BR/05/2019

HIGH-END HOMES SEE NEW CONCEPT: AFFORDABLE LUXURY SMALLER CITIES GETTING ON THE STARTUP INVESTMENT RADAR

6 28

PACKAGING PROBLEMS: HELPING FIRMS COPE WITH NEW ENVIRONMENTAL RULES 36 May, 2019 / Volume 23, Issue 5

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TELECOM INDUSTRY THREATENED BY RISING COSTS AND NEW TAXES

38

www.business-review.eu Business Review | May 2019

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi

6 High-end homes get new concept: affordable luxury

• Deputy Editor-in-Chief •

8 Plotting expansion: Forte Partners flexes development muscles

COVER STORY

Working in (digital) Romania

S

1o Working Romania

alary is no longer the main pillar of an HR strategy, in Romania or worldwide. In an increasingly competitive labor

ENTREPRENEURSHIP

market, employers need to find new ways to attract and

retain the best people. The challenge of the digitalization of jobs is increasing locally too, with both employers and employees needing to adapt fast to the new context.

26 Local entrepreneurs looking

Embracing digital technology is essential in order to consolidate

for fresh approach in energy industry

competitiveness. Digitalization has become part of how companies work, and it is relevant in different functions of a business, from

28 Smaller cities getting on the

marketing and HR, to finance and legal.

startup investment radar

It is common knowledge that engaged employees are less likely to leave an organization, and more likely to provide exceptional customer service, and help drive the overall performance of the

MARKETING AND ADVERTISING

business. According to Deloitte 2019 Global Human Capital Trends, talent mobility is among the most important trends today. The same report underlines that, in the context of the tightest labor

32 Consultancy firms taking

market of the past two decades, improving internal talent mobility

over advertising agencies – who will win?

and finding the right people are ongoing issues.

34 Brain gain: neuromarket-

So companies are making huge investments globally in the pro-

ing opens up new avenues

fessional development of their employees, especially considering that the incoming generation has a limited amount of patience and

CITY

if they don’t reach their expected growth internally, they’ll look outside the company for new opportunities.

This is why Business Review has chosen to dedicate this month’s cover story to how some of the most dynamic local employers, in terms of hiring in the last year, have designed their HR

40 Cash for culture: spon-

strategies to hire and keep talents and how they are coping with

soring summer festivals

the digitalization of the local workforce.

42 Calendar

FOUNDING EDITOR: Bill Avery DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania­­­­ LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRI­­BUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu

Publicație auditată pe perioada Apr 2015 - Mar 2016

ISSN NO. 1453-729X

www.business-review.eu Business Review | May 2019

4 NEWS

WHO’S NEWS

the current level of 27.9 percent of total energy in Romania

BR welcomes information for Who’s News.

Submissions may be edited fo­­­r length and clarity.

Get in touch at anca.alexe@business-review.ro

until 2030, while the reference scenario sets out an increase to 32.4 percent.

In the potential A scenario, the share of renewable energy will rise to 35 percent in 2030, while the last scenario estimates a share of 35.5 percent.

Wind and solar energy are considered critical in increasing the share of renewable energy, given the estimated evolution

Georgios Argentopoulos is the new general manager of Sphera Franchise Group, replacing Mark Hilton, who will continue to support the group as a strategic consultant, ensuring a smooth transition for his successor. Previously, Argentopoulos led a complex portfolio of businesses in the retail, real estate and telecom industries. His main objective will be for the company to maintain its focus on providing top quality products and services to its customers.

Net installed wind power capacities will reach 6 GW for the reference scenario

Romania could get 35 percent of its energy from renewable sources with EUR 17 bln investment

page 5

gies globally.

Net installed wind power capacities will reach 6 GW for the reference scenario, while under potential scenarios A and B they are expected to reach 7 GW. In the current scenario, installed capacity in wind farms will reach 4.3 GW (from 3 GW currently).

By Sorin Melenciuc

“Cumulated investments Romania could increase the

Energy in Romania: Potential for

in the Romanian energy sector

share of its energy from renew-

Development in the Horizon of

for the projected period are ex-

able sources from 27.9 percent

2030.

pected to be over EUR 17 billion

to 35 percent with investment

Alexandru Mihai has been appointed head of the leasing department of MLP Group. He has more than 15 years of experience in leasing commercial space. Before joining MLP Group, Mihai served as head of the industrial department at Activ Property Services. He also worked for Easy Asset Management and Cushman & Wakefield.

His responsibilities included running negotiations, leasing commercial space, carrying out surveys, preparing market analyses and cultivating client relations.

of the cost of these technolo-

Photo: Dreamstime

The study sets out four

in the case of the potential A

of EUR 17 billion, a scenario

scenarios: current and refer-

scenario, EUR 20 billion in the

that might prove cheaper for

ence ones, and potential A and B

reference scenario, EUR 22 bil-

the country than the alterna-

scenarios. The first one forecasts

lion in the current scenario and

tives, according to a RWEA

that the current share of renew-

EUR 25 billion in the potential B

& Deloitte study, Renewable

able energy will be maintained at

scenario,” the report says.

Bucharest to get free Wi-Fi in public spaces

By Anca Alexe Bucharest City Hall has an-

was approved unanimously by the

nounced that citizens will be able

General Council. “Through this

to access free wireless internet

program’s implementation, people

in public spaces through the

living in Bucharest will have free

WiFi4EU program, which uses

access to Wi-Fi in public spaces

non-reimbursable funding from

like parks, public squares, public

the European Union. The project

buildings, libraries, museums,

Photo: Dreamstime

The municipality obtained nonreimbursable funds of EUR 15,000 in February to install Wi-Fi networks in public spaces

www.business-review.eu Business Review | May 2019

NEWS 5

Firms lease 105,000 sqm of Bucharest office space in Q1 Ovidiu Zaberca has been appointed senior business development manager at Deloitte Romania.

He has experience in business development and marketing strategy for regional offices and has worked with business owners and top executives in the region. As senior business development manager, Zaberca will facilitate clients’ access to all types of services provided by Deloitte Romania experts based in regional offices in Cluj-Napoca and Timisoara, as well as in Bucharest.

By Anca Alexe The Bucharest office market made a brisk start to 2019: a gross take-up of 105,000 sqm, of which net take-up was 29,000 sqm, and 93,000 sqm of deliveries. Data from the real estate consultancy company Colliers International Romania show that demand came mostly from IT&C companies, despite the tight labor market.

“At first glance, the start of 2019 was great for the Bucharest office market, with total take-up at 105,000 sqm, up some 54 percent year-on-year.

Enthusiasm needs to be slightly

Sebastian Dragomir, Colliers International

toned down: although there is still very healthy demand

to about 29,000 sqm, which is

and professional services (a

for new or quality projects, we

still a decent level, while flexible

little over 10 percent). The start

have to peel away renewals

workspace operators accounted

of 2019 saw the delivery of sev-

and relocations from competi-

for over 20 percent of the figure,”

eral large projects in Bucharest:

tive stock to reach net take-up.

said Sebastian Dragomir, direc-

S Immo’s The Mark, near Piata

These relocations tend to cre-

tor of office advisory at Colliers

Victoriei; the second phase

ate vacancies and they stood at

International. By sector, IT&C

of The Bridge in Center West,

a sharp 54,000 sqm in Q1 2019

leasing was dominant, account-

developed by Forte Partners,

versus 102,000 sqm for all of

ing for nearly two thirds of total

but owned by Dedeman; and

2018. As a result, new demand

take-up, followed at a distance by

Renault’s new HQ, developed

decreased by over 20 percent,

financial & banking (16 percent)

by Globalworth.

Valeriu Binig is the new regulatory and antitrust affairs director of Enel Romania. He is a leading specialist on the Romanian energy market, with over 32 years of professional experience in the sector. In his new role, Binig will lead a highly qualified team whose main objectives will be defining, representing, and promoting the company’s position on regulatory and antitrust issues

etc., as the European Commission has accepted City Hall’s request to take part in the WiFi4EU program,” the City Hall said in a statement. The municipality obtained non-reimbursable funds of EUR 15,000 in February to install Wi-Fi networks in public spaces.

Authorities will only have to cover the subscription-related costs.

The Wi-Fi networks should be installed within 18 months of the date when the funding contract is signed. The networks will have no commercial ads and will not use personal data commercially.

Leon Stevens is the new chief revenue officer of FintechOS, a company specialized in accelerating digital transformation for financial institutions. Stevens has over 25 years of experience in software and holds a Bachelor’s Degree in Computer Science from the University of Bristol and a Master’s Degree in Artificial Intelligence, specializing in engineering and business applications. He has previously worked for Salesforce, Thunderhead, Workbooks and BMC.

www.business-review.eu Business Review | May 2019

6 REAL ESTATE

High-end homes get new concept: affordable luxury On the Romanian residential market a property has to be worth at least EUR 500,000 to be considered luxury. And the category runs from penthouses in northern Bucharest, to historical villas. The latest concept, say players, is affordable luxury.

By Razvan Zamfir

Avalon Estate will bring 800 new apartments onto the luxury market

A

t the high end of the market, the

redeveloped Lake Floreasca area and the

around 800 apartments, Aviatiei Towers with

most significant delivery in 2018 was

Aurel Vlaicu underground station, close to

some 150 flats and Aviatiei Park with 352

One Charles de Gaulle, with 33 apart-

Promenada mall.

apartments.

ments. By the delivery date, 90 percent of the

This acquisition fits into Atenor’s devel-

Last year, Prime Kapital confirmed it

units were already sold.

opment strategy, which aims to promote

would start developing on two land plots in

In December, developer Atenor took its

projects with high architectural and environ-

the Pipera area (Avalon Estate) and in Bu-

first steps towards the high-end residential

mental quality across European cities with

curestii Noi (Marmura Residence). With ap-

sector in Bucharest, by acquiring a plot of

strong economic fundamentals.

proximately 800 residential units, including

7,150 sqm in the Floreasca/Barbu Vacarescu area. The site is located between the recently

Other at least premium or affordable luxury projects were Cloud 9 Residence with

houses and apartments, the Avalon Estate is scheduled for delivery this year.

www.business-review.eu Business Review | May 2019 2016

The amenities available include promenade areas, a private kindergarten, access to

COVER REALSTORY ESTATE14 7

are also in talks to acquire a large land plot in the north of the city,” says Azoitei.

sqm of retail and commercial spaces, Marmu-

remained constant during 2018. There was significant appetite for new developments

the Pipera Lake and commercial areas.

With 5,000 sqm of green areas and 1,700

At the top end of the market, demand

THE ATTRACTION OF OLD BUILDINGS

located next to parks, especially in the main

With increasingly fewer land plots available

office hubs in the north of Bucharest.

ra Residence will bring a new modern touch in a neighborhood previously dominated by older buildings.

Stretching over 1.5 hectares, Marmura Residence will consist of 458 apartments designed for young professionals and families and could fit into the affordable luxury concept spearheaded by the entrepreneur Lucian Azoitei, who owns the developer Forty Management.

Forty Management specializes in developing projects under the Central District brand and is working now on Central District 4 Elemente projects, on a plot of around 4,500 sqm and worth around EUR 22 million. The company has completed 90 apartments and has 244 more under construction, as well as exclusive developments such as the Central District of Poland25 and the Central District Cuza99.

The developer also owns a 2,200-sqm plot on Viitorul Street in Sector 2, near Stefan cel Mare, where, according to Azoitei, the development of the Central District Viitorului

in high-end areas, as is the case in markets

project will begin this autumn.

including London and Paris, older buildings

per month between July 2018 and January

situated downtown are being converted into

2019. Significant interest was registered

high-end boutique projects. For example,

in One Floreasca City’s one- and two-bed-

“With this project we are in an early stage, but we will have around 40 apartments, a

One United sold an average of 4.5 units

room apartments, but the project has been slammed by activists, who claim that it is breaking construction rules in the area.

The company sold the most expensive apartment in 2018 at One Herastrau Park, for EUR 2.7 million.

Several market commentators claimed in 2018 that the real estate market was heading towards a new crisis. However, data suggests that there is still growth space, and if changes were to occur, they would be in the form of shopping area and an office area of about

Hagag has launched H Victoriei 139, which

a price correction rather than a market col-

1,000 sqm. All areas adjacent to the blocks

will provide 33 high-end apartments on Calea

lapse. Demand is still greater than supply, es-

will be green areas for the promenade, all

Victoriei.

pecially at the top end of the market, where

cars will be underground and the resulting area will be green. The building will be certified green, which means approximately

This mixed-use project, with 236 apartments, is expected to be delivered in 2021.

“We expect the same level of interest in

specialists say there is still room for growth.

According to Knight Frank, a slight change in the profile of high-end buildings and

70 percent of the surface area will be green

the high-end market as long as there are

specifications will appear. Tower buildings

area. The height regime will be different with

similar levels of high-quality projects from

with glazed facades and unobstructed views

one block lined up at the GF + 5 +6 retreated

experienced developers,” said Knight Frank

will replace low-rise buildings in well-known

street and the other G + 4 + 5 secluded. We

agency consultants.

areas.

www.business-review.eu Business Review | May 2019

8 REAL ESTATE

Plotting expansion: Forte Partners flexes development muscles Geo Margescu may be the most relaxed executive in the Romanian real estate market. The CEO of Forte Partners has under his belt the EUR 200 million sale of The Bridge, the 80,000-sqm office building in the center-west of Bucharest acquired last summer by the Paval brothers, founders of the Dedeman chain, and is working on the other projects Forte Partners is now developing.

By Razvan Zamfir Now he is concentrating on Forte Partners’ new projects. One such is a residential scheme, Aviatiei Park, featuring 352 apartments in the north of Bucharest, close to Herastrau Park, and requiring a EUR 37 million investment.

“It is a special project for us, the first large residential scheme we are developing, so we are focused on making it attractive to buyers,” says Margescu.

And it seems that the developer is succeeding, as the 176 apartments of the first phase of the project have already been sold.

The project is unusual for the market, as only 3,700 sqm of the 15,000 sqm total surface area is to be covered by buildings while over 11,000 sqm will be dedicated to the piazza, pedestrian walkways, access roads and vegetation, with tree and perennial tree alignments, designed for harmony of the gardens each season.

“We have analyzed every detail, from circulatory to space ergonomics, from the need for a lively lobby with a six-meter-high atrium

B

R sat down with Geo Margescu in the sumptuous, renaissance-style Ethos

up to the noise level and thermal comfort,” outlines Margescu.

Margescu of his deal with the Pavals.

Margescu was no stranger to real estate

PLOTTING TO REVIVE CENTRAL BUCHAREST

development before Forte Partners, having

In autumn 2017, Forte Partners bought from

pany headquarters, whose exterior contrasts

developed several landmark industrial, office

Telekom a 1,700 sqm plot of land between Ion

with The Bridge’s modern glass and steel. Not

and residential projects in Romania. Between

Campineanu and Matei Millo streets, and it

so with the interior, as Forte Partners HQ is

2003 and 2008, he developed Europolis Logis-

hasn’t stopped the search for land.

rather minimalist, in line with the period.

tics Park, featuring over 230,000 sqm of prime

House building in Floreasca, the com-

The firm intends to combine the plots and

Class A warehouse space, more than twice

develop several buildings near the Palatul

er Romanian entrepreneurs. From the start to

the size of the second largest development in

Telefoanelor area to create a hub and revital-

the end of negotiations for The Bridge it took

the country. 2007 saw the development of the

ize the center of Bucharest. It has already

only six weeks – a record, I would say. So, it is

Millennium Bank headquarters, and 2008 the

started the construction of the 9,000 sqm

not only the price, but the time to complete

Louis Blanc office building, which were sold

Matei Millo office building and areas for

the transaction was very short as well,” says

to both local and international investors.

future employees. “We believe in office de-

“I was very happy to do business with oth-

www.business-review.eu Business Review | May 2019 2016

COVER REALSTORY ESTATE14 9

area where we have a varied offer, where you can drink coffee, eat and work, obviously,” outlines Margescu.

