through your mind when you heard your name called out?

Giacomo Pedranzini: I was, of course, happy and honored when it turned out that I won this award, and the memories of long-lasting difficult times came to my mind. Nothing in life is in vain, and even if what really counts are your actions and deeds, acknowledgments and awards can be the cherry on the cake.

BBJ: You became the first Italian shortlisted for the award and the first to win it. How strong is the Italian business community in Hungary, and what does this recognition mean to them, do you think?

GP: It was a surprise for me that there had not been an Italian CEO shortlisted up to now, although it is true that this award was established only eight years ago. The Italian economic community is contributing in a pretty significant way to the development of this country. So, I hope that others will follow in the future.

I was pleased to be introduced, for example, to the new CEO of MercedesBenz in Hungary, who is not only Italian but also a lady. I hope to have broken the “glass ceiling,” and I’m confident that an Italian representative will again be on the podium soon in the coming years.

BBJ: Presumably, you also view this as recognition for your colleagues at Kometa 99 as well as yourself. What makes your team unique?

GP: We are operating in a traditional but at the same time exceptional sector: meat processing. Here, apart from your knowledge and training regarding this business, your daily practical-operative commitment and attention to the

Giacomo Pedranzini, winner of the Expat CEO of the Year Award 2022. Photo by Marianna Sárközy. operation are the most important. The Kometa team is special because they are strongly dedicated to the company.

We are, unfortunately, suffering from a shortage of labor force and, in such a situation, we can often only guarantee regular supply to our customers thanks to overtime. I genuinely admire that this team always performs these hard work hours with dedication to our company, without complaint.

BBJ: How difficult is it for an expat to manage a Hungarian business? What are the secrets to your success?

GP: I think what I am saying is valid not only for Hungary but any foreign country. An expat CEO should take care, first of all, to get well acquainted with the culture and history of the country and should also learn the local language as soon as possible.

Unfortunately, I did not invest enough time at the beginning of my stay in Hungary to reach proficiency; after 27 years, my skills are good enough, but not as good as they should be. I should have invested more time right at the beginning in my Hungarian studies. It would have made my work much easier and smoother. So, this is my advice to newcomers to this country.

BBJ: You spoke in your acceptance speech about wanting to restore Hungary’s position as a producer of quality food products. How do you judge its reputation today, and why is this important?

GP: Food itself is getting more and more important in the life of people, with more attention to the quality, its healthiness and the pleasure it adds to life. In the past weeks, we are also experiencing the importance of having enough food and the risks of depending too much on imports. Hungary has good potential as a food producer and, even today, holds prestige on the global stage as such. The chance is there to make our reputation stronger, to produce and export even higher quality food in ever higher quantities. In a moment when our dependence on Ukraine and Russia has shown us its risks, creating the possibility to be more self-sufficient has become a priority. Hungary can play a crucial role in improving the selfsufficiency of the EU in food production.

BBJ: What is the greatest lesson you have learned while running Kometa 99?

GP: Perhaps that the environment we are working in is more and more volatile; changes can happen from one day to the next. And they can be so relevant as to put your business at risk.

For me, the most important lesson is the need for prudent behavior in business.

I am an optimistic person, perhaps even too optimistic, and so sometimes I was not prudent enough. Being prudent does not mean you hesitate in making a decision. It means making a sound evaluation of the situation and taking a rational decision based on reasons and not emotions.

“Hungary has good potential as a food producer and, even today, holds prestige on the global stage as such.

The chance is there to make our reputation stronger, to produce and export even higher quality food in ever higher quantities.

In a moment when our dependence on Ukraine and Russia has shown us its risks, creating the possibility to be more self-sufficient has become a priority.”

BBJ: You live “above the shop” on top of the office building in Kaposvár. What is the city like?

Do you feel you miss out by being away from the economic and political center of Budapest?

GP: Each of us has our own personality.

I like to live a simple life and focus on my primary responsibilities and duties. Kaposvár is a nice city, with opportunities for entertainment and cultural events. From time to time, I miss the more energetic environment you can experience in a big city like Budapest, so with my wife, I take opportunities for a weekend in the capital.

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

GP: Thank you for acknowledging my work with this award, and thank you to Hungary and to Hungarians for the opportunities they have offered me.

Opening a business doesn’t make you a businessman.

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Budapest Business Journal | April 22 – May 5, 2022

Hungary is in the running for a new Apollo Tyres investment worth at least EUR 100 million, with a final decision and announcement likely due by the end of summer, the president of Apollo Tyres Europe has told the Budapest Business Journal in an exclusive interview.

INSIDE VIEW

Green Bonds in the Plastics Industry: Mission Impossible Becomes a Financial Success DR. ESZTER KAMOCSAYBERTA

Managing Partner KCG Partners Law Firm

Rationale for Issuance Environmental, social, and governance criteria are an increasingly popular way for investors to evaluate companies. ESG is also highly favored by issuers, as investors have shown great interest in putting their money where their values are in recent years. Industrial machinery and equipment company Deltaplast, a mid-size Hungarian manufacturer of plastic tools and components, might, at the first glance, seem an unlikely candidate for the ESG market. The successful issuance of Deltaplast Inc.’s green bond earlier this year shows, however, that keeping up with ESG standards can yield financial resources for development at an attractive price, even in the plastics industry. The more companies that follow Deltaplast’s example, the more sustainable, ESGgoverned industrial growth can be expected. For the time being, ESG offers a competitive advantage on the Hungarian capital market.

The Magic Abbreviation: ESG Benoit Rivallant

ROBIN MARSHALL

“After summer, the decision needs to be taken. It’s a matter of really understanding how fast we can put this new capacity in place,” Benoit Rivallant tells the BBJ.

“We have two options. Either we carry on [here], and we have the land to do it, so we could extend the plant in Hungary.

But, being a responsible company, we need to balance it with other investment possibilities, namely in India,” he says.

Continued on page 12 ›››

Sustainability and CSR “All of our truck products are The end-product Apollo produces retreadable, which means that is more complex than you might the same casing will have two and imagine. Benoit Rivallant says some eventually three lives. That means 300 elements go into making one that with the same beads, the same tire. “Between those two points, no casings, the same tread protection, amateurism is possible,” he insists. which represents already 70% of Tire rubber is hardly biodegradable, the weight of the tire, you can so what is the company’s path to use it multiple times.” sustainability? “We want to be A little-known part of the carbon-neutral by 2050, with the production process involves first milestone at 2030, because “cooking” the rubber with 2040 will be too far away.” steam. Another area of research, It is a mission that will require many therefore, is water use. steps, some bigger than others.

Apollo is also involved in different The factory in Hungary already CSR projects at its various has solar panels fitted on its roof. locations, including mangrove R&D is investigating greener raw plantations in India, biodiversity and recycled materials. Extending planting in the Netherlands, and the work-life of the products is cleaning parts of the Matra hills already bearing fruit. near the factory in Hungary.

production experience, employs 188 people, and is Tier 1 supplier to seven different automotive customers in 15 markets. The management’s dedication to innovation was benchmarked by cooperating with the Neumann János University of Kecskemét to work on industryinduced R&D projects together.

ESG refers to the three key factors when measuring the sustainability and ethical impact of an investment in a business or company. Most socially responsible investors check companies out using ESG criteria to screen investments based on a subset of non-financial performance indicators, including sustainable, ethical and corporate governance standards.

Environmental criteria consider how a company performs as a steward of nature and what efforts the corporation is willing to make to lower its carbon footprint.

Social standards examine how the corporation manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights by ensuring that there are systems in place to ensure accountability.

The Issuer Deltaplast Inc. is a Hungarian corporation with production sites in Kecskemét that manufactures plastic products for the industrial machinery and equipment industry. Deltaplast has two types of businesses: PET preform sales and a technical parts (also called injection-molded plastic) production unit. It has more than 30 years of

The company decided to issue green bonds to finance the expansion of its manufacturing capacity and to optimize production processes by increasing energy efficiency and, at the same time, reducing the waste generated during manufacturing.

The project includes implementing a new factory hall featuring the latest energy solutions (for example, waste heat recycling) and an up-to-date production line for the manufacture of technical parts.

ESG Standards to be Benchmarked For a successful green bond issuance, Deltaplast’s Green Finance Framework was benchmarked against the International Capital Market Association’s Green Bond Principles to verify the alignment.

This helped to assess the sustainability credentials of the company’s green finance instruments, as well as its sustainability strategy. In addition, it identified the extent to which those green finance instruments positively contribute to the UN Sustainable Development Goals (SDGs). The 17 SDGs were endorsed in September 2015 by the United Nations and provide a benchmark for critical opportunities and challenges toward a more sustainable future.

The Success Deltaplast’s Green Finance Framework proved to be in alignment with essential Green Bond Principles’ categories and with important SDGs. Thanks to this, Deltaplast was able to conduct a HUF 3.3 billion bond issuance at an interest rate of 4.8%.

The resources this generated will help finance the development of a new manufacturing plant, enabling the issuer to increase production capacity by 40-50% in compliance with the ESG standards. The example of Deltaplast shows that ESG generates a considerable competitive value in the Hungarian capital market.

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

Apollo’s Gyöngyöshalász Factory Could Double Production Capacity, add 100s of Jobs

Business | 11

12 | 2

Business

Continued from page 11 ››› Wherever it is located, it will be “a massive project,” he says. Rivallant estimates it would be between 50% and 100% of the production capacity of the existing factory at Gyöngyöshalász, about 90 km northeast of Budapest.

“Our initial investment [in Hungary] was around EUR 450 mln, so any extension is more than EUR 100 mln, which also explains how complex our industry is.”

Should it come here, the expanded factory “would put Hungary on the world map,” Rivallant says. “We supply mostly Asia from India, but the proposal for the extension would be to support our growth in Europe and the Americas.”

There is no doubt that Hungary is important to the tire maker. “If I look at the sales of passenger car tires in Europe, 75% of what we sell is coming from Hungary; in truck and bus, it is more than 90%. Overall, 60% of the business we generate in Europe comes from Hungary,” he explains.

Interestingly, although the company name is Apollo Tyres, most of the tires produced and sold in Europe feature the Vredestein brand.

No Ambiguity

The matrix for deciding where to locate the new investment is a complex equation, but at least some of the criteria are in Hungary’s favor.

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Talent Supply an ‘Anticipated Challenge’ Like the existing plant, the new factory will be highly automated.

But it will still create “hundreds” of jobs, many of them valueadded positions for engineers and technicians. That will usher in another phase of employment growth at Gyöngyöshalász.

Work started on the factory in 2014, with the first tires produced in 2017. Last year another 100 staff members were added, taking the total headcount to more than 1,000.

But with Hungary having near full employment, are there concerns about sourcing the numbers of talented employees needed?

“The problem you describe is something we anticipated when we established the plant in Hungary because, with the many factories coming to the country, we knew there would be a scarcity of talent, and at the same time inflation on labor costs,” he recalls.

For that reason, the Gyöngyös factory was the latest generation plant; whatever could be automated has been. But people are still required, especially engineers. That makes name awareness important, and Rivallant praises the factory management, the HR team, and the employees themselves for acting as brand ambassadors.

But securing tomorrow’s talents cannot be left to chance. Apollo has twinned up with the University of Miskolc to offer doctorate programs, for instance. Further brand recognition is achieved through its sponsorship of the multi-sport club Diósgyőr-Vasgyári Testgyakorlók Köre, more commonly known as Diósgyőr VTK or DVTK. Apollo lays on staff transport, is only about a 45-minute drive from Budapest, which somewhat expands its talent pool, and is not averse to attracting engineering talents from across Europe.

“But yes, I confirm, it’s a challenge, definitely, to grow your organization. There is a scarcity of talents at the moment.”

“With some factors, there is no ambiguity. We know that putting the factory in Hungary is best when we speak about supply share, proximity to our customers, whether for the replacement market [individual customers] or original equipment [automakers]. In fact, the original reason why we came to Hungary was we wanted to have a second foot in Europe after our factory in the Netherlands.”

That “second foot” proved to be “a very strong advantage” during COVID.

“We were able to react both on slowing down and turning up the production, but also in being closer to the market; we had less impact from the supply of raw materials.”

