"A vision for growth" is a EY survey that explores the perceptions of top executives from major companies operating in Romania regarding the business outlook for 2016. In this edition we also provide comparative data with the similar surveys conducted at the beginning of 2014 and 2015.
This EY report is based on an online survey of 421 C-suite level executives from companies in various sectors, who provided a perspective on how the domestic business environment is perceived at the beginning of 2016.
In 2016 companies seem to measure their success by a combination of customer satisfaction, financial results, and market share. “Customer satisfaction” goes up from 78% in 2014 and 72% in 2015 to 83% in 2016. “Financial results” have landed on the plateau of 68% in 2016 after a 28% fall in 2015, from 96% in 2014. Compared with 2014 (63%) and 2015 (55%), “market share” goes marginally up from 55% to 56%, while “brand awareness” is on the rise from 41% up to 51%.
According to the results of our survey, 41% of respondent companies foresee a significant growth of +10% to +30% of turnover in 2016, while 32% expect a growth rate of +5% to +10% in 2016. The forecasts regarding the evolution of the profit in 2016 are optimistic as well, since 28% of the respondents profit growth rates in the interval from +5% to +10% and 32% expect the profit of their company to grow between +10% to over 30%.
20% of respondents expect no increase in the employees number in 2016. At the same time, 35% of companies say they expect their staff to increase by +1% to +5% this year. Moreover, 36% of respondents expect the number of their employees to grow between +5% and over 30%. These percentages lead us to believe that the projected expansion of businesses in 2016 commensurate with the optimism of the economic growth.
25% of respondents say they have earmarked investment growth rates of +1% to +5% in 2016 compared to 17% in H2 2015,followed by 45% who say will increase investments by +5% to +20% vs. 42% in H2 2015, and 11% who foresees their investments going up between 20% and exceeding 30% in 2016, compared with 17% at in second half of last year.
In 2016, most companies (44%) expect salaries to go up between +1% to +5%, followed by 31% of companies which expectsalaries to go up by +5% to +10% and 12% of companies which expect higher increases of +10% to more than 20%. Still 13%of companies expect no changes in the salary level in 2016.