STOCKING UP IN SERBAN VODA The developer also owns an 18,000-sqm plot just outside the Adesgo stocking factory, across the road from Tineretului Park.

The project proposal for the land on Serban Voda Road reached the table of the Technical Urbanism Commission last autumn and Forte Partners wants to build here a mixed project of offices, apartments and commercial spaces with 14-storey high towers. The CEO says that he doesn’t think the company will make a lot of purchases this year.

“We have thought about buying an office business, but I think we will go in another direction. We feel better when we are opening

The Bridge

new areas, developing things, and less in asset management. We are interested in buying, land especially, but I don’t think it will happen this year,“ he says.

While moving ahead prudently, Forte Partners is one of the most active Romanian developers in the market. It has its quiver full with projects and is still looking for development opportunities on the office and residential markets.

According to Margescu, the company will build homes in office hubs and offices in residential areas, in a bid to alleviate traffic

velopments in central and ultra-central areas

that there are some points of attraction, cafes

congestion in Bucharest, a city which will

and we rely on architecture, ergonomics,

for example, but very far from each other.

long remain the main development hub for

optimization and design thinking. The city

What we are trying to do is concentrate on an

the Romanian company.

center does not have a relevant class A office offer. We have a reputation and history of architectural quality and the ability to integrate development into the urban fabric, as well as the force of non-speculative developments, for which there are already concrete plans with our customers,” says the CEO. The company also plans to buy other land in the same area, given the trading opportunities.

“We want to develop more buildings there, but we need to find plots that suit our purpose. I strongly believe in reviving the center. We complain about infrastructure, but we develop in the periphery and ignore the center where infrastructure exists. We’re trying alongside the Creative Quarter to redo the central area. The problem with the center is

Aviatiei Park

10 COVER STORY

WORKING ROMANIA Financial benefits are no longer the main pillar of an HR strategy, in Romania or worldwide. In the light of an increasingly competitive labor market, employers need to find new ways to attract and retain the best people. The challenge of the digitalization of jobs is increasing locally too, with both employers and employees needing to adapt fast to the new context. BR sat down with some of the most dynamic employers in terms of hiring in the last year and found out their strategies to hire and keep talents and how they are coping with the digitalization of the local workforce.

By Anda Sebesi

www.business-review.eu Business Review | May 2019

www.business-review.eu Business Review | May 2019

COVER STORY 11

A

ccording to National Institute of Statistics (INS) data, Romania’s average net monthly earnings rose by 17.9 percent yearon-year in February, to RON 2,933 (EUR 617). The highest

wage increases were found in the public sector, while most private sector employees earned less during the first two months of this year compared with December, employers in Romania often pay end-year bonuses.

In addition, the highest net monthly earnings in February were recorded in the IT sector (RON 6,683 or EUR 1,407), while the lowest were found in the textile industry (RON 1,728, or EUR 364). And the total number of employees in Bucharest reached over 1 million at the end of November 2018, up from 993,740 in the same period of 2017, according to the source.

Romania still has the second lowest average wage among European Union member states, after Bulgaria. However, following rapid pay hikes over the last couple of years, Romania is now close to Hungary and Latvia in terms of average net earnings.

Last but not least, the total amount of wages paid by Romanian bosses rose by 17 percent in 2018 compared with 2017, to EUR 80.3 billion – an all-time high, mainly due to minimum wage and public sector pay increases. The wage bill registered in 2018 is equivalent to 39.8 percent of GDP, much lower than the EU average of 47.7 percent of GDP. A recent BR analysis found that the highest wages in Romania are in Bucharest and four counties (Cluj, Sibiu, Ilfov and Timis), exceeding EUR 600 per month on average, while in almost half of the country, average net earnings are below EUR 500. But many economists expect wage hikes to slow down in 2019, due to fiscal constraints.

EMPLOYERS FOCUS ON RETENTION IN A HOT LABOR MARKET Continuous learning for skill development, leadership development and improving the employee experience are the most important and pressing trends identified by the Deloitte 2019 Global Human Capital Trends report for Romania.

“The main concerns of Romanian employers are lifelong learning (90 percent of respondents) and developing leaders (84 percent), followed by improving the employee experience (78 percent). These results reflect the current challenges facing Romanian organizations: retention in a hot labor market and growing the right leaders to ensure such retention and bring businesses forward. Lifelong learning has evolved from a matter of career advancement to labor market survival in the context of the need to sustain longer careers and as part of the fact that every job is changing,” said Raluca Bontas, partner global employer services, Deloitte Romania.

Developing leaders seems a perennial issue of our time, as this topic has been highlighted as one of the most relevant by the Global Human Capital Trends study since its 2013 edition. Some 75 percent of the global respondents believe leaders need to understand new technologies in order to be effective. Also, respondents consider the leadership development programs currently in place essentially ineffective.

As far as the employee experience is concerned, organizations

www.business-review.eu Business Review | May 2019

12 COVER STORY

What professionals say about the local labor market

may reach specific objectives in this area by adopting a human focus, capturing the meaning of work that people are looking for, highlighting the impact the work has both on the organization and society as a whole, and ensuring effective leadership, underlines the report.

Looking at rewards, the report underlines that this means more than money and organizations need to enhance the use of personalized reward systems as key to retain employees longer and keep them productive, such as flexible composition of pay, professional and personal development opportunities, and meaningful jobs.

Some 63 percent of the local respondents consider this topic important or very important. In 2018, making rewards personal was also indicated as a very important topic on the HR agenda, together with well-being, as a driver for productivity.

GRANTING EQUITY IN THE COMPANY INCREASES LOYALTY

EMILIA STANCU, HR DIRECTOR, SAINT-GOBAIN ROMANIA

“IN GENERAL, ON THE LABOR MARKET WE CAN SAY THAT THERE IS A DISTANCE BETWEEN EMPLOYERS’ OFFER AND THE EXPECTATIONS OF THE NEW GENERATION OF CANDIDATES. FROM THE CONSTRUCTION MARKET PERSPECTIVE, AS WE ARE FACING AN INCREASED GAP IN THE SUPPLY AND DEMAND OF QUALIFIED WORKFORCE, WE ARE INTENSIFYING OUR EFFORTS TO SUPPORT EXCELLENCE IN EXECUTION,

BY PROVIDING PARTNERS WITH A SERIES OF PROGRAMS TO TRAIN FUTURE CONSTRUCTION SPECIALISTS THROUGH THE SAINT-GOBAIN TECHNICAL ACADEMY.”

The long-term incentive plan known as a Stock Option Plan, based on which an employer grants equity in the company to its key employees, under certain conditions, is more favorable from a tax perspective than similar plans implemented in other countries in Central and Eastern Europe, according to Deloitte Romania analysis.

Besides Romania, the analysis covers eight other countries in the region, namely Hungary, Poland, Czech Republic, Slovakia, Bulgaria, Croatia, Serbia and Latvia.

“Granting company shares is a remuneration method based on which the employer connects the individual performance of top management employees with the business performance, generating increased loyalty and, at the same time, additional motivation. Even though the tax regime for such an instrument is definitely more favorable than usual salary elements, when deciding on whether the company should implement such an instrument, the employer should focus on the company’s growth strategy and the need to co-engage the employees in achieving it,” noted Bontas of Deloitte Romania.

Tax incentives are the main benefits for equity plans (more specifically, the Stock Option Plan), since taxation is triggered when the employee sells the shares and thus obtains a capital gain, and not when he or she actually receives them, as in the case of other types of benefits.

“The Stock Option Plan has two important elements: correlation between the remuneration received and the increase of the employer’s share value and, subsequently, the employee’s retention for a longer period, either to benefit from a higher value of the shares or to obtain the associated dividends,” said Elena Raileanu, manager,

RAMONA SALAGEAN, COUNTRY HR LEAD, ACCENTURE ROMANIA

“THE INDUSTRY OF SERVICES FOR THE BUSINESS SECTOR HAS BECOME ONE OF THE MOST DYNAMIC SECTORS IN ROMANIA. ITS POTENTIAL IS ABOUT SEVERAL HUNDRED THOUSAND EMPLOYEES, WHILE THE INDUSTRY HAS REACHED JUST HALF OF IT.”

global employer services, Deloitte Romania.

EUR

80.3

bln

is the total amount of wages paid by Romanian bosses in 2018

www.business-review.eu Business Review | May 2019

COVER STORY 13

OPINION

Adrian Cernat, CEO and co-founder of SmartDreamers

Finding the Right Candidate LILIANA SIMION, HR DIRECTOR, MARRIOTT COURTYARD FLOREASCA

“AS IN MANY OTHER CASES, IN THE HOSPITALITY INDUSTRY THERE IS AN IMBALANCE BETWEEN THE AVAILABLE WORKFORCE AND THE AVAILABLE SKILLS. HOSPITALITY IS ONE OF THOSE INDUSTRIES WHERE ONE CAN EASILY FIND A STARTING POINT AND BUILD A CAREER, EITHER LOCALLY OR ABROAD.”

Odds are, the perfect candidate for your latest open position is already out there, working for a different company. Luckily, there’s a good chance that any given candidate can be convinced to adjust course and switch to a position at your company – if you can offer something that her current employer doesn’t. This might be more prestige, better pay, more opportunity for advancement, a better location, or any of the other elements that traditionally make up a strong EVP (employee value proposition). If you really are a good fit for one another, the biggest obstacle standing between you and your ideal hire is awareness. If she doesn’t know you exist, or doesn’t immediately associate your business with your employer brand, then how will she make her way into your applicant funnel?

Since your ideal employee isn’t actively seeking your company out, you need to go to them. This means avoiding places like Craigslist and Indeed that are only frequented by active job seekers. Instead, it’s time to focus your energies on the sites where candidates already spend their time online: Facebook, Twitter, Snapchat, YouTube, Reddit, etc. Again, it’s not enough to have accounts on these platforms that people can seek out (though you probably should have not just corporate accounts but separate career-focused accounts), you have to leverage paid posts and targeted advertisements to make sure that when your ideal job candidates are thinking about seeing what’s out there, they’ve heard of your company. Not just heard of it, but learned to associate it with all of the unique and exciting ways that your company provides growth opportunities, learning, and benefits to its employees.

ALINA RUSEI, CHIEF PEOPLE OPERATIONS, QUALITANCE

“LACK OF WORKFORCE IS ALREADY A CERTAINTY, THE MORE SO AS THE EMIGRATION PHENOMENON HAS INCREASED IN RECENT YEARS. FORTUNATELY, THE WORKFORCE CRISIS IN THE IT SECTOR IS NOT FELT AS STRONGLY AS IT IS FELT IN THE PUBLIC SPACE. THE FACT THAT WE ARE WORKING WITH EMERGING TECHNOLOGIES IS AN ADVANTAGE FOR US IN ATTRACTING WORKFORCE, ESPECIALLY BECAUSE FROM THIS PERSPECTIVE THERE IS NO OVERLAP WITH THE OFFERS COMING FROM THE PUBLIC SECTOR.”

www.business-review.eu Business Review | May 2019

14 COVER STORY

Workforce shortage versus workforce satisfaction Almost half of employees (42.5 percent) are planning to change jobs in the next three months, according to the latest study by eJobs, the online recruitment platform. This is due to their expectations of getting a better job, with higher wages and benefits. It is not easy for employers to find ways to keep workers from leaving, as we can see from the companies Business Review talked to, although the situation may not be as bad as it seems.

D

By Aurel Dragan

ifferent industries

percent over the same period

across the economy

last year, reaching almost 3.9

have different prob-

million.

lems in the human resources

The study also found the

field. Looking at the study

reasons why employees wish

conducted by eJobs (among

to stay in their current roles.

the platform’s online users),

The main thing keeping them

we can see that pay is the

in their job is the relationship

main concern of those looking

they have with colleagues,

to change jobs. “Salary is the

followed by the short distance

main reason Romanians want

between home and work. Sal-

to resign. The next thing that

ary comes only third, followed

dissatisfies them is the lack

by a flexible work schedule.

of opportunities for personal

Other reasons invoked by

and professional development.

employees are that they do

A large part of those who

not work overtime, have a

participated in the study say

good relationship with their

they want to change field or

direct manager, feel that their

that they need a job to balance

work has a positive impact on

their personal and professional

society, or work for a company

lives and reduce the number of

with a good reputation in the

hours worked throughout the

market.

week. What the study shows us is that it is issues of our

WAGES AND BENEFITS

comfort, our employees, our

The main benefits, apart from

wellbeing, and the creation of

the salary, that companies

a framework that motivates, rather than intrinsic aspects such as

give employees are meal tickets or co-paid meals in the cafeteria,

salary,” says Bogdan Badea, eJobs Romania CEO.

transport subsidies and bonuses for holidays or for children. If there

Apart from those who want to change job in the next three

is a difference between white-collar workers in urban offices it is

months, another 14.1 percent are keen to make this change in the

that big employers outside the major cities tend to organize events

next six months, which makes a total of 6 out of 10 employees who

for employees and their family throughout the year.

want another job. The platform compiles over 4 million CVs and is

“Overall, benefits include, but are not limited to, meal vouchers,

visited monthly by 2 million users, numbers that makes it signifi-

co-paid meals in the company’s cafeterias, subsidies for transpor-

cant for the workforce. The changes in the market seem to have

tation expenses, relocation bonuses, special bonuses or gifts for

been at a peak for recent years, since the total number of applica-

employees’ children, preventive medical services, co-paid sport

tions in the first quarter of 2019 on eJobs increased by more than 30

programs and internal competitions, free days for special family

www.business-review.eu Business Review | May 2019

COVER STORY 15

events, dedicated events for the whole team fully arranged by the

first to require more qualified staff in order to expand businesses.

company, etc. Personal and professional development programs

The situation has not changed, even if it is very specific to the

are fully supported by the company. Other benefits such as flexible

sector. “Globally, talents in the IT industry are still highly sought

working program (teleworking or short day) are applicable to those

after and insufficient in number and the social context in Romania

employees whose jobs allow

convinces many to choose to

it,” says Mihaela Popescu,

leave the country,” says Car-

president of TenarisSilcotub,

men Buruiana, enterprise HR

a company with 40 years of

Manager at Bitdefender.

history in the Romanian indus-

As for the benefits of-

try, employing almost 2,000

fered, the company is taking

people in Romania and around

advantage of the fact that it

20,000 worldwide.

is a leading player worldwide

From the white-collar side,

and has many development

a booming sector is the busi-

opportunities for employees.

ness services industry, one of

“Bitdefender security solu-

the most dynamic in Romania,

tions are fully developed in

with the industry potential

Romania in the five R&D

of several hundred thousand

centers. In total, the company

employees, although only

has 19 offices in 13 countries

half of this potential has been

across four continents. In this

reached. Accenture is one of

context, of a Romanian com-

the largest professional service

pany, the special benefits we

companies active in areas

give come from the advantages

such as consulting, digital

and limitations of the organi-

transformation, technology

zational structure. Position-

and operations worldwide.

ing Bitdefender as a thought

In Romania, it has more than

leader on specific technical

3,000 employees in Bucharest, Brasov, Cluj-Napoca, Targu Mures, Iasi and Timişoara.