For many industries, the availability of raw materials has been placed under further scrutiny in recent weeks by the war in neighboring Ukraine. Fortunately for Apollo Tyres, Rivallant says it has no exposure to the Ukrainian or Russian markets, and there has been

no impact on its supplies. Despite that, the availability and cost of raw materials are one of two priorities for the coming months, alongside access to energy. That may yet factor into the final decision on the destination of the investment.

“Unfortunately, with the costs of both [materials and energy] going up, we will have no other option but to increase the price of the finished product in Europe,” the president warns.

PRESENTED CONTENT

Andersen Catching up With Large Consultancies Faster Than Expected Andersen Hungary increased its revenues by almost 20% in 2021, further consolidating its position on the tax and legal advisory services market.

The pace of growth clearly exceeds preliminary plans.

The Budapest-based tax consultancy and law firm is now the fifth largest player on the Hungarian market after the Big 4 companies.

The iconic brand returned to Hungary in July 2020, after a break of 18 years, thanks to the cooperation between OrienTax Tax Advisory Ltd. and Szabó, Kelemen & Partners Andersen Attorneys.

According to their agreement, the two companies perform their activities as members of the Andersen Global international consultancy group.

The return of Andersen clearly generated competition in the Hungarian consultancy market. The economic downturn caused by the epidemic has not hindered the firm’s business

expansion. It is evident in the increase Dynamic Working in its clientele, the larger volume Relationship of engagements and the significant improvement of the key financial indices. “We managed to establish a dynamic working relationship between the tax and In 2021, Andersen Hungary legal teams, though we also work closely realized a 20% sales revenue increase with our foreign partner offices. We benefit compared to the previous year. greatly from the results of Andersen’s This pace clearly exceeds the average regional business development activities, 14-15% annual revenue increase which are based on the collaboration goal set by the company’s management. of joint service line teams and the The firm currently has 100 staff, international office network’s industry including almost 90 tax and legal experts,” says Radnai, who was elected experts, which is a significant step to Andersen’s European Board of Directors forward compared to the past. for the second time in December.

Additionally, the office has also been intensively developing the range of its services. A good example of this is the tax allowance and state grants business line, launched last year, which has already attracted a strong client base and generated significant revenues.

“While many people in Hungary are involved in compiling traditional tender documentation, far fewer provide consultancy on state grants. We strive to be, if not necessarily the biggest, clearly the Károly Radnai best in this field, while also challenging the dominance of the Big4,” Radnai outlines.

In addition to taxation, Andersen’s According to Károly Radnai, managing Hungarian legal service provider, Szabó partner of Andersen Adótanácsadó Zrt., Kelemen & Partners Andersen Attorneys, the faster-than-expected growth rate further strengthened its market position in is due to several factors.

2021. Based on the latest publication of the

László Kelemen Budapest Business Journal’s Book of Lists, compared to the conditions a year before, the firm is currently in eighth place in the ranking of law firms with international connections, up one place from a year ago.

“We’re particularly proud of this result, because we achieved it against an extremely strong field of highly-qualified competitors.

We have clearly caught up with the biggest players, which is supported by the number and volume of engagements that we won.

Our staff provide legal services for both domestic and multinational companies and participate in significant domestic and cross-border transactions as legal advisors,” says László Kelemen, partner at Szabó Kelemen & Partners Andersen Attorneys.

Contact information: info@hu.Andersen.com +36 703 174 146

4

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Budapest Business Journal | April 22 – May 5, 2022

Special Report Human Resource

Equal Opportunities: 3 Years Maternity Leave is a ’Double-edged Sword’ Edina Heal well remembers her first meeting of global CEOs when working for record company EMI in London.

Or rather, she remembers the meeting’s first break. When she walked out to find the washrooms, Heal noticed a queue outside the men’s toilets.

KESTER EDDY

“I was shocked. I thought: what’s going on? I always have to queue, [but] because I was one of just three women EMI managing directors worldwide, I just slid into the ladies’.

At the time, nobody even noticed it was an issue,” she recalls more than two decades on.

Even if the full meaning failed to register in the young Hungarian executive’s mind, it was a first, semiconscious milestone that ultimately led to the establishment, in 2016, of the Equalizer Foundation (Egyenlítő Alapítvány), an institution Heal co-founded that strives for equal opportunities in the workplace.

The foundation today boasts some 350 members, male and female. The Budapest Business Journal sat down with Heal to hear about its efforts to remove the obstacles that women face in pursuing a career in Hungary.

BBJ: It sounds like a naïve question, but what are the disadvantages of a male-dominated company?

Edina Heal: You can only think like a man; you can’t think like a woman. Do we think differently?

Not in a way that women are not good at mathematics; we already know that’s not true, even if most of society still believes and acts like that could be the case. But because of our life experiences and what we do, out there in real life, you have societies where most of the women are only at home and doing the house jobs and jobs with children.

BBJ: Getting the water from the well?

EH: Exactly! And most of the men have a gun in their hands.

BBJ: But Hungary is not quite like that!

EH: Not quite, but unfortunately, the rhetoric and guidance right now in this society are also going back to the Middle Ages a bit, trying to push the gender roles in a very traditional way.

This is already harmful. This push for more children and that women are responsible for having more children is pretty bad.

BBJ: In terms of women in management, is Hungary lagging statistically?

EH: Hungary is educating a lot of women, like most of the developed world. More than 50% of students at universities are women, and they’re getting better grades. Women are getting higher education, and then, as soon as they get to work, they fall out; they don’t get into management. What is that, if not ignoring the expertise and value of women in the workforce?

And if you make selections of your middle managers, top managers, and your CEOs and your boards, and you gradually wean out the talented women because they don’t fit the criteria of being men, you do not have your best management. You have your preferred management, but you’re not necessarily getting the best talent; you are closing out half the competition. And you’re closing out half of the world view.

BBJ: How does this impact a company?

EH: Women and men use a lot of products and services very differently.

They have different bodies, different needs for those bodies, or society has different expectations. I cannot sell you hair colorant, but I can sell me hair colorant. You’re not supposed to dye your hair; I am. In some industries, 80% of purchases are

Edina Heal made by women, yet the management of most of those companies are men.

I worked for three years with L’Oréal; they were my biggest client when I was working [in advertising]: every manager and the top manager at L’Oréal at that time was a man. A bald, white man! He never used a face cream or hair product!

I loved him in a way, but [...] we would talk about the quality of shampoo, and I’d say: “Yeah, I know, I actually use it!”

BBJ: Have you got statistics to back up your arguments, here and in central Europe?

EH: Right now, it’s only about 8% of women in top management in Hungary.

In Central Europe, I don’t have the numbers, and these tend to differ hugely, like who do you consider as a manager? Most of the West is not doing very well either, but much better than this. But if you go up to the Top-500 U.S. companies, you probably get a very similar number at the level of CEO. If you look at the Hungarian boards, these are almost exclusively male: look at MOL or OTP; no women make it.* Whereas, if you look at OTP middle management, there are women. Some good managers, but smaller teams. Well, they can’t come to our weekend parties, where we shoot animals, can they?

BBJ: What do you feel you’ve achieved in the Equaliser Foundation?

EH: We haven’t achieved much yet.

This is a slow change, and we also have a pretty strong headwind since [Prime Minister Viktor] Orbán’s governments [came back to power in 2010]. They seem to believe quite the opposite to be good for society.

If you look at Scandinavia, this is a really nice testament to what more egalitarian countries can achieve. But yeah, we’d like to have more women in leadership in this country. The main issue here is awareness building because people like you don’t know anything about this topic. Our prime minister, people in most companies even today, who have the power and who could make the changes are not aware this is an issue.

We are not using our resources to the maximum. We bring up these women, who are clever, able and want to do something, and then we send them home.

And then we give them this horribly long maternity leave, which seems to be a beautiful thing, but it’s a trap in the sense of if you want to have women in politics and management to lead our countries and bring in policies that will actually be good for women, mothers, children and fathers.

BBJ: And for a more balanced, healthy society?

EH: Exactly. If these women go home, have three, four children, they are away for the most active part of their careers, and they never make it back, unfortunately. And then there come the mental issues because these women are going to be extremely frustrated. They have the brain, vision and energy, and they are not able to use it. We have really big divorce rates in this country; that’s not good for families or society, is it?

In Poland, for example, they have six months [maternity leave]. Women, if they start a career, can stay in their career. And when companies are hiring, they don’t have such grounds to discriminate against hiring a young woman as they have here.

In Hungary, women are not being hired because [in the minds of potential employers] they will have children. These companies have to keep these women on their books. So therefore, the three-year maternity leave is a double-edged sword: it’s really hurting this country. *The BBJ checked these companies’ websites: MOL lists 10 people on its board of directors, all males. The OTP executive board has six members, again, all men. (It does have one woman among its seven-person non-executive board.)

14 | 4

Special Report

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Budapest Business Journal | April 22 – May 5, 2022

PRESENTED CONTENT

Balancing Human Needs and Team Spirit in a Healthy Corporate Rebirth Nóra Szabó, human resources director of Gránit Pólus Management Zrt., talks with the Budapest Business Journal about the HR lessons learned from the pandemic, how it is building its post-pandemic restart, and management restructuring along with a more agile basis.

BBJ STAFF

BBJ: What were the biggest takeaways for Gránit Pólus Management Zrt. from the pandemic from an HR perspective?

Nóra Szabó: There were several lessons to be learned. We had to face new challenges and adapt to things we hadn’t experienced before. We were in a forced situation regarding home office and would never have operated it to such an extent, working five days out of five from home!

We are not software developers; personal consultations with tenants and colleagues hold critical importance for us. But we found the right solution, thanks to the fact that we had created the conditions for home office in the group as early as 2017. Our colleagues could continue their work from home from one day to the next, providing maximum safety and care.

The message to me is that preparedness, forward-thinking and flexibility bear fruit.

Like everyone else, we experienced unfavorable external factors, so we had to redesign, adapt, and develop continuously. It is a lesson to learn in our lives, both as a company and as individuals. All of our planned corporate programs were canceled, and we also had to deal with the human aspects, handling the adverse effects of the pandemic in our team’s lives and giving them support and positivity. We tried to keep the group together and help each other, even mentally, via online platforms. We organized various events on Teams, from historical or nutritional presentations to wine tasting, and we also invited engaging performers like Dr. Gábor Zacher. Overall, we learned a lot, but this period did more harm than good.

Nóra Szabó BBJ: Where are you with the postcommunity cohesion suffered. In the pandemic restart now? Is everyone new structure, we keep one day a week back in the office? How long has this for remote work, but we investigate process taken? different options for the various NSz: Although we have returned to operational areas, and we are ready the office physically for several weeks, to provide individual assessments in life is only properly restarting these certain instances. days. Step by step, we return to our old habits: we can safely offer fruits to BBJ: Are there other elements colleagues in the public spaces of Sóház, from the COVID period you wish and we also announced new dates for to incorporate into office life? our postponed live events and organize NSz: We gained experience and best again the team building programs we practices in different fields, from HR used to have (like bike tours, painting to operations. One of the major topics workshops and so on). Life always gives where we really improved and built new us challenges; after COVID, we now “habits” is the digital transformation have war in our neighborhood. As a with the development and use of online socially responsible company, we cannot platforms. On the other hand, we learned ignore it. We involve our colleagues in much about the organization itself; we donation projects as well: together, we developed cooperation and flexibility. have prepared 2,000 sandwiches and Human connections were always vital for collected charity packages to support the group, but we learned to pay extra the refugees. attention to safety. During the pandemic, this was a guarantee of safety; now, it is BBJ: As you move forward, a tool of efficiency. will home office remain a part of the mix? If so, how often?

BBJ: Some people prefer working in NSz: We see the advantages and the office; others might be worried disadvantages of home office in our about a safe return. How do you company. We found that colleagues balance these fears and needs? could work effectively and with NSz: In the past two years, we have discipline from their homes during provided all means of prevention the pandemic, but team spirit and against viral infection: free tests, masks,

disinfection, and mental support. We were constantly monitoring health recommendations and consulting with professionals. We also made a responsible decision when we sent our employees home, and after that, we made all restrictions and mitigations thoughtfully and responsibly. Of course, individual preferences are present in all areas of life. We can’t match everybody’s needs, but we pay attention to them and try to find the most comforting solutions for all.

BBJ: We constantly hear how important ESG is becoming, not least for recruiting and retaining staff. Is this something your HR department has found?

