Bbj 2508

|1

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

HUF 1,250 | €5 | $6 | £3.5

BUSINESS JOURNAL BUDAPEST

VOL. 25. NUMBER 8

APRIL 21 – MAY 4, 2017

.hu

3

www.bbj

Budapest

Business

Journal

– May 4, 2017 | April 21

eport SpeHucimaan lResRources

17 Innovative 20 e to Become of Millennials s Under Pressur 30 ting Traits Temp Agencie the Job-hun Labor Market Terms With Hungary’s Coming to Restructure Corner to Crisis Around

ian How Hungar coping with are ng businesses rtage, attracti the labor sho keeping staff. and ials enn Mill

SPECIAL REPORT

Human Resources SPECIAL REPORT

Big Employers Becoming Creative at Tackling Labor Shortage Hungary’s biggest employers are hit by the lack of skilled labor even harder than smaller entities. Increasingly they are having to strive to find and retain talent with redefined strategies.14 SPECIAL REPORT

The 22,000+ IT Professional Shortfall Whether it is the official figure of 22,000 or the 25,000-30,000 the industry calculates does not matter: the lack of IT professionals hurts the Hungarian economy badly, regardless of the exact number.15

BUSINESS

NNG Goes Back to ‘Skool’

R&D, Digitalization Drives Automotive Industry HIPA’s latest annual Automotive Conference highlighted electro mobility and autonomous driving technologies as having the biggest growth potential. 11

BBJ_2508_news.indd 1

SOCIALITE

A Traditional Countryside Easter Ritual foods, painted eggs, best dresses, ham, pálinka, kalács and locsolkodás: It's a traditional Hungarian Easter.37

L RE SPECIA

PORT

Andrea Magyari, HR Director at NNG, explains why the Hungarian in-car infotainment software developer is happy to back a program designed to encourage more girls to take up programming as a career 22 NEWS

Investor Sentiment Improves

German investors see the economic sentiment and outlook for 2017 as “very favorable”, according to the DUIHK’s annual Business Climate Report, but labor is a concern.4

2017. 04. 19. 17:48

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall NEWS EDITOR: Christian Keszthelyi EDITORIAL STAFF: Zsófia Czifra, David Holzer,

Levente Hörömpöli-Tóth, Gary J. Morrell, Claudia Patricolo, Rob Smyth, Sarah Sunday, Noémi Titz, Ágnes Vinkovits.

LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES:

Should be submitted in English to news@bbj.hu LAYOUT: Norbert Balázs PUBLISHER: Business Publishing Services Kft. CEO: Tamás Botka ADVERTISING: AMS Services Kft. CEO: Balázs Román SALES: sales@bbj.hu

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu SUBSCRIPTIONS: Budapest Business Journal 1 year 6 months 3 months

HUF 27,500+VAT HUF 13,750+VAT HUF 6,875+VAT

News Services Hungary A.M., Energy Today, Regional Today 1 year, from HUF 179,000+VAT 6 months, from HUF 104,900+VAT 3 months, from HUF 58,900+VAT Book of Lists 2016-2017: HUF 19,120+VAT DigiBOL HUF 39,900+VAT Call +36 1 398-0344 or email circulation@bbj.hu What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

Fortepan.hu / György Jankovszky

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress.

Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

LONG-TERM INVESTMENT Must Back up Short-term Fixes

A

nd so, somewhat reluctantly, we return to the subject of the labor crisis, because it seems that everyone has been talking about in the past couple of weeks.

Off the record, government officials have long acknowledged the problem. They would not talk about it publicly, perhaps for fear of giving it negative energy; if the government spoke about it, it became a reality. But various industry groups have raised the concern so many times, in so many different forums, that it has become impossible for the government not to address it. We have seen a shift in emphasis at recent conferences: The problem is now acknowledged, but in the context of what the government is doing to fix the problem.

In other words, it is being given the best possible interpretation.

And while we have often criticized the government, for poorly thought through laws that have needed amending the moment they were passed, to laws that are unwanted and unhelpful (Sunday trading), to laws that are passed too quickly and with little consultation (of which the Lex CEU is only the most recent example), it seems only fair that we acknowledge it is doing what it can on this issue.

Mobility grants and incentives are being made available to try and encourage the unemployed to move to where the jobs are. Whatever you think of the way the workfare programs are managed, they do at least get people who have been out of the active labor force used to the idea of regular work hours again (it remains to be seen how effective over the medium-term the scheme will be at converting the inactive into useful workers, but at least something is being tried). For all that there is still too much rhetoric from socially conservative politicians about a mother’s place being at home (that should always be a choice, not a compulsion), incentives are being offered to help mothers return to the workforce, even if only part time; it should be noted here that much has been done by multinationals to promote

THEN & NOW

BBJ-PARTNERS

this idea, but the number of Hungarian awards honoring family-centric work places should also be welcomed and acknowledged. There is even money being made available to retrain, or help bring older citizens and even the retired back to work. Again, this has to be an individual choice, but there is so much valuable experience of how the world really operates out there going to waste because someone in their 50s is overlooked for a position based on their age alone.

The government gets it, but Hungarian SMEs do not always.

As reported inside our Special Report on Human Resources, there seems a reluctance to invest in training (or retraining), perhaps based on the fear workers will take that knowledge elsewhere. But as some of the experts we have spoken with argue, it has now got to the stage where SMEs cannot afford not to make that investment. So many new roles are emerging as technologies change, that retraining is inevitable for all of us. After all, I started out 30 years ago in a profession that still used typewriters and paper (and carbon copies), with pages drawn up by hand. It is a world away from computers and electronic full page makeup. Some jobs have disappeared, new ones have been created.

But these are all short-term fixes. Longer-term investment has to be made in education, and it has to start at primary school level; Hungary has been slipping back on the Program for International Student Assessment (PISA) comparisons, a worldwide study by the OECD. The most recent data, from 2015, shows that in science, maths and reading proficiency, Hungary’s 15-year-olds are below the OECD average, and those figures have been getting worse since 2006. For all sorts of reasons, but not least in the interests of producing a well-skilled workforce, that needs to be addressed as a matter of urgency.

MTI / Zsolt Szigetváry

BBJ

Easter’s locsolkodás (sprinkling with water or cologne) is a traditional cleaning, healing and (once upon a time) fertility rite. In the color photo children from the folk dance group Szilas engage in the tradition on Easter Monday in Rákospalota (part of Budapest’s District XV). After sprinkling, men are rewarded with eggs, chocolate or pálinka. The women in the black and white picture (taken in 1933) are laden with just such goodies, eagerly awaiting some neighborhood men to perform the ceremony.

VISIT US ONLINE: WWW.BBJ.HU

BBJ_2508_news.indd 2

2017. 04. 19. 17:48

1

News

1 News | 3

///macroscope

Slowing Inflation Surprises Analysts

After picking up to nearly 3% in February, inflation in Hungary slowed to 2.7% in March, a surprise to analysts who expected an 2.9% yearly rise in the index. This is the first time in seven months that CPI has fallen.

ZSÓFIA CZIFRA

Consumer prices were up by 2.7% in March from the same month of 2016. The Central Statistical Office (KSH) data shows that seasonally adjusted core inflation, which excludes volatile fuel and food prices, was 1.8%, unchanged from February, and which does not indicate any strong pressure on prices. On a seasonally and working dayadjusted basis, consumer prices were unchanged month-on-month, after rising by 0.4% in February.

Compared to the same period of last year, food prices rose by 2.2%, within which the price of sugar was up by 14%, pork by 10.8%, cheese by 7.1%, the price of rolls by 5.2%, those of other meat preparations by 5% and bread generally by 3.6%. The price of poultry meat was cut by 16.5% and that of eggs by 5.6%. A higher-than-average price rise of 7.6% was recorded for other goods, such as pharmaceutical products, motor fuels, household products and recreational goods, within which 17.1% for motor fuels. Alcoholic beverages and tobacco cost 2.6% more, consumers paid 1.6% more for services, 0.5% more for clothing and footwear, and 0.5% more also for electricity, gas and other fuels. Consumer durables cost 0.6% less.

Consumer prices in March were unchanged on average compared to February.

According to the detailed data, changes in food and fuel prices caused the setback in the consumer price index.

Surprised Analysts The drop in the yearly data certainly surprised analysts. The yearly inflation rate in March turned out to be lower than previously expected, said Takarékbank analyst Gergely Suppan. The fact that core inflation remained at 1.8% indicates a still

BBJ_2508_news.indd 3

“[T]he MNB might skip the usual reference to the possibility of using non-conventional tools in its communications in the short-term; however, we do not expect any tightening in the monetary policy thus far.” low but somewhat livening inflationary pressure, he added.

Several contradictory factors influenced the inflation rate at the beginning of the year, he said. The reduction in VAT of certain goods and services – such as poultry, eggs, milk, internet, hospitality – brought downward pressure, while base effects, fuel prices, increasing domestic demand, and rising wage costs pushed in the opposite direction. Suppan said he expected a yearly inflation rate of 2.4% in 2017, however, due to further growing domestic demand and wage costs, inflation might further accelerate and could reach the 3% target from the second quarter of 2018. “Therefore, the MNB might skip the usual reference to the possibility of using non-conventional tools in its communications in the short-term; however, we do not expect any tightening

in the monetary policy thus far,” Suppan concluded.

ING Bank head analyst Péter Virovácz agrees that several uncertainties could influence the inflation rate in the coming months. Oil prices have started to hike again after recent events in Syria and Libya, which is likely to have an impact on Hungary’s CPI. According to Virovácz, the inflation rate will likely remain at about its March level in the coming months, and will not rise near 3% until June, unless a drastic and permanent rise in oil prices occurs.

The National Bank of Hungary (MNB) is likely to stick to its extremely loose monetary policy considering the current inflation trends, said Dávid Németh, head analyst at K&H Bank. He forecasts an annual inflation rate of between 2.5% and 2.6% for this year.

Mid-term Target The MNB itself also expected a higher inflation rate in March; its own analysts even said that the rate would reach the central-bank’s mid-term target of 3% in the third month of the year. In the coming months, the MNB foresees slowing inflation, Judit Várhegyi, department head at MNB told Hungarian state wire service MTI after the data was published on April 11. She also reminded that, according to earlier estimates by the MNB, the inflation rate would reach the 3% target in the first half of 2018. Increasing consumption could also accelerate the inflation rate, she noted.

Emerging market analysts in London had forecast headline inflation of between 2.8% and 3.3% for March. The Morgan Stanley group calculates with a significant slow-down in the Hungarian inflation rate; it expects the rate to swing between 2% and 2.5% for the rest of the year. The JP Morgan group also foresees inflation slowing down in the coming months, and says it will be around 2.5-3% in the second quarter of the year, while it might get close to the 3% target in 2018.

Both institutions agree that the MNB will not start to tighten monetary conditions any time soon; indeed, JP Morgan does not expect the central bank to raise the base rate before 2019.

Numbers to watch in the coming weeks The next two weeks will not spoil us with macro data: the most exciting figures will be the first estimates of March industrial output, to be published on May 5. A day before that, retail trade – also for March – will come out. April will end with the release of unemployment and employment data for the JanuaryMarch period. The rate-setting meeting of the Monetary Council, scheduled for March 25, does not promise much excitement either.

2017. 04. 19. 17:48

4 | 1 News

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

German Chamber: Investor Sentiment Improves, Labor Shortage a Concern German and other foreign investors see the economic sentiment and outlook for 2017 as “very favorable”, and in many cases better than last year, according to the latest annual Business Climate Report issued by the GermanHungarian Chamber of Industry and Commerce (DUIHK).

The report finds that investor sentiment in the country is improving, while the labor shortage has been identified as a serious issue to be tackled.

CHRISTIAN KESZTHELYI

DUIHK was surveying its membership and other foreign investors for the 23rd time this year, assessing their views on Hungarian economic sentiment and the business environment. This yearʼs survey is larger than last year’s; a total of 230 CEOs participated, nearly 30% of whom were not German investors.

While the main finding of the report is that expectations are high that this year will bring better economic opportunities than 2016, the labor shortage is causing serious concerns for investors here, and was said to have “vigorously deteriorated over the past year”.

“It is encouraging that companies are seeing positive progress in fields such as public administration, tax system and legal security,” says DUIHK President Dale A. Martin, who is also President & CEO of Siemens Zrt. and one of the judges for the BBJ Expat CEO of the Year awards. “However, despite the improvement in these matters, it is still a smaller percentage of positive responses, as compared to the critical, while the level of satisfaction in Hungary is lagging behind other countries in the region. That is why we want to encourage economic policy decision makers to consistently improve predictability and transparency and

BBJ_2508_news.indd 4

FORECAST

“It is encouraging that companies are seeing positive progress in fields such as public administration, tax system and legal security. […] However […] the level of satisfaction in Hungary is lagging behind other countries in the region. That is why we want to encourage economic policy decision makers to consistently improve predictability and transparency and continue in their efforts to decrease bureaucracy.”

FOR THE HUNGARIAN ECONOMY GDP

EXPORT

INVESTMENT GROSS FIXED CAPITAL FORMATION

GOODS AND SERVICES

10%

10%

5%

5%

0%

0%

2017

2018

2019

2017

MNB

2018 EU

SOURCE: DUIHK, NATIONAL BANK OF HUNGARY (INFLATION REPORT, MARCH 2017); EU: EUROPEAN COMMISSION (WINTER FORECAST, FEBRUARY 2017)

continue in their efforts to decrease bureaucracy,” he added.

Positive market conditions are considered by companies to be an encouragement for increasing investment value and expanding staff numbers, even while investor sentiment about the labor market is stalling. Three-quarters of the participants said that availability of trained labor force has been deteriorating, which is causing companies difficulties in production and also the provision of services.

Serious Problem Dirk Wölfer, DUIHK’s head of communications noted that the labor shortage was mainly indicated as a serious problem by larger, exporting companies in the manufacturing sector.

These had earlier showed a higherthan-average willingness to make investments, which could decline in the future if they cannot find the appropriate workforce. The survey found that 15-16% of companies had to turn down orders because of this. Wölfer added that investor dissatisfaction has lessened with regard to legal security and bureaucracy, but has increased with regard to corruption and the transparency in public procurements.

Martin, the chamber president noted that the skills shortage had an effect beyond individual companies unable to find workers. “This trend is not only detrimental to the cause of business enterprises, but in the medium-term has a negative impact on the national economy and economic growth, and in given cases could jeopardize planned investments planned,” Martin argued.

He further noted that, beyond shortterm actions from companies, permanent solutions need to be made, such as involving more groups in the labor market, launching corporate training, as well as further improving the professional training and higher education system. Therefore, DUIHK is paying a special attention to the improvement of the labor shortage

situation, in the framework of which the chamber is hoping to realize projects to aid companies in such issues.

The ratio of investors present in Hungary and saying they would further invest in the country grew by 1.5 percentage points to 81%, compared to the previous year. However, Hungary is ranked ninth — similarly to the last three years — out of 15 countries in the CEE in terms of attractiveness of the environment for investment, while its V4 peers all hold podium positions: Czech Republic is first, followed by Poland and Slovakia.

DUIHK’s Investment Sentiment Index, calculated based on the results of the

NATIONAL ECONOMIC OUTLOOK BALANCE OF IMPROVEMENT/DETERIORATION IN PERCENTAGE

55

53

31

27

MACEDONIA ROMANIA POLAND BOSNIA AND HERZEGOVINA ALBANIA CZECH REPUBLIC BULGARIA MONTENEGRO SERBIA SLOVAKIA HUNGARY LATVIA LITHUANIA ESTONIA SLOVENIA CROATIA

25 25 24

-14 -11

23 -2

3 4

15

18 18

SOURCE: DUIHK

2017. 04. 19. 17:48

1 News | 5

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

ANNUAL AVERAGE CHANGES

THE PACE

IN VOLUME OF GDP BETWEEN 2010 AND 2016

OF ECONOMIC GROWTH IN HUNGARY GDP CHANGE IN PERCENTAGE

GDP CHANGE IN PERCENTAGE

3,2

3,1

3,1

3 2,6 2,3

2,2

3,9

3,4

2,9

4,8

4,5

4,4

4,2

2,3

3,7

4,5

3,9

4

3,1

3,1

2,2

1,7 0,7

1,8

1,8

0,5 0

1,7

0,7

-0,1

-0,6

1,3

-1,5

-3,1

-3,5

0,8

1,8

0,6

0,8

-6,5

-11,9

LITHUANIA

POLAND

ESTONIA

SLOVAKIA MACEDONIA ROMANIA

LATVIA

ALBANIA

CZECH REPUBLIC

BULGARIA HUNGARY

EU

SLOVENIA

SERBIA

CROATIA 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-0,2

SOURCE: SOURCE: DUIHK, EUROSTAT

survey, grew by two points — from 18 to 20 —compared to 2016, which is the best figure measured to date for Hungary. Taking the index and other factors in consideration, DUIHK expects Hungarian GDP to grow this year by 3.5%, which is at the same level of EU’s expectations, more optimistic than the IMF’s 3%, but more pessimistic than the

Hungarian government’s 4.1%. István Lepsényi, state secretary responsible for the improvement of national economy and regulations at the Ministry for National Economy, acknowledged the feedback by the chamber, and was present at the presentation of the report’s findings on April 12. “The feedback of companies operating here, especially of German

SOURCE: SOURCE: DUIHK, EUROSTAT

companies, are particularly important for us,” Lepsényi said. He also expressed appreciation for those German companies operating in the country that had expanded their production last year, which significantly contributed to the well-being of the Hungarian national economy.

Lepsényi noted that 45% of the companies operating in Hungary

planned to expand their activity and 81% said they would bring their investment here again if they had to make the decision now.

The DUIHK survey was carried out in parallel in 15 Central and Eastern European countries, the international results of which will be announced within a few weeks.

ADVERTISEMENT

DR. ROSE PRIVATE HOSPITAL

DR. ROSE ORTHOPEDIC CENTER

DR. ROSE OBSTETRICS

DR. ROSE BUDAPEST PLASTIC INSTITUTE

DR. ROSE CORPORATE HEALTH CARE

7/8. SZÉCHENYI SQUARE 1051 BUDAPEST TEL.: +36 1 377 6737 WWW.DRROSE.HU

Private Hospital Obstetrics Orthopedic Center Budapest Plastic Institute Corporate Health Care

BBJ_2508_news.indd 5

Dr. Rose offers an expanded range of services for its patients in an attractive and modern environment. Patients are offered examinations in 28 fields, preventive screenings and excellent specialists without any waiting time. Besides the Private Hospital, the Obstetrics, the Orthopedic Center and the Budapest Plastic Institute, we also operate a Corporate Health Care department. We provide our complex, premium quality health care services with up-to-date equipment and qualified staff amongst stylish surroundings in the heart of the inner city.

2017. 04. 19. 17:48

6 | 1 News

REAL ESTATE NEWS

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

M7 Real Estate Acquires Aerozone Logistics Center British investor M7 Real Estate has completed the purchase of the Aerozone logistics center, located close to the Budapest Ferenc Liszt International Airport.

GARY J. MORRELL

The project was originally developed by AIG/Lincoln, and was the first logistics park in Budapest designed to service companies operating in the airport area. The complex was purchased by the Austrian investor, Europolis and subsequently acquired by a joint venture of CA Immo and Union Invest, which has now sold the project.

The Aerozone logistics center is located in close proximity to Ferenc Liszt International Airport, with direct access to the M0 ring road. The center provides 62,000 sqm of prime warehousing and class “A” office space. The airport surroundings are regarded as a growth area for logistics in the capital. CPI, for example, has

Aerozone logistics center, close to the Budapest Ferenc Liszt International Airport.

moved into the logistics sector with the development of the Airport City Logistic Park. The airport operator, Budapest Airport Zrt., has undertaken development of a

13,000 sqm logistics

base for DHL Express that is due to be completed this summer; a second 12,000 sqm logistics facility for TNT is also due to be completed this year.