“Being a very large company with over 459,000 employees in 55

areas allows R&D specialists to be able to speak at various events, congresses, and international conferences, a highly motivating benefit to those who have career

countries, we offer local teams the chance to work in a very diverse

as a focal point for their development. Another special benefit that

and dynamic environment with colleagues and customers all over

Bitdefender offers according to business needs and employees’

the world. Career opportunities are extremely varied, and all of this

desire is relocation to areas where there are international offices,

can be accessed while living in

and the special benefit of reloca-

the city that suits you best. Also,

tion to the US is to support the

in Accenture, we emphasize the

Green Card for the employee and

balance between work and life, as

his or her family. The relocation

well as observing that more and

includes comp&ben packages in

more candidates prioritize this

those markets as well as medical

when they choose a new job. For

insurance. A third tremendous

example, our benefits portfolio

benefit that Bitdefender gives to

includes access to a network of

technical staff is regular training

sports halls, two additional days of

in courses and congresses and

legal leave from the first year, and

obtaining international certifica-

additional days of leave depending on professional development. But statistically speaking, meal

tions,” says Buruiana.

The technology focus is what can help IT companies to find

vouchers, medical prepayment, transportation remittance, and

good employees. “The fact that we work with emerging technolo-

private pensions are the main extra-salary benefits that candidates

gies is also an asset in attracting workers, especially since there is

most often choose,” says Ramona Salagean, country HR lead at Ac-

no overlap with public offers in this respect. While we operate in

centure Romania.

a competitive market, we maintain standards of employment at a high level – something that helps us perform, and we allow our-

BUSY IN THE IT INDUSTRY

selves to be selective,” says Alina Rusei, chief people operations at

The workforce crisis started a few years ago in the IT industry, the

Qualitance. “We have a culture of continuous development, which

16 COVER STORY

www.business-review.eu Business Review | May 2019

has helped us to increase the employee retention rate from year to

has adopted several projects run by universities to educate young

year. There have been years in which we have lost people from the

students, offering them internships and jobs in the company. It has

company, but we have managed to bring back a great deal of them,

also supported communities of all sizes by opening offices in cities

because we have been concentrating on building contexts that

such as Iasi, Suceava, Baia Mare, Targu Mures and Arad, Budapest,

would make them feel worthwhile and create growth opportunities.

Chisinau and Belgrade. “We value people. Our company puts people

From a material perspective, we target at least the benefits level of

first; every employee matters,” says Oprean.

the market. The package we offer employees contains several health and comfort services.

HOSPITALITY INDUSTRY, THE BEST PLACE TO START A CAREER

At the same time, it is equally

It is not unusual to start

important for us to provide our

working at a young age in the

employees with an experience

HORECA industry. But this

that also fulfills them at the

doesn’t mean that hotels or

human level through learning

restaurants will not push to

and interaction opportunities

keep their employees. “As in

specifically created for them.

many other cases, in the hospi-

We value everyday experi-

tality industry there is a lack of

ences, small things that matter

balance between the available

and often make the difference,”

workforce (scarcer and scarcer)

says Rusei.

and the available skills. Still,

elements and covers personal

we are in the fortunate posi-

CLOSER TO THE EMPLOYEE

tion to walk the talk when we

According to Voicu Oprean,

say that we hire attitude and

owner and CEO of AROBS

train the skills. Hospitality is

Transilvania Software, the

one of those industries where

best way to keep talent in the

one can easily find a starting

company is to listen to them.

point and that build a career,

“Every month I have breakfast with every employee who wants to

either locally or abroad. It doesn’t mean we are not impacted by the

have an informal talk with me. Every good idea is put into action,”

same trends impacting the whole local market. It means that we

says Voicu. The firm’s headcount has grown by 100 people per year,

have to be more and more creative in finding ways to approach, at-

reaching 809 in 2019. The company doesn’t only “lure” profession-

tract and retain people at various stages in their professional lives,”

als with attractive salaries, but also creates a large range of programs

says Liliana Simion, HR director at Marriott Courtyard Floreasca.

and benefits like subscriptions to technical platforms in order to

She adds that the chief perks are specific to the industry. “The

enhance their desire to improve themselves professionally. And it

main benefits offered are directly linked either to the industry’s

facilitates access to proficiency programs and conferences.

specifics (special room rates available worldwide, free laundry, free

To support the next generation of employees, the company

cafeteria), or with the market’s trends (staff events, discounted rates

www.business-review.eu Business Review | May 2019

COVER STORY 17

for various public events, health club subscriptions, insurance etc),”

izations through exposure to important professional and casuistic

says Simion, adding that the company is looking to hire 100 em-

teams (many patients, interesting and complex cases), access to

ployees by the end of the year for a resort that will be open in sum-

the latest technologies, mentoring, and ongoing development

mer. “Usually, retention cannnot be linked with one factor only – in

programs are real advantages for those aiming to be very good. In

this case, learing and development opportunities. There is a wide

terms of material benefits, employees and their first degree relatives can access dental services at a low price. Our employees also benefit from meal vouchers with maximum electronic value. Both candidates and employees can apply for medical insurance, travel vouchers, and courses, and the company is open to improving the extra-wage benefits package,” says Leahu.

Since its employee retention rate is very high, the Dr. Leahu clinic can say that it has found the right way to do it. “In 2019, retention in the company is 96 percent, and we want to keep it at that level or even go to 100 percent. Our domain requires stability to serve patient excellence and we make every effort to maintain team unity.

We have reached 200 employees, constantly increasing our team as we develop our business, while at the same time managing not to lose

range of factors impacting the decision to stay and grow within

people. Team solidity is the most important element in the context

the company and this is why at Marriott we evaluate on a yearly

of accelerated business development and a 50 percent increase in

basis the engagement survey – an integral aspect of the company’s

employee numbers to support this expansion,” says Leahu.

culture. It is common knowledge that engaged employees are less

DIGITIZATION AGE Digitization is the next stage in the Industry 4.0 era. Companies that manage to keep their employees use the latest technologies available in order to stay connected and keep in touch with the future. “The company has undergone massive digital transformation over the last few years, so now about 60 percent of total global revenue comes from digital services, cloud and security, which we call The New. This transformation has contributed decisively to Accenture’s performance, so we have gained a significant market share, growing nearly three times as much as the market. I can likely to leave the organization, more likely to provide exceptional

say with certainty that technology is part of Accenture DNA,” says

customer service, and help drive the overall performance of the

Ramona Salagean.

business. This is how we identify specific, actionable areas and can better target our actions,” adds Simion.

“From an internal point of view, there are a number of global areas working on the creation of the foundation and improving the level of collaboration and productivity. For example, our col-

MIGRATION IN THE HEALTH SECTOR

leagues have a mobile app to provide feedback from anywhere in

The migration of medical doctors and nurses has been partially

our performance evaluation process. I am absolutely convinced

halted by the increased wages in the public sector. But this has

that adopting technology has turned business in a positive way,

created another problem: private clinics, such as those in dentistry,

helping it become more efficient. At the same time, it has given us

have discovered that many employees prefer working for state

the opportunity to provide our services at a higher quality, so it has

facilities, in the hope of higher wages. “By balancing the prospects

increased customer satisfaction and has greatly reduced the efforts

of a growing market, opportunities for professional development,

of our employees,” adds the Accenture representative.

access to advanced technologies and all that is needed to carry out

Robotic Process Automation, chatbots, and the upcoming 5G

activity at a high level, our specialization should be the choice,”

technology are just a few of the things that will soon need to be

says Ionut Leahu, CEO and founder at Clinicile Dentare Dr. Leahu.

implemented by pretty much all industries. And all are a challenge,

“We believe in motivating employees through issues that are not just about the material side. The ability to learn multiple special-

not only for companies, but for employees too. Keeping pace with change is one of the most important things in HR today.

www.business-review.eu Business Review | May 2019

18 COVER STORY

Moving toward an agile company Fragiski Melissa, HR Director at Vodafone Romania, tells Business Review about the company’s HR strategy in attracting and retaining its employees and the way the local labor market has changed.

By Anda Sebesi How has the labor market changed in your industry over recent years?

-the-box benefits we provide to

The latest trends in the busi-

developing new non-monetary

ness arena have significantly

compensation models. Intrin-

influenced the labor market.

sic motivation mechanisms,

Most organizations are go-

such as recognition, are adapt-

ing through a major digital

ed to new generations of em-

transformation and the need

ployees. We start introducing

for new roles, skills and

specific reward mechanisms or

capabilities has considerably

`kudos’, which employees can

increased. Highly specialized

give to peers, independently of

professionals, mainly in IT,

their hierarchical relationship,

analytics or data scientists are

to recognize contributions to

in high demand, which leads to

joint projects. These rewards

a scarcity on the local market.

take the form of “points” or

Companies start exploring

bonuses.

our employees.

In addition, we have started

alternative options for sourcing highly specialized experts from other countries.

Another trend emerging from the need to accommodate the pro-

How do you keep talented employees with good professional perspectives in the company?

fessional particularities of the new specialists introduces flexibility

Exposure to international assignments from the very beginning of

around working contracts. A shift from traditional employment rela-

their career, job rotation opportunities to different positions within

tions to more flexible ways of working is already a reality. Start-ups,

the company, participation in highly specialized trainings and access

alumni networks, and freelancers have become options integrated

to a vast majority of courses in our Vodafone University platform are

alongside employees. Remote working even from different countries

some examples of actions that address young talented employees.

and the exchange of employees between organizations are some

Expatriation assignments for more senior employees and exposure

examples that indicate employers’ need to accommodate to the new

to challenging positions in different countries are other actions il-

labor reality.

lustrating our determination and commitment to support our talents throughout their employment lifecycle within the company.

What are the main benefits you offer to employees?

Apart from the benefits related to the well-being of our employees, we have created a fast-paced learning environment by investing

What employment plans do you have for 2019 - how many employees and in what areas?

considerably in development programs carried out in the country

We are moving toward transforming our organization into an agile

and abroad. Short-term assignments, leadership programs, talent

one and this is a long process. Our focus will be on expanding our ag-

exchanges are some examples indicating the focus our company

ile model, getting diverse technical functions and professional com-

puts on our employees’ career development.

munities (marketing, IT, etc.) working together in a truly integrated

Personalizing benefits for different segments of our team is a

manner, and joining forces as a strong team to launch new innova-

new trend in our company, which ensures flexibility towards the

tive products and services. We are looking to resource new project

individual needs of our employees. Digital accelerator profession-

leaders or “product owners” and give them real decision-making au-

als, for example, put more emphasis on their personal development

thority, support their development, and redefine their rapport with

rather than monetary incentives. Participation in digital meetups,

peers and superiors. We will continue to implement our ambitious

exposure to different organizations that are advanced in their digital

insourcing strategy with the focus on digital natives, data analysts,

journey, and flexible working hours are some examples of out-of

software developers, architects and product designers, etc.

www.business-review.eu Business Review | May 2019

PARTNER CONTENT 19

Keez has all the ingredients to bring accounting services into the 21st Century: digital, cloud, mobile, machine learning, AI One year ago, Daniel Mateescu and two angel investors launched a product that revolutionised the accounting business from the very beginning: online accounting on mobile and desktop. What started as merely a bold idea has proven to be a profitable business that has more than half of a million euros in revenues and 400 clients, mostly small and medium-sized enterprises. approach their firm’s accounting. They have their

profile shows a young entrepreneur who is

entire company in their pocket, on their mobile

no more than 45 years old, has a strong digi-

phone: all the documents and all the reports are

tal footprint and a good understanding of

available to them real time via the Keez Mobile

the benefits or “real-time” information. The

App, which works on both Android and iOS.

company’s client profile consists mainly of micro-enterprises, but Keez is able to service

All it takes to benefit from Keez’s online account-

larger companies as well (Keez has several

ing services is taking a picture with a mobile

clients in its portfolio that are close to the

phone. However, turning a picture of an invoice

EUR 10 million turnover threshold).

or a receipt into an accounting document in just a few seconds involves the deployment of a

The complete online accounting services are

great deal of technology. Keez built a software

rendered via 4 standard monthly subscrip-

robot that uses a “pattern recognition” tool to

tion packages, with the majority of Keez

automatically process all the documents which it

clients having selected the “Start” package,

has been trained to recognise. Training the robot

which is dedicated to companies with 3

requires a lot of history and algorithm work. For

employees and 40 monthly documents. The

example, Keez is now able to automatically pro-

“Mini” package, dedicated to startups, has

cess fuel receipts from large retailers like OMV,

been popular as well – in this context, Keez

MOL or Rompetrol thanks to a history of almost

has set up a partnership with BCR/Erste, in

4,000 processed images. The same procedure is

which companies that have a contract ap-

followed with other documents that can fit in

proved by the bank thorugh the Start-Up Na-

a certain pattern. At the end of the process, the

tion programme can benefit from 6 months

accuracy of the data is verified by one of the ac-

of cost-free services.

countants at Keez.

Keez’s partnerships with banks do not stop Until last year, accounting services were fro-

Daniel Mateescu, the CEO of Keez, says that “we

here. Recently, Libra Internet Bank has

zen in a “last century” paradigm. Entrepre-

managed to transform accounting from a chore

launched its first version of an open banking

neurs used to collect invoices and receipts in

into a management tool. Keez has eliminated

platform and Keez is the first accounting

a box, and then, early the following month,

the need for parallel reports because any man-

firm to use the bank’s platform to automati-

they would ship them all to their accountant

agement report is immediately available on the

cally take over its customers’ balances and

for processing. And that was only one part of

mobile phone. Furthermore, our quality control

transaction history.

the problem.

systems imply processes where at least two accountants check and validate every recording

Keez is a tech and accounting startup march-

Today, Keez brings accounting into the 21st

and all financial statements filed online with

ing on the right path: they made more than

century. CEO Daniel Mateescu and his team

the authorities are signed by “CECCAR” certified

500,000 EUR turnover in 2018, they are profit-

were able to add ingredients like digital,

accountants”.

able, and their client portfolio is growing at a sustainable pace. CEO Daniel Mateescu

cloud, mobile, machine learning, and AI to the accounting business. In fact, Keez deliv-

More than 400 entrepreneurs have found Keez’s

forecasts an EUR 800,000 turnover in 2019,

ers to the market a “service + technology”

business proposition attractive and have signed

possibly even reaching EUR 1 million if the

package that changes the way entrepreneurs

up for their online accounting services. The client

second round of financing goes as planned.

www.business-review.eu Business Review | May 2019

20 RETAIL

LaDoiPasi aims to keep things authentic through new image campaign Geanina Ghiculescu, head of retail marketing at Metro Cash & Carry Romania, and Ana-Maria Balan, creative director at Porter Novelli Romania, tell Business Review about the new image campaign for the LaDoiPasi retail chain and the retailer’s expectations from it businesswise.

By Anda Sebesi Ghiculescu: This new approach aims to highlight the way in which entrepreneurs are invaluable to both the franchise and their community. All of our partners work hard to develop a healthy business, as well as building a long-lasting relationship with their clients. As such, their stores become community hubs where people connect. The relationship between entrepreneurs and community members is very important for us and fundamental in driving stronger customer loyalty.