NSz: ESG is not a new topic for us.

It has been present in our company culture for many years, as the owners and the leadership of Gránit Pólus are highly committed to its principles. It is an expectation from our team as well, so, yes, it is also selection criteria in hiring. Only the framework names have changed; previously, we used to talk about sustainability, social responsibility (which refers to the treatment of our colleagues as well and is very important) and transparency.

Although many of the initiatives come from the HR department, ESG has to be interwoven throughout the company to work properly. It is not a “nice to have” project but fundamental to facing the future, proving our competitiveness from a business perspective, and building an attractive company image. I would emphasize the social line and the environmental consciousness from an HR perspective.

We provide different programs for our colleagues where they can personally take part in these initiatives. In previous years, we helped renew three institutions for socially disadvantaged and disabled people. These were allday events where more than 70 of our colleagues worked together. This year we are going to prepare food for homeless people.

We pay attention to the well-being of our team and provide them with futurefit solutions to protect their health, give them care and help them grow together.

This year, we are organizing a bike tour around Lake Velence, offering them handcraft workshops and providing alternative team-building events.

BBJ: Your post-pandemic restart includes changes to how the management organization is structured. What’s the rationale behind this?

NSz: The pandemic led us to rethink our internal operations and shift towards an agile, knowledge-based, matrix-type organization. In the new structure, projects are in focus instead of the tasks of a particular position. People are incentivized to share their knowledge in different fields, have creative cooperation at a very high level, and concentrate on the project’s success. We believe that this innovative approach presents more possibilities for our team to grow and is the key to a future-fit operation.

4

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Special Report | 15

Market Talk: Growth is Expected Despite Lingering Uncertainties The Budapest Business Journal asked four top players from Budapest-based temp agencies to give us their overview of the trends and challenges in the market in 2022.

flexible workforce. On the other hand, employees experienced the advantages of legal and fair employment firsthand.

These trends support temp employment in general and the honest and reliable players of this market.

BBJ STAFF

BBJ: Can we say we are “postpandemic?” Are companies hiring temps again?

Zoltán Czellecz: The labor market is extremely tight; employers are fighting hard to mobilize the last available candidates locally and drawing up strategies to relocate candidates within and from beyond the borders of the EU. The pandemic, and its economic consequences, taught employers a painful lesson about the need for a

Zoltán Czellecz Viktor Göltl: At this moment, we are postpandemic. In Hungary, all of the COVID restrictions are officially over, and, from

this point of view, we are back to normal.

Companies also hired temporary workers during the pandemic, so there isn’t any particular routine for hiring temps.

Péter Laczi: As the pandemic has subsided, companies have resumed hiring but are more restrained than before the outbreak. Wholesale and retail chains, construction, banking, and IT, technology and communications sectors are preparing for significant headcount recruitment.

Gergely Ujvári: The labor market has continuously changed since the pandemic, and most companies have adapted to the new way of working.

Industries such as logistics, e-commerce, and food delivery grew during COVID. There is now massive demand in blueand white-collar positions in almost every sector. Companies are very willing to hire temporary workers to fill their open positions in a short period and to maintain their flexibility in the long run.

BBJ: Is the war in Ukraine affecting the market?

VG: Yes, the labor market is turbulent, the war affects the supply chain of

Viktor Göltl Ukraine, and the restrictions on Russian goods and services have a negative impact on the global economy, of course.

PL: Even before the Russo-Ukrainian war, there was a drastic labor shortage in Hungary, which the influx of refugees could temporarily alleviate. In many sectors, especially in manufacturing and transport, where there is a shortage of drivers, employing Ukrainians could be a solution. A long-term option is to use labor from Asian countries, to which more companies are showing openness.

Continued on page 16 ›››

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Talent shortage – a global phenomenon Hiring optimism has returned to levels not seen since the start of the pandemic yet that optimism is being tempered by the highest levels of global talent shortage in 15 years with 69% of employers reporting difficulty filling vacancies.

69% of employers are having difficulty filling jobs.

69%

The ManpowerGroup Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforces during the next quarter.

58% 49% 31%

2010

34%

2011

34%

2012

35%

2013

36%

2014

38%

2015

40%

2016

2018

2019

Technology-related roles continue to be in high demand and logistics shows no signs of reverting back to pre-crisis levels as the shift to online retail is here to stay.

European employers are reporting the most difficulty filling open roles. In Hungary, the hardest-to-fill, most in-demand positions are in the field of manufacturing/production, operations/logistics, administration and IT/data.

“After the promising start of the year, the current ManpowerGroup Employment Outlook Survey predicts a more subdued growth for the second quarter with a Net Employment Outlook of +13 percentage points.” – Tamás Fehér, Country Managing Director of Hungary

In Q2 2022, the IT, Tech, Telecoms, Communications and Media sector is expected to see the biggest upturn (with a net employment rate of 35%) but there will also be significant job growth in wholesale and retail trade (30%).

2021

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16 | 4

Special Report

Continued from page 15 ››› GU: The pandemic is not even over, and the war in Ukraine has put the global supply chains in a more difficult situation. The shortage of raw materials and the sanctions have severely affected the automotive and manufacturing industries. Furthermore, dependency on gas and agricultural imports will seriously impact the entire economy.

Péter Laczi From the workforce perspective, many think that the more than 4.5 million refugees who fled Ukraine might reduce the labor shortage, which might be somewhat true. However, companies must

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

understand that most of these people are women with children. That means flexible working hours, upskilling and reskilling programs, and being more open to language obstacles to support them in being employed and thus having the chance to stabilize their lives financially.

consequences of the Russo-Ukrainian war should be in the first place. We are carefully monitoring developments in the automotive and agricultural industries and have already seen signs of a downturn.

VG: We expect growth this year but under daily changing circumstances.

BBJ: Outside of these factors, what are the most significant trends?

VG: The Hungarian labor market needs blue- and white-collar workers, and the trend is to hire from third countries.

PL: New recruitment methods are needed to locate blue- and whitecollar workers. It became a basic requirement in job advertisements to include the company’s name, a detailed description of the duties and the salary.

For employees, home office and hybrid work is a basic requirement. This is good because it will also open up new job opportunities for rural workers. More companies are opening up to expectant mothers and disabled workers, making it easier for them to be employed through a cooperative in atypical employment settings. Multi-round job interviews are already less effective, depending on the nature of the position, and the recruitment process should be completed as soon as possible.

GU: Generally, it is challenging in all sectors for companies to find the right quantity and quality of candidates, along with the day-to-day struggles of

PL: I hope that growth will continue this year, but this could be influenced by many external factors, ranging from raw material shortages to supply chain vulnerabilities to rising energy prices, all of which will be a major challenge for companies.

Gergely Ujvári retaining employees. People are more willing to change jobs now that job security, one of the main factors during the pandemic, is no longer a priority for them. Instead, they seek more attractive salary packages, flexible jobs, and a work-life balance.

BBJ: What are your expectations for the market this year?

ZCz: Having access to several new candidate pools in the Balkans or the APAC region, there are several options to fill the vacancies. Considering this, it’s fair to say that growth should be the story of the year. Assessing the risks endangering this growth, the economic

GU: In short, a more hectic year can be expected due to the uncertain outcome of the war. However, the current economic outlook shows a positive trend, which, we anticipate, will lead to a growing labor market in 2022.

Our 2022 Temp Agencies Market Talk Panel • Zoltán Czellecz, CEO, Work Force • Viktor Göltl, managing director, WHC Group • Péter Laczi, chief operating officer, Pannon-Work • Gergely Ujvári, operations director, Adecco

ADVERTISEMENT

GET A GREAT TEAM

Even though we speak different languages, we all strive to achieve the same goal to become Central Europe’s top-tier HR service provider!*

Ahoj!

Ćao!

добрий день!

www.whc.hu *In March 2022, WHC Group has acquired a majority stake in Heads Adriatic group of companies, thanks to which from now on we are at the disposal of our clients in ten countries with 35 offices and 500 internal employees.

Zdravo!

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4

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Special Report | 17

Temp Agencies

1

pRohumán 2004 munkAeRő szolgálTATó és TAnáCsAdó kfT. www.prohuman.hu

6,986 293

36,840

21,136 14,518,477

23,044

11,252 6,812,300

12,906

5,270 3,640,338

38,086

–

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2004 15 38

(100) –

béla ignácz, Csongor Juhász, sándor zakor, Attila feleki Zsuzsanna Őz –

1144 Budapest, Hungária körút 140–144.

(1) 432-1280 prohuman@ prohuman.hu

✓

1990 12 20

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

péter berta – –

1074 Budapest, Rákóczi út 70.

(1) 787-8399 whc@ whc-group.com

✓

2018 1 200

– SATRK GmbH (100)

balázs g. nagy Henrietta Tóth József Nógrádi

1139 Budapest, Váci út 99–105.

(1) 354-0933 infohungary@ trenkwalder.com

WhC kfT. www.whc-group.com 3,675 195

2

3

TRenkWAldeR hR soluTion kfT. http://hu.trenkwalder.com

2,324 10

25,366

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neT Revenue fRom TempoRARy plACeRmenT in 2021 (huf mln)

CompAny WebsiTe

AveRAge sTATisTiCAl heAdCounT in 2021 no. of full-Time employees on JAn. 1, 2022

RAnk

Ranked by average statistical headcount in 2021 (HUF mln)

A váratlan helyzetekre egyedi megoldással válaszolunk.

A piac folyamatos monitorozása és partnereink változó igényei mellett, a világban történő változásokra is azonnal reagálunk.

Regionális hálózatunkkal és kivételes szaktudásunkkal a teljes HR piacon felmerülő igényeket ki tudjuk szolgálni.

Főbb szakterületeink: Munkaerő kölcsönzés Munkaerő-közvetítés Minősített foglalkoztatóként harmadik országbeli munkavállalók foglalkoztatása Diák és nyugdíjas foglalkoztatás

www.prohuman.hu

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75

25

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✓

14,060

A

A

76

24

A

A

A

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A

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1993 6 6

Videoton Holding Zrt. (100) –

Attila molnár – –

8000 Székesfehérvár, Berényi út 72–100.

(22) 554-170 info@pannonjob.hu

Magdolna Mihályi Sándor Andrásné Varga (90), Anna Varga (10) –

magdolna mihályi sándor Andrásné varga – –

1094 Budapest, Tűzoltó utca 72.

(30) 974-6035 ugyfelszolgalat@ jobtain.hu

– Adecco Group AG (100)

gergely ujvári Ádám Varga Sára Fodor

1139 Budapest, Fiastyúk utca 4–8.

(1) 323-3500 adecco@adecco.hu

ConsTRuCTion indusTRy

AgRiCulTuRe

sAles/TRAde

heAlThCARe/ phARmACeuTiCAl

TouRism

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bReAkdoWn of Temps supplied by seCToRs in 2021

offiCe/finAnCe

WhiTe-CollAR

60

blue-CollAR

40

Grosvenor Kft. (100) –

peRmAnenT

15,579

2004 16 18

TempoRARy

oWneRship (%) hungARiAn nonhungARiAn

ToTAl neT Revenue in 2021 (huf mln)

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

bReAkdoWn of plACemenT in 2021 (%) bReAkdoWn of Type of WoRk in 2021 (%)

Budapest Business Journal | April 22 – May 5, 2022

ToTAl numbeR of TempoRARy WoRkfoRCe in 2021 no. of billed houRs in 2021

CompAny WebsiTe

neT Revenue fRom TempoRARy plACeRmenT in 2021 (huf mln)

Special Report AveRAge sTATisTiCAl heAdCounT in 2021 no. of full-Time employees on JAn. 1, 2022

RAnk

18 | 4

pAnnon-WoRk zRT. www.pannonwork.hu 2,305 272

4

5

pAnnonJob humán szolgálTATó és TAnáCsAdó kfT. www.pannonjob.hu

JobTAin hR szolgálTATó kfT. www.jobtain.hu 6

AdeCCo kfT. www.adecco.hu 7

2,211

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2,103 A

13,419

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2,129 55

11,237

6,487 4,194,600

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JOBTAIN A munkaerős megoldás!

Mihályi Magdolna a Jobtain HR Szolgáltató Kft. ügyvezetője

Top loCAl exeCuTive Cfo mARkeTing diReCToR

AddRess phone emAil

géza homonnay, péter laczi Andrea Peka Makkosné Marianna Baksy

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

Hogy mi különböztet meg minket a versenytársainktól?