Tim O’Sullivan, head of capital markets at CBRE for Hungary and SEE puts current prime industrial yields for Budapest at around 8%. The industrial

investment sector is regarded as being in a strong position due to rising demand and low vacancy.

Property Manager

CBRE acted for M7 in the Aerozone deal and has also been appointed as the property manager and leasing agent, as was the case with previous purchases by M7 in Hungary last year. The investor purchased two shopping centers: the Atom Center in Paks and Csillagvár center in the capital, in addition to an industrial asset in Dunaharaszti (20 km south of Budapest).

Although the industrial sector is regarded as an attractive investment

destination, the limited supply of available stock is expected to restrict activity. Park operators tend to keep acquisitions in their portfolios for the longer-term once they have made an acquisition.

M7 Real Estate defines itself as “a specialist in core-plus and value-add invest opportunities in the multi-let real estate sector”, and David Ebbrell, chief investment officer at M7 Real Estate, sees Aerozone as providing the possibility for active asset management.

Targets of the Central Europe fund have included cities across Croatia, Czech Republic, Hungary, Poland, and Slovakia and purchases have been concluded in all sectors. Outside of Hungary, where secondary markets are established, this has tended to be in regional cities.

M7 has now reached its target of

EURof investor 60 million capital

for its first Central Europe investment fund. A further EUR 68.5 mln debt facility has been agreed with Starwood European Real Estate Capital. “The remaining pipeline is fully identified and this will enable the remaining circa EUR 68.5 mln of deals to take place during the next few weeks and result in the fund being fully invested,” said Richard Croft, CEO of M7.

CPI Property Group Buys Campona, Pólus in Regional Deal Subsidiaries of the CPI Property Group have acquired a EUR 650 million, 265,000 sqm CEE retail portfolio consisting of 11 shopping centers, located in Hungary, Czech Republic, Poland and Romania, from two funds managed

by CBRE Global Investors.

GARY J. MORRELL

In Hungary, the portfolio consists of the earlier generation 40,000 sqm Campona Shopping Center in District XXII and the Pólus Center in District XV, opened in 1996. The deal also includes the Andrássy complex consisting of office and street front retail, and the Zalaegerszag Interspar

BBJ_2508_news.indd 6

The Campona Shopping Center in District XXII: Under new ownership.

and Nyíregyháza Interspar stores in the Hungarian countryside.

In addition, CPI has purchased Olympia Plzen, Nisa Liberec and the multifunctional Zlaty Andel complex in Czech Republic, Ogrody in Poland, and Felicia in Romania.

Debt financing for the deal has been arranged through several

loans totaling

EUR 440 mln,

with CPI Property Group providing the remaining financing from its own funds.

In Hungary, finance has been provided

by UniCredit Bank, Raiffeisen Bank, and Sberbank, in Czech Republic by Helaba and CSOB, in Poland by Helaba, and in Romania by HypoNoe Bank. CSOB covered

the transaction as the escrow agent.

“This transaction clearly demonstrates that CPI Property Group now belongs to the premier league of European real estate investors. In the current competitive market, we managed to win the bidding process, agree financing with major banks and drive the acquisition process with advisors all within a six-month period,” commented Martin Nemecek, CPI’s CEO. According to CPI, the transaction will more than double the amount of shopping center space in its regional portfolio to

430,000 sqm of space

under management. CPI plans to undertake asset management of the earlier generation shopping centers in

“The [just acquired] portfolio will boost the total number of shopping centers in our overall portfolio to 20. We are well prepared to integrate the new assets into our management and to work on long-term strategies enabling us to remain fully competitive in the current and future environment.”

Budapest. “The [just acquired] portfolio will boost the total number of shopping centers in our overall portfolio to 20. We are well prepared to integrate the new assets into our management and to work on long-term strategies enabling us to remain fully competitive in the current and future environment,” said Tomas Salajka, director of acquisitions, asset management and sales at CPI. Mark Rea, partner at Sentient, who carried out technical due diligence for both the CPI and M7 [see story above] transactions, commented: “Both deals demonstrate the increasing appetite for real estate investment in Hungary, with 2017 looking like a record year.”

2017. 04. 19. 17:48

1 News | 7

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

More Foreigners Buying Residential Real Estate in Hungary The Hungarian residential real estate market appears to be becoming an ever more attractive place for foreign investors, according to recent data summarizing investments from 2016. Q4 data shows that overall the Hungarian market was the second fastest growing in terms of residential real estate prices in the European Union, closely following Czech Republic.

CHRISTIAN KESZTHELYI

A total of 3,163 residential properties were purchased in Hungary by foreigners last year, the majority of them being houses and flats, according to statistics made available in the database of official government website kormany.hu. The top three countries in terms of such investments are China (1,213), Russia (446) and Ukraine (231).

Although the popularity of applying for credit is falling, some investors did opt for the possibility.

Attention to the market here grew the last year, as in 2015, only 2,358 residential real estate units were purchased by foreigners, though the top three source countries did not change.

While Chinese citizens purchased almost twice as many units in 2016 than the preceding year (724), residents of the other two countries actually purchased fewer properties in last year: Russia 513 in 2015, and Ukraine 344.

As investor mood seems to be growing, it might be beneficial to note that foreigners have numerous possibilities in applying for credit. “The majority of Hungarian institutions make it possible for foreigners to apply for credit, but naturally the process is different than it is for Hungarians,” says Krisztián Vincze, the chief of the GDN Real Estate Network’s Credit Center, in a commentary sent to the Budapest Business Journal. “Although citizenship is an important factor when applying for credit, what is more important is whether the foreign client counts as a resident (devizabelföldi) or nonresident (devizakülföldi),” he adds.

BBJ_2508_news.indd 7

Foreigners are buying up residential properties , such as those due to come to the market in the mixed use BudaPart site currently breaking ground, in ever-greater numbers.

much reduced, they still might be able to

that, in the case all of the 27 countries

Hungary was second only to Czech Republic, out of 27 investigated member states, when it came to the growth in residential real estate prices in the fourth quarter of last year.

Prices of residential real estate units in Hungary grew by 9.7% in Q4 2016 as compared to the same period a year earlier, according to Eurostat, just behind the Czech market at 11%. In the first three-quarters of the year, Hungary actually topped that list, while the Q4 data is much higher than the regional average, according to an analysis sent to the BBJ by real estate firm OTP Ingatlanpont. The analysis also noted

broke a record at the end of last year, exceeding the peak prices of 2008, just before the financial crisis hit, OTP Ingatlanpont observes. In terms of real value, with the exception of Budapest, residential real estate prices lag behind approximately 10% to 2008, while the prices related to wages resemble that of 1998-1999, which is again about 10% lower than the respective peak before the crisis, OTP Ingatlanpont adds.

Valkó expects the expanding numbers of newly built residential real estate due to hit the market will slow price growth to a single digit in Hungary, while regional differences could further deepen.

receive bank financing for 60-70% of the investigated by Eurostat, an increase “Average residential real real estate’s value. was observed in Q4 as compared to Q3, estate prices for the evidence that property prices are on the rise across the Union.

Misconception whole country reached As compared to the preceding quarter, The GDN professional notes that real estate prices in Hungary grew by can even be entitled to state HUF 200,000 by the end of nonresidents 1.5% in 2016 Q4, putting the country funding, if all the criteria are clarified, 2016 per sqm. In Budapest, such as why the individual is interested among those in the middle. Malta, for example, saw a 6% quarter-on-quarter in Hungary, where they pay their taxes buyers had to pay much price increase in Q4. and if they have a Hungarian tax number. more, approximately HUF Vincze adds that it is a wide misconception that a foreigner will meet more complex Long-term Trends 360,000 per sqm. [...] An administration and slower credit process, “Average residential real estate prices because the majority of creditors do not for the whole country reached HUF above the average price ask for translation of foreign language 200,000 by the end of 2016 per sqm. In increase in terms of blocks documents. Furthermore, as long as they Budapest, buyers had to pay much more, are in English or German, in the majority approximately HUF 360,000 per sqm,” of flats inflated prices [in of the cases no translation is needed at says Dávid Valkó, chief analyst of OTP all, he adds. in the analysis. “An above that sector] to around HUF Although interest in the residential real Ingatlanpont, the average price increase in terms of estate market in Hungary appears to be blocks of flats inflated prices [in that 300,000 per sqm in the growing among foreign nationals, prices sector] to around HUF 300,000 per sqm capital, which used to be are also increasing here rapidly, two facts in the capital, which used to be the level that may not be entirely unconnected. of top blocks of flats a few years before,” the level of top blocks of According to the latest statistics from Valkó comments.

Eurostat, the EU’s statistical authority, Additionally, nominal price levels flats a few years before.”

A resident is a natural person who has identification documents issued by Hungarian authorities, which grants more credit possibilities for them compared to nonresidents. Another important factor seems to be where the individual receives their general income.

If a foreigner receives their earnings from Hungary, even more possibilities are available for them.

In the case of individuals who do not reside in Hungary, and are solely interested in investing in the country, though the possibilities for credit are

2017. 04. 19. 17:48

2

2

Business

Business

Overseeing Global Vaping Growth from Budapest An ambitious North American vaping company with plans for global leadership has its international customer service and sales operation based in Budapest, even though it has no Hungarian business, as of yet.

GILLA 2016

REVENUE BREAKDOWN NORTH AMERICA EUROPE

ROBIN MARSHALL

According to its website: “Gilla aims to become the global leader in the manufacturing and distribution of generic and premium E-liquid brands and proprietary recipes for the vapor industry.” It is a goal that will be realized, at least in part, by a 20-strong team in Horvát utca, in Buda’s District II. All customer service and sales activities outside of North America, as well as international logistics and distribution, are handled by the team in

Q1 What is Vaping?

Gilla Inc. specializes in the manufacture, marketing and sale of own-brand and white label e-liquids, used to vape, a process the Oxford English Dictionary defines as to “Inhale and exhale the vapor produced by an electronic cigarette or similar device.”

Basically, the liquid is heated by an atomizer to deliver the sensation of smoking. As it has only been around since 2004, there have been no long-term studies on the health effects of vaping, but the respected British Royal College of Physicians published a report on April 28 last year called “Nicotine without smoke: tobacco harm reduction” that, according to the RCP website “concluded that e-cigarettes are likely to be beneficial to U.K, public health. Smokers can therefore be reassured and encouraged to use them, and the public can be reassured that e-cigarettes are much safer than smoking.”

BBJ_2508_bus.indd 8

USD 1,317,000 USD 40,000

Q2 USD 522,000 USD 390,000

Budapest, which Gilla took on a little over a year ago.

“TheGILLA main reason we did so SOURCE: was there was strategic opportunity, in that a company called Green Smoke had a distribution business set up in Budapest.

When it was acquired, Green Smoke was going to shut down that operation,” chairman and CEO Graham Simmonds tells the Budapest Business Journal.

“The business was similar to ours; the advantage for us was that we would have to do very little training. We saw it as an opportunity, and of course it was great for the employees who would get to keep their jobs. What we did when we hired them is we honored their historic tenure from that previous business.”

Very Happy The CEO says the acquisition has worked out well. “I am very happy with the decision we made year ago. We were able to integrate it quite well with the North American business, and it has

Q3

Q4

USD 557,000 USD 492,000

USD 273,000 USD 983,000

“I am not an end user, I did not develop the product. What I am is an entrepreneur who has built a number of businesses from the internet to financial.

This started as an opportunity for me because I thought it was a business that was being run inefficiently.” been very successful. It gave us an opportunity to expand that platform, the European business is growing well.

Actually, we also have a Slovakian business, a distribution platform, that is only a 45-minute drive away from Budapest and that allows us to service our customers throughout Europe seamlessly.”

In terms of company size, Simmonds says, “We are somewhere in the midrange, but we are the fastest growing company.”

Significant European markets include the United Kingdom, Belgium, Netherlands, Denmark, Germany and France. One thing that stands out in that list is the relatively small size of some of those countries.

“Smaller markets can be great opportunities, because bigger players will ignore servicing them for many reasons. Belgium, for example, is a complicated market with three official languages.”

And skills with languages is definitely something that the Budapest office can help with. “Our people speak many languages. Having a country manager who speaks the language and who, in dealing with the customer, can maintain a level of respect for the culture and how you are used to doing business is a help.

We sell to 25 countries across most

2017. 04. 19. 17:58

2

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

“We would prefer that was in Hungary, so we can get lines of management close together. Our second choice would be Slovakia. We are having some due diligence done; there are a number of issues to look at around import and manufacturing.”

Highly Controlled

Graham Simmonds, CEO of GILLA Inc. of Europe, and we have someone who can speak to people in any one of those markets in their own language. When we go to trade exhibitions and shows, for example, most North American companies do not have that capability; it is a huge advantage.”

ADVERTISEMENT

BBJ_2508_bus.indd 9

All manufacturing is currently done in Gilla’s eVapor Labs, located in Daytona Beach, Florida. Simmonds says that this is a high margin business, meaning shipping across the Atlantic is viable, but having a European manufacturing base would be an obvious next step.

And then there is the question of selling in Hungary itself. “We have looked at the market, and we have had our products registered, but to date there have been no sales. The distribution network [for tobacco products and e-cigarettes and related products] is highly controlled. We have to find the right distribution partner, a local partner who can plan the development of the market and manage things hands on. But we have great products, and that is one of things on the docket for this year.”

Interestingly, Simmonds admits he does not use his own products. “I am not an end user, I did not develop the product. What I am is an entrepreneur who has built a number of businesses from the internet to financial. This started as an opportunity for me because I thought it was a business that was being run inefficiently.”

He describes it as being, in essence, a bottling business, and decided to take the sort of approach used by bottling and distribution companies such as Diageo and Coca Cola, finding the right product from a range to suit the local palate.

Business

|9

The EU’s Tobacco Products Directive The TPD is a series of rules that restricts the manufacture and sale of tobacco and related products. In 2014, e-cigarettes were added to the list of products covered under Article 20. Although it began to be implemented in May 2016, many countries have phased in the regulations, but they will be in force EU-wide from this May. Restrictions include • e-liquid to be sold in bottles no larger than 10 ml • cartridges are to be no larger than 2 ml • a maximum of 20 mg/ml of nicotine • a ban on advertising • packaging must be child-proof as well as including health warnings In Hungary, the sale of nicotinecontaining cartridges is only allowed at official Nemzeti Dohánybolt (National Tobacco Shop) outlets. The legal purchasing age is 18 years.

ADVERTISEMENT

2017. 04. 19. 17:58

10 | 2

Business

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

AmCham CEO Among Hungary’s Most Influential Businesswomen Írisz Lippai-Nagy, the CEO of the American Chamber of Commerce in Hungary (AmCham) has been named as the 19th most influential businesswoman in Hungary by business magazine Forbes Magyarország.

ROBIN MARSHALL

Forbes Hungary compiled the list for the third time this year. In addition to the top 50 businesswomen, there were also lists for the media, public life and culture sectors.

“It is certainly an honor to be on the Forbes Hungary most influential business women’s top list this year,” said Lippai-Nagy in a statement emailed to the Budapest Business Journal.

“However, it is an honor I share with many: my dear family, my amazing team, our members and all the wonderful

role models on the list this year and before,” she added.

“More importantly, the pure existence of such a ranking means that there are also several hundred amazing women leaders off the list, who worked just as hard in 2016 and hopefully will be recognized for their work at one point in their careers. Also, I do not believe in a male-female divide; I believe in working together, enabling talents, enabling partnerships and not labeling or contra-selecting. Empowering female leaders can only happen with the right role models, and if we all believe in the

Írisz Lippai-Nagy, CEO of AmCham. importance of a more gender-equal world, including male leaders in our society.”

Top Trios The top three businesswomen, as selected by Forbes, were: Ilona Dávid, CEO-President of MÁV Zrt. (Hungarian

State Railways); Ágnes Fábián, CEO of Henkel Magyarország Kft. (the chemical and consumer goods company); and Éva Hegedüs, CEO-President of Gránit Bank and member of the board of the Hungarian Banking Association.

The podium places for the public life category went to: Anikó Lévai (the wife of Hungary’s Prime Minister Viktor Orbán); Réka Szemerkényi (the recently recalled ambassador to the United States); and Mónika Karas, President of the National Media and Infocommunications Authority (NMHH).

The media top three were: Gabriella Vidus, CEO of RTL Magyarország; Gabriella Halkó, economy and strategy director at TV2; and Fanny Kaminsky, editor of the prime minister’s Facebook page.

The three most influential women in the culture category were: Ágnes Havas, CEO of the Hungarian National Film Fund; Katalin Spengler, art collector and member of the London Tate Modernʼs acquisition committee and also the Pompidou Center in Paris; and Enikő Eszenyi, director of Budapest’s Vígszínház (Comedy Theater).

Connected car Firm Bright Box Expands Into Europe Bright Box, a global vendor of so-called connected vehicle services, announced a major expansion on April 11, saying it has established an office in Budapest to serve the European market and appointed an operational manager to meet client needs and enhance relationships.

BBJ STAFF

According to Bright Box, Alpár Demény’s role will be to build a multidisciplinary organization in Budapest that serves European customers and integrate it into the current international organization.

The Budapest office is responsible for all ongoing activities and projects for European customers. Starting from

product support and maintenance, through to the customized product development sector, ending with core platform product development and research.

Connected cars represent a relatively new concept, generally dated back to 1996 when General Motors and Motorola launched their OneStar safety features Alpár Demény, across a number of models. Wikipedia Operational Manager defines the idea thus: “A connected car

of Bright Box.

ADVERTISEMENT

is a car that is equipped with internet access, and usually also with a wireless local area network. This allows the car to share internet access with other devices both inside as well as outside the vehicle. Often, the car is also outfitted with special technologies that tap into the internet or wireless LAN and provide additional benefits to the driver.”

Paving the Road The company says Demény and Robert Schuessler, the VP for Europe who is responsible for sales and business development of the company, will be managing all the European business aspects, “paving the road for Bright Box to serve Europe from Europe”.

Demény comes to Bright Box from NNG, the Budapest-based global company best known for its navigation

BBJ_2508_bus.indd 10

and infotainment systems, where he was responsible for a developer’s center in Hungary and a business unit developing products for big OEMs such as Fiat Chrysler Automobiles Group, Jaguar Land Rover Group, Toyota, Yamaha, and Harley-Davidson. He has more than 10 years’ experience in the automotive world in varying leadership and management positions. Previously he worked at Knorr-Bremse Group, delivering complex products to clients such as Daimler, Volvo-Renault Trucks, DAF, and Hyundai.

CEO of Bright Box, Ivan Mishanin had this to say: “At the end of February Bright Box launched the MyHonda Connected Car solution in six European countries. […] Bright Box will continue to increase capacity to serve our automotive customers and tier one suppliers based in Europe. We are very excited to bring these talented managers on board to further strengthen our customer deployments and relationships.”

Bright Box LLC Bright Box LLC is a European corporation that is specialized in solutions and platforms in the connected car sector. Its headquarters are in Switzerland and the developers work primarily in Eastern Europe. The company was founded in 2012 and employs more than 100 staff currently.

Connected car platform Remoto has already been successfully deployed by several automakers, including Infiniti, KIA, Toyota, Hyundai and Nissan.

More information: www.bright-box.com; www.remoto.com

2017. 04. 19. 17:58

2

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Business

| 11

More R&D and Digitalization to Drive on the Hungarian Automotive Industry The latest annual Automotive Conference organized by the Hungarian Investment Promotion Agency (HIPA) highlighted the recent record of the industry, with electro mobility and autonomous driving technologies having the biggest growth potential.

LEVENTE HÖRÖMPÖLI-TÓTH

Senior representatives of the government, the largest automotive companies, SME suppliers and renowned universities in Hungary gathered for the fourth time on April 13 to discuss matters concerning the present and possible directions for progress of the local automotive sector.