Balan: The ambivalence of the brand gave us the first strategic clue. LaDoiPași means both a convenience store and a meeting place for members of the local community. The creative idea tells the brand’s story through a series of three TVCs that focus on the close relationship between LDP owners and comGeanina Ghiculescu

Ana-Maria Balan

munity members. “Suntem de-ai locului” showcases three stories in the life of the

What can you tell us about the new image campaign for the LaDoiPasi retail chain, “Suntem de-ai locului?” Why did you launch it and what are its messages?

Geanina Ghiculescu: This campaign is the

Ana Balan: Keeping things authentic was

community. We captured everyday situations

the main goal throughout the entire creative

where the owner has a leading role in the

process. So, we visited several LaDoiPași

narrative. The owner knows everybody and

stores to immerse ourselves into the brand’s

shares their passions: movies, fishing or foot-

universe. We talked to the store owners,

ball. The physical space of the store becomes

next step of the LaDoiPași rebranding initia-

to the customers and observed how they

a mise-en-scène for all these daily stories to

tive we started in 2017. We established a new

interacted. One of the first things we noticed

unfold. It becomes a melting pot of human

brand positioning, launched the new logo

is that you could not tell the customer from

interactions, the heart of the community.

and turned the customer into the “hero” of

the store clerk. The entire mood was friendly

his or her home. At the time we focused on

and quite intimate. You could see they were

letting people know about the main attribute

close and knew each other very well. They all

of the LaDoiPasi network, its proximity, both

came together as a team, as a local collec-

What are your expectations for this campaign in terms of business?

Ghiculescu: The campaign aims to at-

physical (close to their home) and emotional

tive. This is how we came up with the idea to

tract new entrepreneurs to grow their small

(paying close attention to the client’s needs).

present the store as a hub, where members of

businesses within the LaDoiPași network.

The “Suntem de-ai locului” campaign

the community come to socialize. In this new

Sharing our partners’ success stories is a way

scenario the owner becomes the host.

of showing how the franchise supports the

reveals the other side of the network and draws attention to the people behind it: what it really means to be a LaDoiPasi entrepreneur. We show how owners relate to locals and how they build up the familiar feeling in their stores.

local convenience stores. Through “Suntem

This new campaign brings an innovative approach to the market by showing how important entrepreneurs are for the franchise. Could you tell us more about this?

de-ai locului” we also want to grow loyalty and increase engagement with our brand, by bringing into the spotlight our partners and their efforts to create a familiar environment.

www.business-review.eu Business Review | May 2019

22

OPINION Lavinia Gheorghe, Associate NNDKP

(im)Balance between company security and employee privacy? law may require certain security measures, the

personal data processing (e.g., HR and IT

employers’ legitimate interests could deter-

procedures) that should also be provided to

mine others. When the employer relies upon its

the employees.

legitimate interests, a prior assessment must be

National Law No. 190/2018 on the applica-

carried out pursuant to the European Union’s

tion of GDPR sets additional requirements

General Data Protection Regulation (‘GDPR’), the

for monitoring employees in the workplace

guidelines issued by Working Party Art. 29 and

based on the employer’s legitimate interests.

other recommendations released by data protec-

The most sensitive of these requirements are

tion authorities.

that the employer must justify that less in-

Once the need for security measures (includ-

trusive measures were not effective and that

ing personal data processing activities involved),

the employer shall consult the labor union or

is assessed, the employer must analyze, inter alia

employees’ representatives before introduc-

Associate, Data Protection practice, NNDKP

the employees’ expectations, whether and how

ing the monitoring systems.

the security measures will affect them and must

The Romanian data protection authority

Employers are concerned to protect the com-

provide the employees with information on the

decided in a specific case that using biometric

pany’s assets, premises, clients, trade secrets,

processing activities and their rights, especially

data of the employees (fingerprints) for access

as well as the employees. For this reason,

on the right to object.

on the company’s premises is excessive since

> LAVINIA GHEORGHE <

The employer will also determine if it is

for the same purposes the employer has the

measures like badge access systems, CCTV

necessary to conduct a Data Protection Impact

possibility to implement less intrusive mea-

monitoring systems in the workplace, Data

Assessment (‘DPIA’) for the processing activities.

sures, such as the badge access systems. The

Loss Prevention or other systems of monitor-

Where certain types of processing activities

employer must justify and prove the necessity

ing the devices used by employees, GPS, drug

carried out following the security measures are

of a security measure on a case-by-case basis.

and alcohol testing policies.

likely to result in a high risk to the employees’

employers usually implement various security

Some employers set through their policies

rights and freedoms, especially when using new

as a security measure the possibility to ad-

safety usually represent a priority for the

technologies, the employer shall undertake

minister drug or alcohol tests to employees.

employer, and employee privacy should be

an assessment of the impact of the envisaged

There are additional actions the employer

on the front burner as well. Employers must

processing activities.

should consider in this case – e.g., whether

Both company security and employee

these measures involve special categories of

have a clear overview and understanding of

Working Party Art. 29’s guidelines on DPIA

the appropriate actions it must undertake to

included employees in the category of vulnerable

personal data and if one of the safeguards

comply with data protection rules and protect

data subjects. Both Working Party Art. 29’s guide-

provided by Art. 9 of GDPR applies.

the employee’s right to privacy.

lines and Romanian data protection authority’s

The European Court of Human Rights

decision on the list of processing operations

(‘ECHR’) assessed this measure in several

the balance between security measures and

which are subject to the requirement for a data

cases and decided that there was no violation

employee privacy? Is it necessary to compro-

protection impact assessment listed systematic

of the right to privacy where drug or alcohol

mise one in favor of the other or can employ-

monitoring of employees as a process that may

tests were administered to employees. ECHR

ers have both by striking a balance based on

trigger a DPIA. For example, CCTV, monitoring of

held that, inter alia, the employer has the

moderation and correct actions?

the workstations and internet activity is usually

right to control and manage work, such tests

an instance of systematic, rather than occasional

being set by the internal policies which were

monitoring.

communicated to the employees.

What should employers do in order to keep

Before implementing any security measure that may affect the employees’ privacy,

Employers shall inform the employees on

A fair balance shall be struck between

the intended security measures; the legal

the security measures implemented and on how

company security and employee privacy even

grounds for personal data processing activi-

their personal data is processed. They should

if there are actions which employers will

ties involved and whether it is likely to affect

also set clear and comprehensive procedures

undertake before implementing control or

the employees’ rights and freedoms. While the

defining the security measures and details on

security measures.

companies should first analyze the need for

www.business-review.eu Business Review | May 2019

24 INFRASTRUCTURE

Road to nowhere: transport infrastructure crawls along Romanian infrastructure will continue to develop slowly this year as major projects are crowded out by other types of public spending, despite the poor state of the country’s road and rail networks, say pundits.

By Sorin Melenciuc motorway by 2020, CNAIR manager Narcis Neaga recently told reporters.

Such new pledges come after a year of poor results. Despite the target to launch at least 100 km of new motorway in 2018, only around 60 km was really completed.

The independent NGO Pro Infrastructura (API) estimates that 43 km of new motorways will be opened this year in a moderate scenario.

“The realistic scenario is 43.28 km of new motorway this year and 69.18 km in a very optimistic scenario. The rest is just promises to the naive, gross misinformation and lies,” API recently said.

The NGO, which monitors infrastructure projects in Romania, has repeatedly criticized the government’s administrators of motorway projects.

If the new 43 km of new motorway materializes, the total network will reach 850 km at the end of this year.

But this depends on the funds the government is ready to spend on infrastructure in such a complicated political period, with two By 2020, a new motorway (the A10) will connect southern and northern Transylvania

R

in 2020.

Analysts doubt the government will make

omanian transport infrastructure

politically unstable position of minister of

ranks among the least developed in

transport.

the European Union. The motorway

rounds of elections this year – and two more

In 2018, the management of all major

infrastructure projects a priority in 2019.

“Infrastructure projects will continue to be crowded out by other types of public

network consists of just over 800 kilometers

state-owned infrastructure companies was

spending,” Dan Bucsa, UniCredit’s chief CEE

following the opening of three small sections

changed, and the position of minister of

economist, said in a recent report.

of road at the end of last year, but still looks

transport has been held by three different

like a puzzle with many missing pieces and

individuals during the last two years – even

the government to speed up infrastructure

will remain in this state for most of the next

if few remember their names or noticeable

projects. A recent movement that started

decade, according to experts.

achievements.

in Moldova, Romania’s poorest region, has

However, public pressure is increasing on

spread across the country and gained unex-

One of the main reasons for the slow advancement of major motorway projects

MISSED TARGETS

in Romania is the poor management of the

Despite the scant progress, the promises keep

state-owned road company, CNAIR, and the

on coming. Romania will have 1,000 km of

pected support.

The movement, called #șîeu, was initiated by an entrepreneur in Suceava who built

www.business-review.eu Business Review | May 2019 2016

INFRASTRUCTURE COVER STORY 14 25

1 meter of motorway on his land – the first

government to begin the construction of the

management and lack of investment that

meter of motorway in Moldova.

Iasi-Targu Mures motorway, aiming to end

many experts fear a tragedy due to the poor

the historical isolation of the province, the

maintenance.

The move was followed by a 15-minute work break that was observed in many major

government is ignoring the new bill as it has

cities around the country – suggesting that

no money to finance such expensive new

proper sense, from lack of maintenance,” Pro

many Romanians consider poor infrastruc-

projects.

Infrastructura cautions.

DEADLIEST ROADS IN THE EU

have occurred on the Romanian railways but

who warn that poor infrastructure is con-

The poor state of roads in Romania has a

fortunately with little consequences for pas-

tributing to growing regional disparities in

huge cost in terms of lost lives. In 2018, the

sengers.

Romania.

EU countries with

In the past few months, several incidents

ture a major burden in their day-to-day lives.

Their appeal is supported by many experts

“The railways are disintegrating, in the

This is mainly

the highest fatality

because trains are

should be a major policy focus, as it would

rates were Romania

forced to travel very

contribute the most to reducing regional

(96 road deaths per 1

slowly – in some

disparities while also allowing businesses

million inhabitants),

cases, 10-15 km per

to access underutilized labor resources – a

Bulgaria (88), Latvia

hour – to avoid inci-

particularly welcome development in today’s

(78) and Croatia

dents.

tight labor market,” central bank governor

(77), according to

Mugur Isarescu recently said.

the latest European

rotten or broken

Commission data.

sleepers, silted

“In Romania, infrastructure investment

POOR PERSPECTIVES

“Worn-out rails,

embankments. Some

Meanwhile, the

However, despite the growing public pressure

member states with the best road safety

70 percent of the lines and 50 percent of the

and generous EU funds, the government is

scores were the United Kingdom (28), Den-

bridges are dilapidated and must be repaired

making slow progress with infrastructure

mark (30) and Ireland (31).

or replaced. It won’t be long before people

projects.

The few motorway sections to be com-

But experts say the figures disguise a bleaker picture. “In fact, the situation is much

are killed or injured in an accident,” the NGO warns.

pleted this year will be of little comfort to the

worse because the resident population is at

Experts estimate that the Romanian

local and foreign drivers traveling through

least a million inhabitants below the figure

government must allocate at least RON 500

used by Eurostat

million per year for the maintenance of the

By 2020, a new

(19.7 million),” Pro

railways alone, but only a fraction of this sum

motorway (the A10)

Infrastructura said

is actually spent.

will connect south-

of the EU data.

Romania.

“Statistics show

ern and northern

Despite all these warnings, the Romanian authorities have done little to solve the problem.

Transylvania, but

that although the

this big Romanian

construction of mo-

province will still be

torways is crucial,

Transport Ministry, Romania needs to invest

cut off from the rest

without radically

EUR 6.2 billion in the next ten years in order

of Europe by a 13 km

improving safety

to upgrade its obsolete rail network. The

interruption – a miss-

across the existing

document indicates that 8,245 km of railroad

According to a strategy drawn up by the

ing link between Banat and Transylvania that

infrastructure, especially in places where

must be modernized. The rail network in

will not be finished before 2023, according to

people live (the construction of bypasses, the

Romania is in such a poor state that the aver-

most independent experts.

elimination of black spots and pedestrian and

age speed of rolling stock is close to 40 km

cyclist protection measures), Romania will

per hour and today there are over 500 speed

Wallachia and Transylvania – the Sibiu-Pitesti

remain in last place in Europe in terms of road

restrictions on the country’s railways.

section – has even poorer perspectives: there

safety,” the NGO added.

The other major missing link, between

are no works, no contracts for the major subsections and no deadline.

The Sibiu-Pitesti section is a difficult job

The European Commission estimates the

Some limited advances have been made recently thanks to EU funds. Last year, the

socio-economic cost of road deaths in Roma-

state-owned railway operator CFR started

nia at EUR 3 billion a year.

operations on the railway segment Sighisoara – Coslariu and Arc Bridge, crossing the river

as it crosses mountains, and experts forecast

ROMANIA’S RAIL NETWORK: ON TRACK FOR TRAGEDY

Tarnava Mare.

If the roads in Romania are bad, the rail

developed on this route are the first newly

frastructure is in Moldova. Despite the fact

network is even worse. In fact, the situa-

built in Romania since the fall of Communism

that Parliament passed a law obliging the

tion is so critical following decades of poor

in 1989.

that this major project has little chance of being completed by 2030.

But the worst situation in terms of in-

The two railway tunnels and the bridge

www.business-review.eu Business Review | May 2019

26 ENTREPRENEURSHIP

Local entrepreneurs looking for fresh approach in energy industry With the Romanian energy sector dominated by large state-owned enterprises and international utility groups, entrepreneurs are looking to give the sector a shot in the arm through innovative solutions that can cut costs and safeguard the environment.

By Ovidiu Posirca

With the growing demand in mobility solutions, talented individuals can market and sell their solutions worldwide

S

emerging in Romania despite the

dominated by public and large international

sources industry leader at Deloitte Romania,

production and consumption of gas, oil

companies, with few local entrepreneurs

the professional services firm, told BR.

and electricity having been falling for more

having managed to develop their businesses

Some of the startups created by Roma-

than a decade. Romania’s primary energy

in this field, and without reaching consistent

nians are targeting the development of cities

consumption fell by 1.9 percent between 2006

profits compared to their turnover. Entre-

based on smart principles, ranging from mo-

and 2016, according to the BP Statistical Re-

preneurs would benefit tremendously from

bility to energy consumption of households

view. Both oil and gas production fell by more

supportive public policies and, ultimately, the

and storage systems.

than 2 percent in this period.

entire local energy sector would win on the

tartups in the energy sector have been

“The Romanian energy sector is still

long term,” Razvan Nicolescu, energy and re-

“We see that there are more and more

www.business-review.eu Business Review | May 2019 2016

ENTREPRENEURSHIP COVER STORY 14 27

startups coming to life in the CEE region. In

of new startups in this field. According to BP’s

this will give drivers the power to generate

recent years we have observed that after the

Energy Outlook, electricity consumption in

safe, breathable air by simply driving their

boom of internet-based service startups, the

the EU-based transport sector will grow by

car.

areas of energy, mobility, clean air, heat-

around 700 percent over 2017-2040.