Mi nemcsak munkát adunk, hanem törődést, támogatást és biztonságot is. Önnek. Nekik. Mindenkinek.

Toborzás és munkakeresés – mindkét fél tele van kétségekkel

Évek óta dolgozunk a hazánkba érkező ukrán munkavállalókkal

A munkakeresés és a toborzás is egy kihívásokkal teli folyamat. Az álláskeresők tele vannak kétségekkel, a munkáltatóknak pedig gyorsan és költséghatékonyan kell megtalálnia a lehető legjobb jelölteket. A Jobtainnél mi éppen ezt a terhet vállaljuk át, ebben vagyunk szakértők. A toborzástól kezdve, az adminisztrációs kötelezettségeken át, a bérszámfejtésig, a folyamat minden részében jelen vagyunk, ha partnereink igénylik.

Számos külföldi országban végzünk toborzási tevékenységet, hogy enyhítsünk a munkaerőhiány okozta nyomáson.

A növekedés akadálya: a munkaerőhiány

Az orosz-ukrán konfliktus kialakulása után sok toborzó cég nyitott a hazájukat kényszer hatására elhagyó ukrán munkavállalók bevonása felé. Mi már évek óta toborzunk és sikeresen helyezünk el partnereinknél olyan ukrán dolgozókat, akik megfelelő színvonalon, hosszú távra vállalnak munkát hazánkban.

A munkaerőhiány már nemcsak a képzett szakemberek szintjén tetten érhető, ma már betanított munkásokat sem egyszerű találni. A Jobtainnél 20 éve dolgozunk azért, hogy törvényesen bejelentett munkát és megélhetési lehetőséget biztosítsunk világhírű partnervállalatoknál a dolgozni vágyóknak.

Ez a tapasztalat segített minket hozzá ahhoz is, hogy a jelenlegi válsághelyzetre gyorsan és hatékonyan reagáljunk. Munkavállalóink ide menekült családtagjait biztonságba helyeztük, élelmet és egyéb humanitárius segítséget nyújtottunk a bajba kerültek, rászorultak részére.

Humán-erőforrás: az emberi oldal a lényeg Ez a példa is jól szemlélteti, hogy kulcsfontosságúnak tartjuk a munkavállaló életminőségének javítását, hiszen ez nemcsak a dolgozók életét, hanem munkahelyi sikereiket, elkötelezettségüket is pozitívan befolyásolja – így garantálva partnereink számára a valóban munkaerős megoldást!

4

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95

5

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7,978

4,727 2,966,648

8,353

90

10

85

15

–

–

–

–

–

–

–

–

2000 16 17

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

lászló mátyás Erika Dékány László Zsilka

4025 Debrecen, Széchenyi utca 48.

(52) 446-991 info@hsa.hu

8,355

A A

9,128

A

A

90

10

A

A

A

A

A

A

A

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1998 6 6

Volano Kft. (100) –

Csaba ottó Orsolya Horvai Módné –

8272 Óbudavár, Fő utca 31.

(20) 929-2430 info@manatwork.hu

7,169

4,226 2,919,178

✓

2018 1 200

– SATRK GmbH (100)

balázs g. nagy Henrietta Tóth József Nógrádi

1139 Budapest, Váci út 99–105.

(1) 354-0933 infohungary@ trenkwalder.com

2,318

1,363 760,470

✓

2001 12 15

Individuals (100) –

gábor Csizmadia László Pintér Mátyás Stankovics

1013 Budapest, Pauler utca 18.

(20) 328-3284 marketing@ viapangroup.com

–

1993 14 14

Individuals (100) –

katalin bor, Róbert göbl, zsuzsanna szabó – –

1077 Budapest, Wesselényi utca 11.

(1) 877-0900 info@ humancentrum.hu

ConsTRuCTion indusTRy

AgRiCulTuRe

sAles/TRAde

heAlThCARe/ phARmACeuTiCAl

TouRism

pRoduCTion

iT/TelCo

bReAkdoWn of Temps supplied by seCToRs in 2021

offiCe/finAnCe

WhiTe-CollAR

75

C.S.R Vagyonkezelő Kft. (100) –

blue-CollAR

10,293

2003 8 8

peRmAnenT

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

bReAkdoWn of plACemenT in 2021 (%) bReAkdoWn of Type of WoRk in 2021 (%)

10,165

5,938 2,915,375

TempoRARy

oWneRship (%) hungARiAn nonhungARiAn

ToTAl neT Revenue in 2021 (huf mln)

ToTAl numbeR of TempoRARy WoRkfoRCe in 2021 no. of billed houRs in 2021

Special Report | 19

neT Revenue fRom TempoRARy plACeRmenT in 2021 (huf mln)

CompAny WebsiTe

AveRAge sTATisTiCAl heAdCounT in 2021 no. of full-Time employees on JAn. 1, 2022

RAnk

Budapest Business Journal | April 22 – May 5, 2022

Top loCAl exeCuTive Cfo mARkeTing diReCToR

AddRess phone emAil

zoltán Czellecz Kálmán Csehi Mátyás Pintér

1134 Budapest, Váci út 49.

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

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1,518 84

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11

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13

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–

WORKERS NEEDED? WHICH ONES?

LET US HELP: SALES@WORK-FORCE.HU

Temporary employment, Recruitment, Cross-border employment, Outsourcing, Rehabilitation employment, Retirement employment, Student employment Strategic HR Partner in Hungary for 20 years

Workforce_BBJ_HI_255x77mm_20220407_01_irany_eng.indd 1

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geT WoRk TRend kfT. www.getwork.hu geT WoRk TRend kfT. www.getwork.hu 15 15

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www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

TempoRARy TempoRARy

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Special Report AveRAge sTATisTiCAl AveRAge sTATisTiCAl heAdCounT in 2021 heAdCounT in 2021 of full-Time employees no. no. of full-Time employees on JAn. 1, 2022 on JAn. 1, 2022

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2004 11 2004 11 11 11

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1023 Budapest, Árpád fejedelem útja 1023 Budapest, 31. Árpád (1) fejedelem 766-5626 útja 31. getwork@ (1) 766-5626 getwork.hu getwork@ getwork.hu

– Kelly Services – Management Sarl Kelly(100) Services Management Sarl (100)

péter kóthay József Verebélyi péterPordány kóthay Petra József Verebélyi Petra Pordány

1134 Budapest, Váci út 35.

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Individuals (100) – Individuals (100) –

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1097 Budapest, Albert Flórián út 3/B 1097 Budapest, (1) 248-2010 Albert Flórián info@ út 3/B (1) 248-2010 humaniahrsgroup.hu info@ humaniahrsgroup.hu

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2,173

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2,544

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Tamás fehér Erika Garics Kitti Horváth

1133 Budapest, Váci út 76.

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györgy g. palásti Szabolcs Németh Zsolt Pető

1053 Budapest, Károlyi utca 12.

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(1) 555-1585 esense@esense.hu

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2724 Újlengyel, Nyári Pál utca 65.

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– Hays Plc. (100)

Tammy nagy-stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

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Special Report | 21

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Budapest Business Journal | April 22 – May 5, 2022

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1134 Budapest, Dózsa György út 146–148.

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8000 Székesfehérvár, Szörényi utca 89.

(22) 509-900 info@ humannavigator.hu

22 | 4

Special Report

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Hybrid Working Shakes up the Market, Seen to Stay for Some Time After the impact of coronavirus introduced large-scale working from home, some people are returning to office work partially. With hybrid work molding the Hungarian market, professionals believe this arrangement is here to stay, with all its opportunities and challenges. The Budapest Business Journal deepdives into the current market sentiment.

CHRISTIAN KESZTHELYI

When COVID-19 lockdowns kicked in two years ago, businesses had to adapt to new working conditions.

The changed environment “showed who could work unsupervised, who could be trusted and where the gaps were in management approach, team relationships and empowerment,” agrees Katalin Panayotopoulos-Antal, managing partner at HR consultancy Arsis Global Hungary.

to

40-60%

Margit Farkas This unsolicited social experiment brought a rich learning opportunity to the business world. “COVID-19 revolutionized office work [...]. Home office has become an integral part of the life of a business,” Balázs Réfi, founder and CEO of Bluebird International, an IT recruiter, says.

The received wisdom pre-pandemic had been that working away from the office environment would be unproductive. The post-COVID experience indicates otherwise.

“Productivity was little impacted.

Conversely,

88% of

Katalin Panayotopoulos-Antal “Nobody expected the pandemic to escalate as quickly as it did in Hungary, where employers had been thinking about possible solutions when the sudden lockdown hit,” Tamás Püski, managing director of IT recruiter IseeQ, tells the BBJ. Hungarian companies passed the acid test of the new working arrangements in the first lockdown, by and large.

“Nevertheless, no one thought that the implications would be so long-term, and lockdowns would follow each other on and off, making it very challenging for organizations to decide on future working models or plan at least months ahead,” Margit Farkas, EY Hungary partner in Workforce Advisory, says.

With the advent of COVID, workplaces changed significantly. The emergence of hybrid working arrangements, where employees mix working from home and a central office, calls for a completely different mindset, work organization and collaboration, and more flexibility.

Hybrid working, and the ability to work from home, are becoming a new standard in the eyes of many employees.

“Now, after two years of working from home, we have built a new normal,” Püski of IseeQ says.

Previously, employees would typically have their desks in offices where they would spend almost 100% of their working time. However, EY Hungary research in November 2021 showed that close to 60% of responding companies had developed and launched their hybrid strategy.

“Most organizations said they are asking their employees to be in the offices two or three days a week, which translates

employees and 84% of employers in our 2020 survey said they either saw no effect in their productivity or efficiency improved since home office started,” Lili Simon-Göröcs, HR director of online job board profession.hu, tells the BBJ. The lengthy pandemic also brought ambiguity to the workplace and loosened relationships between employees and employers. This sentiment needed addressing.

Dorottya Pákozdi

Market Advantage

“Only a few companies started early to design their future hybrid models. These first movers, I believe, had a market advantage, as they reduced the level of ambiguity and uncertainty for people about the future,” EY’s Farkas says.

“It is worthwhile creating a corporate home office policy to lay down a clear employer policy and deal with employees’ various needs uniformly. A home office policy can provide clear, unambiguous, and predictable work-from-home practices that can help increase employee satisfaction and avoid disputes with uncertain outcomes,” Pákozdi adds.

Balázs Réfi

While Hungarian companies are more willing to implement hybrid working of their time,” Farkas confirms. models than before, a well-working With the spread of hybrid working approach must be implemented to serve arrangements, where employees are only people’s needs and business goals, expected to show up in the office two following a well-defined strategy and to three times a week, shared desks are shifting management styles. becoming more common, fueling office “Given the impact on individuals, space reduction. Despite no significant employee needs and well-being are work efficiency impact, challenges in higher on the agenda than ever,” EY says. managing employees have arisen.

And it should be.

Long-term loyalty to employers has dramatically dropped in the past few years, a trait present even before covid.

“According to our experience, those who work from home are much more likely to change their jobs quite often.

Thus, to avoid large fluctuations, it is worthwhile focusing on team building in the hybrid model as much as possible,” Pákozdi suggests.

Püski of IseeQ adds, “More and more job seekers are expecting flexibility [...]

Tamás Püski and companies react to this demand, even though building a remote culture is not that easy.”

“Flexibility makes coordination difficult; Simon-Göröcs of profession.hu notes, remote workers can feel neglected.

“Because of the labor shortage, workforce Technology requirements must change. attraction and retention has become crucial.”

And hybrid work raises questions of She adds that jobseekers favor companies trust, accountability and measuring that offer hybrid conditions in recruitment. productivity,” Panayotopoulos-Antal of Arsis Hungary says.

Dorottya Pákozdi, senior HR consultant and team leader at Vision Recruitment Hungary, seconds this view.

“In our experience, those present in the online space are relegated to the background and are less able to enforce their will,” Pákozdi says.

In general, while they respect the flexibility of hybrid work arrangements, managers have concerns about sustaining Lili Simon-Göröcs team performance, productivity, connectivity, and company culture when they supervise work from home.