Minister of Foreign Affairs and Trade Péter Szijjártó said that Hungary wishes to offer ideal conditions for R&D activities, and the most attractive investment environment in Europe. “In order to achieve that, digitalization must be linked with production, and we need to move from the concept of ‘Made in Hungary’ to ‘Invented in Hungary’,” he noted. “This means enterprises should carry out not only manufacturing, but also research and development in Hungary.”

Industry numbers should give reason for optimism. Automotive firms located in Hungary certainly seem to be planning for the long run here. The production value of the sector delivered recordbreaking revenues of HUF 7.874 trillion, of which 92.2% was sold on export markets.

Automotive accounted for 30.1% of the entire processing industry, and more than 154,000 people were employed in the

the minister as tools designed to create a sector-friendly environment.

“By supporting the development of electro mobility and autonomous vehicles, not only high-added value workplaces will be created, but the SME sector will also have the opportunity to be integrated in to the value creation chain of large corporations,” Róbert Ésik, President of HIPA added.

Last year witnessed a total HUF 1 tln in investments, an unprecedented amount of inflow into the country, and achieved with the heavy involvement of HIPA. Automotive carried the day in this process.

“In 2016, HIPA closed 71 projects, of which 25 concerned automotive and will generate EUR 1.948 tln in investments and 7,759 new workplaces in the upcoming years,” Ésik said.

The panel discussions following the keynote speeches addressed issues related to Industry 4.0, that is the areas of application of the network of machines and equipment. It was pointed out that the combinations of digital technologies will trigger an endless number of opportunities for application and progress is set to accelerate even more.

“Indeed, for the future of the sector in Hungary it is of critical importance how the results of technologies connected to Industry 4.0 can be utilized and how Hungarian suppliers can assume a more significant role in the process,” Ésik concluded.

sector as of Q4 2016. Szijjártó stressed that the sector will be propelled forward by electro mobility and autonomous driving technology, both on the verge of having exponential growth. “Hungary can succeed in the competition for investment resources only if attractive tax and financial conditions exist, and qualified workforce and cutting edge digital environment are available,” he noted.

Sector-friendly Environment Construction of a test track for selfdriving vehicles in Zalaegerszeg has started, with the first tests scheduled for H1 of 2018. Alongside that, the reduction of the corporate income tax to 9%, the promotion of dual training as well as both supplier and investment incentive programs were mentioned by

ADVERTISEMENT

For flexible and fast solutions MINI LEASE from Budget!

Rent from 1 month up to 12!

Complete your fleet fast!

Fleet solutions & management

For further questions on Mini lease, contact our collegue: endre.papp@budget.hu For other solutions find us on: http://budgetflotta.hu/en

budgethu budget.hu rentacar@budget.hu +36 1 700 4864

Budget_renault_Mini_Lease_hirdetes_260x160.indd 1

BBJ_2508_bus.indd 11

budgethu

An old companion for the long run

2017.04.10. 14:09:37

2017. 04. 19. 17:58

12 | 2

Business

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Company ///news Tata expands service center, eyes more hires

The Hungarian subsidiary of India’s Tata Consultancy Services (TCS) has expanded office space by 5,000 sqm at its Budapest-based global service center, which is expected to create 500 new jobs, according to a press statement sent to the Budapest Business Journal by the Ministry of Foreign Affairs and Trade on April 18. The service center, which was opened in 2001 employing just a few dozen engineers, today operates with a staff of 1,800, Minister of Foreign Affairs and Trade Péter Szijjártó said at the inauguration of the expansion. Staff at the center include highly qualified engineers, economists, IT experts and developers, Szijjártó said, adding that more than 10% of them are students. Szijjártó noted that the service sector is the second busiest in terms of investment in Hungary, following the automotive sector. He added that the sector employs more than 42,000 young professionals born after 1980.

BP SSC starts operations in Szeged

The new shared services center (SSC) of British multinational oil and gas company BP started initial operations in Szeged in temporary offices, the company’s PR agency told Hungarian news agency MTI on April 12. The permanent office building of the SSC, a refurbished building of a local clothes manufacturing plant, will be inaugurated in September. BP is investing HUF 8 billion in the center, while the Hungarian government is supporting the investment with a HUF 1.9 bln grant. The company will have 270 employees in Szeged by the end of the year. By 2020 this number is expected to rise to 500, according to the company’s announcement last September. BPʼs SCCs in the capital and Szeged, under the company’s Global Business Services Europe organization, will offer financial, accounting, procurement, tax, HR,

exchange trading and customer relations services.

Lear Corporation to quit Hungary, laying off 800

U.S.-owned Lear Corporation Hungary is ceasing production of car seat covers in Hungary and laying off 800 people at its base in Mór, western Hungary, a union leader told Hungarian news agency MTI on April 10. Lear will gradually wind down production by the end of this year, said Zsolt Kozma. The base in Mór has been operating for more than 24 years.

The Ministry for National Economy has said that it is closely following the situation. National Employment Nonprofit Ltd. will assist laid-off workers with training and finding new jobs, it added.

Audi Hungaria to start serial production of new Q4 model in 2019 German carmaker Audi will launch serial production of the new Q4 SUV model at its plant in Győr in 2019, Audi Hungaria informed Hungarian news agency MTI on April 11. The launch will take place one year after the start of serial production of the Q3 model next year. Both models

will be produced in Audi’s new 80,000 square-meter plant at Győr.

The Q4 will be the sixth Audi model to be built in Győr, according to the report.

SCS Stahlschmidt eyes new production hall, staff

The Hungarian subsidiary of German Bowden cable manufacturer SCS Stahlschmidt is planning to expand its plant with the addition of an 800 sqm production hall at its base in Tatabánya, managing director István Tornyos told state news agency MTI on April 18. SCS Stahlschmidt Cable Systems Hungary is planning to invest approximately HUF 500 million in increasing production and storage capacity in the coming two years. Additionally, the firm is looking to hire 30-40 new employees by the end of the year. Currently the Hungarian subsidiary operates two production halls of 2,000 sqm each, working with a staff of 350. Revenues rose 20% last year to HUF 3.7 bln, MTI reported. A Bowden cable is a special type of flexible cable most commonly used to transmit mechanical force or energy by the movement of an inner cable relative to a hollow outer cable housing.

ADVERTISEMENT



BBJ_2508_bus.indd 12

2017. 04. 19. 17:59

3

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Special Report Human Resources Temp Agencies Under Pressure to Become Innovative 17 Coming to Terms With the Job-hunting Traits of Millennials 20 Crisis Around Corner to Restructure Hungary’s Labor Market 30

How Hungarian businesses are coping with the labor shortage, attracting Millennials and keeping staff.

BBJ_2508_special_report.indd 13

2017. 04. 19. 17:48

14 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Big Employers Becoming Creative at Tackling Labor Shortage “Depending on the position, online and offline forums are used by us for recruitment, with social media being an inevitable factor in the game.”

Hungary’s biggest employers are hit by the lack of skilled labor even harder than smaller entities.

Increasingly they are having to strive to find and retain talent with redefined strategies.

13-14-year-old pupils: the company attended 30 such events last year.

State-owned postal company Magyar Posta hit the headlines with its chronic lack of labor at the end of last year when a great number of Christmas packages suffered critical delays. Worse might be underway. As Kálmán Majtényi, deputy corporate CEO of Magyar Posta Zrt. said earlier, the organization expects to be “processing 12.5% more parcels this year than in 2016 due to the dynamic growth of e-commerce”. At Easter alone, the normal daily volume of 55,000 shipments may double, and for April a total volume growth of 29% is projected compared to last year.

LEVENTE HÖRÖMPÖLI-TÓTH

Although it seems that a mass strike of BKV, the Budapest public transportation company, has been avoided for now, it is widely-known that wages are only one of the imminent problems with which one of the biggest employers of the country is confronted. Scarce manpower poses even more risk.

Take the upcoming renovation of the third metro line, where it is feared that there will not be enough drivers behind the controls of the replacement vehicles.

But BKV says that arrangements have been made to overcome the bottleneck.

What is more, BKV insisted in a statement sent to the Budapest Business

Targeted recruitment seems to be working as well, and even putting up job advertisements on trams has apparently intensified interest for that particular segment.

Journal, currently there is “no position where a labor shortage cannot be compensated” and the approximately 150 unfilled positions account for around a mere 1.5% of the total staff.

Still, drivers remain at the top of BKV’s most sought after employees, along with skilled workers and engineers. In the case of the latter two, BKV is seeking to establish long-term cooperation with schools to encourage dual training schemes. Targeted recruitment seems to be working as well, and even putting up job advertisements on trams has apparently intensified interest for that particular segment. It is hoped the total wage raise of 15% proposed for 2017 will keep the threat of a strike at bay, for now.

Dedicated Careers Office Magyar Posta faces a shortage of staff, said to be worst in the central and western parts of Hungary. active from May onwards, under which an employee will be entitled to a HUF 35,000 bonus for every person they talk into joining MÁV. Needless-to-say, the payment is due only after the newcomer is actually put on payroll.

Substantial salary raises are planned here as well, with the specific purpose of persuading personnel to stay. “MÁV Group has concluded an agreement with the trade unions according to which the rate of the raise will amount to 13% in 2017, 12% in 2018 and 5% in 2019,” according to a statement sent to the BBJ by MÁVʼs communications directorate. “This means that workers at MÁV will witness a total salary increase of 30% in three years.”

This effort complements a scheme already implemented under which a

systematic wage raise had been launched for those employed in the strategically most important positions.

Meanwhile, a 50-point action plan has been put together by the company’s HR management, which is subject to review on a monthly basis. The action plan includes, among other things, making short films presenting different jobs, reducing risks related to recruitment, and staff training. Key vacancies range from cashiers to conductors to switch operators. Manpower is recruited via multiple channels; direct marketing on suburban services plays an important role, alongside online advertisements and job fairs. MÁVʼs presence has been particularly strong at so-called career orientation exhibits targeting

Recommendation Bonus The 38,000-strong state-owned MÁV Group (Hungarian Railways) is faced with no lesser challenge.

Since it has the most positions to fill, it has to get creative. The latest tool in the recruitment kit is a so-called recommendation bonus, scheduled to be

BBJ_2508_special_report.indd 14

Márk Maczelka, Head of Communications of SPAR.

Still, as its statement to the BBJ reflects, it is confident that the “labor shortage has nowhere reached a level that would endanger the smooth rendering of services”. The area of logistics could use an immediate influx of employees, though, where a 25% wage increase is meant to improve employment conditions.

Since there are also many vacancies in management, an intensive recruitment campaign is meant to improve the situation. Part of this was the opening of a dedicated careers office in March where HR specialists are ready to inform interested applicants about available roles and likely contract conditions.

SPAR, one of the biggest employers of the Hungarian retail sector, is trying to reach out to future colleagues in a similar manner. As communications officer Márk Maczelka says, the recruitment office, which opened in their supermarket on Nyugati tér in December, is intended to establish a direct link with would-be employees.

“If it works out, others will be opened in different locations nationwide,” he adds.

SPAR offers a wide range of bonuses to committed workers. It does not have much choice. Finding sales persons or cashiers is the hardest, but the meatprocessing unit is also understaffed, partly due to the magnetic effect of Germany’s higher wages.

“Depending on the position, online and offline forums are used by us for recruitment, with social media being an inevitable factor in the game,” Maczelka adds. When it comes to attracting, and keeping talent he mentions another key component; establishing an attractive employer brand.

“A big emphasis is placed on employer brand building, during which process we would like to make sure that the corporate values, culture and goals of the SPAR family reach out to the largest number of people,” Maczelka says. He believes that this approach is paying off. After all, the bulk of employees have been with SPAR for more than ten years.

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

Special Report | 15

Trying to Cover the 22,000+ IT Professional Shortfall

Whether it is the official figure of 22,000 or the 25,00030,000 the industry calculates represents the true picture does not matter: the lack of IT professionals hurts the Hungarian economy badly, regardless of the exact number.

A new program for training IT professionals with a HUF 2 million budget has just been launched. The four-month basic course will be followed by specialized corporate training during which, in the context of mutual guarantee schemes 4,000 people will be trained, Bruckner said.

Another group of prospective IT specialists could come from those roughly 450,000 unskilled job-seekers with high-school graduation.

BBJ STAFF

The major hurdle in the way of economic growth is currently the shortage of workers with digital skills, said Tamás Deutsch, the country’s digital commissioner and head of the Digital Success Program (launched at the end of 2015), speaking at the Digital Labor Market 2017 conference, organized by IVSZ, the ICT Association of Hungary.

Therefore, in Hungary, it is people’s digital literacy that needs improving first, he added.

International statistics about the changes the job market is about to face may be daunting but they are not necessarily applicable to Hungary at this point. Robotics may take over a big chunk of tasks currently done by humans, but today that is rather more a problem for Silicon Valley. Still, many have adverse feelings towards digital tools for fear of robots/digital tools replacing them, Tamás Laufer, president of ICT Association of Hungary (IVSZ) added.

Opportunity, not a Threat The labor shortage should be viewed as an opportunity, not as a threat, said Dale A. Martin, president of the GermanHungarian Chamber of Commerce and Industry (DUIHK), and president-CEO of Siemens Hungary. People need to be retrained and learn new skills, but they will remain in demand, he added.

What exactly will be in demand is what chambers and country development and training committees try to map

Of the 8,000 IT professionals that graduate each year (5,000 from universities, 2,000 technical engineers, and 1,000 from vocational training) 2,000 leave the country and 3,000 leave the profession. out, but it is no easy task, said László Parragh president of the Hungarian Chamber of Commerce and Industry (MKIK). Primary education, an essential prerequisite to successful skills

BBJ_2508_special_report.indd 15

Tamás Deutsch, the country’s digital commissioner. training, has to be fixed first, he said.

Digitalization may have become instilled our private life, but it has yet to find its way fully in to our professional life.

MKIK’s experiences of SMEs’ level of digitalization is fairly dismaying. Out of the 3,000 companies involved in MKIK’s “Modern Enterprise Program”, barely any applied digital knowledge to run their business more effectively, Parragh said.

A retailer was not aware that changes in supplies could be followed digitally, or that incorrect pricing is avoidable using digital tools, he added. Thus far, some

2,000 COMPANIES

have received digital qualifications through the program.

These woes can only be cured with proper training and education – a field going through some transformation.

Unlike a couple of years ago, when universities were the sole places where IT professionals in waiting could be found, now companies can choose from a variety of training centers. In order to meet the growing demands of firms, some companies have become specialized in training IT professionals and offer shorter courses ranging from three-nine-15 months. These are tailored to the needs of the company which, in many cases, finances the students and/or the training center in order to gain quick access to a wider IT workforce. Greenfox Academy and Code Cool were among the

pioneers in this field. They do not offer knowledge as extensive as a bachelor’s or master’s course, but are still good enough to challenge the old monopoly of the universities and to create competition.

Technical Adjustments Some colleges are also trying to adjust their training systems to the fastpaced changes the IT sector demands.

The Technical University of Budapest (BME) is planning to launch a two years plus one year bachelor of engineering training. The course would comprise two years’ study at the university and one year internship/training at a firm. Entry requirements would be somewhat less strict (fewer points would be needed than the 425 average for bachelor of science courses) and practical training would be more dominant (60% as opposed to 40% for a B.Sc.). Despite the rather challenging entry level requirement, the number of students gaining admission to BME’s IT faculty has increased from 400 in 2015 to 740 this year. “We also try and cut back on drop-outs; we organize courses on physics, maths, etc. for students to catch up,” Charam Hassan, head of the faculty said at the conference during a panel debate discussing the digital transformation of training systems.

By opening the three-year bachelor of engineering course, the university says it will add 740 more students to the pool.

But even that may prove to be too

little. Out of the 8,000 IT professionals that graduate each year (5,000 from universities, 2,000 technical engineers, and 1,000 from vocational training) 2,000 leave the country and 3,000 leave the profession. That leaves a mere 3,000, which barely patches the surface of the 22,000+ shortage, said László Bruckner, head of department dealing with vocational training and the labor market at the Ministry for National Economy.

One of the main objectives of the Digital Success Program, therefore, is to train professionals in large numbers in the next three years to fill those 22,000 vacancies. Incentives of all sorts will be available to achieve that, he added. For example, a new program for training IT professionals with a

HUF 2 million BUDGET

has just been launched. The fourmonth basic course will be followed by specialized corporate training during which, in the context of mutual guarantee schemes 4,000 people will be trained, Bruckner said. Another group of prospective IT specialists could come from those roughly 450,000 unskilled job-seekers with high-school graduation.

This pool, together with the IT faculty drop-outs of universities that account for almost half of those admitted, can help get closer to the target.

Having a pool of digitallycompetent professors is another challenge. Schools either struggle to find teachers with proper skills or have difficulty retaining them.

A gross salary of HUF 350,000 is easily exceeded by any company that is equally hard-pressed to find IT specialist. One solution would be allowing professors to be involving in joint projects between the university or institute and the private sector, said Charam Hassan, head of BME’s IT faculty. In this way they would be motivated to stay with the school, he added.

2017. 04. 19. 17:48

16 | 3

Special Report

WHO’S NEWS

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Do you know someone on the move? /// Send information to news@bbj.hu

Wizz Air Names new Executive Vice President and COO

Diederik Pen has been appointed executive vice president and chief operations officer of Hungarian lowfare airline Wizz Air, taking effect from April 1. Pen joined Wizz Air in January 2013 as COO and has led the company’s operations team to deliver best-in-class, lowest cost and reliable operations for the airline, the company says. As part of the executive team, he will be based in Budapest and will report to the CEO. “We are pleased to announce the promotion of Diederik Pen to the position of executive vice president and chief operations officer,” says CEO József Váradi. “Diederik has played an important role in the successful delivery of significant growth and development of the business over the past four years. His promotion reflects the importance of a strong operations team to delivering 20% capacity growth in the current financial year and extending base operations to 28 cities in 15 countries in 2017, while maintaining best-in-class utilization and flight reliability. We look forward to Diederik’s continued and valued contribution to the business in his [new] role.”

been elected by a majority at the second round of membership voting. Bertényi succeeds Dino Flore of Qualcomm Inc., who served the maximum number of two terms as chairman of the RAN Technical Specification Group (TSG), which has responsibility for radio aspects, functions, requirements and interfaces for all 3GPP networks.

Bertényi has participated in 3GPP for more than 15 years, gaining technical experience as a contributor in SA groups and in RAN. He has leadership experience in 3GPP, serving terms as chairman of the SA Working Group 2 (2007-2011) and chairman of the 3GPP SA Plenary (2011-2015). “This is a great honor for me, I now look forward to getting on with the technical work and the challenges ahead, as we continue progress on specifications for 5G’s new radio technology and enhancements to LTE – with the eyes of the whole industry on us,” Bertényi said. The 3rd Generation Partnership Project (3GPP) unites seven telecommunications standard development organizations, known as organizational partners, and provides their members with a stable environment to produce reports and specifications that define 3GPP technologies, according to the 3GPP website. The project covers cellular telecommunications network technologies, including radio access, the core transport network, and service capabilities – including work on codecs, security and quality of service – and thus provides complete system specifications, the website says.

LeasePlan Hungary Welcomes new MD

3GPP RAN Appoints Hungarian Chairman

companies. “As a result of the successful commercial strategy of the last few years, we achieved 10% volume growth in 2016.

I believe that building on LeasePlan’s services and its international background, we can achieve a growth greater than the market average in the future as well. By facilitating the shift to ondemand ‘mobility as a service’ solutions, LeasePlan will tap new opportunities in private leasing and SMEs,” said Pesti. She replaces Roelof Hansman, who held the position for seven years, and is moving to a new role as managing director of LeasePlan Sweden.