“Across the world, public transport and

ing, cleantech, and smart technologies are

“Traditionally, Romania has its strengths

more and more attractive to young people

in the energy sector, not only being the rich-

one had a solution to reduce pollution, but

who want to get into the startup world. This

est in the region in oil and gas, but also taking

nobody was able to purify already polluted

tendency is also helped by the development

into account its hydroelectrical output and

air. This is how we came up with the idea for

of computer technology; now really complex

the fact that lately, new renewable energy

the product,” Vladimir-Cristian Sabo, CEO and

solutions can be designed and manufac-

projects have emerged both in wind and in

co-founder of the startup, said in an interview

tured by very small companies,” Vlad Suteu,

solar energy. It is therefore easier for Roma-

published on changeneers.ro.

managing partner at Digital Transformers, the

nian startups than for startups in some other

Romanian hub for InnoEnergy, told BR.

CEE countries

bicycles are becoming more popular. Every-

the deployment of innovative ideas in this

potential by

UTILITIES HAVE A DATA PROBLEM

field is one of the main challenges faced by

partnering with

Some startups

startups.

larger energy

are bridging the

companies or

gap between

this respect, being the owner of some of the

simply offering

utility firms

largest players in the energy sector, which

their technol-

and customers

would represent some of these startups’

ogy solutions

by cleaning up

primary clients,” he said.

to those larger

and analyzing

companies,”

energy usage

tion companies are state-owned, while the

Marius Ghenea,

data, accord-

electricity transmission and interconnection

partner at 3TS Capital, the private equity and

ing to Meghna Rao, intelligence analyst at CB

system with neighboring countries is also

venture capital firm, told BR.

Insights. She suggested that blockchain-based

Nicolescu of Deloitte Romanian adds that

“The state could play an important part in

Locally, the main electricity genera-

to tap into this

operated by the state. Meanwhile, the private

solutions can make the energy market more

sector has a strong presence in the oil & gas

POWERING ROMANIAN IDEAS

sector

A low-cost electricity storage technology

“The market potential is very promising.

has been drawn up by the Romanian startup

transparent.

For instance, peer-to-peer energy trading cuts middleman fees and decentralizes power

This is the core

OLPHES. The

from grids. This is where smart contracts on a

reason why

company has

blockchain could be used. Agreements for the

we support

developed a

transfer of energy can be easily included on

and invest in

single-reser-

smart contracts that are placed on a decen-

innovation.

voir, modular

tralized, basic code that runs on blockchain

With the rise

and scalable

technology.

of sustainable

pumped-hydro

energy solutions

technology that

ground in the energy field. Startup Stem,

and growing

can be installed

which has secured USD 374 million in funding

demand in clean

in gulfs, mining

to date, has developed an AI algorithm that

energy and mo-

pit lakes, as well

tracks behavioral data like peak demand and

bility solutions,

as in reservoirs

lows to figure out how fast its battery should

talented individuals truly have the possibility to market and sell their solutions on a

and off-shore.

Elsewhere, Tresoil Biofuel is another

Artificial Intelligence (AI) is also gaining

charge, when it should dispatch energy and how much it should store. AI can also allow

national and international level. Through our

Romanian startup working on a solution that

network of industry professionals and part-

turns landfill waste into road-quality bio-fuel,

ners, we build connections across Europe,

using a gasifier reactor. In support of smart

plan to expand their range of smart devices,

bringing inventors and industry, graduates

cities development, DeviceHub is a vendor-

including speakers and thermostats, to har-

and employers, researchers and entrepre-

agnostic next-generation platform for energy

ness data on personal energy use in homes.

neurs, businesses and markets together,” said

and utilities that aims to become the engine

In the US, spending on home-energy devices

Suteu.

for future cities.

exceeded USD 40 billion in 2018 and is set

The use of electricity for transport is set to

the automation of grids.

Elsewhere, Alphabet’s Google and Amazon

A device for air purification that can be

to double in the next five years, according to

become a booming industry in the next few

embedded into vehicles has been designed by

consulting firm Wood Mackenzie, quoted by

decades, which could also spark a generation

the Romanian startup VASK. Its creators say

the Wall Street Journal.

www.business-review.eu Business Review | May 2019

28 STARTUP

Smaller cities getting on the startup investment radar Bucharest remains the most active entrepreneurial city, with regional hubs such as ClujNapoca, Iasi and Timisoara also home to a burgeoning startup scene. However, startup investors say that smaller cities can become attractive for would-be entrepreneurs, and having the right infrastructure and a large enough workforce in place might be a good starting point.

By Ovidiu Posirca

E

Bucharest is the most active entrepreneurial city with about 20 percent of all Romanian entrepreneurial companies

ntrepreneurs can spring up from any

there are other cities where young people are

or infrastructure,” representatives of Instant

corner of the country, but starting a

opening new businesses – Cluj (6.1 percent),

Factoring, the Romanian online factoring

company in a city that has a technical

Timis (4.3 percent), Constanta (4 percent)

fintech, told BR.

university and good transport links, espe-

and Ilfov (3,9 percent). In total, the top five

cially airports, could give small businesses a

counties accounted for 200,000 of all entre-

growth impetus, say commentators.

preneurial companies, i.e. 39 percent of all

LEADING STARTUPS CAN START FROM PROVINCIAL TOWNS

active firms. Smaller cities can compete only

In Romania, large metropolitan areas are still

neurial city with about 20 percent of all

through quality of life expressed in educa-

the most attractive, “but this does not mean

Romanian entrepreneurial companies, but

tion, health system, proximity to large cities

that small entrepreneurs cannot operate

“Bucharest is the most active entrepre-

www.business-review.eu Business Review | May 2019 2016

COVER STARTUP STORY 29 14

outside these areas,” adds Dinu Bumbacea,

(San Francisco and the Valley, New York and

of human capital and additionally, the cost

consulting partner-in-charge at Deloitte Ro-

maybe a couple of other cities).

of living is highest in these two cities, with

mania, the professional services firms.

One of the private equity funds looking to

Cluj having maybe a slight edge as quality

invest outside Bucharest is Morphosis Capi-

of life overall is said to be statistically better

EUR 22,400 in 2017, more than double the

tal. Andrei Gemeneanu, managing partner of

there than in Bucharest, based on most of the

national average, and well above the Euro-

the fund, says that cities and regions outside

recent annual international surveys on the

pean Union average. According to Romania’s

the Romanian capital have valuable compa-

quality of life in various EU cities. So I believe

economic forecast body (CNSP), eight out of

nies “with the potential to become national

we should already be looking at ‘tertiary’

41 counties (excluding Bucharest) exceeded

or even international champions”.

cities or towns, still in the 100-200k range

Bucharest had a GDP per inhabitant of

“Although the

the EUR 10,000

population, but less crowded and with a

threshold last year:

situation differs

relatively low cost of living and stress factors,

Timis (EUR 12,897),

from one sector to

such as Sibiu, Oradea or Targu Mures,” says

Constanta (EUR

another, one of the

Ghenea of 3TS Capital.

12,699), Cluj (EUR

strategic advan-

11,937), Brasov (EUR

tages of Romania at

is a “hidden diamond” which is attracting a

11,164), Ilfov (EUR

international level

growing number of investors, while Timiso-

10,797), Alba (EUR

is the relatively low

ara and Cluj already have communities of

10,629), Sibiu (EUR

cost of labor. This is

young software developers and IT engineers

10,552), and Prahova

especially visible in

with higher purchasing power. He says that

(EUR 10,009).

smaller cities and I

there is room for development in northern

hope that in the next

Moldova, where a skilled workforce is still

Already, some startups that have secured funding have

few years we will see accelerated develop-

emerged from secondary cities. Smart Bill,

ment, especially in the manufacturing sec-

the largest player in the online invoicing

tor,” Gemeneanu told BR.

For Gemeneanu of Morphosis Capital, Iasi

available at an accessible cost.

“Let’s not forget that there are 4 million Romanians living abroad whose purchasing

market, was founded in Sibiu, while Smart-

Some of the cities with emerging entre-

power is higher than the ‘richest’ 4 million

Dreamers, the early stage HRTech business,

preneurial scenes are Oradea, Brasov, Ploiesti

Romanians inside the country,” says Geme-

was created in Targu Mures. Both startups

and Craiova, according to Instant Factoring,

neanu.

are backed by venture capital and private

based on the funding requests received from

equity fund 3TS Capital.

small companies, alongside the larger cities.

Meanwhile, local authorities could also make the smaller cities more attractive to would-be entrepreneurs. Providing free co-

“Obviously, not any town can transform

TERTIARY CITIES BECOMING INTERESTING

working spaces and easing access to funding

this can be done, while Iasi has also become

While Bucharest and secondary cities such

are some of the steps that public authorities

connected to cities in Western Europe since

as Cluj-Napoca and Iasi already have several

can take to boost the entrepreneurial culture,

the launch of its new airport terminals.

accelerators and large co-working facilities

say representatives of Instant Factoring.

into an entrepreneurial or startup hub; some of the prerequisites are size, infrastructure and the education ecosystem. What we have noticed is that in particular those cities and towns with vibrant university centers and well connected airports have a clear tendency to grow much faster as entrepreneurial hubs. So it seems like the simple recipe for success at this: municipalities and local authorities have to consider supporting the development of universities, particularly in the technology fields, and also supporting infrastructural development, particularly airports,” Marius Ghenea, partner at 3TS Capital, told BR. He says that Cluj-Napoca has proved

Ghenea adds that the important question

that cater to the entrepreneurial community,

is whether a distributed hub development is

there is potential for development in smaller

small businesses can a region hope to have a

better than large, central hubs, like we see in

cities as well.

more developed economic environment and

the UK (London), Germany (Berlin) or France

“Already cities like Bucharest and Cluj of-

“Only by supporting the development of

job opportunities, attracting talent and keep-

(Paris), or a concentration in just a few cities

fer a lot of things for entrepreneurs, but they

ing people in their communities,” say the

of most of the startup activity as in the US

have also become quite competitive in terms

fintech representatives.

30 INTERVIEW

Carrefour: ‘Digital culture among employees is crucial to digitizing a company’ Alex Matei, IT director at Carrefour Romania, tells Business Review the reasons for introducing ChatBot to Facebook Messenger for both its current and potential employees, and the connection between their ability to adapt to changes and the process of digitizing a company.

By Aurel Dragan How do you see the future of the retail market as online gets more and more sales, including daily consumer goods?

How will traditional retail digitalization change?

Traditional but digitized retail and ecommerce will coexist in a new ecosystem that will center on the customer and his or her needs. Customers can choose between traditional, but digitized, retail in store, e-commerce, or express delivery, based on time, experience, product availability, and commercial offer.

How does Carrefour approach digitization?

What changes has digitalization brought to its services?

We try to bring our products and services as close as possible to our customers and strive to create as simple as possible a way through the technology. Using the self-scan functionality of Carrefour Pay, customers scan their own products in the store, add them to a virtual basket, and scan a single barcode, at the self-service checkouts. Waiting time is cut, and the shopping experience is quick and enjoyable.

Carrefour recently introduced ChatBot to Facebook Messenger, for employees and prospective candidates. How does the app work, both technically and as a user interface?

conversation with Carrefour Romania, and re-

In May last year we launched the first Chatbot

Also, in order to improve the shopping

ceives a Chabot message guiding him or her to

experience, we’re working on a fingerprint

choose one of the options displayed: Careers,

payment solution that we want to bring to our

Reports, or Stores. We recently implemented

customers. This type of payment is safe and

the Pricing option for customers who want to

natural; the customer will no longer have to

use the Carrefour Pay app for shopping in our

use card, mobile phone or other equipment

of a Romanian retailer, a decision which came

stores. With one click, the user is guided by

to pay for products. At the e-commerce level,

as a result of the many messages we received

the Chatbot in the conversation, according to

through the carrefour.ro platform, customers

about Carrefour career opportunities. With

his or her needs: to send us feedback, reach

in Bucharest, Ploiesti and neighboring areas

Chatbot Carrefour, everyone who wants to

stores through Google Maps or apply for one

can order food at home, and those in the rest

join our teams can now easily apply for one of

of the available positions in the Carrefour

of the country can buy non-food products.

the available posts directly on Facebook Mes-

team. Chatbot was developed with Centrade

In addition, our range of food and consumer

senger. Later, our recruiters contact the candi-

Cheil and operates 24/7, in a bid to streamline

goods products is also available in the Bringo

date, in order to find out more about his or her

interaction with future colleagues and Car-

platform, with a delivery time of 90 minutes

experience. The user taps on “Get Started”, in

refour customers.

in 18 cities across the country.

www.business-review.eu Business Review | May 2016

COVER INTERVIEW STORY 31 14

replaced, others upgraded, balancing custommade open-source applications with those on the shelf. We have also been very focused on the internal mobile area, for our colleagues, in order to simplify and optimize internal processes. I strongly believe that digitization needs a strong cultural base, openness to the new, a collaborative approach, flexibility, multiple attempts, acceptance of failure, but also flexible systems, real-time integration and rapid adoption of new technologies. There is a very nice journey ahead of us, where the mix of digital culture, Cloud and 5G will completely change the way we think about business, but also everyday life. The level of investments varies depending on the chosen road, maturity reached, and lessons learned.

How has the Bringo platform been received by customers? How many orders are made daily or periodically through the online platform?

What is the investment needed for digitization and how much has been invested so far (not only for digitization but also for investments in general)?

Bringo has had really good customer reviews

The first step we have made in digital

from the beginning, being able to offer a

transformation has been investing in raising

The self-pay service has been introduced for some time now. How has it been received by customers and how much is it used?

autonomy, the key to a quality service. Bringo

our colleagues’ digital awareness. We firmly

The self-scan service from the Carrefour

collaborators and suppliers are supported to

believe that a company cannot truly digitize

Pay app has been well-received by custom-

grow, become entrepreneurs on this segment,

if its employees do not have a digital culture,

ers, beyond expectations, since its launch

and customers, in their personal interaction

agile and adapted to change. That is why we

in November last year. So far it has been

with Bringo, have a conversation with an

invested in internal platforms for innovation

used over 20,000 times, although it has not

entrepreneur who cares about every point in

and collaboration. Digitizing is a bottom-up,

been communicated aggressively, because

the business.

continuous process for us, in which all col-

we considered organic adoption to be the

leagues are invited to participate.

best barometer. Through these innovations,

genuine “Personal Shopper” experience, but also to meet brand promises (quality, diversity, interaction, fast delivery, the same prices as in offline stores). For us, every order ending with positive feedback is proof that the customer has found in Bringo a solution to a real-life problem, whether we are talking about traffic or lack of time on certain days.

Even though we started with a completely new service on the Romanian market, the customers have noticed since the first order that the “Personal Shopper” is not just a slogan – so we could clearly differentiate ourselves from a traditional e-commerce service.

For us, an important pillar of the brand is

Bringo has managed to go, in just two years, from an innovative start-up on the Ro-

The next step was to transform the IT

Carrefour wishes to provide consumers

manian market, to the only delivery service

architecture so that it was ready for real-time

with a complete, modern digital shopping

available in 18 cities in the country. We ended

integration, scalability and parallel process-

ecosystem, with perfect integration between

2018 with over 400 percent more orders and

ing. Through the strategic partnership with

many offline formats, online and digital-

more than 2.5 million products delivered,

Google, we are exploring the Cloud area,

based services. So the combination of offline

and for the current year we want to expand

which allows us to quickly move forward

and online becomes a natural one, in which

the service to as many cities as possible and

into new projects. Last but not least, we have

human interaction between customers and

deliver more and more orders.

optimized core applications – some have been

in-store specialists continues to be relevant.

www.business-review.eu Business Review | May 2019

32 ADVERTISING

Consultancy firms taking over advertising agencies – who will win?