Companies must be alert and proactive every day in this environment, Collaboration which delivers ample opportunities and Creativity among the challenges, especially as In this context, offices are shaping the hybrid working arrangement is into a place for meetings, exchanging seemingly here to stay. ideas, and establishing interpersonal “Hybrid workers will continue to relationships. Projects that require be employed in most Hungarian creativity and innovative thinking offices in 2022. Hybrid work will can work much more efficiently in the continue to be the way of the future,” physical office space.

Réfi of Bluebird concludes.

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

4

Market Talk: COVID Wanes but Supply Issues, war Loom Over Growth Leading players from the Hungarian recruitment agency sector talk with the Budapest Business Journal about the challenges and opportunities in a market colored by the lingering impact of the pandemic and the ongoing war in Ukraine.

BBJ STAFF

BBJ: Can we say we are “postpandemic?” Are companies recruiting again? Are people looking for work?

Sándor Baja: According to our Randstad HR Survey from February 2022, 30% of companies still have not fully recovered from the economic effects of

Special Report | 23 people leaving the market is higher than those coming in. Thirdly, more women went, and are still on, maternity leave due to government incentives.

Tamás Fehér: Yes, absolutely. We measure the employment plans of companies every quarter, and the outlook showed a fiveyear high indicator, meaning that more workforce is needed than ever. Fortunately, people are more open to opportunities than during the pandemic; therefore, the labor market is very dynamic these days.

Tammy Nagy-Stellini: Companies are recruiting again, even more than prepandemic. In 2022, COVID is no longer a reason to slow down recruitment.

According to our latest market survey, the From left to right: Sándor Baja, Zsolt Beck, Tamás Fehér, Tammy Nagy-Stellini. Hays Salary Guide 2022, people are looking for attractive work, offering development opportunities, future prospects, and a the pandemic. The automotive industry considerable levels of inflation, higher salary. For the right opportunity, was suffering a lot before COVID, and commodities became increasingly costly, they will change jobs. However, we can see that is ongoing. Around 400 companies and shortages began to manifest. Above a trend that few active jobseekers are on the answered our survey: 89% plan to grow all, wage demands started to rise. This market. People are not in a hurry to apply the number of employees. In other had been noticeable in the IT market for job advertisements. Today, there is more words, the effects of automation and for years before the pandemic. However, emphasis on engaging passive candidates digitalization cannot be seen this year higher wage demands have propagated and creating attractive employer brands. in Hungary. People are on the move. throughout the labor market since The so-called “Great Resignation” has the crisis. Increased earnings have a BBJ: What effect is the Ukraine crisis touched Hungary: 59% of companies compensating effect on inflation, but having on the recruitment market? Can expect the same this year. labor shortages simultaneously emerged refugees help with the labor shortages? in several areas, caused by three trends: SB: Ukraine represents only a tiny Zsolt Beck: In 2021, we identified those who returned home from abroad percentage of Hungary’s foreign trade, the first signs of a more significant due to the pandemic have since gone but due to the complexity of supply predicament in changes affecting the back and have taken more with them.

Continued on page 24 ››› economy. Pandemic stops created Secondly, demographically, the ratio of

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www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Continued from page 23 ›››

INSIDE VIEW

Post-pandemic Recruitment: Market Knowledge Essential for Successful Partnerships Dóra Világosi Business Unit Manager ISEEQ

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

Uncertainty has determined recruiters’ days for more than two years now. Accelerated digitalization and the pandemic rearranged employer-employee relationships, working conditions and priorities.

Now that it’s determined that the COVID-19 era will not have a definite ending point, our professional lives have started to adjust rules and standards.

People have recognized the importance of work-life balance and demand home office and hybrid opportunities from employers. To answer the new pressures, companies need new tactics to attract and retain talent.

After almost a decade of experience in the recruitment industry, IseeQ’s business unit is well prepared for the new challenges and changing circumstances. Our colleagues notice several surprising trends and have exciting expectations for 2022-23.

“Despite the initial enthusiasm towards remote work, most candidates are now looking for hybrid opportunities rather than 100% home office. They usually express the need for separated spaces for work and personal life and promise improved focus in exchange,” says Dóra Világosi, business unit manager at IseeQ. “Employees seem to have had enough of the distractions they experience at home and are eager to explore flexible options to have the best of both worlds.” The changes are not only visible in attitude, but in practice as well.

“Job descriptions are changing, and expectations tied to a certain role adjust to digitalization and remote conditions gradually. New positions requiring unique skill sets also emerge constantly,” say Boglárka Visi and Nikolett Horváth, recruiters at IseeQ. “New compensation forms are also making their way into all industries.

The popularity of cryptocurrency continues to rise, resulting in an exciting mix of payment methods.”

Companies are often torn between the cost of maintaining an office and the responsibilities of supplying their employees with everything they need for work at home. However, forwardthinking leaders keep their colleagues’ best interests at heart and re-design organizational structures, cultural models, and bonus packages to accommodate renewed needs.

On the other hand, there are still businesses that demand a physical presence in the office five days a week, just as they did pre-pandemic.

This may be an unattractive feature in candidates’ eyes.

In these uncertain times, expectations towards recruitment agencies have changed too. The importance of business advice and salary benchmarks is growing since they can help companies create competitive packages for candidates.

We asked our partners about these expectations and their opinion on the post-COVID market.

Máté Gulyás, CEO of Datapao, believes in flexibility. In a hybrid model, employees don’t feel isolated (since they have the chance to visit an office), and they can work from the comfort of their own homes too. In the post-COVID market, he thinks recruitment agencies should realize the increased value of efficient communication and a quick recruitment process.

Istyle’s CEE regional manager Csaba Gyarmati highlighted the growing significance of understanding organizational culture and the characteristics of the ideal candidate.

All agencies should focus on understanding customer expectations and finding a proper cultural fit. In his opinion, IseeQ’s recruitment strategy for them was successful because “IseeQ is professional in both selection and agreement. They excel at managing the candidates’ expectations with appropriate information in the waiting process and mediating more difficult decisionmaking processes, if necessary.”

Gyarmati also considered the “fast premium service” crucial.

Updated standards fit for today call for resilience in a renewed context, with a tight commitment to accepting the only permanent thing in our world: change. We are excited to see what the future holds and even more excited to evolve constantly to remain competitive.

iseeq.co

chains, we are afraid it will have an effect in fields like the automotive and chemical industries. In Germany, we saw many layoffs at large auto manufacturers. In Hungary, employers prefer to keep their people to restart the business as quickly as possible.

Most Ukrainian refugees are transiting Hungary; a lot are women with small kids, but, for sure, many thousands will remain for the time being in Hungary and will help to reduce the labor shortage.

ZsB: Most companies could cope with the pandemic crisis, however stressful it has been. Following this bizarre blend of the pandemic and a supply crisis, we have been hit by another negative factor in 2022 in the war in Ukraine. Alongside being a horrendous humanitarian tragedy, it has a massive impact on the shortages already present in the commodity market. While Ukrainian refugees were expected to appear on the Hungarian labor market, we are not detecting a surge in significant quantities yet.

TF: The Ukraine crisis has had many effects on the labor market. Men were leaving their jobs and joining the fight in their hometowns, while women with children were arriving in Hungary and looking for refuge. Many of them just pass through. I do not believe refugees are the key to solving labor shortages.

BBJ: Putting black swan effects to one side, what are the most significant trends for recruitment?

SB: I would say there are four.

Population: The demographic trend is clear: 40,000 more people retire than 18-year-olds enter the labor market (admittedly, a lot go to university) every year. We think that the rebound of the economy in the West is slower than in CEE; thus, the vacuum effect from the West is still low. Inflation: High inflation puts pressure on the value of salaries; companies who do not export (and thus do not have revenues in euros) will have difficulties matching wage demands. Flexibility: Globally, 26% of employees have more flexibility in their job after COVID than before; in Hungary, it is only 16%. Skills: 80% of employees feel they need to learn to keep their employability, but only 58% know what to study. The employer’s role is enormous here.

TF: There is serious wage inflation, which triggers people’s moves to other companies. It is quite common to receive 15-40% higher salaries in many job categories. I believe this effect will drive the market this year.

TN: Clients want to outsource their recruitment more. Companies are increasingly nearshoring positions to Eastern Europe, especially in technology and business services. With COVID restrictions lifted, hiring freezes have ended everywhere, and recruitment has accelerated at an extremely high pace. Companies’ recruitment teams are

not prepared enough for such pressure and seek strategic partners that offer expertise and consulting.

Employer branding has gained much more significance. Companies need to differentiate themselves from the competition, as salaries cannot be raised infinitely. Employers need to attract to passive candidates and engage jobseekers in the countryside by offering flexible working solutions.

Contracting is gaining popularity every year. The flexibility it offers is appreciated both by clients and freelancers. Some clients, mainly in the technology area, already have a staff population of 70% employees vs. 30% contractors. And at the end of the project, it can be decided to extend, part ways, or employ the contractor permanently.

BBJ: What are your expectations for the market this year? Stagnation, growth or consolidation?

SB: This is very unpredictable; if the war could be stopped soon, we expect a growing economy and business. The first quarter was, by far, the best yet in the history of Randstad Hungary.

ZsB: 2022 should be a year of consolidation and economic incentives; otherwise, there will be difficult times ahead. We are still optimistic and hoping it will happen.

TF: I believe that the permanent recruitment market will grow further, while industrial temporary staffing needs are less predictable due to the Ukraine crisis and its effects on specific industries, like automotive. But as the need for more workforce is growing, it should be on a growth path soon enough.

TN: I see growth, and most areas look promising. Technology is definitely a growth trajectory, and this will continue this year as well. IT contracting shows a remarkable increase. Support functions like HR, marketing, sales, and finance are booming. Construction and property is a unique market in Europe as governmental measures keep the area growing. Engineering is the only sector where we might see some consolidation or stagnation over the year. The life sciences segment will develop further; health services are a growing market in Hungary. There’s a massive demand for qualified professionals in general; however, it’s matched with a considerable skills shortage in the labor market.

Our 2022 Recruitment Agency Market Talk Panel • Sándor Baja, managing director for the Czech Republic, Hungary, and Romania, Randstad Hungary Kft. • Zsolt Beck, founder and CEO, Beck and Partners • Tamás Fehér, country managing director, ManpowerGroup • Tammy Nagy-Stellini, managing director, Hays Hungary

4

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

Special Report | 25

Recruitment Agencies

1

HAys HungARy kft. www.hays.hu

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30

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30

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

oWneRsHip (%) HungARiAn nonHungARiAn

top loCAl exeCutive Cfo mARketing diReCtoR

AddRess pHone emAil

✓

2007 1 254

– Hays Plc. (100)

tammy nagy-stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

(1) 501-2400 hungary@hays.hu

✓

2004 4 4,927

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

sándor baja Lívia Tóth Ágnes Szokody

1134 Budapest, Dózsa György út 146–148.

(1) 619-4243 info@randstad.hu

✓

1996 1 500+

– GI International S.R.L. (100)

györgy g. palásti Szabolcs Németh Zsolt Pető

1053 Budapest, Károlyi utca 12.

(1) 235-2600 info@grafton.hu

lAW

ssC/bsC

pHARmACeutiCAl/CHemiCAl

it/teleCom

sAles/tRAde/mARketing

touRism

pRoduCtion/engineeRing

bAnking/finAnCe

guARAntee peRiod ReCRuitment time A

3-6 months 1-6 weeks

RAndstAd HungARy kft. www.randstad.hu 846 101

industRy speCiAlizAtion in 2021

otHeR

middle mAnAgement

peRCentAge of CAndidAtes plACed in 2021 (%)

top mAnAgement

no. of CAndidAtes plACed in 2021 no. of employees in seARCH And Consulting on mARCH 1, 2022

otHeR

plACement fRom dAtAbAse

AdveRtising

bReAkdoWn by seARCH metHods in 2021 (%)

diReCt seARCH

totAl net Revenue in 2021 (Huf mln)

CompAny Website

net Revenue fRom ReCRuitment in 2021 (Huf mln)

RAnk

Ranked by net revenue from recruitment in 2021 (HUF mln)

we don't just build teams we build businesses. human forward.

www.bbj.hu

5

627

tRenkWAldeR ReCRuitment kft. http//hu.trenkwalder.com

637

A

A

A

A

4

20

8

JobsgARden kft. www.jobsgarden.hu

✓

✓

✓

✓

✓

✓

✓

✓

1991 8 5,300

– Adecco Group AG (100)

gergely ujvári Ádám Varga Sára Fodor

1139 Budapest, Fiastyúk utca 4–8.

(1) 323-3500 adecco@adecco.hu

✓

✓

✓

✓

✓

✓

✓

✓

1990 12 20

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

péter berta – –

1074 Budapest, Rákóczi út 70.

(1) 787-8399 whc@ whc-group.com

✓

✓

✓

✓

✓

✓

✓

✓

2001 1 1

Éva Paulovics, zsuzsa gárdus, Zsuzsa Gárdus Éva paulovics (A) – ITConnect (A) –

✓

1990 1 2,600

– Manpower France Holding SAS (100)

tamás fehér Erika Garics Kitti Horváth

1133 Budapest, Váci út 76.

(1) 411-1590 manpower@ manpower.hu

5

2007 1 1

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

beáta fürjész – –

1075 Budapest, Madách Imre út 13–14.

(1) 354-2060 info@karrierhungaria.hu

20

75

10

30

60

3-6 months 1-6 weeks

76

3–6 months 1–6 weeks

60

3-6 months 2-6 weeks

331

kARRieR HungáRiA kft.