BMW Hungary Names new Director

Mónika Tóth has been appointed leader of the content services team at Invitel, joining the telecommunications company from UPC, with effect from April. Tóth has almost 15 years of experience in the telecommunications sector, working in fields such as product development, content acquisition and marketing. In her new position, she will be responsible for television content negotiations and contracts, as well as leading the content management team and dealing with the annual programming strategy. “We trust in further successes and expansion in the television market, in which Mónika Tóth is having an important role assigned,” said Marianne Langsteiner, COO and board member of the Invitel Group. “It’s going to be an interesting and exciting challenge for me to focus on new points of view in building up new communication and negotiation strategies for Invitel,” said Tóth.

K&H Bank Names new CEO

Massimiliano Di Silvestre has been appointed managing director at BMW Group Magyarország, taking effect from May 1. Di Silvestre is an experienced automotive professional, having filled numerous leadership positions at Volkswagen Group, Mercedes-Benz Italia, Toyota-Lexus and BMW Group Italy since 1998. In the past five years, he was the managing director of BMW Group Rome Niederlassung in the Italian capital, which fills a leading position in Mini and BMW Motorrad (motorcycle) sales, according to the company. Di Silvestre will be replacing Baudouin Denis, who has spent four years in Hungary, and is to become managing director of BMW Group Poland in Warsaw.

David Moucheron has been appointed CEO of K&H Bank and head of the group’s country team, pending approval from the Hungarian supervisory authority. Moucheron is currently CEO of CBC Banque, another unit of the Belgian KBC Group. K&H Bankʼs current CEO Rik Scheerlinck has been made a member of the KBC Group’s management committee and appointed the KBC Group’s CFO. He will start his new position from May 5, 2017, after the KBC Group’s AGM.

Novotel Budapest City Welcomes new Director

Invitel Welcomes new Content Services Professional

Balázs Bertényi of Nokia Corporation has been appointed chairman of the Radio Access Network group of 3GPP, a collaboration between telecommunications associations, having

BBJ_2508_special_report.indd 16

Tímea Pesti has been appointed managing director of LeasePlan Hungary, one of the leading providers of operative leasing and fleet management solutions in the country, with effect from April 1.

The company said Pesti has played an important role in LeasePlan Hungary’s successes as commercial director for the last six years. Previously, Pesti was managing director of HL Display Hungary, an in-store communications and merchandising firm, which is a marketleading company in Sweden. After that, she was head of the Central and East European region at the same company.

She then became commercial director at Novartis Hungary, the local unit of one of the world’s leading pharmaceutical

Jean Wendling has been appointed director at Novotel Budapest City. He joins the hotel from Sofitel Warsaw Victoria, where he was deputy director from 2013. Wendling started his career at the Potel & Chabot catering firm in Paris, working in sales and operations. He joined AccorHotels in 2005, and started working as F&B manager at Novotel Warsaw Centrum, a 742-room hotel. Later he moved to Moscow and worked as F&B director at Novotel Sheremtyevo Airport, before being promoted to executive assistant manager. Wendling served in that role at the Sofitel Budapest Chain Bridge from 2010 to 2013, overseeing the F&B and sales in the MICE & Conference field.

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

Special Report | 17

Temp Agencies Under Pressure to Become Innovative

The record-low unemployment rate has forced temp agencies to face completely new challenges. Those who have managed to read the signs have even been able to raise prices, while those failing to find new recruitment solutions are losing markets. ÁGNES VINKOVITS

Hungary’s official unemployment rate of 4.4% seems to be a mixed blessing for temporary staffing agencies. On the one hand, they are glad to experience that their work is increasingly needed and appreciated. “Anywhere we go, they need workforce there,” HR agency Adecco’s Gábor Goszleth tells the Budapest Business Journal, adding that SMEs with an annual revenue of HUF 600-800 million and above have begun to appear among their clients recently. “A few years ago, it would have been unimaginable,” he says. As a result, some temp offices could even raise prices by, on average, 20% in the past year.

On the other hand, the reason why more and more companies refer to HR agencies nowadays is mostly the lack of workforce, which makes recruitment a challenge even for professionals.

While having fewer people living with the uncertainty of unemployment is obviously a good thing, the lack of available skilled labor is becoming a severe problem, one that finally might slow down the development of the affected sectors and so the entire economy. Machine mechanics, operators, electricians, welders, CNC (computer numeric controlled heavy machinery) workers as well as medical workers and drivers are already very hard to find all over the country.

“The current workforce market crisis has made us face new tasks,” Csongor Juhász, CEO of Prohuman tells the BBJ. The former ways of finding labor do not work anymore, he says. “We have to put a lot more emphasis on innovative recruitment solutions.”

In the Field As such, job advertisements are published nowadays only as part of a routine; to actually find the people needed, recruiters need to go out to the field. “You have to reach people personally,” HR company Work Force’s CEO Róbert Csákvári says, adding that roadshows and on-the-spot recruitment days have proven to be the most effective.

Yet, finding the available labor is only the first step. “Today, even a semi-skilled worker has to be convinced about why he or she should work for a given company.

Salary is not enough anymore, you have to offer something more” Csákvári says.

BBJ_2508_special_report.indd 17

Gábor Goszleth, sales director of Adecco.

Róbert Csákvári, CEO of Work Force.

“Today, even a semi-skilled worker has to be convinced about why he or she should work for a given company.

Salary is not enough anymore, you have to offer Csongor Juhász, CEO of Prohuman. something more.”

“The current workforce market crisis has made us face new tasks. We have to put a lot more emphasis on innovative recruitment solutions.”

As such, employer branding becomes increasingly important. “If a luxury car manufacturer seeks new labor, we highlight the coolness of cars and their speed and try to attract young men,” he explains. Also, the employees’ long-term advancement opportunities as well as special treats a company can offer, such as family days, play a big role when trying to appeal to people for temporary jobs. As part of the employer branding, HR agencies have to take part in building up such concepts, too, if they want to fulfill clients’ needs.

Redirecting workforce from the eastern part of the country, where there are still some reserves left, to the capital or to the Western regions, where the lack of labor is the most pressing, is another new and crucial task for HR companies.

To arrange travel and accommodation, agencies often need sub-contractors, too. However, workforce mobility could be increased by some state support, they suggest. “A good system of subsidies on mobility should be built up,” Prohuman’s Juhász says. Adecco’s Goszleth goes even further and offers a complex rural development idea, saying that a mature

structure of state and municipality rentals combined with developments that create cultural and entertainment opportunities could be a tool to keep young people, even intellectuals, in the countryside.

As a result of the ongoing phenomena of Hungarians immigrating to Western European countries, and a positive wage spiral that makes people think that it is easy to find better and better jobs, keeping the existing workforce has also become an issue. “Fluctuation causes as much headache as recruitment,” Goszleth says. Csákvári agrees, adding that avoiding losing workers after a threesix-months-long period of expensive training is only achievable if there are in-depth job interviews prior to the contracting in order to make sure that the given person has long-term plans at the company. Work Force Kft. also makes in-depth exit interviews to help companies to draw the lessons of why people are quitting.

Labor Reserves Though the Central Statistical Office (KSH) counts those 355,000 people in the annual public work program as employed, which means there are theoretically some labor reserves left if they can be reintegrated in to the labor market, Goszleth warns that the workforce market compatibility of these people is questionable. As such, even though he thinks the concept of public

work is good, the initiative will not be able to solve the current problems.

One possible answer to the evolving crisis could be to import workers.

However, resources are limited as temp agencies recruit only culturally similar people from the neighboring countries.

“We cannot do anything with people not speaking Hungarian,” says Goszleth, pointing out that immigrants from the Middle East and Africa will not solve local problems in the short run.

It is only education that can provide long-term solution to this problem.

“There are half a million people with a high school graduation but without a profession. They are an opportunity,” says Csákvári. Companies do their best with internal training and also through cooperation with local schools and colleges, but, according to Csákvári, a company will never be able to reach as far through such efforts as a comprehensive state education reform could.

Goszleth agrees. The dual education system, which combines practical skills and theory knowledge in a marketfriendly way, is a good direction, yet, probably too slow, as those kids are only starting school now, he says. More rapid interventions would be welcome. Juhász suggests that the municipalities should control local education and try to make it fit the local market needs.

Otherwise the lack of workforce will soon not only be an inspiring challenge for HR agencies, but also become an obstacle of Hungary’s economic growth.

2017. 04. 19. 17:48

Special Report

18 | 3

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Retraining to fill Short-term Staff Shortages

The Hungarian unemployment rate stands today at 4.4%.

But still, according to a report released by Kelly Services Hungary, more than 57% of the employers are facing a difficulty in filling all their vacancies. It seems to be a paradox but it is actually true.

Nowadays employers require certain skills, and many would-be employees simply do not have them.

CLAUDIA PATRICOLO

While a big part of the skills gap comes down to a shortage of trade skills, there are also gaps in the so-called “soft” competences such as communication and leadership. According to ManpowerGroup Hungary, one of the

major reasons why we are going through this skills shortage now is there is a mass retirement of the Baby Boomer generation.

Generation X does not have the number to replace them alone, and the upcoming Millennials generation does not yet have enough training.

The most reasonable long-term solution would be to rethink the whole education system, starting with vocational training for high school students and then adding more professional competences during their

university careers. But it is a long-term solution. What can companies do now?

Perhaps the easiest answer is to focus on retraining those employees they already have. At least that is what the World Bank and the Organization for Economic Cooperation and Development (OECD) are suggesting.

There will always be some knowledge that new employees cannot possess, considering the increase of new positions that did not previously exist. On the one hand, retraining can represent an attraction for workers, pushing them to stay longer in the

same workplace. On the other hand, it represents a huge cost for companies, and not all are likely to pay for these.

But even here there is help at hand.

The Hungarian government is funding and running lots of what it calls Active Labor Programs (ALPs), including retraining, public works, wage subsidies and self-employment. A meaningful example can be represented by the huge inclusion of Roma people in public works, as part of a bigger European agreement on minority inclusion. Up to 2011, all these programs were run by the Hungarian Public Employment Service (PES), but they have since been replaced by municipal public works schemes. Just last year, in cooperation with the National Labor Office and the Budapest Chamber of Commerce and Industry, HUF 1 billion was allocated to ALPs programs.

Room for Maneuver “High inactivity, which was one of the major structural problems burdening the welfare supply system, and the room for maneuver in economic policy in the recent years, following the overhaul of Hungary’ economic system, seems to have been solved thanks to the government’s measures,” Minister for National Economy Mihály Varga said last week during a conference,

EXPERT OPINION

Digital Technology has Become a key Platform in Management Staffing Jacques de Jager Executive Recruitment Manager TRENKWALDER HUNGARY

Digital recruitment channels have profoundly changed the selection process in management staffing, says Jacques de Jager, head of executive search at Trenkwalder Hungary, who gives us a brief insight about the main challenges of the recent developments.

How has managerial and executive level staffing developed over the past few years?

The rapid evolution of digital recruitment channels and tools allowing quicker access

to potential candidates has had a major impact on candidate sourcing at all levels.

This has also led to an increase in the degree of in-house sourcing activities by corporate HR teams.

Are there any particular issues in the areas of onboarding, retention and attrition?

In the area of onboarding, the candidate experience is playing an increasing role in our ability to retain candidates throughout the sourcing process. In this regard, candidates have become very selective about the companies and leaders they wish to work for, and the first impressions created by corporate HR play a big role in this.

We have also seen a rather dramatic increase in the “time to hire” timeframe, where the selection process often takes months. If a potential employer cannot complete the hiring process within a few weeks at the outset, we have witnessed a high percentage of candidates losing interest and looking elsewhere.

Regarding retention, shadowing (i.e. the chance of moving to another position within six months to one year in a role), employer sponsorship of studies towards professional qualifications and, to an extent, international mobility, are key factors to consider in any retention policy.

As for attrition, candidates often cite a lack of promotion, poor leadership and low career growth prospects as key reasons for considering a career change.

Besides a short and focused sourcing process, what are the main preferences of a candidate?

Regarding candidate preferences, working culture, leadership style, continuous professional development opportunities and company growth prospects are key factors that candidates consider when evaluating a prospective employer.

“Millennials” has become is a continuous discussion point. What is the buzz all about?

Many companies have not yet implemented policies to deal with the increasing millennial workforce who demand a shorter selection process, flexible working hours, training opportunities, purpose beyond the bottom line, and a young and vibrant workplace. Generation gaps, as well as slow or limited career growth prospects evidenced in some more traditional companies make it hard to retain talented young professionals.

Seeing the challenges posed by the recent changes in recruitment, what are the new requirements regarding corporate HR teams?

The development of inclusive leaders at all levels, who are capable of engaging with their workforce to drive performance and increase retention, is a key necessity in today’s business world. Talent development and succession should be given priority, as should the need to extend boundaries to create new leadership development opportunities.

As for HR, this is a rapidly changing function in a modern world, where the old model is being replaced by a young, agile and employee-experience driven approach responsible for nurturing tomorrow’s talent.

How do you see management and executive level staffing developing in the near future?

Technology and digitalization are huge disrupters in the field of candidate sourcing.

In particular, digital mobile technology will become a key platform in the identification and onboarding of candidates at all levels. As our digital lives become more open for the world to see, the ability to gain instant and deeper insights into candidates will be a major force shaping the screening and selection processes. Those individuals who continue to shun social media will increasingly be left in the dark, as recruiters focus their efforts exclusively on digital recruitment tools.

Additionally, agencies who do not adapt to this new paradigm will find it increasingly difficult to satisfy employer demands for quicker and more cost-effective recruitment solutions. This is why Trenkwalder’s strategy puts a sharp focus on digitalization of the recruitment processes as well.

www.trenkwalder.hu

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

BBJ_2508_special_report.indd 18

2017. 04. 19. 17:48

www.bbj.hu

which followed the second meeting of the National Competitiveness Council.

He also highlighted the fact that, over the space of seven years, the number of people in employment in Hungary had increased by 700,000 to 4.4 million. (It is worth noting that some commentators, such as economic news portal portfolio.hu, question the numbers on the grounds that those on public work schemes are included. Even so, however, employment has been rising.)

And the minister also recognized the huge importance of well-trained employees.

“Thanks to the strengthening of the economy and the increasing workforce demand on the part of the private sector, the most important challenge to competiveness today has become assuring a suitably trained workforce,” Varga continued. As he underlined, the best way to reach this goal is through the re-employment of pensioners and new programs for promoting easier access to work for women and young people. Hundreds of thousands of people could return to the labor market in order to help employers to fill the current gaps.

“In contrast to the period before 2010, the greatest challenge today is no longer job creation but the existence of a suitable number of workers with sufficient training, and accordingly the [National Competitiveness] Council has reviewed possible job market reserves and the most important related productivity challenges,” the minister added.

Special Report | 19

3

Budapest Business Journal | April 21 – May 4, 2017

HR ///Briefs

HUF 952 bln of EU funds available for human resources development The Ministry of Human Capacities has published calls for European Union funding within the framework of the Human Resources Development Operational Program for the next seven years, with a combined value of HUF 952 billion, reported portfolio.hu.

This amount is 102% of the available funds. The funds are to be used for social inclusion, strengthening social cohesion and the role of the family, health promotion and prevention, and improving the quality of public education, among other things. Tamás Schanda, secretary of state for the Ministry of Human Capacities said that the aim is to use 100% of the funds available in the program.

Hungarian Post suffers from labor shortage State-owned Hungarian postal company Magyar Posta Zrt. is currently recruiting staff to deliver

mail; the primary requirements are primary school qualifications and a clean criminal record, reported mno. hu. The company is suffering from a labor shortage, despite a gross monthly salary of between HUF 210,000 and 248,000. For doing heavy manual work and night shifts, the net salary is HUF 161,000. The labor shortage is worst in the central and western parts of Hungary.

SMEs suffer from mandatory minimum wage rise, payroll costs up 11-13% Companies find it difficult to carry out the mandatory minimum wage increase, although bigger companies can handle it better, according to a survey by economic research institute GKI, reported vg.hu. The results of the representative survey were based on responses from 931 companies with more than five staff.

Companies employing fewer than 250 workers reported a negative impact on

their operations. Companies employing more than 250 people reported that their experience was neutral. All companies, including large companies, said that increasing the guaranteed wage minimum caused more problems than the minimum wage increase.

Payroll costs are set to rise most in light industry, by 18.9%, followed by the construction industry (15%), and the food industry (14.4%). The lowest rise is expected in retail (8.6%).

According to the opinion provided, light and food industries found the measures had a negative impact on their operation, but it was considered problematic by the construction, the processing and the chemical industries, too.

Companies employing fewer than 250 workers expect their payroll costs to rise by around 11-13% because of a big rise in the minimum wage this year. Companies employing more than 250 people expect payroll costs to increase by 7.5, those with fewer than 20 employees by more than 12, those with 21 to 50 workers by 12% and companies with 51 to 250 workers put the rise at 11%.

All-in-all, it seems that SMEs in Hungary were negatively affected by the mandatory rise in minimum wage and in the guaranteed wage minimum, as half of the employees at these companies fall into this category. In the case of larger companies, only 29% of the employees are covered by the measure, so the costs are less.

ADVERTISEMENT

HR and payroll support for your business both in Hungary and worldwide The possibilities for business growth in Hungary are limited only by your ambition.

TMF Group is your trusted partner on the ground, helping you stay compliant and meet all local requirements.

Our experts based in Budapest act as an extension of your in-house team. We take care of vital administrative tasks for HR and payroll, including:  customised reports  employee care services  cafeteria and T&A administration.

hungary@tmf-group.com

No matter which software you work with, we can integrate it into a bespoke payroll package, and provide you with a choice of T&A and cafeteria solutions.

And our online portal, TMF Horizon, helps you to meet the challenge of managing payroll across multiple countries.

It offers you digital payslips, workflow task management, access to data and global reporting.

TMF Group has been operating in Hungary for more than 20 years. And with offices in more than 80 countries, we’re the leading provider of global business services to clients operating and investing across the world.

Contact us today to find out how we can help you realise your business potential.

tmf-group.com

QS CEE advert 252x158 V2.indd 1

BBJ_2508_special_report.indd 19

11/04/2017 12:19:11

2017. 04. 19. 17:48

20 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Coming to Terms With the Job-hunting Traits of Millennials

“It is essential for both of us they can picture themselves working for the company in one, or three, or five years, that they can feel they are part of it.”

Grabbing Millennials’ attention and offering a position intriguing enough for them to accept a job offer is one of the major challenges facing companies today.

It takes time to get used this candidatedriven market and the intricacies of communication with the new generation of workforce.

BBJ STAFF

Navigating social media platforms at work is no longer unacceptable – as long as you work for the HR-department and are searching for new recruits.

The co-founders of Gen Y and Z undergraduate job-seeking site Zyntern, from left Attila Balogi, Mirtill Megyeri and Tamás Barathi.

Especially given that former recruitment channels, such as databases, or direct phone calls, are becoming less useful.

“We have been switching to social media platforms to reach the new generation,” Tamás Kalmár, recruitment team leader at ThyssenKrupp Presta Hungary Kft. told the Budapest Business Journal.

This is fairly new ground for many companies, including ThyssenKrupp.

Kalmár says his team upload videos of employee testimonies that are by no means orchestrated: “We just film what our current employees have to say about the firm.” The language of the posts and their information content have also changed. Job advertisements have become short and succinct; firms no longer wish to add too many details in the job description. These ads sound more like a notice, with the aim of grabbing the attention of the potential workers Raising their interest may be the most challenging thing of all, says

ADVERTISEMENT

Van még egy ászunk!

A VENTIV HEALTH 2016-tól a JOB Kft. új üzletága.

Együtt még színesebbek és ütőképesebbek vagyunk.

