“Employees Needed,” is posted in a job advertisement online and calls for Hungarians to come work in the United States. It offers green card sponsorship and $65,000 USD annually plus benefits. This wage is 4 times more than an average Hungarian’s annual salary. If you were a job seeker would you accept this job?  

For many Hungarians their answer would be “yes.” While this is just one example, tantalizing job offers abroad are a major source of competition for understaffed Hungarian companies. Further, the European Union’s single market has made emigration even easier within the EU and domestic persons are leaving for foreign opportunities. Increased monetary incentives are appealing and Hungarian Firms will need to find a way to make their vacancies competitive with other European companies.


With the demand for labor becoming more competitive it is important that businesses incorporate strategies that help them improve and grow their workforce in Hungary. Firms can do this one of two ways: temporary solutions or long term programs to sustain growth.

Hungarian Firms can recruit from less developed EU/European countries. This is exactly what bigger firms are doing in Western Europe. This strategy has a few advantages for businesses and workers themselves. Workers from less developed countries tend to accept lower wages as the average salary in Hungary is a high salary in their home country. As foreign workers are happy with these wages they use less bargaining power to negotiate higher wages. This is good for the workers too as they see an opportunity to make a better life for themselves and take it. This is one of the advantages of free movement of labor as no one is limited exclusively to what their country has to offer and employers more options when choosing employees. This strategy has been used effectively by businesses in Hungary, sometimes for shorter projects other times for lasting employment opportunities.


A method is for business to create lasting employment opportunities is by bolstering their incentive programs. The United Nations Development Program suggests the following list of Incentives that impact on motivation of staff:

  • Pay, Salaries, “efficiency wages” etc.
  • Direct financial benefits, such as Pension, illness/health/life insurance; allowances (clothing, housing, etc.), subsidies, gain sharing
  • Indirect financial benefits such as subsidized meals / clothing / accommodation / transport, scholarships, tax breaks; etc., deferred compensation such as seniority pay
  • Flexible schedules, part-time/ temporary work; sabbatical, study leave, holidays, vacation, etc.
  • Work environment/conditions, occupational health, safety, recreational facilities
  • Amenities, school access, infrastructure, transport, etc.
  • Job security; Career/ professional development/ training opportunities
  • Feedback, coaching, valued by organization
  • Solidarity, socializing, camaraderie, affection, passion
  • Status, prestige, recognition
  • Sense of duty, purpose, mission
  • Security, opportunities, stability, risk

While some listed are seemingly obvious monetary incentives, others are strategies firms can easily incorporate without incurring substantial costs. An example of this is to recruit younger employees who are employed at much lower rates and put them in a professional development program and increase internal promotions to build loyalty. This strategy has a proven return on investment and decreases turnover. For Hungarians there are already many reasons to stay in Hungary it is the employers job to bring this passion into the workplace.


Part of the challenge of finding employees is the ability to recruit talented and motivated individuals in a short amount of time. Finding valuable employees who are available to work is not easy, whether that search commence domestically or abroad. Many firms do not have the necessary resources to sustain this search, that is why many firms outsource this function to dedicated professionals. Jobtain has a proven track record of recruiting skilled employees domestically and internationally. We will connect you with reliable employees enabling the future success of your firm. Contact us for further details or with any questions you have.  



UNDP Incentive Systems


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