Romania's strategic position at the crossroads of Eastern and Central Europe, combined with its rapidly developing IT sector and competitive labor costs, makes it an increasingly attractive destination for international business expansion. As the EU's sixth-largest country by population, Romania offers companies access to a well-educated workforce with strong technical skills, particularly in software development and engineering. While the country has made significant strides in modernizing its business environment and digital infrastructure, establishing operations requires careful navigation of its evolving regulatory framework, detailed labor code, and comprehensive social security system. Companies must thoroughly understand both national requirements and sector-specific regulations when setting up operations, from managing complex employment documentation to ensuring compliance with Romania's strong worker protections and collective bargaining agreements.
Business culture in Romania
Business culture in Romania is characterized by formality, hierarchy, and relationship-building that shape workplace interactions. Unlike Western business environments that often prioritize efficiency and directness, Romanian business culture places greater emphasis on protocol, respect for authority, and developing personal connections. Understanding these cultural elements helps international managers build trust and navigate decision-making processes effectively.
Communication
In Romania, business communication tends to be formal with an emphasis on politeness. Titles like "Domnul" (Mr.) or "Doamna" (Mrs.) are commonly used in professional settings. While Romanians appreciate clarity, messages are often delivered with tactful language rather than blunt statements.
Hierarchy
Workplace hierarchy in Romania typically follows a top-down structure which influences decision-making and reporting relationships. Senior leaders make most important decisions, and challenging authority openly is generally avoided. Team members often seek approval before taking initiative on projects.
Relationships
Professional relationships in Romania are built through face-to-face meetings and social interactions outside work hours. Business dinners and informal conversations are crucial for establishing the trust needed for successful business partnerships. Romanians value loyalty and personal connections in their business dealings.
Time management
Attitudes toward time and punctuality in Romania tend to be relatively strict which affects scheduling and deadlines. While being on time for meetings is expected from foreign partners, decision-making processes may take longer than in Western companies due to hierarchical approval requirements.
Practical applications
When working with colleagues in Romania, international managers should invest time in relationship-building to establish trust and credibility. Scheduling coffee meetings or business lunches can help develop the personal connections that facilitate business progress.
When presenting proposals, frame them respectfully and allow time for consultation with senior leadership rather than pushing for immediate decisions.
Remember to maintain formality in communications until your Romanian colleagues signal a shift to more casual interactions, which indicates growing trust in the relationship.
Romania employment market overview
The Romania employment market is characterized by talent shortages, rising salaries, and growing IT sector that shape hiring opportunities and challenges. Romania's job market is growing in technology and services, with a 5.4% unemployment rate. Companies face increasing competition for skilled workers while the economy continues to develop.
Talent availability
Skilled professionals in Romania are abundant in IT and customer support but limited in engineering and technical fields. By 2025, 39.4% of Romania's workforce will have high-level qualifications, creating opportunities for companies seeking educated talent. The talent shortage has led 14% of employers to recruit blue-collar workers from developing countries.
Salary expectations
Salary ranges for professionals in Romania typically increase 6-10% annually for most roles, affecting hiring budgets. Over 80% of employers plan to raise salaries in 2025, though there's a gap between what employees expect (10-20% increases) and what companies offer. International employers should budget for competitive compensation to attract top talent.
Key industries
Romania's strongest employment sectors include IT, telecommunications, services, and manufacturing which offer opportunities for international companies. The technology sector continues to expand rapidly, while production and operations positions remain the most difficult to fill with qualified candidates.
Hiring implications
Companies hiring in Romania should leverage online professional networks like LinkedIn to reach the widest talent pool. Developing strong employee referral programs can help overcome recruitment challenges, as 59% of companies struggle to attract new employees.
Companies hiring in Romania should offer training and development opportunities to address skill gaps and improve retention. With 66% of employers citing talent retention as their main HR challenge, investing in employee growth creates a competitive advantage.
What are the benefits of using an EOR in Romania?
The key benefits of using an Employer of Record (EOR) in Romania include quick market entry, simplified compliance, reduced administrative workload, cost-effective expansion, and access to local expertise.
Here are the 5 benefits of using an EOR in Romania:
Quick market entry. Companies can start hiring Romanian talent within days instead of months. You don't need to set up a local company or office in Romania. This means you can quickly bring on great Romanian workers without waiting for paperwork and government approvals.
Simplified compliance. Romanian labor laws can be tricky to understand. An EOR makes sure all employment contracts follow Romanian rules. They handle tax reporting correctly and make sure employee rights are protected. This keeps your company safe from fines and legal problems.
Reduced administrative workload. The EOR takes care of payroll, tax calculations, and paying salaries in Romania. They also handle social security payments and other required contributions. This saves your team many hours of complicated paperwork each month.
Cost-effective expansion. Setting up a Romanian subsidiary costs a lot of money and time. Using an EOR is much cheaper. You can test the Romanian market without spending big money on offices, lawyers, and accountants. Many companies save thousands of euros in setup costs.
Access to local expertise. EORs know the Romanian business world inside and out. They understand local hiring practices and can help with market insights. They make sure your Romanian employees get all required benefits like health insurance and pension contributions. This local knowledge helps avoid costly mistakes.