JOB.HU

A JOBGROUP TAGJA

VENTIVHEALTH A JOBGROUP TAGJA

Mostantól gyógyszeripari megbízóink számára is elérhető bővített szolgáltatáscsomagunk. #munkaerő-közvetítés, #munkaerő-kölcsönzés, #munkáltatói márkaépítés, #gyógyszeripar, #SSC, #fehérgallérosok, #rejtett erőforrás, #megváltozott munkaképességű munkavállalók

+36 1 239 9922 | info@job.hu | job.hu

BBJ_2508_special_report.indd 20

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

“A unique talent matching platform to reach out and engage the next generation of employees, Zyntern has much in common with LinkedIn in content terms but the user experience is more like the one you get Extensive Experience on Tinder.”

Despite being under 30, Megyeri has Kalmár. Today’s candidates are far more focused on how they contribute to the company’s success than previous generations were. That does not mean that career prospects are overlooked: during interviews, they often ask about the company’s future strategy.

“It is essential for both of us they can picture themselves working for the company in one, or three, or five years, that they can feel they are part of it.”

To try and achieve that, ThyssenKrupp introduce the company during the first part of the job interview highlighting the uniqueness of the Budapest center, housing both hardware and software development. This is something that appeals to young engineers, as they have the opportunity for multidirectional career development, Kalmár noted.

Taking on Leadership Some are also keen on taking on some leadership responsibilities. As long as it is a project, there is nothing wrong with that, Kalmár said. The more able can become project leaders fairly soon.

Team-leading ambitions, however, need to be handled with more care, but after spending a few months with the firm, many realize they have to learn a lot to get there.

Keeping it short and sweet also applies to the interviewing process – After screening CVs and making a phone call a maximum of two rounds will follow. During the interview, ThyssenKrupp pays special attention to asking questions, describing jobrelated problems that are intriguing. It is of equal importance that candidates feel relaxed and that the atmosphere is friendly, during the interview, or when talking with managers. They are also quick to give feedback once the interview is done – the members of Generation Y and Z are all about instant feedback. They also receive a written offer stating all necessary details, including salary.

Finding the right tone and format when targeting Generations Y and Z on social media platforms is fairly new ground for many companies.

Classical corporate communication has little to do with the way young people communicate now. This niche was spotted by Zyntern (founded by members of Gyakornok.com and Colilbri HR Solutions), a job seeking site tailored to the needs of (under) graduates and jobseekers with no more than three years’ working experience.

Named by merging Z, Y and intern, Zyntern goes online this April, followed by the launch of an app in

BBJ_2508_special_report.indd 21

extensive experience in advising large companies as an employer branding consultant at Colibri HR Solutions, a company known for, among other things, its Colibri Internship Awards, a contest between companies with the best internship and fresh graduate positions and programs. Colibri also created more than 150 videos for many of their 80+ clients. Job seeking today is candidate driven; a well-prepared applicant can indeed select from offers, Megyeri said. And Zyntern helps candidate to prep: from uploading their first summary it walks them through the whole process of creating a convincing account in

15

MINUTES.

Similarly, companies can upload their adverts without having to rely on consultants, using hints and tips offered by the site. (Although a support line will be available for anyone needing advice).

The selection process is equally short. Just like on Tinder, seekers can pick or eliminate a post with a simple left-right swipe on the app (the mobile app lacks this option). Not only do they cut back on selection time, companies also look more authentic to prospective candidates reaching out to them on a platform they feel comfortable with. Authenticity is the number one criterion for Generation Z, who are a lot more assertive and self-conscious than Generation Y, Megyeri said.

They have very clear ideas on what they expect in a workplace, and money is not their top priority.

Asked to rank job characteristics in order of importance, prospective hires put flexible work options and a good rapport with colleagues at the top of the list. Money is important, but prospective employees’ needs go beyond their salary: they only ranked it third among the top five priorities, reveals a survey conducted between November 2016 and March 2017 by PwC Hungary, who

ASKED

13,000

high schoolers, college students and recent graduates about their job preferences.

In light of the survey results, companies can examine whether they offer employee benefits or work arrangements that may be popular with tomorrow’s workforce, said Róbert Bencze, HR consulting director at PwC. “If they find something missing, they can align their offerings to better address future candidates’ needs.”

EXPERT OPINION

How to Manage the tax Affairs of Foreign Managers Judit Jancsa-Pék Tax Advisor | Partner LeitnerLeitner

It often occurs that a multinational company employs a foreign manager based on an employment contract or secondment. In the first case, the Hungarian company is considered as the legal and economic employer, therefore the salary is payed directly by it. In the second case, the employee maintains the employment contract in the “mother country”; therefore, the salaries are still paid by the parent company (naturally the Hungarian company pays a “service fee” for the secondment to the parent company). The two cases differ from many points of view; therefore, an improper classification might trigger many issues.

First of all, a problem could arise respecting the legitimacy of classifying a relationship as a secondment. To be able to make a decision in this regard, a detailed analysis of all aspects should be performed. However, the place of taxation cannot be derived with certainty from this analysis alone.

In order to be able to decide about taxation, it is important to be familiar with the concept of tax residency, which indicates the sole country having rights to tax worldwide income. Irrespective of the source and type of income – salary, interest or other –, the individual is obliged to report it in some way to the competent tax authority.

Regarding salaries, the right of taxation is based on the principle of territoriality, and is applied to the “state of employment”, which is Hungary in this case. Although Hungary can only levy taxes after Hungarian workdays, every other workday should be taxed in the “state of residency” or in third countries.

The income should be proportioned among the different countries where the individual is physically working, but this difficult calculation is only the tip of the iceberg! Every country has a different consideration regarding the tax base. In Hungary, this is the gross salary, whilst in Austria the tax base is the salary plus advisory fees, reduced by the social security contribution. There could,

moreover, be other differences as well: for example, allocation may differ from country-to-country, taxation of fringe benefits, company cars, mobile phones etc. may also vary.

Another contradiction that could worry the advisors is the fact that many foreign managers would like to maintain their social security coverage in their homeland, but are also attracted by Hungary’s relatively low, 15% Hungarian personal income tax rate. Unlike Hungary, where the social security contribution is due without any cap, many states have a ceiling for contribution payments.

Furthermore, managers often insist on their homeland social security coverage based on personal emotions; they trust more in the pension and the health care “back home”. The fact that services and pensions provided by the social security or other health care systems of the different countries are not harmonized at all makes this area more important for private individuals. Because the principles of taxation rules are different from those of social security contributions, after the place and amount of taxation has been decided, a separate process should be undergone with the contributions as well.

Mistakes could lead to tax shortages and tax penalties, but equally could result in overpayment of taxes by an individual.

In order to comply with both difficult regulations and individual needs, and to avoid double taxation, an advisor with an international background having a “full picture” should be consulted regarding tax planning and payroll accounting.

Many times the existing structures may have been misapplied for years; therefore, it is recommended revising both the employment structure and the practice in the framework of an auditing and regulatory compliance health check.

LeitnerLeitner is one of the most influential tax consulting, accounting and auditing companies in Central Europe; in Hungary we work in the Hungarian, German and English languages. You may rely on our assistance in the treatment of secondment and employment of both Hungarian and foreign citizens. We also handle special income from investments, stocks and other capital transactions, entrepreneurship, and much more.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

May. A winner of Telenor’s accelerator program last August, Zyntern has been financed by Telenor and mentored by Balázs Vinnai of Misys Digital Channels.

“A unique talent matching platform to reach out and engage the next generation of employees, Zyntern has much in common with LinkedIn in content terms but the user experience is more like the one you get on Tinder,” Mirtill Megyeri, co-founder told the BBJ.

Special Report | 21

2017. 04. 19. 17:48

22 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Severe IT Labor Shortage Shifts Focus to Actual Skills

“I think there is still a lot to do to align [the school] curriculum with the actual demands of the market.

Killing some stereotypes would also be helpful, as there are still some heavy prejudices against programming, that prevent young students, especially girls, from considering IT as a profession. We think companies also have a role in this, and we are happy to see initiatives like Skool starting to break down these boundaries.”

While many sectors in Hungary now appear to suffer from a labor shortage, one of the mostsought after professions is still programmers and IT professionals. Demand is becoming so strong that holding a university degree no longer need be a prerequisite. Andrea Magyari, HR Director at NNG Software Development and Commercial LLP, the Hungary-based car infotainment provider best known for its car navigation systems, outlined the latest trends in the field for the Budapest Business Journal.

Andrea Magyari, HR Director at NNG Software Development and Commercial LLP. CHRISTIAN KESZTHELYI

According to the PwC’s sixth survey of Hungarian CEOs, the single biggest concern for business leaders in the country is the ever-growing skills shortage. “Overall, this year’s survey shows that Hungarian and global CEOs are planning to increase headcount, while they continue to be challenged by skills shortages and over regulation,” as Nick Kós, PwC Hungary’s country managing partner put it at the launch of the survey. (See It’s Good to Talk. It’s Also Vital from our March 24 issue, and PwC Reveals Hungarian CEOs’ Mindset in Sixth Survey from March 10.)

The IT sector in Hungary seems to particularly struggle to find the best professionals. With rising demand for programmers and IT professionals, the supply of experts seems unable to keep pace, a tendency that is inevitably changing the prerequisites for becoming a programmer. Nowadays, you do not even need a university degree, provided you do possess the programming skills, are motivated and have the right mindset.

Hired by the Time They Graduate Still, tracking down the best employees is difficult. “Finding the most talented people has never been easy, but these days it is hard to recruit even at university level,” Magyari tells the BBJ. “Demand is so high that most of

BBJ_2508_special_report.indd 22

the students have already been hired by the time they graduate. Therefore, companies who are looking to grow need to do their best to attract talent as early as possible. They make a lot of efforts to build their brands as employers, make it visible and create great workplaces.”

Even if professionals are found and recruited, in this highly competitive environment keeping hold of them can be an equally daunting task.

Fortunately, there are a number of tools to help you retain such key talents.

“Challenging projects are key, and providing them with opportunities to grow and develop themselves is also of crucial importance. Providing constant training and expanding skills is necessary in this industry, and we [employers] need to be able to support that,” Magyari notes. She adds, though, that offering competitive wages as well as a proper compensation package is a must, while, at the same time, an atmosphere should be created where these professionals feel they are appreciated, making it an organization they are proud to be part of.

If all these are provided, a local company can isolate itself from the worst of the brain drain, a sad characteristic of many sectors in the country today. “At NNG we do not experience a high rate of expatriation and we are proud to have some colleagues who have moved back to Hungary because of great opportunities at NNG,” Magyari explains.

Skills Outweigh Degrees But what about that idea of no longer requiring a university degree? “We see a positive trend of more and more opportunities arising that offer basic practical programming skills, so anyone without a university degree in the field can get started in becoming a programmer. We believe it takes skills and the right mindset to become a great programmer, as learning must be continuous, and these schools and training [schemes] offer great basics for that, ensuring more people can enter the IT field,” Magyari argues.

With the spreading influence of technology in all walks of life and the expectations of professionals that some basic IT knowledge will soon be required in many more positions, actually having such skills could soon become more valuable than holding a university degree in programming.

Finance firm Morgan Stanley Hungary has been recruiting programmers lately, for instance, and training them in economics and finance (see our story Finance firm prizes math and science brains over MBAs from the February 16, 2016 issue).

“The need for IT knowledge is growing due to the continuous and fast development of technologies, so nowadays basic IT skills are becoming inevitable, and employees are required

to be able to use advanced tools and methods,” Magyar explains.

“Programming skills are really useful even for those who are not programmers, and I am sure that in the near future these basic skills will be needed to get along; however, we see them more as an openness towards the use of new technology.”

In order to improve the IT and programming skills of Hungarians, children should be exposed to programming at the earliest age possible, Magyari believes, so it does not only become a basic skill for children, but they can also experience the beauties of the profession. “I think there is still a lot to do to align [the school] curriculum with the actual demands of the market. Killing some stereotypes would also be helpful, as there are still some heavy prejudices against programming, that prevent young students, especially girls, from considering IT as a profession. We think companies also have a role in this, and we are happy to see initiatives like Skool starting to break down these boundaries. NNG cooperates with Skool in order to teach programming skills for young girls and we also cooperate with universities, and organize office visits,” Magyar concludes.

Skool is an independent Hungarian organization, and under the slogan “Yes She Codes”, it is the main project of the Technology in Education Foundation. “Through our programs, we try to show young girls what technology is about and what career opportunities they could have in the future of this exciting world. Through this, we would like to encourage and inspire them to choose technology when they get to decide between various education and working opportunities,” the website says. skool.org.hu/en/

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

increases, but whether the country has Roughly half a million sufficient number of digitally-skilled jobs could be replaced workers. by robots and software Digital Skills in in Hungary today. To Demand achieve a higher level of There are several manufacturers in the country who are unable to increase robotization, however, the level of robotizing simply because there is no workforce with good enough a more digitally-skilled digital skills to supervise the systems.

Alternately, highly-skilled programmers workforce would be are hired for jobs a better skilled needed. technician or specialist could do, Dojcsák BBJ STAFF

Using a U.S. survey as a basis, the Hungarian Chamber of Commerce (MKIK) has calculated that half a million jobs could immediately be replaced by software or robots in Hungary.

In the short-term, however, 2.2 million Hungarians ought to be concerned. In order to avoid the negative consequences of automization, everyone should level up; when it comes to digital skills, Hungarians should get one stage higher than their current level, Dániel Dojcsák content director of the ICT Association of Hungary (IVSZ) told the Budapest Business Journal.

Responding to the question whether it is timely to speak about robotization causing people to lose their jobs in Hungary, Dojcsák cites another study.

“Research looking into the effects of technological revolution in the United Kingdom found that, at the end of each wave, more and more varied job opportunities were created,” he said.

“What makes this fourth industrial revolution different from the previous three is that, this time around, new technology replaces cognitive tasks affecting white-collar jobs.” Language teachers, lawyers, interpreters and many more will surely be effected, but they won’t necessarily lose their jobs.

A service provider with a million plus clientele in Hungary has introduced machine call center recently. Yet rather than dismissing the

6,000 EMPLOYEES

affected by the change, the company deployed them at departments/fields requiring more complex thinking and skills, Dojcsák said.

The question here should not be what happens if the number of cleaning robots

said. Having specialists and assistants freeing up others is just as important as having developers with an M.Sc. At the Debrecen manufacturing facility of NI Hungary, where electronic systems are produced down to a small scale, the company operates an automated warehouse. There, a robot collects and carries the items on the list out of the warehouse. Warehousing activities can become more efficient with the use of smart tools, as well. A Hungary-based car manufacturer has its warehouse staff use gloves with a chip integrated in the finger. The chip scans the items on the list and navigates the workers, achieving

2.5EFFICIENCY times

compared to traditional all-human methods.

Human labor will never be entirely eliminated, not even in a warehouse, said Dojcsák. Should some technical problem cause the robotic warehouse to come to a halt, the company would need to hire tower climbers with high hourly rates to get into the warehouse. Instead of ten warehouse workers they will hire five, but the five will be well paid.

A good example of machines and humans working together is Audi.

Audi Hungaria keeps developing its manufacturing technology, in which robots play a significant role. Yet humans still take center stage in these processes, the company told the BBJ. “Machines and robots support and take burden off of our colleagues’ shoulder. This way, ergonomics improves and workers can focus on more value-added tasks,” the company said.

Recently, Audi has been employing ever more robot “co-workers” that have been positively accepted by their human peers, who have suggested several more ways for employing robots in the various work stages.

EXPERT OPINION

Diversity in the Workplace Dániel Gera Attorney at law SCHOENHERR HETÉNYI ATTORNEYS AT LAW

Many believe that companies with a diverse workforce have better chances of coping with the challenges of the rapidly changing business environment. This article aims to examine the legal background to the topic, the progress made in the legislation so far and the HR tools available to employers to foster diversity in the workplace and handle a diverse workforce.

R

esearch shows that, in line with the global trends, Hungarian employers attach great importance to fostering diversity in the workplace. Although some employers have yet to implement particular measures in this regard, few refuse to address the issue.

CONCEPT OF DIVERSITY – AREAS OF FOCUS But what exactly is meant by a diverse workforce? Given that it is hard to grab the essence of this concept, it is difficult to adopt legal regulations that will inspire companies to employ a diverse workforce.

Key focus areas of the legislation in terms of promoting workforce diversity are the employment of workers of all age groups, workers with a reduced capacity to work, low skilled and disabled workers. The employment of some of these groups, for example those of particular age groups (entrants to the labor market, parents of infant children and the elderly) is subsidized and employees falling within some of these groups enjoy labor law protection (e.g. protection from dismissal, etc.)

The employment of foreign workers and workers representing certain minorities could also contribute to a diverse workplace, but the incentives in these areas are less strong.

PROGRESSING LEGAL REGULATIONS Though a complex national strategy on the matter has yet to be implemented, progress has been made to implement legal measures to foster diversity in the workplace. Undoubtedly, general awareness of workplace diversity has gradually increased over the past decade.

Research shows that employers now attach a greater importance to diversity than before.

The regulatory regime has also developed.

Although no direct legal measures fostering workplace diversity (e.g. obligatory quotas) exist, several indirect instruments have

BBJ_2508_special_report.indd 23

been introduced. The main legal measures supporting workplace diversity are (i) the prohibition of discrimination; and (ii) fostering the employment of underprivileged groups.

The Equal Treatment Authority is vested with broad powers to combat all types of discrimination, with one of the authority’s key focus areas being the reduction of workplace discrimination.

MEASURES AND HR TOOLS AVAILABLE TO FOSTER WORKFORCE DIVERSITY Apart from the legal regime and incentives, several HR tools and work organization methods are available to employers to foster diversity.

From a legal perspective, measures adopted on the basis of a collective agreement or an internal policy that aim to mitigate the objectively existing disadvantages of specific employee groups (positive discrimination) do not violate the equal treatment principle. Such measures may be in force for a definite term and must be subject to occasional revision.

Even though positive discrimination claims are uncommon in Hungary, measures taken by employers must be in line with the above general requirements.

Employers can adopt measures to hire people from certain underprivileged social groups. It is customary to use certain quotas and favor such candidates during the recruitment process.

Employers aiming to have a diverse workforce do usually have to undertake certain work organizational methods to foster the employment of workers from different backgrounds, such as: part-time or flexible work arrangements, job sharing and teleworking.

In addition to these methods, employers can establish internal equality plans to enhance workplace diversity. Employers with a diverse workforce typically make use of one or more of the following HR tools: • appointment of an officer responsible for equal treatment; • specific training; • events aimed at increasing team cohesion (e.g. sports days); • mentoring and coaching; and • teamwork monitoring.

Providing appropriate training is crucial to developing and retaining a diverse workforce.

Training on teamwork, cooperation and conflict management, is of key importance when employing workers from different backgrounds.

Specific advisors can help employers to use the best training methods, which sometimes also include the subsequent examination of participants. Employees can be instructed to participate in training sessions, which can be made part of their annual development plans and evaluation.

CONCLUSION, OUTLOOK In summary, significant progress has been made to foster workplace diversity, but there is still a lot to do. In the current environment, where employers often struggle to find a suitable workforce, it could be a reasonable option to turn towards workers at the periphery of the labor market who – due to their special situation – have difficulties in finding a job.

The fact that Hungarian law is flexible regarding positive discrimination could also help this cause and ultimately contribute to companies having a more diverse workforce.

www.schoenherr.eu

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Improve Your IT Skills and Robot

Workers Need be no Threat

Special Report | 23

2017. 04. 19. 17:48

24 | 3

Special Report

CEU COLUMN

Competitiveness, HRM, Flow-promoting Leadership & Global Benchmarking Dr. Zoltan Buzady Associate Professor of Management CENTRAL EUROPEAN UNIVERSITY

As Hungary and the other CEE countries are experiencing continued growth, maintaining our positions on global competitiveness rankings and further improving our productivity remain a challenge.