In April, Accenture entered into an agreement to acquire Droga5, one of the world’s most innovative and influential creative agencies. The New York-based agency will become part of Accenture Interactive, boosting its capabilities as an “experience agency” able to design, build and run customer experiences that grow brands and businesses, say officials.

By Romanita Oprea

Dana Nae Popa, pastel

Irina Pencea, Jazz

A

Serban Alexandrescu, Headvertising

ccording to company officials, the

largest agency companies in the world.

and services. There is always a push in-push

acquisition will give Accenture

With combined revenue of USD 13.2 billion,

out movement within the advertising world,

Interactive a distinct marketplace

the marketing services units of Accenture,

a flux and reflux,” said Blanaru. Moreover,

position, further enabling it to lead brands

PwC, IBM and Deloitte sat just below WPP,

she believes that the “new agency” in the

into the future, and represents an evolution

Omnicom, Publicis Groupe, Interpublic and

East must follow more the West’s path,

in Accenture Interactive’s journey to build

Dentsu.

where egos are kept under control, advertis-

a new agency model — one with the power

ing is a business where cash matters for both

to engineer transformative brand experi-

THE TAKEOVER

the company and employees and where ideas

ences, and infuse those experiences with the

After watching the industry closely for so

are used for the benefit of the client first and

emotional and inspirational power of brand

many years, Cristina Blanaru, freelance

foremost, and only in last place for shiny

thinking and creativity.

consultant for international companies and

trinkets.

But what does the move say about what

agencies, believes the “new agency model”

In her turn, Irina Pencea, managing part-

the agency of the future will look like? Is the

isn’t new at all, but more of a reoccurring

ner and co-founder of Jazz, one of the most

agency model changing in a world where

pattern – every five to ten years or so. “First,

successful Romanian independent agencies

more and more big consultancy firms are

there is a move of concentrating all compe-

on the market at the moment, argues that

looking towards investing in advertising com-

tencies in the same place, hence an agency

agencies as business models should em-

panies? And what does that say about where

that does everything and anything, followed

brace constant change. Agility and resilience

the creative journey will take us in the future?

by a movement of specialization, where de-

are key in today’s market tensions such as:

partments or small groups launch specialized

demand for real impact and talent tension.

shops that offer only certain competencies

“Brands need to prove their worth to share-

In 2016, for the first time, four consultancies cracked Ad Age’s ranking of the ten

www.business-review.eu Business Review | May 2019

ADVERTISING 33

holders and consumers alike. They need to

opens cans with the operating knife),” said

nies cannot accommodate chaos,” argued the

deliver bottom-line impact while positively

Alexandrescu. Still, the acquired agencies

Jazz representative.

impacting consumers’ lives and societies

will need some experienced staff, people that

alike. People no longer accept being manipu-

can interact and think closer to consultants’

managing director because, at the end of

lated into buying products, they are more

“cruise ship altitude”.

the day, to know how to interpret and use

And her point is supported by pastel’s

knowledgeable and discerning and they can

Dana Nae Popa considers this a normal

spot instantly when brand are not behaving

move, just as normal as the advertising agen-

needed in any field and creativity as we know

with authenticity,” said Pencea. Sharehold-

cies that developed business consultancy, at

it, as advertising agencies’ prerogative, will

ers, meanwhile, are no longer willing to bet

a smaller or bigger scale.

transform and evolve as well,” added Dana

data you need to be creative. “Creativity is

Nae Popa.

their money on complex agency structures

“Creativity is creativity for a reason.

with fancy titles and offices, but rather on

DATA VERSUS CREATIVITY

agile strategies and creative executions that

As the market evolves, another concern is the

Of course, it might seem sometimes that

build fast results, to the extent that there is

possible creativity lost. As companies push

creativity is under heavy attack or sidelined

understood and heard, while employees

more and more towards business results,

by standardized communication and models.

want to work for companies and people that

efficiency and sometimes safety, what will

The truth is that creativity will always shine

leave something behind. “The market has

happen to the creative drive and energy for

through, eventually, but the challenge is to

changed and continues to change, and that

which advertising agencies are so loved and

let creativity be real and genuine, and use

brings about the changing of the agencies as

sought after? Will data take over creativity?

it to help and elevate and not for bragging

well,” concluded pastel’s representative.

Pencea doesn’t believe so, but says they will

and purposes serving only certain types (and

need to work in harmony. “That’s prob-

their egos),” said Blanaru.

an increasing trend for in-house agencies for top global brands.

But, according to Serban Alexandrescu, managing partner at Headvertising, an independent Romanian advertising agency with more than 20 years on the market, there will never be just one model, but tens of models.

He believes that the “platform agency” is still much needed, with people “on the floor” (working from the office) who will communicate “meat & potatoes”, and not superspecialized pieces.

Meanwhile, Dana Nae Popa, managing director at pastel, a Romanian independent agency that has just celebrated 13 years on the market, thinks that the model of agencies doing creativity just for the sake of creativity is no longer sustainable. More than that, clients want results, consumers want to be

So where does this movement of consultancy companies taking over creative

ably why the announcement of the Droga5

Moreover, according to Alexandrescu,

agencies lead the market? Straight forward.

takeover feels right. We’re talking about a

consultants know they will never be able to

Alexandrescu says that Droga5 is not the

new age consultancy and a new age agency.

do creativity alone. And this is the reason

first agency to have sold itself to the “con-

It’s not the Big 4 acquiring an agency, and it’s

they pay so much money for it. “Robots,

sumed ones” and it will not be the last. This

not one of the top advertising groups acquir-

data and digital transformation they knew

is because consultancy firms are also under

ing a consultancy. It should be a marriage

how to do themselves, they haven’t needed

pressure from clients to take care of “the last

of equals that will probably succeed only

agencies. But, ‘emotional transformation’ is

mile”, carry out the concrete implementa-

if they nurture each other’s gifts. To me, it

something they don’t know how to create,

tion of the advice they offer and, if there is

proves again that independent creativity will

but they are better than the agencies at post-

some extra money involved in the equation,

never get to be as big as strategy and busi-

rationalizing it and ‘selling it’ to clients. They

why not do it? “The agencies will be really

ness consultancy. I honestly believe that size

realized it was lacking from their portfolio

happy to be taken under a more ‘strategic’

and creativity are divergent. As size grows,

and they decided to buy it, being flush with

wing, with C-suite access, not only to the

creativity shrinks. Creativity needs a certain

cash,” concluded the Headvertising manag-

marketing department (which mostly only

level of fluid chaos to bloom. And big compa-

ing partner.

www.business-review.eu Business Review | May 2019

34 MARKETING

Brain gain: neuromarketing opens up new avenues Neuromarketing is a new field of marketing which uses medical technologies such as functional Magnetic Resonance Imaging (fMRI) to study the brain’s responses to marketing stimuli.

Researchers use fMRI to measure changes in activity in parts of the brain and to learn why consumers make the decisions they do, and what part of the brain is telling them to do it.

By Romanita Oprea managers don’t realize that being the first to use a certain technique is not a disadvantage.

On the contrary, it will give you a big advantage, because you will learn insights about the consumers and the market, ones that the competition doesn’t have. The development rate of neuromarketing in Romania is still low, probably due to the big reluctance of decision makers. And the reason for that is the strong aversion towards the risks it might involve,” said Iorga in the article.

Photo: Dreamstime

Adina Nica, research & strategy consultant at Open-I Research, added, “Market research is a domain in continuous development, using techniques from various sciences, as marketers are looking for more depth and An advertising campaign is a set of stimuli detected by human senses

M

precision to understand how people react to different stimuli, how they respond to communication, creativity, design, products,

arketing analysts use neuro-

its potential to create value for marketers,”

and multi-sensory experience.” That’s why

marketing to better measure a

Eben Harrell wrote in the Harvard Business

researchers came up with the idea of using

consumer’s preference, and the

Review.

neuroscience in marketing. Moreover, Nica

information gathered will help marketers

That said, neuromarketing has happily

points out that knowing how the brain func-

create products and services that are designed

been making steps in the Romanian market as

tions, and using fMRI, EEG and dedicated

more effectively and marketing campaigns

well, due to some pioneers who stand ready

software, we can find out what is appreciated

that are more focused on the brain’s response,

to teach us more about the concept and how

by consumers and what they really need.

say industry players. Therefore, neuromarket-

it can influence for the good the marketing

“Therefore, following testing with neuromar-

ing will tell the marketer what the consumer

of today and tomorrow. Over 100 people pas-

keting, decisions are taken more efficiently.

reacts to, whether it was the color of the pack-

sionate about communication and marketing

I consider neuromarketing the next level in

aging, the sound the box makes when shaken,

took part in the Cluj conference “Inside Your

market research,” added the Open-I Research

or the idea that they will have something their

Brain. Neuromarketing”, organized by IAA

representative.

co-consumers do not.

Young Professionals Cluj in February, which

Moreover, as Lluis Martinez-Ribes, brain-

had as guest Ana Iorga, specialist in the field

pleasing marketing catalyst at ESADE and

known as consumer neuroscience – stud-

in London for more than seven years, and also

m+f=!, points out, neuroscience provides top

ies the brain to predict and potentially even

founder of the Buyer Brain laboratory, the

managers with science to run their business

manipulate consumer behavior and decision

first of its kind in Romania.

at a higher orbit. “They can have a sound

“The field of neuromarketing – sometimes

making. Until recently considered an extrava-

According to Iorga, speaking in an inter-

base to conceive products, services, brands

gant ‘frontier science’, neuromarketing has

view with Smark.ro, things have changed a

and customer experiences in such a way that

been bolstered over the past five years by sev-

little since 2012 in Romania, but we still can-

can please customers’ brains. If the methods

eral groundbreaking studies that demonstrate

not talk about a major advance. “Romanian

coming from neuroscience are well-applied,

www.business-review.eu Business Review | May 2019 2016

top managers can use them to foster in their customers a positive sentiment towards their brand and what they sell,” said the special-

COVER MARKETING STORY 35 14

Top tips for marketers that want to use neuromarketing in Romania

ist. With extensive experience in the field, Martinez-Ribes is fascinated by innovation in marketing and retail, a specialization pursued

Adina Nica

in 31 countries. He combines his part-time • Don’t believe what others tell you, test it and see how it can help you.

work at ESADE as Associate Professor with selective activity as marketing catalyst (m+f=!).

• Start with simpler studies and continue with more sophisticated ones.

MYTHS AND REALITY When it comes to the true and false of neuro-

• Read the latest neuromarketing studies and experiments; sometimes you can find answers or generate hypotheses without jumping to a research project.

marketing, Nica says that it is associated with machines like MRI and EEG, but sometimes you don’t need to use them, you only need

• Always combine neuromarketing with direct interaction with the people you are targeting.

to understand how the brain functions and what other studies have already proven and integrate that in the work you do. “Many marketers put neuromarketing in opposition to traditional market research. I believe the two

Lluis Martinez-Ribes

instruments should be used together, each having its contribution to the overall under-

• To reduce the risk of failure when making decisions about packaging A versus packaging B, or commercial A versus commercial B, I strongly recommend calling Romanian specialists to use this very powerful marketing research tool.

standing of an issue. I don’t believe in looking at neuromarketing reports without talking face to face with people, observing them, being in contact with them,” outlined Nica.

• If senior Romanian managers want to conceive a new product, a new selling method, a new brand or a new customer experience, they can use “brain-pleasing marketing” methods to guide the creation of concepts – new ones or modified ones – in a way that can please people’s brains. This discipline is also based on solid neuroscience. Companies like Orange have been pioneers of brain-pleasing marketing in Romania.

What about the myths that surround this popular and exciting word? Do people know what they are talking about? According to Martinez-Ribes, some people may think that neuromarketing uses conclusions from neuroscience to manipulate people’s perception or behavior. And this is totally inaccurate.

“The ‘buying button’ – the alleged key which

• As a summary, use neuromarketing when you want to test something that already exists, but use brain-pleasing marketing when you want to change the game in your sector or industry.

you can press and make customers buy like robots – does not exist. Customers’ freedom of choice is respected in this type of marketing,” said Martinez-Ribes. Neuromarketing has been proven to help improve an adver-

positive or negative. Later on, the video can

proof that the outcome is brain-pleasing. Then

tising campaign, as Nica says, from simply

be edited, reducing the parts that generate a

the purchase is highly probable. But to jump

“having more precision about which route

negative outcome,” he added.

from the initial project phases to the way to

to choose”, to sometimes helping you refine

With so much science involved, one might

shape a brain-pleasing outcome, creativity is

the communication, by adding or removing a

ask if there is still room for creativity and, if

simply crucial. Every project is different from

small but crucial detail. Moreover, it can also

so, when does it enter this process? Accord-

the others and we never know what the result

help you make a communication brief much

ing to Martinez-Ribes, at his agency, in all the

will be, since there is no pre-cooked recipe,”

more down to earth. Also, as Martinez-Ribes

marketing projects co-created with clients,

he concluded.

puts it, technically speaking, an advertising

neuroscience-based methods are the starting

campaign is a set of stimuli detected by hu-

point. It is the basis of their work, and it re-

accurate about how people react to stimuli

man senses (usually hearing and sight). Using

ally helps to understand customers in depth,

does not limit creativity, but can actually fuel

neuromarketing techniques, researchers de-

including their pain point. “We know that

it. “Knowing more about the brain is knowing

tect how these stimuli create a reaction in the

when a person purchases something there is

more about human beings, and this should

body. “For example, they can see the strength

the anticipation of a future gratification, so a

give you more options and more ideas, not

of the triggered emotions as well as if they are

release of phasic dopamine appears. This is

fewer,” said Nica.

Meanwhile, Nica considers that being more

www.business-review.eu Business Review | May 2019

36 SUSTAINABILITY

Packaging problems: helping firms cope with new environmental rules Romanian legislation has recently undergone a series of changes designed to improve national recycling targets, for better compliance with European legislation and standards. Given that quantifying all the legal changes may pose difficulties for companies, BR sought the perspective of Global Innovation Solution (GIS), an experienced environmental consultancy.

By Aurel Dragan and products must respect a number of obligations, to comply with traceability and recycling conditions. They have to maintain quantitative evidence of the packaging put on the national market, depending on the type of material (paper / cardboard, plastic, metal, wood, glass) and packaging type (primary, secondary, transportation packaging).

From 2019, they have to meet new recovery targets, (according to Law No. 249/2015 and subsequent amendments), as follows: global recovery target: 65 percent; global recycling target: 60 percent; paper-cardboard recycling target: 70 percent; plastics recycling target (including PET): 45 percent; from the plastic recycling target, PET must be recycled at least: 55 percent; glass recycling target: 65 percent; steel recycling target: 70 percent; Photo: Dreamstime

aluminum recycling target: 30 percent; wood recycling target: 50 percent.