10 www.karrierhungaria.hu

BAP-BBJ-2022-04-a-press.pdf

C

M

Y

CM

MY

CY

CMY

K

326 1

3,410

360

60

–

5

298 22

45

2022. 04. 11.

20

30

20

25 16:47

5

20

lAW

1–12 months 1-6 weeks

mAnpoWeR munkAeRő szeRvezÉsi kft. www.manpower.hu 9

ssC/bsC

45

5

321 18

pHARmACeutiCAl/CHemiCAl

35

3-6 months 2-6 weeks

225 33

it/teleCom

✓

550 30

5

sAles/tRAde/mARketing

✓

5

20

touRism

✓

40

10

pRoduCtion/engineeRing

✓

5

65

1139 Budapest, Váciút 99–105.

(1) 354-0933 infohungary@ trenkwalder.com

✓

50

762

balázs istván g. nagy Henrietta Tóth József Nógrádi

✓

8,579

362

– SATRK GmbH (100)

✓

430

10

1119 Budapest, Bártfai utca 15–17.

(20) 999-9250 info@bap.hu

✓

15

20

zsolt beck, bettina somodi – –

69

40

20

Zsolt Beck (100) –

27

30

25,366 50

✓

2006 1 1

2018 19 200

15

411

7

AddRess pHone emAil

1-6 months 2-6 weeks

2,874

541 30

top loCAl exeCutive Cfo mARketing diReCtoR

A

A

505

WHC kft. www.whc-group.com

oWneRsHip (%) HungARiAn nonHungARiAn

3-6 months max. 6 weeks

1,259 27

AdeCCo kft. www.adecco.hu 6

A

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

4

bAnking/finAnCe

guARAntee peRiod ReCRuitment time

beCk And pARtneRs kft. www.bap.hu 360 35

industRy speCiAlizAtion in 2021

otHeR

middle mAnAgement

peRCentAge of CAndidAtes plACed in 2021 (%)

top mAnAgement

otHeR

plACement fRom dAtAbAse

AdveRtising

no. of CAndidAtes plACed in 2021 no. of employees in seARCH And Consulting on mARCH 1, 2022

Budapest Business Journal | April 22 – May 5, 2022

bReAkdoWn by seARCH metHods in 2021 (%)

diReCt seARCH

CompAny Website

totAl net Revenue in 2021 (Huf mln)

Special Report net Revenue fRom ReCRuitment in 2021 (Huf mln)

RAnk

26 | 4

19

20

✓

✓

✓

✓

25 10

✓

✓

–

✓

✓

✓

✓

10 10

✓

✓

–

✓

✓

40

1134 Budapest, Dévai utca 19.

(70) 399-9557 office@jobsgarden.hu

4

www.bbj.hu

325

11

8,353

10

20

60

10

iseeQ kft. www.iseeq.hu 12

13

14

foCus Consulting kft. www.focusconsulting.hu

pRoHumán 2004 munkAeRő szolgáltAtó És tAnáCsAdó kft. www.prohuman.hu

pAnnonJob Humán 15 szolgáltAtó És tAnáCsAdó kft. www.pannonjob.hu

16

Reed mAgyARoRszág kft. www.reed.com

Job szemÉlyzeti 17 tAnáCsAdó kft. www.job.hu

312

312

40

–

40

20

282

302

45

15

35

5

263

249

234

211

38,086

14,060

714

2,296

A

A

A

44

A

A

A

16

A

A

A

38

200

19

Humán CentRum kft. www.humancentrum.hu

kARRieR Rent kft.

20 –

197

200

8,232

25

A

10

A

50

A

A

96 12

A

15

A

488 32

A

A A

A

171 15

2

128 23

15

250 15

fp invest tRAde kft. www.tesk.hu 18

353

A

A

68

195

198

20

35

40

5

101 5

183

4,120

25

50

20

5

250 7

7

98 9

22

mAnuviA expeRt ReCRuitment Hu kft. https://manuviarecruitment.hu

166

166

3

37

53

top loCAl exeCutive Cfo mARketing diReCtoR

AddRess pHone emAil

–

2000 16 17

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

lászló mátyás Erika Dékány László Zsilka

4025 Debrecen, Széchenyi utca 48.

(52) 446-991 info@hsa.hu

Corporate (100) –

balázs bondici, tamás püski – Eszter Szabó

1075 Budapest, Madách Imre út 13–14.

(70) 775-2575 hello@iseeq.hu

Tímea Bíró (100) –

tímea bíró – –

1138 Budapest, Váci út 135–139.

(70) 883-7514 info@focusconsulting.hu

A

2004 15 38

(100) –

béla ignácz, Csongor Juhász, sándor zakor, Attila feleki Zsuzsanna Őz –

1144 Budapest, Hungária körút 140–144.

(1) 432-1280 prohuman@ prohuman.hu

✓

1993 6 6

Videoton Holding Zrt. (100) –

Attila molnár – –

8000 Székesfehérvár, Berényiút 72–100.

(22) 554-170 info@ pannonjob.hu

✓

2008 1 102

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

nigel marsh – –

1051 Budapest, Bajcsy-Zsilinszky út 12.

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

✓

1992 2 2

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

Éva fehér György Thury –

1133 Budapest, Árbóc utca 6.

(1) 239-9922 job@job.hu

–

2002 1 1

Individuals (100) –

Hajnalka bánovics, péter tokár – Péter Tokár

1076 Budapest, Garay tér 20/B (1) 445-1209 (30) 950-8818 info@tesk.hu

–

1993 14 14

Individuals (100) –

katalin bor, Róbert göbl, zsuzsanna szabó – –

1077 Budapest, Wesselényi utca 11.

(1) 877-0900 info@humancentrum.hu

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

gabriella Ruff berzéthyné – –

1075 Budapest, Madách Imre út 13–14.

(1) 354-2060 –

lAW

ssC/bsC

pHARmACeutiCAl/CHemiCAl

it/teleCom

sAles/tRAde/mARketing

touRism

pRoduCtion/engineeRing

bAnking/finAnCe

guARAntee peRiod ReCRuitment time

oWneRsHip (%) HungARiAn nonHungARiAn

A

40

25

35

1-6 weeks

13

37

50

3 months 1-3 weeks

30

40

30

3-6 months 1-6 weeks

A

A

A

A

A

A

A A

3-6 months

–

✓

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

–

2012 1 1

✓

✓

✓

✓

✓

✓

✓

✓

1997 1 1

A

✓

A

✓

A

✓

A

✓

A

✓

A

✓

A

✓

A

10

9

10

A

30

27

25

A

60

3-6 months 1-6 weeks

64

3-6 months 2-5 weeks

65

3-6 months 1-4 weeks

A

3 months 2-6 weeks

25 10

–

15 10

–

35

5

2012 1 1

✓

✓

✓

✓

–

✓

2004 11 11

–

2018 1 4

10

20

70

3-6 months 2-6 weeks

5

25

70

1-9 months 1-4 weeks

get WoRk tRend kft. www.getwork.hu 21

industRy speCiAlizAtion in 2021

otHeR

middle mAnAgement

top mAnAgement

peRCentAge of CAndidAtes plACed in 2021 (%)

3

18

79

3-6 months

✓

✓

5

✓

✓

✓

✓

65

✓

✓

✓

–

✓

–

✓

–

✓

✓

✓

✓

15 10

✓

✓

–

✓

✓

✓

✓

–

✓

✓

✓

✓

5

✓

✓

23

vision ReCRuitment kft. www.visionrecruitment.hu

165

165

85

–

10

5

106 12

15

45

40

24

CARbyne kft. www.carbyne.hu

133

133

A

A

A

A

48 4

15

35

50

A A

20 10

–

–

–

5

–

–

30

5

30

– 100 –

1023 Budapest, László Küzmös lászló küzmös Árpád fejedelem útja 31.

(100) Lázár Krisztina (1) 766-5626 – – getwork@getwork.hu

– Manuvia SK a.s. (100)

Rita tasnády – –

1082 Budapest, Futó utca 35–37.

(20) 229-9276 budapest@ manuvia.com

–

2013 1 1

(100) –

márta szabó, dorottya pákozdi – –

1027 Budapest, Horvát utca 14–24. building A (20) 333-8516 info@ visionrecruitment.hu

–

2017 2 2

Individuals (100) –

péter sitte – –

1111 Budapest, Lágymányosi utca 12.

(20) 401-4766 info@carbyne.hu

A

3 months 1-4 weeks

Special Report | 27

yeAR estAblisHed no. of offiCes in HungARy WoRldWide

HsA kft. www.hsa.hu

no. of CAndidAtes plACed in 2021 no. of employees in seARCH And Consulting on mARCH 1, 2022

otHeR

plACement fRom dAtAbAse

AdveRtising

bReAkdoWn by seARCH metHods in 2021 (%)

diReCt seARCH

totAl net Revenue in 2021 (Huf mln)

CompAny Website

net Revenue fRom ReCRuitment in 2021 (Huf mln)

RAnk

Budapest Business Journal | April 22 – May 5, 2022

25

kelly seRviCes HungARy kft. www.kellyservices.hu kelly seRviCes 26 HungARy kft. www.kellyservices.hu 26

123

15,579 45

20

25

10

123

15,579 45

20

25

10

118

6,013

2

21

55

22

118

6,013

2

21

55

22

mAn At WoRk HumánszolgáltAtó És szemÉlyzeti mAn At WoRktAnáCsAdó kft. www.manatwork.hu HumánszolgáltAtó És szemÉlyzeti tAnáCsAdó kft.

27 www.manatwork.hu

115

9,128

10

45

35

10

27

115

9,128

10

45

35

10

132 18 132 18

118 9 118 9

905 6 905 6

gi gRoup HungARy kft. www.gigroup.hu gi gRoup HungARy kft.

28 www.gigroup.hu

94

236

5

65

25

5

28

94

236

5

65

25

5

92

101

65

5

25

5

92

101

65

5

25

5

83

83

40

15

44

1

83

83

40

15

44

1

82

82

70

10

10

10

82

82

70

10

10

10

63

2,255

A

A

A

A

430

63

2,255

A

A

A

A

430

ReCRuby HungARy kft. www.recruby.com 29 ReCRuby HungARy kft. www.recruby.com 29

fox & Wolf HR solutions kft. www.foxandwolf.hu fox & Wolf HR solutions kft.

30 www.foxandwolf.hu

30

AARenson 31 Consulting kft. www.aarenson.hu AARenson 31 Consulting kft. www.aarenson.hu viApAn dologidő kft. www.viapan.hu/hu 32 viApAn dologidő kft. www.viapan.hu/hu 32 pAnnon-WoRk Consulting kft. www.pannonwork.hu pAnnon-WoRk Consulting kft.