Working and teaching Advanced Leadership at CEU to many leading managers in Hungary and the region, I have observed that over the past few years new strategic challenges have emerged, most notably, how to maintain the existing talent pool, keep them motivated in the future, and enhance the level of creativity of individuals, teams and of the entire organization, all while keeping the cost base competitively low relative to most West European economies.

I am proposing the increasingly popular concept of “Flow-promoting Leadership” (FPL) as a solution to this challenge. It is based on the fundamental research of the world-famous Professor Mihály Csíkszentmihályi, founder of positive psychology, who explored first with top performers and hyper-creatives a state of mind in which creativity and productivity are often at maximum levels, where one’s sense of time gets distorted, when one totally focuses on the activity at hand.

This “optimal experience”, now popularly referred to as “being in the zone” or “in flow”, enhances the meaningfulness of life, as reported by thousands of people of all ages, professions, and nations. In fact, most of my management students have enjoyed the Flow-state, some occasionally, others more frequently, and were wondering how to convey this experience to team members and other colleagues.

Leadership Simulation Together with Csíkszentmihályi, we have developed a leadership simulation, a serious game, with whose help we can facilitate the process of learning Flowpromoting Leadership. You assume the role of the new manager of a familyowned winery in California, where

BBJ_2508_special_report.indd 24

This “optimal experience”, now popularly referred to as “being in the zone” or “in flow”, enhances the meaningfulness of life, as reported by thousands of people of all ages, professions, and nations. In fact, most of my management students have enjoyed the Flow-state, some occasionally, others more frequently, and were wondering how to convey this experience to team members and other colleagues. morale is low, productivity stagnates and your management team remembers only as a distant memory ever having been in flow. Your role is to take 150+ decisions in the video game story – taking place during a virtual eight months of a season (March-November) so as to navigate your colleagues into Flow state, the most important but not the only objective you will have to pursue.

“That is all?” you might ask. In Good Business, another of his global best-selling books, Csíkszentmihályi identified 29 key management skills which all leaders should have. With new technological innovation, it has now become possible to measure these skills levels while playing this serious game (FLIGBY). Out of all these 29 skills the most important for Flow-promoting Leadership Skills are (1) Strategic Goal Setting, (2) Feedback, (3) Applying Personal Strengths and (4) Balancing Skill. Now that the 29 skills of the player have been measured by this objective (“non-intrusive”) and new method, Big Data solutions, HR Analytics and Predictive HRM kicks-in in support of maintaining company competitiveness: the HR manager can compare the actual status of the company’s talent pool across various units. Those who play the game in full also receive aggregated global benchmark data on the relevant leadership skills by industrial sectors, level of experience, and so on.

Any company manager can make use the award-winning game and benefit from the analytical wonders of skill insights gained. While learning about Flow-promoting Leadership on a development training, we can audit the skills base of the company management (that is, of those who have played the game). The 29 skills are the foundation and at the core of future competitiveness of any company or corporation.

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Can Bitcoin’s Blockchain

Methodology be Applied to HR? Blockchain technology is currently mostly used by banks, as well as financial and legal systems. If you know anything about it, the first thing that probably comes to mind is Bitcoin, the famous cryptocurrency and electronic payment system. Indeed, investment website Investopedia says blockchain is “seen as the main technological innovation of Bitcoin, since it stands as proof of all the transactions on the network”. But what if you could use similar methodology within HR management? According to HRN, a Budapest-based company focused on developing HR networks, it could make the HR department’s work easier.

CLAUDIA PATRICOLO

But what, exactly, is a blockchain? It is a database shared by all the nodes (computers) participating in a system, all of which have to approve each exchange before it can be recorded on the cloud.

Without the intercession of a bank, each user is able to know who owns what and who can send what to whom.

There is a certain reluctance in Hungary to using this technology after a warning released a few months ago by the National Bank of Hungary (MNB) that talked about the abuse of cryptocurrency. The statement was specifically aimed at Bitcoin, reminding users that there are no guarantees of consumer protection against losses.

As a result, a climate of fear has been generated around blockchain technology that has spread beyond the use of Bitcoin.

The Best Candidates In March, HRN organized a two-day conference in United Kingdom, entitled “HR Tech World”, entirely dedicated to new technologic developments related to HR. How can blockchain help HR

recruiters? This technology can easily check and verify employment histories, finding the best candidates and avoiding fraudulent credentials. It represents an important step to make HR systems more transparent and easily verifiable by anyone. Everything would be scheduled: insurance, payments, work performances, security accesses. This is what is currently taking up more and more time of HR employees. So, on the one hand they could save a lot of time.

According to a recent survey conducted by Deloitte, this technology could have many benefits for the HR department, such as a more disintermediation and empowerment, thanks to there being no need for a third party anymore; it can reduce waste by streamlining data processes into one system; it consists in more transparent and immutable policies, and it is costeffective since there will not be any transaction fees.

Currently only IBM Hungary is using this technology, having launched it last year, mostly for the use of Bitcoin, but nothing is stopping them from importing it into other fields, considering the evergrowing demand of this technology.

This column is part of a continuing series of opinion pieces from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the Budapest Business Journal.

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

Special Report | 25

An Option for Some Becomes a Requirement for Many

“Watch TED presentations, go to meet-ups, talk to people with information. By using the internet, you can learn basically anything, but you need to be resilient, chase and find the right sources of information.”

The breakneck pace the digital economy is developing at has created a situation where many employees feel they have no choice but to continuously selfeducate themselves, for fear of otherwise being left behind.

Péter Kovács, co-founder of IseeQ. LEVENTE HÖRÖMPÖLI-TÓTH

Not many are aware how director James Cameron became a Hollywood heavyweight.

As a college drop-out, he worked several jobs, including driving trucks, but he spent all his free time scooping up everything he could find about special effects in libraries. Cameron kept pushing the limits of technology with every movie he made. As a matter of fact, when shooting Avatar, he set the bar so high for himself that he singlehandedly developed a camera that shot in 3-D (rather than having the effects added afterwards) to produce the superior quality he had imagined.

Cameron’s tale of self-education was a rarity when he started out. With the internet revolution, however, ever more people can immerse themselves in pretty much any topic that grabs their interest and broaden their skillset. But given the quickly evolving needs of the labor market, self-development has metamorphosed from an option for some into a requirement for many.

“A total change of mindset is needed where there is no room for passivity,” Péter Kovács explains to the Budapest Business Journal.

He is co-founder of IseeQ, a disruptive recruitment company and is also, among others, one of the main organizers of Startup Safary [sic], an event that aims to make the startup ecosystem accessible to the public.

According to Kovács, Hungary’s education system cannot prepare you for the challenges of the new economy because the curriculum is unable to provide the context in which knowledge should be applied.

Be Resilient “Watch TED presentations, go to meet-ups, talk to people with information,” he says. “By using the internet, you can learn basically anything, but you need to be resilient, chase and find the right sources of information.”

There is more to it than just that, of course, as Péter Szántó, productivity hacker and Founder of SpringTab, which provides personalized social promotions and retargeting to increase conversion, explains.

“You need to be able to step back for a moment and be willing to learn, regardless of what stage of your career you are at,” he says. Ask questions, no matter how trivial they might sound, Szántó suggests. Visit

BBJ_2508_special_report.indd 25

workshops run by opinions leaders, network and gather best practices.

“No one is perfect, and the more advice you hear, the clearer the picture you get about yourself and your improvement areas,” he adds. “Some of my best bosses arranged private monthly meetings where they gave feedback about my performance, but also made a point of asking for my opinion of them as leaders.”

Szántó is currently working on a book that deals with the topic of self-improvement.

He has gathered a vast amount of material to discuss the best methods of improving your own knowledge and jumping on an upwards learning curve. “The book aims to give an in-depth overview of how to proceed if you are not sure how to take it to the next level, or simply wish to re-shake your skillset,” he says.

Róbert Csákvári, managing director of Work Force Kft., a recruitment agency, tells the BBJ “In the best-case scenario, employees and employers have common goals regarding learning, and they jointly set the directions for development.” Reality, however, often trumps personal ambitions to grow. With a lot of overtime at play, workers have less motivation for selfeducation in their scarce spare time.

Neither Sustainable, nor Understandable “Employers also often neglect training, or simply do not support employee development,” he adds. “The main objection of companies is that courses take both time and money. However, this viewpoint is not sustainable in the long-term for responsible leaders.” According to the expert, it is not particularly understandable, either, as companies can benefit from government grants provided for education purposes.

One of the biggest employers in Hungary, Magyar Telekom Zrt. (MTel), puts a special emphasis on encouraging self-development practices by providing a framework for this purpose. The company makes available a number of tools so that employees can acquire knowledge and, as a result, the ratio of self-training should grow at the expense of organizational training, the Communications Directorate of Magyar Telekom told the BBJ.

As of this year, every MTel staff member is entitled to a budget that can be used for any training of their choosing.

In parallel, free language courses have been made available and a web-based knowledge portal is soon to launch where tens of thousands of documents will be at their disposal at all times via mobile access.

MTel believes that solid digital literacy and strong (primarily English) language knowledge is vital. Making use of in-house skill-improving opportunities is more than highly recommended. The importance of self-responsibility is set to grow in this regard.

“Apart from that, great analytical and presentation skills will rule the day where you need to be able to analyze data and talk about it in an exciting manner,” Kovács of IseeQ notes. “And the ability to use systems such as the cloud, Google Drive or cuttingedge project management systems is also key.” He mentions the issue of responsibility in another context too. “Whatever task you have got, figure out how to get it done. This sense of responsibility is not easy to find, so developing it gives a clear advantage on the talent market.”

ADVERTISEMENT

Napjainkban minden vezetőnek számolnia kell a megváltozott munkaerőpiaci helyzettel, a megnövekedett munkaerőhiánnyal. Ez az új helyzet merőben más hozzáállást igényel és megfelelő stratégia nélkül a vezetők nem számíthatnak megfelelő szakemberutánpótlásra.

A munkaerőhiány elleni “csodaszer” kutatása helyett a megváltozott munkaerőiaci helyzethez igazodó sikeres alkalmazkodás képessége, a “modern” problémák hatékony megoldása az általunk kínált recept.

Hisszük, hogy partnerre szabott megoldásaink, rugalmasságunk, fejlett toborzási eszközeink, jelöltkövető rendszerünk, specializált tanácsadóink és szakma iránti elkötelezettségünk a kulcsai jelenlegi sikerünknek és ezáltal partnereink sikerének is.

Biztosak vagyun abban, hogy széleskörű szolgáltatásainkkal, mindenre kiterjedő megoldásokat tudunk nyújtani partnereink számára.

Szolgáltatásaink Partnereinknek:

fejvadászat

Munkaerő-kölcsönzés

Munkaügyi tanácsadás

Munkaerő-közvetítés

Bérszámfejtés

vezetőkiválasztás

Bérmunka

Szolgáltatásaink Álláskeresőknek: Munkalehetőség az ország minden területén (lakhatási támogatással, szállás biztosításval) Személyes interjú keretein belüli személyes tanácsadás Regisztráció adatbázisunkba – egy későbbi jó munkalehetőség érdekében Gyakornoki és diákmunka lehetőségek országosan

Irodáink: Budapest • Miskolc • Szerencs • Nyírbátor • Kisvárda • Körösladány • Kecskemét • Tatabánya • Veszprém • Zalaegerszeg

Get Work Trend Kft. • e-mail: getwork@getwork.hu

w w w . g e t w o r k . h u

2017. 04. 19. 17:48

26 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Temp agencies

2

TRENKWALDER SZEMÉLYZETI SZOLGÁLTATÓ KFT. www.trenkwalder.hu

6,999 178

4,031 124

90

10

10

89.50 10.50

65

35

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

Ÿ

2004 14 95

Profólió Projekt Tanácsadó Kft. (25) Work Service S.A. (75)

✓

1995 18 300

Tamás Lajos Szabó (10) Trenkwalder International AG (90)

Tibor Hujber Henrietta Tóth Ildikó Horváth

1132 Budapest, Váci út 22–24.

(1) 354-0933 (1) 302-7589 infohungary@ trenkwalder.com

✓

1991 11 5,100

– Adecco Group AG (100)

Stefano Longo Róbert Szeitl Anna Fodor

1134 Budapest, Váci út 45.G/7.

(1) 323-3500 (1) 323-3529 adecco@adecco.hu

–

1990 8 11

Zoltán Tóth (60), Péter Berta (30), Viktor Göltl (10) –

Péter Berta – –

8900 Zalaegerszeg, Ady Endre utca 2.

(92) 550-050 (92) 550-060 whc@whc.hu

Ÿ

1993 7 7

Videoton Holding Zrt. (100) –

Attila Molnár – –

8000 Székesfehérvár, Berényi út 72–100.

(22) 554-170 (22) 554-193 info@pannonjob.hu

✓

1990 1 1

(100) –

Géza Homonnay Balázs Címer –

1114 Budapest, Bartók Bélaút 15/D (1) 372-0692 (1) 372-0693 recepcio@gamax.hu

Ÿ

✓

Ÿ

✓

Ÿ

✓

Ÿ

✓

Ÿ

✓

Ÿ

✓

Ÿ

✓

CONSTRUCTION INDUSTRY

AGRICULTURE

SALES/TRADE

HEALTH CARE / PHARMACEUTICAL

TOURISM

PRODUCTION

IT/TELCO

BREAKDOWN OF TEMPS SUPPLIED BY SECTORS IN 2016

OFFICE/FINANCE

WHITE-COLLAR

BLUE-COLLAR

10,227

5,899 4,614,480

15,470

90

PERMANENT

13,508

3,659 6,276,383

27,896

TEMPORARY

10,880

4,244 7,683,072

TOTAL NET REVENUE IN 2016 (HUF MLN)

26,718

19,226 15,964,624

BREAKBREAKDOWN OF DOWN OF PLACETYPE OF MENTS WORK IN DURATION 2016 (%) IN 2016 (%)

YEAR ESTABLISHED NO. OF OFFICES IN HUNGARY WORLDWIDE (INCLUDING OFFICES IN HUNGARY)

1

www.prohuman.hu

TOTAL NUMBER OF TEMPORARY WORKFORCE IN 2016 NO. OF BILLED HOURS IN 2016

PROHUMÁN 2004 MUNKAERŐ SZOLGÁLTATÓ ÉS TANÁCSADÓ KFT.

NET REVENUE FROM TEMPORARY PLACEMENT IN 2016 (HUF MLN)

COMPANY WEBSITE

AVEREAGE STATISTICAL HEADCOUNT IN 2016 NO. OF FULL-TIME EMPLOYEES ON MARCH 1, 2017

RANK

Ranked by average statistical headcount in 2016

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Sándor Zakor, 1194 Budapest, Béla Ignácz, Kiss János Csongor Juhász, altábornagy utca 32.

Wojciech Mora (1) 432-1280 Tamás Kutassy (1) 432-1281 – prohuman@prohuman.hu

ADECCO KFT. www.adecco.hu

3,735 82

3

13,876

90

10

79

21

✓

✓

✓

✓

✓

✓

✓

WHC KFT.

www.whc.hu 4

5

PANNONJOB HUMÁN SZOLGÁLTATÓ ÉS TANÁCSADÓ KFT. www.pannonjob.hu

GAMAX KFT. 6

www.gamax.hu

2,652 75

2,020

Ÿ

1,717

Ÿ

7,887

4,740

5,819

Ÿ

Ÿ Ÿ

10,458

8,397

10,016

70

Ÿ

–

30

90

10

Ÿ

67

33

100

90

10

2

Ÿ

✓

10

Ÿ

✓

80

Ÿ

✓

–

Ÿ

–

–

Ÿ

–

3

Ÿ

–

5

Ÿ

–

Moscow

Teaming up with the bests.

Berlin

Prohuman is a member of Work Service, the fastest growing HR group.

The Work Service provides full service in 18 countries through 100 offices, for 3000 clients and it’s 50 000 employees.

Istanbul

www.prohuman.hu

BRPRHGE25_17 BBJ hirdetes_Prohuman_252X77V2.indd 1

BBJ_2508_special_report.indd 26

2017. 03. 24. 12:00

2017. 04. 19. 17:48

www.bbj.hu

3 YEAR ESTABLISHED NO. OF OFFICES IN HUNGARY WORLDWIDE (INCLUDING OFFICES IN HUNGARY)

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

–

2004 9 9

Róbert Csákvári (100) –

Róbert Csákvári Éva De Rossi –

1032 Budapest, Kiscelli utca 7–9.

(1) 354-3434 (1) 302-8246 titkarsag@work-force.hu

Grosvenor Kft. (100) –

Arnold Bozi – –

1114 Budapest, Bartók Béla út 15/D (1) 372-0692 (1) 372-0693 pannonwork@ pannonwork.hu

László Küzmös (100) –

László Küzmös, Ákos Jáhny Krisztina Lázár –

1023 Budapest, Árpád fejedelem útja 31.

(1) 766-5626 (1) 766-5618 getwork@getwork.hu

CONSTRUCTION INDUSTRY

AGRICULTURE

SALES/TRADE

HEALTH CARE / PHARMACEUTICAL

TOURISM

PRODUCTION

IT/TELCO

Special Report | 27

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

BREAKDOWN OF TEMPS SUPPLIED BY SECTORS IN 2016

OFFICE/FINANCE

WHITE-COLLAR

BLUE-COLLAR

PERMANENT

BREAKBREAKDOWN OF DOWN OF PLACETYPE OF MENTS WORK IN DURATION 2016 (%) IN 2016 (%)

TEMPORARY

TOTAL NUMBER OF TEMPORARY WORKFORCE IN 2016 NO. OF BILLED HOURS IN 2016

5,286

5,457 3,088,343

TOTAL NET REVENUE IN 2016 (HUF MLN)

NET REVENUE FROM TEMPORARY PLACEMENT IN 2016 (HUF MLN)

COMPANY WEBSITE

AVEREAGE STATISTICAL HEADCOUNT IN 2016 NO. OF FULL-TIME EMPLOYEES ON MARCH 1, 2017

RANK

Budapest Business Journal | April 21 – May 4, 2017

WORK FORCE SZEMÉLYZETI TANÁCSADÓ ÉS SZOLGÁLTATÓ KFT. www.workforce.hu

1,665 83

7

5,347

Ÿ

Ÿ

70

30

25

5

70

–

–

–

–

PANNON WORK ZRT. www.pannonwork.hu

Ÿ

Ÿ

6,983 3,339,264

5,343

–

100

85

15

✓

✓

✓

–

–

✓

✓

✓

2004 16 19

1,453 42

3,698

3,377 3,081,665

3,982

10

90

90

10

✓

–

✓

–

–

✓

–

–

2004 10 10

1,576

8

GET WORK TREND KFT. www.getwork.hu

9

How can we abolish labour shortage?

There are several solutions proposed by experts to eliminate the increasing labor shortage in Hungary, including flexible and atypical employment or raising wages. According to Work Force, a leading recruitment and employment agency, innovative recruitment and employee retention strategies or even mobile accommodations supporting a more mobile workforce management could help solve the problem.

We can read more and more articles about positions, Need of new types of recruitment forms where employers can’t or barely find the right person.