A company can properly achieve its objective for recovering packaging waste by one of In 2015, the European Commission adopted a new waste plan, called the “Circular Economy Package”

the following options: by signing a contract with an organization that implements the extended producer responsibility for the quantities of packaging put on the national

WHAT HAS CHANGED IN THE ENVIRONMENTAL LEGISLATION

the extended responsibility regime, and must

market, depending on the type of packaging

bear financial and organizational responsibil-

and type of material; individually – by taking

Romania, as part of the European Union, has

ity for managing the waste in the life cycle of

off the national market its own packaging

to introduce into the national legislation the

a product.

waste and ensuring that waste is recovered in

provisions of European Directives in accor-

In addition, Law no. 245/2015 stipulates

accordance with the legal requirements.

After determining how the recovery

dance with EU requirements and standards.

that economic operators who put on the

Since 2011, the fundamental environmental

national market packaged products, eco-

objectives will be met, producers of packaged

protection law in Romania (Law no. 211/2011),

nomic operators that import / purchase intra-

products must declare on a monthly basis to

based on EC Directive no. 2008/98, has been

Community packaged products, or those that

the Environmental Fund Administration the

in force.

individually package their products, putting

quantities of packaging released onto and

on the Romanian market packaging (or rent-

recovered from the national market (either

2008/98, transposed into the Romanian leg-

ing packaging in any form), are responsible

individually or through a contract with an

islation, introduced the concept of “extended

for the withdrawal from the market and

organization that implements EPR).

producer responsibility”, or EPR, whereby

recycling of all packaging waste.

The provisions of EC Directive no.

any producer of packaged goods is subject to

Producers / importers of packaged goods

Producers of packaged products / importers of packaged products also have several

www.business-review.eu Business Review | May 2019 2016

SUSTAINABILITY COVER STORY 14 37

obligations regarding waste management.

First, they need to keep track of the waste generated from their own activity (either office activity or commercial / production activity), regardless of the quantity and type of waste generated (for example waste paper, electric and electronic equipment waste, used toners, household waste from production. etc.). Second, all waste quantities must be handed over to authorized economic operators. Waste generators must keep monthly records of waste and report annually to the Environmental Protection Agency the quantities of waste managed in accordance with Law no. 211/2011. Last but not least, if the economic operator has an Environmental Authorization, it must nominate a person from its own employees, or delegate this obligation to a third party organization who ensures the fulfillment of the legal obligations. The person must be trained in the field of waste management (including hazardous waste).

Economic operators who release reusable packaging onto the national market must respect the fiscal legislation in force, namely Tax Code - Law no. 227/2015 and Law no.

82/1991 (setting out accountability procedures).

As of March 2019, companies that put on the national market products packaged in reusable packaging, with volumes ranging from 0.1 liters to 3 liters, must introduce a financial

the obligation to inform consumers of the

nance no. 74/2018) which aims to improve

guarantee of RON 0.5 / pack. They also have

value of the cash guarantee and to provide

waste management, conserve resources, and

the obligation to obtain a return rate of at

information concerning the return system.

improve the quality of the environment and

least 80 percent of the total quantity placed

They must receive in return reusable packag-

the public wellbeing.

on the national market. If this obligation is

ing in a proper condition and return the value

not respected, the competent authorities

of the cash guarantee at the consumer’s

was also introduced, as a payment principle

may apply fines ranging from RON 20,000 to

request, on the basis of the fiscal receipt.

based on the amount of waste generated by

RON 40,000.

Notably for the beverage industry (pro-

If a certain type of reusable packaging is withdrawn from the Romanian market,

The “pay as you throw” economic tool

each economic operator.

Starting from 1 January 2019, the imple-

ducers of beer, alcoholic beverages, cider,

producers / importers must inform traders

mentation of the “pay as you throw” instru-

other fermented beverages, juices, nectars,

and / or consumers about the changes and

ment, established the following elements in

soft drinks, mineral water and drinking water

ensure they accept that packaging for at least

the development of any charging strategy:

of all kinds, wines and spirits) companies

another six months.

the amount of generated waste, the fre-

In 2015, the European Commission ad-

quency of waste collection, the weight of the

aging must, from January 1, 2020, put on

opted a new waste plan, called the “Circular

produced waste, and the providing of collec-

the national market a minimum of 5 percent

Economy Package”, to stimulate Europe’s

tion bags to citizens.

reusable packaging from the total packaging

transition to a circular economy with benefits

who sell products in reusable primary pack-

An EPR scheme established that product

released onto the national market. This per-

in terms of global competitiveness, boosting

manufacturers have to cover all the costs

centage must increase by another 5 percent-

sustainable economic growth, and creating

needed to meet waste recycling targets,

age points per year until 2025 inclusive.

new jobs. In 2018, Romania transposed into

and also other specific objectives including

All economic operators who sell/retail

national legislation the provisions of Direc-

awareness campaigns and preventing waste

products in reusable primary packaging have

tive no. 851/2018 (through Emergency Ordi-

generation.

www.business-review.eu Business Review | May 2019

38 TELECOM

Telecom industry threatened by rising costs and new taxes The telecommunication industry is one of the most developed and mature in Romania, thanks to investments made in the past by companies and light-tough regulation in the early years.

Today, however, the industry is under rising pressure from legislators, increasing expenses, and a shrinking pool of workers.

By Aurel Dragan tunities for telecommunication companies, according to the 18th edition of Deloitte’s Technology, Media & Telecommunications Predictions.

According to recent studies, mobile operators expect to see 5G implementation investment close to current 4G spending, mainly as a result of prior investments in network development. Considering that 72 operators worldwide tested 5G technology in 2018, Deloitte estimates approximately 50 operators will launch 5G by 2020 at least in some areas, typically urban ones. In terms of 5G handsets, Deloitte expects about 20 vendors to launch 5G-ready handsets in 2019 and sell around 1 million units.

Internet-connected speakers with integrated digital voice assistants will see the most rapid expansion of any connected device category at global level in 2019, with more Photo: Dreamstime

than 164 million smart speakers forecast to be sold worldwide by the end of this year. This growth will bring the total number of units available globally to 250 million, turning this Mobile operators expect to see 5G implementation investment close to current 4G spending

T

into a USD 7 billion industry.

The study also predicts an increase in the usage of cloud-based artificial intelligence (AI) software and services. In 2019, 70 percent

he most important event for the

nications industry has to face are: infla-

of companies around the globe will have AI

telecom industry worldwide in this

tionary pressure (wage increases, energy

capabilities via cloud-based software and

period should be the implementation

costs, rents, equipment), devaluation of the

65 percent will create AI applications using

of 5G technology. And it is being researched

national currency, increased competition

cloud-based development services. By 2020,

and tested all around the world; 72 operators

and acceleration of technological progress,”

the penetration rate of AI-based enterprise

tested 5G technology in 2018 and it is expect-

says Serghei Bulgac, president and general

software will reach an estimated 87 percent,

ed that, by 2020, around 50 will launch 5G at

manager of Digi Group RCS & RDS.

while cloud-based AI development services will reach 83 percent.

least in some areas, probably cities. But on

“This year, artificial intelligence is ex-

the Romanian market, the testing and launch

5G IS COMING

of 5G is being overshadowed by changes in

The long awaited fifth-generation (5G)

pected to reach larger scale also in Romania,

the legislation, the imposition of new taxes,

networks are due to arrive in scale, providing

with more advanced techniques becoming

increasing wages and a workforce shortage.

better connectivity for consumers and enter-

available to more organizations. Some of our

“The challenges that the electronic commu-

prises, while opening up new revenue oppor-

clients are working to gain access to the best

www.business-review.eu Business Review | May 2019

TELECOM 39

innovative software features of the AI revolu-

5G and 3G licenses and progressively invest

manians working abroad increases pressure

tion, which continues to change radically

in 5G networks (from EUR 50 million in 2020

on companies to find qualified employees

the way we live, do business, work, travel,

to EUR 125 million in 2025, a total of EUR

and also to keep hold of the ones they have.

communicate and even entertain ourselves,”

500 million), Orange and Vodafone would

“Regarding the recruitment and retention

said Dinu Bumbacea, consulting partner-in-

have a peak of EUR 800 million in 2020 and a

of employees, the prolongation of the labor

charge, Deloitte Romania.

slightly better distributed payload (2020 and

market crisis and an increase in labor mobil-

2022) for RCS & RDS and Telekom,” telecom-

ity is predictable. Fortunately, Digi | RCS &

munication specialist Nicolae Oaca wrote on

RDS has one of the best retention rates and

his blog.

we can meet our human resources needs

ARE WE READY? The government seems to be ready, at least to take the licensing money.

The National Authority for Administration and Regulation in Communications (ANCOM) announced a 5G spectrum auction this year, but it decided to change the calculation method. So, instead of EUR/Mhz/ inhabitant, ANCOM will use accounting methods. The target is EUR 1 billion for the state budget from 5G licenses, considering Italy recently banked EUR 6.5 billion, although other European countries got a lot less.

“Preparing for the 5G auction brings to the forefront the dialogue with authorities on

with internal mobility,” says Bulgac.

issues that concern the entire industry: sim-

Operators have already increased tariffs

plifying authorization procedures for network

RISING EXPENSES

construction and development, non-dis-

The level of indebtedness of each operator

for customers to find resources to pay the

criminatory access to public property, more

has grown with each licensing, meaning 3G

newly-imposed taxes and rising costs. But in

predictability in legislation. The international

and 4G. Data show that, at the end of 2017,

order to keep the telecommunication market

controversy over the presence of certain sup-

Orange and Vodafone had debts worth just

close to the latest technologies, the govern-

pliers of equipment on the European market

under 60 percent of total assets, while for

ment must help the industry. “To preserve

can also lead to a price change in the procure-

RCS & RDS it was 88 percent and Telekom

the competition, the bidding documenta-

ment of equipment and technologies in an

140 percent. This means that financing the

tion should provide limitations to spectrum

important context – the leap to a new technol-

licenses and 5G investment will not

ogy. There is additional pressure on electronic

be easy and may require a capi-

communications operators who will have to

tal increase from sharehold-

make important business model decisions

ers. And all while they

for the upcoming 5G technology – developing

are still trying to recover

later. High license fees

their own infrastructure or sharing networks

their investments in 4G

will affect the develop-

with other operators,” says Bulgac.

technology and are al-

ment of networks and

Romania expects to collect 2 percent of

ready providing services

will shift to retail prices,

telecom operators’ revenues. The average will

that can also be achieved

be EUR 250 million per operator, payable in

with 5G technology.

2020. But the telecom companies must also

acquisition, especially in bands below 1GHz, so operators who do not buy 5G spectrum this year will be able to do so

hampering adoption, at least in the beginning, and digital transformation.

This is why telecom opera-

The telecom provisions in OUG

renew their 3G licenses. Orange Romania and

tors have said that they have not

Vodafone Romania will have to renew the 2.1

yet decided whether to bid for 5G. They

GHz band for 3G in 2020, and RCS & RDS and

are being hit by increasing power bills due

profoundly damaging to Romania’s digital

Telekom Mobile in 2022. The 3G licenses are

to OUG 114, which also imposed a tax on the

transformation process, to the country’s

estimated to bring EUR 2 billion to the budget

revenues of telecom companies.

development! And ANCOM should be al-

in total, an average of EUR 500 million for each telecom operator.

“Assuming that all four operators acquire

Wages are on the rise, driven by increases

114 / 2018 should be abrogated, being

lowed to determine starting prices based on

in public sector pay and a shortage of work-

the EUR / MHz / inhabitant cost in Europe,”

force. The absence of the 3 to 4 million Ro-

argued Oaca.

www.business-review.eu Business Review | May 2019

40 FESTIVALS

Cash for culture: sponsoring summer festivals Summer is just around the corner and culture vultures have already booked their tickets to the top festivals held in Romania. This year, more events with more international artists are to be staged for the first time here, with new names joining the fray. But on whose dime? Business Review talked to representatives of several major local festivals to find out.

By Oana Vasiliu said Andi Vanca, communication manager of Electric Castle.

BETTING ON UNIQUENESS For one of the most unusual festivals in Romania, Anonimul Film Festival, which is held in Sfantu Gheorghe, Tulcea county, sponsorship is likely to last for more than one event.

“We are in the position where sponsorship mainly means a long-term relationship for us. And we are incredibly fortunate for that matter, not only financially speaking, but also in the quality of these relationships. We know what they want, they know what we deliver (…) We are of course interested in attracting Open air cinema just in the heart of Cluj city

O

more partners, but this is not a purpose in itself; we are really looking for partners for a longer run, not for sponsors,” Miruna Berescu,

ne of the biggest questions regarding

and private sponsorship. “We need to make

president of Anonimul Film Festival, told

the numerous festivals in Romania –

sure that the potential partner truly under-

BR. At this point, the festival’s budget is EUR

especially those featuring live music

stands our philosophy, the way we approach

150,000, most of which goes on the trans-

and DJ gigs – is how much money it all costs

our event and all our core values. We are not

portation of everything required for movie

both organizers and festival goers. While, for

just a music festival but a unique experi-

screenings. Some 30-35 percent comes from

the second category, the sum is relatively easy

ence that involves music, arts, educational

public sponsorship, while the rest is covered

to calculate because you only have to add

activities and much more. So the conversa-

from private sponsorship, because festival at-

tickets, accommodation, transportation, food

tion is about what we can create together

tendance is free of charge for the public.

and drink on site and perhaps some memo-

for a truly unforgettable experience. Brands

rabilia, the staging of a festival is a costly

have learned to adapt their presence in this

A STAGE FOR SPONSORS

business and may not have a predictable

unique environment, a special place marked

For Sibiu International Theatre Festival (FITS),

relationship with ticket sales and refreshment

by history turned into a five-day escape from

which enjoys a high profile internationally,

takings.

the world for thousands of people. There is a

the situation is a bit different. Its 2018 budget

lot of potential for creative and direct contact

was almost EUR 13 million, out of which 26.5

private or public sponsorship – through direct

with the public that companies do not have

percent came from public sponsorship, and

funds from the municipalities or the county

through traditional advertising channels. As

the rest from private sponsors. RON 8 million

councils, or programs directly financed by the

long as brands can add value to this experi-

was allocated by Sibiu City Hall, RON 600,000

Ministry of Culture.

ence, the partnership becomes a success.

from the Ministry of Education and RON 4

Fortunately, so far, there has been no problem

million from the Ministry of Culture. “FITS

THE ELECTRIC AVENUE

in finding companies who embrace our way

is an event with which major companies

In 2018, the total revenue of Electric Castle

of working and are just as enthusiastic about

in all areas like to be associated and we are

was EUR 5 million, raised entirely from tickets

a new edition of Electric Castle as we are,”

generally honored to receive more offers of

Festivals may be funded by ticket sales,

www.business-review.eu Business Review | May 2019

FESTIVALS 41

A glimpse of Enescu Festival held in the Romanian Athenaeum

Chill mood at Cluj’s Jazz in the Park

new partnership deals than we try to bring

consists of a balance between our values and

or we are approached by companies with such

to the festival. (…) A partnership with FITS is

the quality of services. On one hand, sponsors

an interest. There are situations when the

also a promise of engagement with the Sibiu

want to associate with us because we promote

approach is also based on pragmatic issues

community and guests arriving at the festival.

a good set of values for the community, we

such as specific services we need and which

We enjoy the mutual trust of our partners

promote normality/common sense and our

the companies provide as part of their regular

and together we find the best strategic solu-

public is cool, diverse and very receptive. On

activity, such as catering or legal services

tions that reflect both interests and common

the other hand, we try to carry out as profes-

or communication. In this respect we make

values,” said Cristian Radu, executive director

sionally as we can what we promise in terms

agreements which allow us to save some cash

of the festival.

of visibility and services. (…) The process of

to pay other logistic and administrative ex-

getting a sponsor can last days if your pitch is

penses,” said Mihai Constantinescu, executive

JAZZING UP THE BUDGET

good, but also months if the bureaucracy of

director of the George Enescu Festival.

