Over 60% of financial managers in Romania say that frequent changes of legislation is a challenge for local businesses, according to a study by GfK, the market research institute.
The study, conducted at the request of TMF Group, a provider of outsourcing services , also shows that 80% of HR managers have problems finding suitable work force. GfK analyzed the opinions of 30 financial managers and 31 HR managers from various sectors in industry, services and commerce in the local market. The findings of the study show that 33% of financial managers in Romania are facing difficulty to remain in compliance with the reporting standards imposed by Romanian authorities or by their own organization.
According to GfK, this is an increase of 7% compared to 2015 - when 26% of financial managers showed the same challenge in their work. Moreover, 30% have reported lack of communication with various local authorities.
In addition, the research shows that 32% of HR managers admit that they need help in the recruitment process and 32% experience difficulties due to frequent changes in work legislation.
"The need for automation and standardization of various business processes has increased considerably among multinational companies which have expanded their activities in Romania, prompting them to turn to service providers such as TMF Group. These decisions support the objectives of companies to increase productivity and to counter the difficulty of finding suitable work force, " said Camelia Nita, the managing director of TMF Group Romania.
According to the study, financial managers, and HR managers acknowledged that resorting to outsourcing services results in adaptability to the increased legislative changes (60% - double compared to 2015), tax compliance (over 60% ) and reduces risks for penalties of non-compliance with VAT regulations and social contributions (59%).
The results show that 44% of HR managers and financial managers consider the outsourcing of additional services - 18% would require external support for judicial and administrative functions and 12% would opt for tax compliance. Regarding the benefits after outsourcing, both HR and financial professionals appreciate the extra time they received to focus on their basic activities in their departments (71%) and 69% admitted they obtained comfort with the reduction of the administrative tasks.