In addition to the IT sector, shortage is getting a major Róbert Csákvári, GM of a leading recruitment and Róbert Csákvári, General manager issue in positions like assembly men, forklift drivers, employment agency, Work Force, often meets electricians, vendors, cashiers and postmen. On customers facing the challenge of labor shortage. corporate level the most obvious solution could be to He proposes clients solutions that have already "In addition to continuous professional innovation increase wages, but research shows that companies, worked in his daily practice, like new and existing staff in recruitment, communicational and organizational which treat their workers well and are loyal to them should not only be coordinated by HR colleagues, but innovations are required to succeed as well." won’t be left by employees even in spite of somewhat shift managers, foremen and other staff members – adds Csákvári. higher wages offered to them, because if employees should be more directly involved into making an are comfortable with their current workplace, they attractive work environment for new staff. Recruitment Mobile accommodations may be part of the solution will be much less inclined to take risks with a move, is another issue. so employers should focus on the right employee experience first. „The right selection system is able to decrease staff Although Hungary had been traditionally inflexible turnover, if it is able to assess whether an employee in terms of labor mobility, according to a Work Force In recent years, flexible and atypical forms of suits the company culture not only in terms of expertise, study more than 60% of temporary labor force is willing employment began to spread around the world, such as but also from a personality and motivational angle” to relocate for a better job. Work Force pioneered in creating mobile accommodations in Oroszlány, which part-time employment, self-employment, teleworking, – said Csákvári. seasonal employment, job sharing, job rotation or Nowadays the so-called "social recruiting" is operates with an average of 90% occupancy. This temporary employment. becoming more popular too, since the physical accomodation,which currently serves as home for 44 workers can be targeted very well on social media people, will soon host 66 new workers through the Due to the need for flexibility these forms are preferred channels, getting in touch with them is fast and creation of 33 new rooms. Mobile container homes can by many people, who are not part of the traditional interactive. Work Force has one of the largest be set up in less than 6 months and are easily adapted employment system because of their living conditions, Facebook community in this sector, getting over 200 to local needs. They are easy to transport to both new and existing company premises. lower educational level or decreased health status. leads from Facebook every month.

BBJ_2508_special_report.indd 27

2017. 04. 19. 17:48

Special Report YEAR ESTABLISHED NO. OF OFFICES IN HUNGARY WORLDWIDE (INCLUDING OFFICES IN HUNGARY)

Volano Kft. (100) –

Csaba Ottó Orsolya Horvai Módné Kinga Kincső Tóth

8272 Óbudavár, Fő utca 31.

(88) 400-453 (88) 400-453 manatwork@manatwork.hu

–

1993 17 17

(100) –

Katalin Bor, Tibor Urbán – –

1075 Budapest, Holló utca 2.

(1) 877-0900 (1) 877-0936 info@humancentrum.hu

Ÿ

2010 1 1

– LTI Spólka z Ograniczona Odpowiedzialnoscia (100)

István Bojó – –

1214 Budapest, Mag utca 3.

(1) 789-6538 (1) 799-0926 info@ profieldkolcsonzo.hu

✓

2004 18 18

Trenkwalder Személyzeti Szolgáltató Kft. (100) –

Tibor Hujber Henrietta Tóth Ildikó Horváth

1132 Budapest, Váci út 22–24.

(1) 354-0933 (1) 302-7589 infohungary@ trenkwalder.com

–

2000 12 13

László Mátyás (89), Erika Dékány (11) –

László Mátyás Erika Dékány Imre Papp

4024 Debrecen, Batthyány utca 12/1.

(52) 316-242 (52) 530-965 job@hsakft.hu

✓

2010 1 1

Individuals (100) –

Viktor Németh Zsolt Őry –

1135 Budapest, Róbert Károly körút 82–84.

(1) 888-9200 (1) 888-9206 ceginfo@ munkaeromester.hu

IT/TELCO

PRODUCTION

TOURISM

HEALTH CARE / PHARMACEUTICAL

SALES/TRADE

AGRICULTURE

CONSTRUCTION INDUSTRY

4,473

3,128 2,265,000

1998 6 7

OFFICE/FINANCE

4,715

WHITE-COLLAR

5,057 2,199,696

BLUE-COLLAR

TOTAL NET REVENUE IN 2016 (HUF MLN)

4,627

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

BREAKDOWN OF TEMPS SUPPLIED BY SECTORS IN 2016

PERMANENT

TOTAL NUMBER OF TEMPORARY WORKFORCE IN 2016 NO. OF BILLED HOURS IN 2016

1,340 1,299

BREAKBREAKDOWN OF DOWN OF PLACETYPE OF MENTS WORK IN DURATION 2016 (%) IN 2016 (%)

TEMPORARY

NET REVENUE FROM TEMPORARY PLACEMENT IN 2016 (HUF MLN)

COMPANY WEBSITE

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

AVEREAGE STATISTICAL HEADCOUNT IN 2016 NO. OF FULL-TIME EMPLOYEES ON MARCH 1, 2017

RANK

28 | 3

80

20

90

10

5

–

95

–

–

–

–

–

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

MAN AT WORK KFT. www.manatwork.hu

10

HUMÁN CENTRUM KFT. 11 www.humancentrum.hu

1,251 1,764

PROFIELD MUNKAERŐ12 KÖLCSÖNZŐ KFT.

1,081 18

www.profieldkolcsonzo.hu

TRENKWALDER HUMÁNERŐFORRÁS KFT. 13

www.trenkwalder.hu

1,055 40

3,279

2,130

Ÿ

2,351

1,135 2,037,455

2,899

2,877 1,790,956

4,571

3,320

4,319

20

15

100

80

85

–

65

68

65

35

32

35

✓

Ÿ

✓

✓

Ÿ

✓

✓

Ÿ

✓

–

Ÿ

–

✓

Ÿ

✓

✓

Ÿ

✓

–

Ÿ

✓

HSA KFT.

www.hsakft.hu 964 52

14

15

MUNKAERŐ MESTER KFT. www.munkaeromester.hu

842 30

2,047

1,074

Ÿ

2,940

2,047

15

2

85

98

68

80

32

20

26

✓

1

–

70

✓

–

✓

–

–

3

✓

–

–

DOLOGIDŐ KFT. www.dologido.hu

16

m u nk aerő k öz ve títő

k öl csön ző

603 27

1,643

3,728 1.157.717

1,683

19

81

89

11

6

5

82

–

–

–

–

munkaerő-kölcsönzés

www.hsakft.hu

BBJ_2508_special_report.indd 28

7

2001 12 12

Péter Vida (14.30), Zoltán Egerszegi Gábor Csizmadia, (32), Erika Pintér Péter Vida (32), Via Pannónia László Pintér Kft. (17.70), Gábor Bence Husi Csizmadia (4) –

1013 Budapest, Pauler utca 18.

(20) 328-3284 – info@dologido.hu

munkaerő-közvetítés

facebook.com/hsakft

2017. 04. 19. 17:48

www.bbj.hu

3

RANDSTAD HUNGARY KFT. 18

www.randstad.hu

MANPOWER MUNKAERŐ SZERVEZÉSI KFT.

19 www.manpower.hu

HRCV SZEMÉLYZETI 20 SZOLGÁLTATÓ KFT. www.hrcgroup.hu

21

HUMÁN NAVIGÁTOR KFT. www.humannavigator.hu

TOTAL NET REVENUE IN 2016 (HUF MLN)

65

35

76

24

16

9

71

–

–

4

–

–

– Kelly Services Inc. (96.70), Kelly Properties LLC (3.30)

536 107

1,982

1,180 718,427

4,032

60

40

58

42

✓

✓

✓

✓

✓

✓

✓

✓

2004 4 5,752

– Randstad Holding N.V. (100)

Sándor Baja Lívia Tóth Ágnes Szokody

1024 Budapest, Lövőház utca 39.

(1) 411-2090 (1) 411-2091 info@randstad.hu

468 71

2,025

1,609 660,987

3,596

60

40

69

31

✓

✓

✓

–

✓

✓

–

–

1990 3 3,900

– Manpower France Holding SAS (100)

Ottó Vég Roland Huszár Anikó Pekarik

1133 Budapest, Váci út 76.

(1) 411-1590 (1) 266-0536 manpower@manpower.hu

389 42

1,021

1,478 503,924

1,100

60

40

78

22

✓

✓

✓

✓

✓

✓

✓

✓

2000 8 8

Csilla Vidó (100) –

Csilla Vidó Tímea Hornyák Judit Repka

1117 Budapest, Móricz Zsigmond körtér 14.4/1.

(1) 878-0145 (1) 878-0160 info@hrcv.hu

249 307

899

821 524,397

983

75

25

80

20

5

7

88

–

–

–

–

–

2001 5 5

Géza Homonnay (51), Tibor Takács (49) –

Tibor Takács Dalma Takács Nóra Élő

8000 Székesfehérvár, Gyümölcs utca 26.

(22) 509-900 (22) 509-901 info@humannavigator.hu

221 372

931

648 440,834

962

70

30

29

71

✓

✓

✓

✓

–

✓

–

–

2001 5 15

Individuals (84.93) Starjobs Ltd. (10), Enersense Oy (5.07)

Péter Megyeri Gyula Serfőző Zoltán Kott

1093 Budapest, Czuczor utca 10.

(1) 456-0700 (1) 217-8606 info@starjobs.hu

1,213

441 324,931

–

1992 2 2

László Hadi, Botond Csordás, Attila Pál, Attila Dobár (100) –

Attila Dobár György Thury –

1094 Budapest, Angyal utca 24.

(1) 239-9922 (1) 239-9926 info@job.hu

Bence Vida (50), Milagroso Gerifalte Szolgáltató és Tanácsadó Kft. (50) –

Tibor Tóth Péter Vida Dániel Fatuska

2724 Újlengyel, Ady Endre utca 11.

(29) 385-085 (82) 423-104 info@munka-ero.hu

CONSTRUCTION INDUSTRY

AGRICULTURE

SALES/TRADE

HEALTH CARE / PHARMACEUTICAL

TOURISM

PRODUCTION

IT/TELCO

BREAKDOWN OF TEMPS SUPPLIED BY SECTORS IN 2016

OFFICE/FINANCE

WHITE-COLLAR

2,282

2004 1 3,623

BLUE-COLLAR

1,974

2,223 1,011,926

587 41

PERMANENT

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TEMPORARY

YEAR ESTABLISHED NO. OF OFFICES IN HUNGARY WORLDWIDE (INCLUDING OFFICES IN HUNGARY)

www.kellyservices.hu

TOTAL NUMBER OF TEMPORARY WORKFORCE IN 2016 NO. OF BILLED HOURS IN 2016

KELLY SERVICES 17 HUNGARY KFT.

BREAKBREAKDOWN OF DOWN OF PLACETYPE OF MENTS WORK IN DURATION 2016 (%) IN 2016 (%)

STARJOBS MAGYARORSZÁG HUMÁNSZOLGÁLTATÓ KFT. www.starjobs.hu 22

Special Report | 29

NET REVENUE FROM TEMPORARY PLACEMENT IN 2016 (HUF MLN)

COMPANY WEBSITE

AVEREAGE STATISTICAL HEADCOUNT IN 2016 NO. OF FULL-TIME EMPLOYEES ON MARCH 1, 2017

RANK

Budapest Business Journal | April 21 – May 4, 2017

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Anikó Jónás Zsolt Szabó –

1085 Budapest, Kálvin tér 12.

(1) 301-7800 (1) 301-7880 info@kellyservices.hu

JOB SZEMÉLYZETI TANÁCSADÓ KFT. www.job.hu

188 27

23

MUNKA-ERŐ KÖLCSÖNZŐ ÉS KÖZVETÍTŐ KFT. 24

www.munka-ero.hu

DEKRA ARBEIT

25 MAGYARORSZÁG KFT. www.dekra-arbeit.hu

NR

EU-JOBS KFT. www.eujobs.hu

1,278

31

69

–

100

52

25

6

–

8

9

–

461

760 305,099

470

98

2

93

7

7

61

32

–

–

–

–

–

2005 21 21

148 9

621

297 31,250

664

18

82

65

35

13

17

59

–

–

6

5

–

2004 4 185

– DEKRA Arbeit GmbH (100)

Marianna Majtényi – Gábor Behina

1062 Budapest, Andrássy út 97.

(1) 920-1341 (1) 920-1341 dekra@dekra-arbeit.hu

Ÿ Ÿ

Ÿ

Ÿ Ÿ

2,652 (2015)

Ÿ

Ÿ

Ÿ

Ÿ

25

–

35

20

–

20

–

–

2005 1 1

(100) –

Zoltán Pataki Judit Gősi Nikoletta Rumpf

2724 Újlengyel, Határ út 12.

(1) 225-7313 (1) 700-2554 eucsoport@eucsoport.hu

Ÿ

Ÿ Ÿ

1,892

–

2007 1 252

– Hays Plc. (100)

Tammy Nagy-Stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

(1) 501-2400 (1) 501-2402 hungary@hays.hu

Ÿ

Ÿ Ÿ

4,170 (2015)

Ÿ

2001 18 18

Individuals (100) –

Zoltán Márkus – –

1118 Budapest, Előpatak utca 78.

(1) 248-2010 (1) 248-2016 info@ humaniahrsgroup.hu

179 219

HAYS HUNGARY KFT. www.hays-response.hu NR

Ÿ Ÿ

HUMÁNIA HRS GROUP ZRT. NR

Ÿ Ÿ

www.humaniahrsgroup.hu

BBJ_2508_special_report.indd 29

Ÿ

Ÿ

Ÿ

Ÿ

–

Ÿ

100

Ÿ

✓

Ÿ

✓

Ÿ

–

Ÿ

–

Ÿ

–

Ÿ

✓

Ÿ

–

Ÿ

2017. 04. 19. 17:48

Special Report

30 | 3

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Crisis Waiting Around the Corner to Restructure H The increasing shortage of qualified labor is not only forcing hiring companies to rethink their strategies in order to maintain competitiveness; it also pushes recruitment agencies towards more complex solutions.

New HR trends are evolving to ease the crisis, but in the medium-term, a significant rise in Hungarian wages might be the only solution.

Zsuzsa Gárdus, CEO of JOBSGarden.

Problematic Positions

BBJ_2508_special_report.indd 30

www.hays.hu

Statistics on unemployment suggest that finding workforce is an effort.

Central Statistical Office (KSH) data shows that Hungary’s unemployment rate has decreased to 4.4% by February 2017. Also, according to the latest study of ManpowerGroup, 57% of Hungarian companies report they meet difficulties when recruiting new labor, far above the global average of 40%.

In one-third of the cases, there are not even any applicants for job openings,

3% D O N’

SE ST AF FIN G LE VE LS

IN THE NEXT 3 MONTHS

TK

3%

FOREC

N

A ST

AT A N TI CI P

A

DE

O EN

CH

AN

G

T EC XP SE YER OF EMPLO

CR EA

In the last couple of years, we have seen a dramatic turn in the labor market. Whilst there used to be strong competition for jobs, leaving employers able to influence candidates into compromising on remuneration, a shift in the availability of good quality talent and desirable positions has created an extremely candidatedriven market, especially in the technical areas.

This is great for candidates as it gives them more bargaining power to secure a job on their terms. It is, however, bad news for companies, as it means the candidates that they are trying to hire are receiving multiple offers as would-be employers battle it out to secure the best talent in the market. Recruiting and retaining talented professionals is the challenge of 2017. That’s why the function of HR departments has become outstandingly important.

According to our experience, learning and development and employer branding were put much more in focus among multinational companies on the Hungarian market, but smaller organizations have also realized that

INTENTIONS FOR HUNGARY

SE

HAYS HUNGARY

Such demanding times require the advancement of all participants.

“Finding applicants is already a challenge and takes a professional group,” Grafton CEO Orsolya Dózsa says. “A good brand or the fancy recruitment software does not make a difference, if the team is not professional and qualified.”

Still, recruitment agencies take advantage of technological developments. Different reporting and accounting tools speed up the daily work in order to maximize effectivity. At the same time, automatized online sourcing tools help the recruitment processes and, as talent seeking is going more and more online, all the major social media sites have also started to develop recruiter applications.

STAFFING LEVEL

E

Recruitment Consultant

employee engagement is a key asset for stabilizing business success in the long run.

The use of external training agencies has become a basic routine for most organizations.

Besides that, peer learning has been recognized as an efficient and cost effective way of improving employee knowledge and skills, especially because of the relevance of information transferred as it is delivered by people who understand the organization’s culture and needs. Employer branding has also become a strategic priority as part of HR responsibilities, focusing on not just compensation and benefits, but improving the overall employee experience through development of talent programs, satisfaction surveys and evaluation systems.

The trend in recognition of HR functions as important assets in a company’s business, means more opportunities on the market, especially on the generalist levels, in all sectors. Whether in case of further expansion, entering the Hungarian market or even internally improving the existing organization, it is essential for companies to hire good HR professionals to build up a stable structure, therefore the demand for all levels is likely to increase in the upcoming years.

Sándor Baja, CEO of Randstad.

W

Keeping up With Dramatic Changes in the Labor Market

“Companies have adapted to the new market conditions and started to work with internal recruiters or even set up recruitment teams,” says Gergely Parti of Hays, sketching out another tendency. “As a result, most companies outsource the recruitment only of the most problematic positions, which makes life harder for HR agencies,” he says adding that this fact does at least slightly push up recruitment agencies’ prices.

EA

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

EXPERT OPINION

Fruzsina Farkas

country. “HR agencies seek to maximize their success factor,” Grafton CEO Orsolya Dózsa tells the BBJ, adding that on-site/ RPO is a good opportunity to tighten the bonds with clients. However, companies choosing on-site solutions take some risk by relying on a single HR supplier, as it might not be enough to fulfill all needs and numbers, Dózsa points out.

ManpowerGroup, meanwhile, also in the name of complexity, takes part in the training of the new workforce, too.

O

While eye-catching headlines keep coming about Hungary’s permanently lowering unemployment rate, companies have already started to feel the effects of the flipside of the phenomena. The lack of qualified workforce is causing problems throughout the country, which makes it even more crucial for companies to keep their existing workers and avoid the problems of recruitment. Also, while all five HR companies the Budapest

Business Journal interviewed reported they expect to keep growing this year, they admit that the new market conditions are forcing them to work harder and find new, more complex solutions.

As a relatively new trend, HR agencies with global networks often win on-site/RPO (Recruitment Process Outsourcing) projects in different countries. This means they will take over the entire HR management of a given company and provide on-site solutions without even opening an office in the actual

CR

ÁGNES VINKOVITS

Gergely Parti, response manager of Hays.

TO

IN

SOURCE: MANPOWER GROUP EMPLOYMENT SURVEY 2017 Q2

while a similar percentage complains about the lack of qualified candidates.

Another 12% of employers fail to fill vacancies because of the too high salary expectations of applicants.

Meanwhile, there is a huge and on-going need for labor in the IT and engineering sectors, which, according to Grafton’s Dózsa, is already holding back development in these fields. There is also a shortage of financial professionals and even accountants with excellent foreign language command, but skilled workers, drivers, catering workers and doctors are continuously being sought as well.

According to Hay’s Parti, Hungary’s eastern regions suffer most from the lack

2017. 04. 19. 17:48

www.bbj.hu

3

Budapest Business Journal | April 21 – May 4, 2017

EXPERT OPINION

TOP 5 Tips for Choosing a Payroll and HR-outsourcing Provider Szilárd Ocskay CEO NEXON HUNGARY

Orsolya Dózsa, CEO of Grafton.

Ottó Vég, CEO of Manpower.

of workforce, as this area offers 15-20% lower salaries and so loses more capable and mobile worker to the capital and Western counties. At the same time, as Dózsa points out, the eastern regions have to deal with an excess of unskilled people, who are difficult to integrate into the workforce market.

Demographic Tendency

The demographic tendency of an aging society is only one of the reasons for the evolving labor crisis. “An increasing number of young people leave the country and the local education seems to be unable to keep up with the current workforce needs,” says Zsuzsa Gárdus, CEO of JOBSGarden. Apparently, those job fields under pressure of worker shortage are basically the same all around the world, which suggests that wages need to be internationally competitive if Hungary wants to keep its workforce at home.

However, according to Manpower CEO Ottó Vég, we are still far from this, as most Hungarian employers are afraid they will lose competitiveness if they raise salaries.

But today, Vég adds, the lack of labor has reached such a critical level that it threatens competitiveness in itself.