33 www.pannonwork.hu 33

JobtAin HR szolgáltAtó kft. www.jobtain.hu JobtAin HR NR szolgáltAtó kft. www.jobtain.hu NR

A = would not disclose,

NR = not ranked,

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

15 15

94 94

30 30

25 25

30 30

15 15

221 10 221 10

61 7 61 7

57 6 57 6 70 10 70 10

A A

65 A

65 A

5

40

55

5

40

55

–

10

90

–

10

90

1

2

97

1

2

97

–

5

95

–

5

95

5

10

85

5

10

85

6

10

84

6

10

84

22

56

22

22

56

22

A

A

A

A

A

A

5

35

60

5

35

60

3 months 2-8 3 weeks months 2-8 weeks

3 months 4-8 3 weeks months 4-8 weeks

1-6 months 1-3 1-6 months 1-3 months

0-3 months 0-4 0-3 weeks months 0-4 weeks 3-6 months 1-6 3-6 weeks months 1-6 weeks 3-6 months 1-4 3-6 weeks months 1-4 weeks 3-6 months 3-6 weeks months 3-6 weeks A A A A

3 months 2-8 3 weeks months 2-8 weeks

lAW lAW

ssC/bsC ssC/bsC

pHARmACeutiCAl/CHemiCAl pHARmACeutiCAl/CHemiCAl

it/teleCom it/teleCom

sAles/tRAde/mARketing sAles/tRAde/mARketing

touRism touRism

pRoduCtion/engineeRing pRoduCtion/engineeRing

industRy speCiAlizAtion in 2021 industRy speCiAlizAtion in 2021

bAnking/finAnCe bAnking/finAnCe

guARAntee peRiod guARAntee peRiod ReCRuitment ReCRuitment timetime

otHeR otHeR

middle mAnAgement middle mAnAgement

peRCentAge of CAndidAtes peRCentAge plACed of in 2021 (%) CAndidAtes plACed in 2021 (%)

top mAnAgement top mAnAgement

no. of CAndidAtes plACed in 2021 no. of CAndidAtes plACed in 2021 no. of employees in seARCH no. of employees in seARCH And Consulting on mARCH 1, 2022 And Consulting on mARCH 1, 2022

otHeR otHeR

plACement fRom dAtAbAse plACement fRom dAtAbAse

AdveRtising AdveRtising

bReAkdoWn by seARCH metHods in 2021 bReAkdoWn (%) by seARCH metHods in 2021 (%)

diReCt seARCH diReCt seARCH

pAnnon-WoRk zRt. www.pannonwork.hu pAnnon-WoRk zRt. www.pannonwork.hu

totAl net Revenue in 2021 totAl net Revenue in 2021 (Huf (Huf mln)mln)

CompAny Website CompAny Website

www.bbj.hu

Budapest Business Journal | April 22 – May 5, 2022

5

50 10 10 15

2

6

2

5

50 10 10 15

2

6

2

✓

✓

–

✓

✓

–

✓

–

✓

✓

–

✓

✓

–

✓

–

estAblisHed yeARyeAR estAblisHed no. of offiCes in HungARy no. of offiCes in HungARy WoRldWide WoRldWide

25

Special Report net Revenue fRom ReCRuitment in 2021 net Revenue fRom ReCRuitment in 2021 (Huf (Huf mln)mln)

RAnkRAnk

28 | 4

oWneRsHip (%) HungARiAn oWneRsHip non(%) HungARiAn nonHungARiAn

top loCAl exeCutive topCfo loCAl mARketing exeCutive diReCtoR Cfo mARketing diReCtoR

AddRess pHone emAil AddRess pHone emAil

2004 16 18 2004 16 18

Grosvenor Kft. (100) – Kft. Grosvenor (100) –

géza Homonnay, péter laczi géza Andrea Peka Homonnay, Makkosné péter laczi Marianna Baksy Andrea Peka Makkosné Marianna Baksy

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

– Kelly Services Management – SarlServices (100) Kelly Management Sarl (100)

péter kóthay József Verebélyi Petra péterPordány kóthay József Verebélyi Petra Pordány

1134 Budapest, Váci út 35.

(1) 301-7800 1134 Budapest, info@kellyservices.hu Váci út 35.

(1) 301-7800 info@kellyservices.hu

1998 6 6 1998 6 6

Volano Kft. (100) – Kft. Volano (100) –

Csaba ottó Orsolya Horvai Módné Csaba ottó Orsolya– Horvai Módné –

8272 Óbudavár, Fő utca 31.

(20) Óbudavár, 929-2430 8272 Fő info@ utca 31. manatwork.hu (20) 929-2430 info@ manatwork.hu

2020 1 500+ 2020 1 500+

– Gi Group (100) – Gi Group (100)

györgy g. palásti Szabolcs györgy g.

Németh palásti Zsolt Pető Szabolcs Németh Zsolt Pető

1053 Budapest, Károlyi utca 12.

(1) 235-2600 1053 Budapest, hu.info@ Károlyi utca 12. gigroup.com (1) 235-2600 hu.info@ gigroup.com

2019 1 1 2019 1 1

(100) – (100) –

Adrienn parti Andrea Varga Gergely Parti Adrienn parti Andrea Varga Gergely Parti

2004 5 A 2004 5 A

–

70

5

15

–

5

–

5

–

70

5

15

–

5

–

5

✓

✓

–

✓

✓

✓

–

✓

✓

✓

–

✓

✓

✓

–

✓

15 10

–

5

50

–

20

–

15 10

–

5

50

–

20

–

15 10

–

10 40

–

25

–

15 10

–

10 40

–

25

–

10 60 10 10 10

–

–

–

10 60 10 10 10

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2005 2 3 2005 2 3

Ágnes Ignácz-Fuszkó (100) Ágnes – Ignácz-Fuszkó (100) – Individuals (100) – Individuals (100) –

2001 12 15 2001 12 15

Individuals (100) – Individuals (100) –

2017 1 1 2017 1 1

2004 16 18 2004 16 18

Individuals (100) – Individuals (100) –

ágnes ignácz-fuszkó – ágnes – ignácz-fuszkó – – péter bogdanovits, Anikó pethő péter – bogdanovits, Anikó–pethő – – gábor Csizmadia László Pintér gábor Mátyás Csizmadia Stankovics László Pintér Mátyás Stankovics géza Homonnay, balázs lászló géza szenftner Homonnay, Andrealászló Peka balázs Makkosné szenftner Marianna Baksy Andrea Peka Makkosné Marianna Baksy

1147 Budapest, Huszt utca 7.

(20) 415-9803 1147 Budapest, info@recruby.com Huszt utca 7.

(20) 415-9803 info@recruby.com 1064 Budapest, Izabella utca 50.

(70) 366-5274 1064 Budapest, info@ Izabella utca 50. foxandwolf.hu (70) 366-5274 info@ 1143 Budapest, foxandwolf.hu Gizella út 42–44.

(1) 225-1079 1143 Budapest, office@ Gizella út 42–44. aarenson.hu (1) 225-1079 office@ aarenson.hu 1013 Budapest, Pauler utca 18.

(20) 328-3284 1013 Budapest, marketing@ Pauler utca 18. viapangroup.com (20) 328-3284 marketing@ viapangroup.com 1114 Budapest, Bartók Béla út 15/D (1) 381-1048 1114 Budapest, budapest@ Bartók Béla út 15/D pannonwork.hu (1) 381-1048 budapest@ pannonwork.hu

Magdolna magdolna Mihályi Sándor 1094 Budapest, mihályi sándor 2004 Andrásné Tűzoltó utca 72.

Magdolna A Andrásné magdolna 7 21 72 11,237 – 80 – 20 6 VargaSándor (90), – – (30) 974-6035 A ✓ ✓ – ✓ ✓ – Mihályi 1094 Budapest, varga 10 mihályi sándor 6 Anna Varga ugyfelszolgalat@ 2004 Andrásné Tűzoltó utca 72.

– A Andrásné (10) jobtain.hu 7 21 72 6 Varga (90), (30) 974-6035 11,237 – 80 – 20 – – A ✓ ✓ – ✓ ✓ – – varga 10 6 Anna –Varga ugyfelszolgalat@ – (10) jobtain.hu – – This list was compiled from responses to questionnaires received by April 20, 2022, 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, Business Journal, 1075 Budapest, Madách Imreand út 13–14, faxed todata.

(1) 398-0345. research department be contacted at research@bbj.hu This list was compiled fromBudapest responses to questionnaires received

by April 20, 2022, publiclyoravailable To the bestThe of the Budapest Businesscan 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 3-6 months 3-8 3-6 weeks months 3-8 weeks

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Budapest Business Journal | April 22 – May 5, 2022

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Groundbreaking Bosch Exhibition at Museum of Fine Arts

“Between Hell and Paradise. The Enigmatic World of Hieronymus Bosch” is an exhibition of work by the Dutch painter who lived and produced in the late Middle Ages and proves that Budapest’s Museum of Fine Arts continues to host outstanding artistic events.

DAVID HOLZER

The show offers almost 90 works of art that embody Bosch’s instantly recognizable style and worldview.

It is the largest exhibition of his art in Central Europe and one of the most significant Bosch exhibitions of the last half-century.

The work on display at the Museum of Fine Arts revolves around themes including the nature of human existence, the choice between indulging one’s desires or not and between virtue and sin, and questions of faith and truth.

Divided into seven sections, the exhibition begins “On the Boundary of Two Ages,” the transition period between the end of the Middle Ages and the Early Modern Period when Bosch was painting. From there, we climb on board the “Ship of Fools,” representing human weakness and sin.

Lovers, if that’s the right word, of Bosch’s most creepy art will surely romp through the third section of the exhibition, cheerfully titled “The End of Time.” This includes major works such as the “Last Judgment” as well as recently discovered drawings.

Saintly Relief

Some of the world’s greatest museums, from the Metropolitan Museum of Art in New York to Madrid’s Museo Nacional del Prado, have lent works that include “The Last Judgment Triptych” and “The Ship of Fools.”

Very little is known about Bosch’s life, other than that he’s believed to have lived from around 1450 to 1516 and was born in ’s-Hertogenbosch, the capital of North Brabant in Belgium. He was one of five sons of Anthonius van Aken (himself the son of an artist), four of whom were painters.

Art historians assume, reasonably enough, that his father or one of his uncles taught young Hieronymus to paint.

After this, the fourth section, “The Life of Saints,” may well come as a relief. Bosch knew the orthodox versions of the lives of saints such as St. John the Baptist, St. Christopher and St. Antony intimately and used them to suggest how humanity can keep its faith even in the darkest times.

Following on from the “Jesus” section is one named for the painting known as “The Garden of Earthly Delights,” loaned by the Prado in Madrid. This is perhaps the most thought-provoking and certainly beautiful part of the exhibition.

In recent years, art historians have delved deeply into the meaning of “The Garden of Earthly Delights,” suggesting an ironic dimension to the central panel that depicts delights and the right Bosch spent most of his life in ’s-Hertogenbosch and, aged 13, may well panel, which shows hell. It has also been mooted that one of the reasons Bosch’s have witnessed the fire that devastated the city in 1463. Art historians speculate work appears so cryptic is because he that seeing the blaze inspired the hellfire was secretly attacking certain social, political and spiritual targets. that features so prominently in his work.

While it’s interesting to know this, it’s Somewhere between 1479 and 1481, he married Aleyt Goyaerts van den Meerveen much more satisfying to study the paintings and moved to the nearby town of Oirschot, without speculating about his intention.

This, for me, preserves their mystery and where she owned a house and land. universality. Especially now, with what’s Apart from these bare facts, the main going on across the border from Hungary. thing we know about Bosch is that, This makes the idea of the final section unless his seeming faith had more to do with expediency, he was deeply religious. of the exhibition, which looks at the impact of Bosch’s art on successive Striking a Chord generations, not especially interesting We also know that his work was popular to me. Particularly as it appears to focus in his lifetime, collected throughout the only on the period when he was alive and Netherlands and as far afield as Austria then immediately after his death. and Spain. It was also widely copied.

Because of this narrow focus – and, not Clearly, Bosch’s art struck a chord with having seen it yet, I could be wrong – the the public, even if it seems exceedingly exhibition doesn’t appear to consider the strange to us modern viewers. relationship between Bosch and Spanish With this in mind, the exhibition at surrealist Salvador Dali. It’s argued that the Museum of Fine Arts does as much the rock formation in the shape of a face as possible to place Bosch’s work in the in Dali’s 1920 “The Great Masturbator” context of the resources art historians can was inspired by a similar form in “The be reasonably sure he drew upon. These Landscape of Earthly Delights.” include literary and theological works and The exhibition also doesn’t Franco-Flemish and Utrecht miniatures. acknowledge writer Michael Connolly’s Alongside Bosch’s paintings and fictional detective Hieronymus “Harry” drawings, the exhibition also includes Bosch, who seeks justice on LA’s mean work by painters who came before him streets in a milieu that can be paradise and who he might have learned from, as or hell on earth, dripping with well as pieces produced by his students temptation and sin. A criminal omission. and those who followed him.