Moving west, BR found out that JazzTM is a

the sponsor is complicated. We try to be pre-

coproduction between the City Hall of Timiso-

pared for this, because it affects the cash-flow

ara and PLAI Cultural Centre, with the budget

and predictions of growth. But it’s something

THE GREENBACKS BEHIND THE SILVER SCREEN

split between the two organizations, 66.7

that we can’t control, only adapt to,” said

Transylvania International Film Festival

percent (public funding) and 33.3 percent (pri-

festival director Alin Vaida.

(TIFF) gets about 45 percent of its budget

vate sponsorship). The event is free to attend

from non-reimbursable grants from public au-

so generates no ticket sales. “We have at least

CLASSIC IS FANTASTIC

thorities. Sponsors and partners cover about

two periods when we fly to Bucharest and

The biggest local event is probably the George

40 percent of the budget and the remaining 15

have meetings with different companies. We

Enescu Festival. The festival features over

percent comes from ticket sales. About 90,000

do this for all our projects: PLAI - the festival,

3,000 top international musicians and has an

tickets have been sold, an impressive tally

BEGA!, JazzTM & Ambasada. We aim to sign

immense logistical effort behind it. Behind

given overall cinema attendance in Romania.

only long-term partnerships (minimum three

the scenes, the bill, besides the fees, includes

“TIFF is a festival that has grown organically

years) so that we can have financial security

over 9,000 accommodation nights, rent for

and naturally, and this is felt in all its aspects.

and the sponsors can have a more detailed

84 days at four concert halls, over 50 tons

Over 70 percent of the sponsors that the fes-

and custom-made involvement. Convincing

of equipment transportation and handling,

tival has today are companies that have been

a sponsor is mainly based on the organization

6 full charter planes and over 2,500 travel

with us for many years, some on their 12th

and event’s track record but also the spon-

tickets, 18 trucks of instruments, handling

year. We have been able to develop long-term

sor’s field of communication,” Norbert Tako,

and much more. Last time, the money came

strategies and relationships that have proved

founder of PLAI Cultural Center, told BR.

from the Ministry of Culture (65.4 percent),

healthy and effective. For this reason, I believe

Another jazz festival, which takes place in

Bucharest City Hall (1.33 percent), ticket sales

that the main aspect that helps us convince

Cluj-Napoca, Jazz in the Park, gets its fund-

(19.7 percent), sponsorship (9.57 percent) and

new sponsors is the relevance and impact of

ing from three main categories: marketing

services and products in barter, partnerships,

our project as well as the authenticity of how

services & corporate sponsorship (55 percent),

and discounts. “Usually there are several ways

we work with them. (…) We do not just limit

public finance (30 percent) and revenue

to approach the partnerships. The two main

our partner packages, we develop each part-

directly generated by the festival (tickets, bar

ones: either we present the festival to spon-

nership in our own style: organic and natural

takings, commercial contracts – the remain-

sors we know have an interest in supporting

so that branding and visions are authentic,”

ing 15 percent). “Our pitch to new sponsors

culture, music, cultural legacy and education,

added Cristian Hordila, festival manager.

www.business-review.eu Business Review | May 2019

42 CALENDAR

Summer Festivals Music festival season will be here before you know it. Business Review sum up your schedule for the hottest fests of this summer so break out your tie-dye and bandanas.

By Oana Vasiliu

The incredible public of Electric Castle Festival

JUNE

Next in line is Sibiu International Theater

More movies, this time in Bucharest, at

As has happened for several years now, Tran-

Festival (FITS), where the performing arts are

the Bucharest International Film Festival.

sylvania International Film Festival (TIFF),

brought together, with an impressive agenda

Another iconic date in the Romanian cinema

held in Cluj-Napoca, kicks off the summer

for theater lovers and contemporary dance

calendar is this year included in the La Rou-

festival agenda. This year it turns 18. Expect

connoisseurs, including industry debates,

manie en France / La France en Roumanie

new box office records, sold-out opening

street art and music, plus much more. June

program, so a special section will be dedi-

and closing screenings that are the talk of

14-23.

cated to a major French filmmaker who will be present in Bucharest. June 24-30.

the town, and eclectic hot-ticket film-based events. Plus the parties. May 31-June 9.

For debates and movies about the environment, try Pelicam Film Festival. Held in Tul-

JULY

Street Delivery Bucharest will this year

cea, on the shores of the Danube, the event

Jazz is definitely in the air in July. It starts

showcase poetry, with the theme of the capi-

channels good vibes and a good mood in an

with Jazz in the Park in the Transylvanian

tal city and the stories behind it. June 14-16.

attempt to promote and protect the environ-

city of Cluj (July 1-7), then moves west for

ment. June 20-23.

Timisoaraâ&#x20AC;&#x2122;s JazzTM (July 5-7), which overlaps

www.business-review.eu Business Review | May 2019

CALENDAR 43

August starts with probably the best-known music festival in Romania: Untold. Held in Cluj-Napoca over August 1-4, the celebration of EDM music will bring together Bastille, David Guetta, Dimitri Vegas, Martin Garrix and many others for four days of nonstop partying.

Another special festival experience is Anonimul Film Festival, held in Sfantu Gheorghe, Tulcea county, at the furthest reaches of Romania, just between the Danube and the Black Sea. Paradise. August 5-11.

Closer to Bucharest, Summer Well (August 10-11) and Fall in Love (August 31 - September 1) will allow those still at home to chill out with good live music. Meanwhile, Iasi’s Afterhills offers two weekends packed with EDM music (August 23-25 and August 30-September 1) with Don Diablo, Rita Ora, Morcheeba,

EDM fans enjoying Untold

Faithless and many more on the bill. with the Bucharest Jazz Festival (July 1-7).

But if you don’t want to travel outside Bucha-

And the summer festivals end with the

Later on, the 23rd Garana Jazz Festival (July

rest, don’t worry. July brings Rock the City,

greatest name of them all, the classical music

11-14) awaits fans in the picturesque Semenic

featuring The Cure and Editors. July 22.

journey of the George Enescu International Festival, which will be held in several loca-

Mountains.

If you are not in the mood for jazz, don’t

AUGUST

tions and venues all over Romania. August 31-September 22.

worry. Electro-dance Neversea (July 4-7) brings Afrojack, Jessie J, Los Frequencies and Steve Aoki, among others, to Constanta city, right on the beach, for four days of continuous parties. Electric Castle will also have an electric line-up this year. The Castle of Bontida (Cluj county) will host Florence and The Machine, Limp Bizkit, Nils Frahm, Thirty Seconds to Mars, and Bring me the Horizon, among many others. July 17-22.

Meanwhile, Open Air Blues Festival in Brezoi, Valcea county, will welcome blues greats, from headliner Beth Hart to Oscar Benton, Diana Rein and others. July 18-21.

Sibiu will also host two events this month.

Sibiu International Street Art Festival will color the Transylvania city with an impressive selection of internationally famous urban artists over July 1-7. And ART Mania presents a series of concerts headlined by Dream Theater. July 26-27.

Open air cinema just in the heart of Cluj city

www.business-review.eu Business Review | May 2019

44 EXPAT EYE

Food for thought: chowing down on Romanian cuisine In BR’s monthly take on life here through the eyes of a foreigner, BR’s resident Brit ponders the local food as she prepares for the calorie bomb that is Easter in Romania.

By Debbie Stowe will not endear you.

VERDICT: SOUPS CAN SHOWCASE THE LOCAL CUISINE AT ITS BEST, EXCEPT… CIORBA DE BURTA There’s a reason that “tripe” in English also means rubbish. This yellowy tripe soup is – I am told – a reliable “morning after” treatment for hungover Romanians, but I can see little other reason to partake of this strange substance.

E

VERDICT: ONE FOR HARDCORE FANS OF ROMANIAN FOOD ONLY.

aster is upon us, and if you have

MICI

Romanian relatives, this means eat-

Literally meaning “littles”, these are small

DRINKS TUICA

ing enough food to last you through

sausages that make an appearance at most

My introduction to tuica, or plum brandy,

any mini-apocalypse. For those newcomers

outdoor events, from family barbecues to

was a baptism of fire. Handed a spirit in a shot

uninitiated in the ways of Romanian cuisine, I

large summer festivals in the park. They are

glass, at a work event in my first few weeks in

present the expat’s guide to the staples of the

eaten with mustard, and it seems almost as

Romania, I instinctively necked it, only to feel

“specific”.

essential to accompany them with a large

a burning sensation of paint stripper searing

glass of beer. Mici sizzling on the grill are

down my throat. “Wow,” said an impressed

SARMALE

the olfactory background to Bucharest in

colleague, “So it’s true what they say about

The quintessential Romanian dish of rice and

summer. Culturally, they’re the Romanian

the British!” The proper way is to sip it slowly,

meat wrapped in cabbage leaves, these tasty

equivalent of the hotdog.

when you are less likely to feel as if your in-

rolls are busted out on every special occa-

VERDICT: Quite good, especially on a hot

sides are on fire (although, on the downside,

sion. Sarmale are always made in far greater

day washed down with a cold beer, although

you will taste it for longer).

numbers than can possibly be consumed, so

you’re never quite sure what’s in them.

VERDICT: MORE PALATABLE IF NOT DOWNED IN ONE. WARMS YOU UP ON A COLD DAY, BUT NOT FOR THE FAINT-HEARTED.

you will be given some to take home in an ice cream box (with the ice cream taken out, of

SALATE DE VINETE / ZACUSCA

course – sarmale can be mixed with yoghurt

Two lovely sandwich spreads, the first green

or sour cream, but would taste a bit weird

with aubergine/eggplant, the second red with

covered in raspberry ripple or vanilla). The

aubergine/eggplant, as well as beans and pep-

VISINATA

leftovers will last you for several days.

pers. Appetizing and – unusually for Roma-

One for the ladies! Cherry spirit which is more

TIP 1: when discussing sarmale with Roma-

nian cuisine – healthy and vegetarian to boot!

drinkable than tuica, it’s perhaps the Roma-

nians, it’s better not to point out that a similar

Enjoy them with fresh bread, and sliced onion

nian cultural equivalent of sherry.

dish is eaten across the Balkans. Those sar-

and tomatoes. They make a great lunch, and

VERDICT: PLEASANT!

male fans of more nationalist proclivities are

one which won’t be followed by a food coma.

adamant that this is a specifically Romanian

Win!

Whatever food or drink comes your way in

dish, and if other Balkan nations do make it as

VERDICT: YUM!

Romania, you’ll be expected to consume

well, they simply must have copied the local

a large amount of it. Initial refusals will be

version!

SOUPS

taken as politeness, and if you ask for a little

TIP 2: whichever person you happen to be

Romanians have two kinds of soups: ciorba,

bit, you may wonder how much you would

eating sarmale with, that person’s mother

the thin kind with chunks floating in it, and

have got had you asked for a lot! Expect meals

makes the best sarmale in Romania. Some

supa – what in English is the “cream of”

to be taken amid lively chat, and to last long

even turn up their noses at sarmale made by

type of soup. Popular flavors include bean,

into the afternoon/evening/night.

people who didn’t give birth to them.

vegetable and meat – all fairly traditional, so

VERDICT: DELICIOUS!

asking for “butternut squash and parsnip”

Pofta buna!

www.business-review.eu Business Review | May 2019

46 RESTAURANT REVIEW

A CONCEPT THAT WORKS

I

>>> Maison Des Chefs, Agora Building, 113 Floreasca <<<

f I tell you that you can eat main

counter, this penalty is an act of both craven

ditional beef cheeseburger and mixed salad

courses at around RON 35 in a top

greed and manifest commercial lunacy. It is a

for RON 35. It was unexciting and it was

restaurant in one of the best locations

decision that will cost them dearly finan-

precisely what it said it was on the menu.

cially.

Suffice it to say, if you go for burgers (and I

in town, you may think I am either mad, or prone to exaggeration. Well, one of those two descriptions may be true.

So let’s go to Maison Des Chefs, a new concept chophouse. The concept is a retail food store in which you can dine, or vice

I asked them if I could buy my wine outside, bring it to my table and accept their

do not) you will undoubtedly approve of it.

We passed on chicken with baked beet-

corkage charge. Predictably, they refused. It

root in a mango and mustard dressing at

was blatant hypocrisy on behalf of the House.

RON 35, a veggie pasta with goat’s cheese,

But let’s eat. The menu prices are a

spinach and sundried tomatoes at RON 39

versa. But before we get down to the food, it

bargain. So for a starter, Blondie ordered a

and a pasta with mascarpone and truffle

is worth looking the place over. It is owned

fat, creamy burrata cheese on toast, topped

sauce at RON 49. But for me, the crown-

by Mega Image, who are un-

with pine nuts together with

apologetically using it to

cherry toma-

showcase their food

ing glory of the House was their cheese boards, the best in town. There are four,

toes

each priced be-

products, which

tween RON 20-

of course you

35 depending

may dine

on the size of

upon in-

your selec-

house.

tion. I died

They

and went

have a huge

to heaven

‘fromag-

when I chose the Ital-

erie’ – a

ian and French

large chilled room sporting

boards. They

a hermetically

came with lashings

sealed display of international chesses, all flagged with their country

of soft blue cheese,

and zucchini with a side dip of olive paste. At

eccentric Occelli aged in whisky, cheeses fabulously smell-

of origin. It is a true representation of all the

RON 30 it was extraordinary value, and at

ing of truffles, accompanied by slices of foie

great cheeses of Europe, with a selection

such a size she thought it was a main, rather

gras, Parma ham and even Iberico. Go for it.

of two or three cheeses from each cheese-

than a starter.

making country.

Although she was full, she had to punish

And now for all you ladies who love chocolate, cream and fruit desserts, you

me for all the beastly cruel things I said about

will die for their selection of 15 desserts,

ing over 150 different brands of fine wines

vegetarians in last month’s issue, so she

each one priced around RON 15. But check

from across the world, and with average

ordered a veggie burger with the ‘meat’ made

yourself in your mirror before you go there,

prices of around RON 100, this is serious

from lentils. I had to mooch off her plate, and

and see if chocolate, cream and fruit treats

drinking with brands that are generally not

I hate to admit it was quite delightful with

love YOU equally. If so, go and indulge

sold in Mega Image retail outlets. But wait,

the veggie lentil filling having a thick meaty

yourself in their sinful calorie heaven. The

for here comes a big problem: if you buy

texture with a slight BBQ hint. It came with

sweets are on display.

the wine of your choice, and take the bottle

a goat’s cheese sauce with salad, beetroot

to your table to drink whilst you dine, they

and avocado along with baked potatoes. I

inevitably raise their prices. But beware

raise the price of the wine by a further 20

didn’t believe they were baked as everything

that if you take your eye off the menu, your

percent as a ‘corkage charge’.

pointed to small wedges of pan fries. But at

beverages will cost far more than your food.

Away to their ‘winery’ – a room display-

When you consider that they have made a full profit by selling you the wine over the

RON 35, it was great value.

I countered her veggie burger with a tra-

I truly recommend this place before they

Michael Barclay Mab.media@dnt.r