Despite this being a worthy endeavor, I think I’ll be ignoring all “Between Hell and Paradise. the context when I visit the exhibition.

The Enigmatic World of For me, not knowing what inspired Hieronymus Bosch” is open now.

Bosch makes the work all the more Find out more at www.mfab.hu. powerful. I suspect I’m not alone.

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Budapest Business Journal | April 22 – May 5, 2022

PROMOTION

World Stars and Best Local Talent, Many Premieres on Margaret Island For the 2022 season, Margaret Island OpenAir Stage will once again host worldrenowned stars and well-known Hungarian artists. As in previous seasons, the theater continues its mission to draw the attention of national and international audiences to Budapest with its artistic repertoire, which is internationally significant.

talented tenor with a fabulous career, will perform Puccini’s “Tocsa,” together with local stars: Eszter Sümegi and Mihály Kálmándy. After 18 years, a new production of Verdi’s “Attila,” a sweeping opera with a connection to Hungary, will occupy its rightful place on the main stage of Margaret Island. Debuting in the title role as the King of the Huns will be Gábor Bretz, a constant guest at international venues who has won over this country’s opera fans with his commanding voice and character. He will be joined in the role of Odabella, daughter of the Lord of Aquileia, by the dazzling Maria Agresta, whose appearances in the world’s most respected venues are always crowned with success. Meanwhile, master pianist Valentina Lisitsa, known for her wild, pounding renditions, is certain to enchant the audience at the opening concert by the National Philharmonic Orchestra, conducted by Domonkos Héja.

Music, Leisure, and Summer Chill-out

Budapest, together with its lush Margaret Island, occupies a distinguished place on the map of Europe as a destination for culture and tourism,” she adds.

Original Stage

Who would not be stunned at the sight of Productions such a line-up? Aida Garifullina, Maria Agresta, Valentina Lisitsa, Francesco Margaret Island has created its own Meli, Victor Solomon, Pier Giorgio productions and dramatically staged Morandi, Eszter Sümegi, Gábor Bretz, shows, operating in co-productions with and Mihály Kálmándy. The operas respected professional partners such “Tosca” and “Attila,” the musicals as the Hungarian State Opera House “Stonehearted – The Baradlay Legend” and the National Philharmonic, among and “Mozart!,” as well as “The Gospel others. This year’s premieres include of Mary,” the release of the album new stagings of “Tosca” and “Attila,” “Esthajanal” (Dusk), and a Pink Martini as well as the popularly hailed “Opera concert. And that is not all!

Gala – Best Opera Songs” featuring “For the open-air summer festival, a world-famous soprano. One of the Margaret Island Theater is preparing summer’s most exciting premieres will to open its gates to international and be the musical “Stonehearted – the Hungarian artists while still paying Baradlay Legend,” dreamed up by Vajk attention to high quality. After all, we could Szente. Also featured are the musicals say our audience has come to expect that “Mozart!” (a co-production with the of us,” states Teodóra Bán, manager and Petőfi Theater of Veszprém), “The artistic director of Margaret Island Theater.

Gospel of Mary,” and “Elisabeth,” “We shall host many internationally which arrives from Kecskemét. These renowned artists and even more homemusical spectacles will be realized on grown talent. Our goal this year is to open Margaret Island with remarkable casts our doors again to the Hungarian public filled with the best singers from the and international spectators alike. After all, country’s musical community.

Anniversaries and Album Releases Founding member of the former Ghymes ensemble, Tamás Szarka will hold a concert to debut his album entitled “Esthajnal” (Dusk) together with the songwriter’s band Parno Graszt – featuring songs never heard before, the actor Gábor Reviczky, and star vocalist Gabi Tóth.

Ferenc Fegya Jávori and the Budapest Klezmer Band will hold a concert of their lifework. The Saint Ephraim Male Choir will celebrate its 20th anniversary with a 400-member chorus and will be joined by guest star Viktor Solomon. The Budapest Gypsy Symphony Orchestra will commemorate the 35th anniversary of its formation, dedicated to its Roma prima violinist founder László Berki, on Margaret Island’s imposing stage. The first program in May will present the history of the group Irie Maffia, similarly celebrating an anniversary, with a symphonic concert.

They are followed by the returning Magashegyi Underground formation.

Popular performer Miklós Fenyő, 75 this year, will perform on Margaret Island for the 25th occasion.

Earlier Opening, Pre- and Post-season Margaret Island Theater’s season has expanded to include four months’ worth of programs. Check out the theater’s website, www.margitszigetiszinhaz.hu, for information on events.

Classical Confections The featured artist for this year’s traditional Opera Gala will be none other than Placidó Domingo’s discovery and partner, the enchanting and justly worldfamous soprano Aida Garifullina. The conductor for the evening will be Pier Giorgio Morandi, who regularly conducts in the world’s most extraordinary opera houses. Francesco Meli, the exceptionally

Stars in nearly every genre of popular music will shine on this stage with a grand past. Besides great returning artists such as Miklós Fenyő, László Dés, Péter Geszti, Caramel, and Budapest Bár, a party atmosphere will be provided by Irie Maffia, the Magashegyi Underground, Magna Cum Laude, and the Cotton Club Singers. Pink Martini will also return this summer after three years to invigorate the Margaret Island audience.

Teodóra Bán. Photo by Nagy Zoltán.

The Margaret Island Theater also invites visitors to the heart of Budapest on an exciting journey and adventure. The summer theater, nestled in the island’s incomparable natural setting, boasts unique features and proportions: a 3,000-person auditorium, a theater shuttle boat and a wharf, and the registered Water Tower (which also serves as an exhibition space). It provides an impressive home for artists and demanding, culture-hungry audiences alike.

More than threater, it’s an adventure!

For more details about productions: www.margitszigetiszinhaz.hu

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Budapest Business Journal | April 22 – May 5, 2022

Badacsony Back in New York The view from the southern shore of Lake Balaton across to Badacsony, with a series of magical yet brooding sawnoff mesas and shapely cones, is one of the most spectacular in Hungary. The impressive volcanic vista aside, it is well worth visiting what is also prime terroir for making fine wine.

available by the glass or bottle at Nappali, often served by Barcza himself, and is fruity, pure, round and balanced and an excellent example of the grape variety.

Négy80’s neighbor, Péter Váli, likes to extract some color and richness from the skins. Válibor’s Pinot Gris 2020 (HUF 3,000 from wineloverswebshop.hu) has a pink tinge thanks to 36 hours of skin contact (the skins are somewhere between white and black grapes) and a smooth, dense, peachy palate.

Meanwhile, the Rózsakő grape variety, a crossing of Budai Zöld and Kéknyelű created by Ferenc Király in 1957 that is also now performing the pollination role for the latter, is making ever more impressive wines.

One trend I’ve been noticing lately is that Kéknyelű is becoming more approachable at a younger age, which could be helped by rising temperatures leading to a greater level of ripeness, with the acidity dipping off.

ROBERT SMYTH

After skipping a year due to the COVID pandemic, many of the region’s winemakers were back in Budapest recently for the much-loved Badacsony New Yorkban (literally Badacsony in New York) tasting, held in the Róma terem of the New York Palota on April 9.

With the wine-loving public pouring back into live, in-person tastings, this year’s event was as buzzing as the acidity in wines made from the region’s signature grape, Kéknyelű.

I, for one, have often criticized wines made from Kéknyelű for being clumsy rather than classy; searingly sour, with a very neutral, austere character with just a touch of citrus and painfully sharp acidity, especially when young. This is despite my being a lover of edgily acidic, rather than languid, wines.

Kéknyelű is quite like Hunter Valley Semillon from New South Wales, Australia, in that it needs a lot of time to become seriously interesting.

However, one trend I’ve been noticing lately is that Kéknyelű is becoming more approachable at a younger age, which could be helped by rising temperatures leading to a greater level of ripeness, with the acidity dipping off.

Nevertheless, though few appear to be doing it (perhaps for cash-flow concerns), lay Kéknyelű down and let it age, and rather than getting old and tired, the wines transform to become rich, rounded and full of life.

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Never Old

Csendes Dűlő showed the capacity of the grape to age with Kéknyelű wines from 2016, 2017, 2018 and 2019 vintages. Going much further back, the 2006 by Szeremley (HUF 4,939 from www.bergugok.hu) is a wine that never seems to get old with its floral, baked fruit, and nutty aromas and dense, long palate, and with a good dose of structure-building acidity still.

It certainly has a strong sense of place about it. Huba Szeremley, who passed away at the age of 81 last year, was the modern region’s pioneer.

There are just around 44 hectares of Kéknyelű planted in Badacsony’s vineyards. This late-ripening, fully female grape needs to be pollinated by another grape variety, a deed long carried out by Budai Zöld. This latter grape usually makes light floral wines, with Válibor’s organic bottling an excellent example of the variety.

Another excellent choice is Folly Arborétum’s Buda Zöld 2021, which is the last of its kind. It came from 50-year-old vines that once belonged to Badacsony’s Viticultural and Vinicultural Research Institute (MATE) that have been replaced this year, thankfully, by newly planted Budai Zöld vines. The grape might have disappeared had it not been for these recently replaced vines. It costs HUF 3,550 from Bortársaság. When in the Badacsony region, the Folly Arborétum, which is in Badacsonyörs,

is a great place to eat or chill, surrounded by a remarkable collection of trees: the Riesling and Kéknyelű are also of high quality.

MATE continues its important work and also makes wine commercially, which can be purchased from its shop at Római út 181 in Badacsony town. The Vulcanus grape variety, a crossing of Pinot Gris and Budai Zöld, is well worth checking out. The 2021 exudes lots of green fruit and has mouth-watering acidity, making it a refreshing choice for summer imbibing. The institute’s Szürkebarát 2021 is fresh and zesty and somewhat resembles easy-drinking Pinot Grigio from Italy’s Veneto region.

Szürkebarát is the Hungarian name for Pinot Gris or Pinot Grigio.

Regular Fixture

Not at the tasting, but a regular fixture behind the bar at the Nappali Káveház, which is more of a bar with what is possibly the widest selection of spirits in Hungary, is Máté Barcza, who is part of the small family-owned Négy80 winery from Badacsonyörs. Négy80 decided to use yet another name for Szürkebarát/Pinot Gris/Pinot Grigio due to the grape’s rather low reputation, using the moniker of Auvergnas Gris, which the family found mentioned as the name for the grape circa 1920, in a book by József Laposa.

Négy80’s Auvergnas Gris 2021 will soon be available from negy80.hu for HUF 2,000-2,500. It is already

The organic Szászi winery from Szent György-hegy made theirs solely in the tank in 2020, and it has pleasant citrusy sourness. Borbély’s offering comes from Bács hegy, was aged for three months in oak, and is very complex: nutty, oily and waxy with citrus fruit, pineapple and an edgy sour touch on the long finish. Borbely is now also making Furmint, having planted the grape from cuttings from Tokaj in 2015. The 2019 shows great promise and is much more elegant than the 2018 virgin vintage.

Over on Szent György-hegy, biodynamic winemaker István Bencze also planted the Furmint grape in 2015 from the T-85 clone from Tarcal in the Tokaj wine region and makes his engagingly edgy Furmint in amphora.

Incidentally, Bencze also works with the Loire grape variety Chenin Blanc.

The organic Gilvesy planted Furmint in its Váradi vineyard from 2009 to 2012, and the 2019 is up to the usual high standard.

Hárslevelű, another high-end grape that’s more readily associated with Tokaj, is hard to find in Badacsony, but it can be excellent, such as those made by Ödön Nyári and Csendes Dűlő. Like many other Hungarian regions, Olaszrizling is a big grape here, and Szászi makes an estate, a Szent György-hegy and singlevineyard versions (from Rókaluki and Kobócás). The 2020 estate bottling is an absolute bargain at HUF 2,390 from Bortársaság and comes from grapes from Szigliget, Csobánc and Szent György hegy. Csobánc hegy is home to the organic Villa Tolnay, whose Olaszrizling is also excellent.