Companies give different answers to the issue. Manpower’s study shows that 31% of the employers are trying to avoid the labor crisis by training their existing staff. Also, recruiters often import talents, mostly from India and the United Kingdom and, according to Gárdus, regional recruitment is also on the rise. However, Hungary is less and less attractive for qualified people in the neighboring countries, as Poland and Czech Republic offers higher wages, Randstad CEO Sándor Baja points out.

Still, Baja is optimistic as he sees big reserves inland. Hungary holds the European middle ground with its 67% employment rate but it is still far from the 74% of the Czechs, he says, adding that mothers could also be better integrated through part-time jobs, while the elder generation has some free capacity, too. “Not to mention that higher salaries would be able to bring home the Hungarians working abroad.”

Giving up-to-date knowledge to our youngsters is also vital. “Our education system definitely needs a change,” Gárdus says. “The digital revolution is in full swing and I don’t think that the local training system is ready for this yet.”

SECTOR OUTLOOK PLANNING TO INCREASE STAFFING LEVELS

There are two possible ways to keep an organization’s payroll competence up-to-date: either through continually applying the resources needed to maintain the necessary expertise and current knowledge in-house, or by outsourcing to a specialist that can provide payroll administration services for a predictable and transparent cost.

Finding the right solution provider requires a careful selection process, and we would suggest to start by looking at a company with more than 30 years of experience in this field.

Tip 1: Look for safe and state-of-the-art IT-solutions.

Any reliable outsourcing solution depends heavily on the IT infrastructure in the background. Therefore, look for a service provider that not only has expert personnel, but also: Runs its’ own IT-infrastructure to host the outsourced service, as this provides the basis for operational safety and data security; Provides a self-service access system for employees and managers that facilitates paperless HR administration, e.g. electronic pay slips, cafeteria benefit declarations, scheduling and recording working hours, handling vacation plans, filling in and processing statutory forms etc.; Offers a cloud based IT solution providing 24/7 access to the organizations’ data.

Tip 2: Look for a provider that can change with you.

MANUFACTURING

TRANSPORT, STORAGE, COMMUNICATION

CONSTRUCTION

WHOLESALE RETAIL, TRADE

AGRICULTURE, HUNTING, FORESTRY, FISHING

PUBLIC AND SOCIAL

+24%

+23%

+23%

+12%

+7%

+6%

SOURCE: MANPOWER GROUP EMPLOYMENT SURVEY 2017 Q2

BBJ_2508_special_report.indd 31

Organizational needs, technology and statutory requirements change continually and unpredictably, and your payroll and HR administration needs to track and accommodate these changes.

Keep this simple by choosing a provider that provides a full range of services and has the ability to adapt according to your changing needs, whether this means modifying the number of employees covered or the portfolio of HR services provided.

Your changing circumstances can be quickly and flexibly provided for by a service provider that has a mature and comprehensive set of applications, developed in-house and kept continually up-to-date to meet specific current Hungarian HR requirements.

Tip 3: Look for full liability.

Almost 18,000 employers were inspected by the Hungarian state labor authority during 2016. These investigations revealed non-compliance related to current labor law at 75% of the companies, and more than HUF 13 billion of penalties were issued in consequence.

Ensure your protection by choosing a company that meets internationally recognized quality assurance standards and that, through its service agreement, assumes full responsibility for any penalties arising from mistakes or maladministration. Having a sufficiently high amount of liability insurance to cover the service provider’s activity is a must for your own peace of mind.

Tip 4: Look for clear and inclusive pricing.

Avoid unpleasant surprises: be certain what is included in the contracted costs and carefully check which tasks are covered by the agreement.

Eye-catching promotions like, “Get your monthly payroll for HUF 990 by arrangement” may well seem irresistible. However, often what initially seems like the cheapest option turns out not to be so when the fine print is closely examined. A remarkably low price often reflects a very basic level of service, with many “additional” – but totally necessary – requirements being charged for as “extras”.

Tip 5: Insist on top-notch customer service.

A safe and satisfactory level of customer service starts with a secured online task manager that ensures safe data communication between customer and service provider. It is complemented by a dedicated personal contact, who knows your specific requirements and can provide an answer to even the most difficult questions.

Additional tip:

Although payroll and human resource administration is a mission critical task for any organization and requires significant resources and competent performance, it is not generally a main organizational competence. It is, therefore, typically a function that can usefully be outsourced. Our best advice to you is to talk to a specialist with decades of experience; go for NEXON!

www.nexon.hu

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

e Hungary’s Labor Market

Special Report | 31

2017. 04. 19. 17:48

32 | 3

Special Report

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Recruitment agencies

plaCemeNt fRom database

top maNagemeNt

middle maNagemeNt

otHeR

baNkiNg aNd fiNaNCe

pRoduCtioN/eNgiNeeRNg

touRism

sales/tRade/maRketiNg

it/teleCom

pHaRmaCeutiCal/CHemiCal

ssC/bsC

yeaR establisHed No. of offiCes iN HuNgaRy WoRldWide

otHeR

laW

4,032

40

30

20

10

1,146 88

16

35

49

3-6 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

2004 4 5,752

– Randstad Holding N.V. (100)

sándor baja Lívia Tóth Ágnes Szokody

1024 Budapest, Lövőház utca 39.

(1) 411-2090 (1) 411-2091 info@randstad.hu

929

1,892

30

30

40

–

817 43

10

50

40

3-6 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

2007 1 252

– Hays Plc. (100)

tammy Nagy-stellini Aleksandra Keller Agnieszka Kazimierczak

1054 Budapest, Szabadság tér 7.

(1) 501-2400 (1) 501-2402 hungary@hays.hu

Ÿ

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

2016 1 5,752

Randstad Hungary Kft. (100) –

lívia tóth – –

1093 Budapest, Czuczor utca 2-10.

(1) 411-2090 (1) 411-2091 info@randstad.hu

guaRaNtee peRiod ReCRuitmeNt time

adveRtisiNg

2,050

No. of CaNdidates plaCed iN 2016 No. of employees iN seaRCH aNd CoNsultiNg oN maRCH 1, 2017

diReCt seaRCH

www.randstad.hu

iNdustRy speClializatioN iN 2016

oWNeRsHip (%) HuNgaRiaN NoN-HuNgaRiaN

RaNdstad HuNgaRy kft.

1

peRCeNtage of CaNdidates plaCed iN 2016 (%)

total Net ReveNue iN 2016 (Huf mlN)

CompaNy Website

bReakdoWN by seaRCH metHods iN 2016 (%)

Net ReveNue fRom ReCRuitmeNt iN 2016 (Huf mlN)

RaNk

Ranked by net revenue from recruitment in 2016 (HUF mln)

Hays HuNgaRy kft.

2

3

www.hays.hu

RaNdstad souRCeRigHt kft. www.randstad.hu

558

558

Ÿ

Ÿ

Ÿ

Ÿ

Shaping the world of work

Ÿ

150

Ÿ

Ÿ

IT

Marketing

top loCal exeCutive Cfo maRketiNg diReCtoR

addRess pHoNe fax email

Engenieering

As one of the world’s largest HR services company, we are a true global leader in our industry and see it as our responsibility to take an active role in developing it.

By finding the right balance between the needs of the employer and the changing wishes of employees, we will bring supply and demand closer together. In short, our mission is to take the lead in shaping the world of work.

Sales

SSC

Finance

Randstad, as the No1 HR service provider in Hungary attracts the best people. When working with us, you are ensured of working with the industry’s best talent.

Logistic

Legal

HR

www.randstad.hu

BBJ_2508_special_report.indd 32

2017. 04. 19. 17:48

www.bbj.hu

3

tReNkWaldeR személyzeti szolgáltató kft. www.trenkwalder.hu

461

35

25

35

5

maNpoWeR MUNKAERő SZERVEZÉSi Kft. 5

www.manpower.hu

443

3,596

50

20

25

1,221 35

5

5

826 20

–

402 26

15

10

7

15

80

3 months 1–8 weeks

✓

✓

✓

✓

✓

✓

✓

oWNeRsHip (%) HuNgaRiaN NoN-HuNgaRiaN

top loCal exeCutive Cfo maRketiNg diReCtoR

addRess pHoNe fax email

✓

1995 18 300

Tamás Lajos Szabó (10) Trenkwalder International AG (90)

tibor Hujber Henrietta Tóth Ildikó Horváth

1132 Budapest, Váci út 22–24.

(1) 354-0933 (1) 302-7589 infohungary@ trenkwalder.com

–

1990 3 3,900

– Manpower France Holding SAS (100)

ottó vég Roland Huszár Anikó Pekarik

1133 Budapest, Váci út 76.

(1) 411-1590 (1) 266-0536 manpower@ manpower.hu

–

2001 1 1

(100) –

zsuzsanna gárdus, éva paulovics – –

1037 Budapest, Montevideo utca 16/B (1) 439-2940 (1) 439-2963 office@jgit.hu

– Adecco Group AG (100)

stefano longo Róbert Szeitl Anna Fodor

1134 Budapest, Váciút 45.G/7.

(1) 323-3500 (1) 323-3529 adecco@adecco.com

laW

ssC/bsC

pHaRmaCeutiCal/CHemiCal

it/teleCom

sales/tRade/maRketiNg

touRism

pRoduCtioN/eNgiNeeRNg

baNkiNg aNd fiNaNCe

guaRaNtee peRiod ReCRuitmeNt time

iNdustRy speClializatioN iN 2016

otHeR

middle maNagemeNt

peRCeNtage of CaNdidates plaCed iN 2016 (%)

top maNagemeNt

No. of CaNdidates plaCed iN 2016 No. of employees iN seaRCH aNd CoNsultiNg oN maRCH 1, 2017

otHeR

plaCemeNt fRom database

adveRtisiNg

diReCt seaRCH

total Net ReveNue iN 2016 (Huf mlN) 15,470

bReakdoWN by seaRCH metHods iN 2016 (%)

Special Report | 33

yeaR establisHed No. of offiCes iN HuNgaRy WoRldWide

4

CompaNy Website

Net ReveNue fRom ReCRuitmeNt iN 2016 (Huf mlN)

RaNk

Budapest Business Journal | April 21 – May 4, 2017

72

3 months 2-6 weeks

70

3-6 months 1-4 weeks

50

35

3 months 1-6 weeks

✓

✓

✓

✓

✓

✓

✓

✓

1991 11 5,100

20

70

3 months 3-5 weeks

✓

✓

✓

✓

✓

✓

✓

✓

1996 1 25

– Grafton Group (100)

orsolya dózsa Norbert Fekete –

1053 Budapest, Károlyi utca 12.

(1) 235-2600 (1) 235-2601 info@grafton.hu

10

5

–

10

35

–

40

–

2007 2 2

Gábor Béres (100) –

gábor béres – Annamária Miklós

1052 Budapest, Aranykéz utca 2.

(1) 200-2823 – hr@exactsolutions.hu

✓

✓

✓

✓

✓

✓

✓

✓

2007 1 1

Beáta Fürjész (50), Gabriella Ruff (50) –

beáta fürjész – –

1075 Budapest, Madách Imre út 13-14.

(1) 354-2060 (1) 354-2061 info@karrierhungaria.hu

21

✓

✓

–

✓

✓

✓

✓

JobsgaRdeN-itJobs kft. www.jgit.hu

404

6

628

60

10

30

5

25

5

20

2

5

30

5

33

adeCCo kft. www.adecco.hu 7

358

13,876

55

15

15

15

584 18

329

384(1)

25

15

50

10

346 22

5

30

65

3-6 months 1-4 weeks

15

35

50

3-6 months 2-6 weeks

gRaftoN ReCRuitmeNt kft. www.grafton.hu 8

exaCt solutioNs személyzeti taNáCsadó kft. www.exactsolutions.hu 9

284

300

50

15

25

10

345 18

262

293

40

30

30

–

276 23

kaRRieR HuNgáRia kft. www.karrierhungaria.hu 10

A Suite of Innovative Workforce Solutions

Manpower is the global leader in contingent and permanent recruitment workforce solutions.

We provide the agility businesses need with a continuum of staffing solutions.

Experis provides professional resourcing workforce solutions, which accelerates the organizations’ growth by intensely attracting, assessing and placing specialized expertise primarily in IT & Engineering.

With a shared focus on organizational effectiveness, individual development and career management, we provide tailored solutions that help companies and individuals succeed.

Contact us

We provide our clients with human resources outsourcing services primarily in the areas of large-scale recruiting and outcome-based workforce-intensive initiatives.

BBJ_2508_special_report.indd 33

Proservia is specializing in infrastructure, network, workplace management and end-user support.

www.manpowergroup.hu manpower@manpower.hu

2017. 04. 19. 17:48

www.bbj.hu

✓

✓

✓

65

3 months 3-4 weeks

✓

✓

–

✓

✓

–

✓

–

2009 2 36

top loCal exeCutive Cfo maRketiNg diReCtoR

addRess pHoNe fax email

Nigel marsh – –

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 883-3500 (1) 883-3599 info.hungary@ reedglobal.com

– Individuals (100)

dorottya sámson Pavol Nagy Iwo Paliszewski

1062 Budapest, Teréz körút 55.A/2 (1) 501-5460 (1) 501-5466 budapest@cpljobs.hu

laW

ssC/bsC

✓

pHaRmaCeutiCal/CHemiCal

✓

it/teleCom

–

sales/tRade/maRketiNg

✓

– Reed Specialist Recruitment (Global) Ltd. (100)

touRism

✓

2008 1 102

pRoduCtioN/eNgiNeeRNg

60

3–6 months 1-6 weeks

baNkiNg aNd fiNaNCe

oWNeRsHip (%) HuNgaRiaN NoN-HuNgaRiaN

guaRaNtee peRiod ReCRuitmeNt time

yeaR establisHed No. of offiCes iN HuNgaRy WoRldWide

iNdustRy speClializatioN iN 2016

otHeR

middle maNagemeNt

peRCeNtage of CaNdidates plaCed iN 2016 (%)

top maNagemeNt

otHeR

plaCemeNt fRom database

adveRtisiNg

No. of CaNdidates plaCed iN 2016 No. of employees iN seaRCH aNd CoNsultiNg oN maRCH 1, 2017

Budapest Business Journal | April 21 – May 4, 2017

bReakdoWN by seaRCH metHods iN 2016 (%)

diReCt seaRCH

CompaNy Website

total Net ReveNue iN 2016 (Huf mlN)

Special Report Net ReveNue fRom ReCRuitmeNt iN 2016 (Huf mlN)

RaNk

34 | 3

Reed magyaRoRszág kft. www.reedglobal.hu 11

253

315(2)

35

25

35

5

287 23

229

4,360

25

45

25

5

814 20

10

30

15

20

Cpl Jobs kft. www.cpljobs.hu 12

eNloyd kft. www.enloyd.hu 13

www.iseeq.co

paNNoNJob HumáN szolgáltató 15 és taNáCsadó kft.

1194 Budapest, Kiss János altábornagy utca 32.

(1) 783-0000 (1) 783-0000 enloyd@enloyd.hu

225

242

70

10

12

8

290 14

11

39

50

3-12 months 2-8 weeks

5

30

2

13

40

–

10

–

197

197

50

–

30

20

120 9

15

40

45

3 months 0-5 weeks

✓

–

–

✓

✓

✓

–

–

2012 1 1

Corporate (100) –

balázs bondici, tamás püski – –

1075 Budapest, Madách Imre út 13-14.

– – hello@iseeq.hu

✓

✓

✓

✓

✓

✓

✓

✓

1993 7 7

Videoton Holding Zrt. (100) –

attila molnár – –

8000 Székesfehérvár, Berényi út 72–100.

(22) 554-170 (22) 554-193 info@pannonjob.hu

✓

✓

–

✓

✓

–

–

✓

2004 10 10

László Küzmös (100) –

lászló küzmös, ákos Jáhny Krisztina Lázár –

1023 Budapest, Árpád fejedelem útja 31.

(1) 766-5626 (1) 766-5618 getwork@getwork.hu

–

2004 1 3,623

– Kelly Services Inc. (96.70), Kelly Properties LLC (3.30)

anikó Jónás Zsolt Szabó –

1085 Budapest, Kálvin tér 12.

(1) 301-7800 (1) 301-7880 info@kellyservices.hu

Ÿ

Tímea Bíró (100) –

tímea bíró – –

1138 Budapest, Váci út 135-139.

Building C (1) 336-2910 – info@focusconsulting.hu

Eszter Tokár (75), Renáta Horváth (25) –

Renáta Horváth, péter tokár Melinda Péter Ferenc Keresztúri

1132 Budapest, Váci út 18.

(1) 279-0706 (1) 466-0549 info@tesk.hu

iseeQ kft.

14

béla ignácz, Csongor Juhász, Prohumán 2004 Kft. artur piotr skiba, (100) Wojciech mora – – –

2015 1 5

1,249

175

8,397

14

42

40

4

157

3,982

45

15

35

5

166 9

–

240 23

www.pannonjob.hu

Ÿ

1

12

87

3-6 months 2-8 weeks

10

25

65

3–9 months 1-4 weeks

65

3-6 months 2-8 weeks

get WoRk tReNd kft. www.getwork.hu

16

kelly seRviCes 17 HuNgaRy kft.

www.kellyservices.hu

137

2,282

60

20

20

10

25

✓

✓

–

✓

✓

–

✓

foCus CoNsultiNg kft. www.focusconsulting.hu

130

18

146

40

15

40

5

135

Ÿ

20

50

1997 1

30

3-6 months 1-6 weeks

10

40

5

15

20

–

10

–

2002 1 1

✓

✓

✓

✓

✓

✓

✓

✓

esto-tesk MUNKAERő-KÖZVEtÍtő Kft. www.tesk.hu 19

126

126

10

10

30

50

350 21

5

10

85

3-6 months 1-3 weeks

120

120

20

40

30

10

125 4

10

20

70

3-6 months 2-6 weeks

✓

✓

–

✓

✓

✓

✓

✓

2012 1 1

Gabriella Ruff (50), Beáta Fürjész (50) –

gabriella Ruff – –

1075 Budapest, Madách Imre út 13–14.

(1) 354-2060 (1) 354-2061 info@karrierrent.hu

105

10,458

40

20

20

20

207 10

10

50

40

3-6 months 1-4 weeks

✓

✓

✓

✓

✓

✓

✓

✓

1990 8 11

Zoltán Tóth (60), Péter Berta (30), Viktor Göltl (10) –

péter berta – –

8900 Zalaegerszeg, Ady Endre utca 2.

(92) 550-050 (92) 550-060 whc@whc.hu

kaRRieR ReNt kft.

– 20

WHC kft.

21

www.whc.hu

BBJ_2508_special_report.indd 34

2017. 04. 19. 17:48

www.bbj.hu

3

tRedis CoNsultiNg kft. www.tredis.hu

t-HR kft.

23

101

90

www.t-hr.hu

HumáN CeNtRum kft.

24 www.humancentrum.hu

HRCv személyzeti 25 szolgáltató kft. www.hrcgroup.hu

peaRl HuNt kft.

26

88

79

75

www.pearlhunt.hu

aaReNsoN CoNsultiNg kft.

27 www.aarenson.hu

bdo magyaRoRszág (HR személyzeti taNáCsadás)

28 www.bdo.hu

71

70

125

90

4,571

1,100

75

71

2,500

50

30

6

15

100

65

48

20

30

70

35

–

10

18

25

40

20

45

–

15

26

5

105 8

–

82 8

4

172 37

5

Ÿ

–

74 8

10

125 12

8

68 6

9

20

20

2

8

–

30

13

40

35

21

33

5

50

32

40

3-12 months ✓ 1-6 weeks

45

3-12 months 1-8 weeks

77

3-6 months 2-5 weeks

59

1-6 months 2 days- 10 weeks

95

3-6 months 1-3 weeks

20

3-6 months 3-5 weeks

55

3-6 months 1-6 weeks

–

✓

✓

–

5

✓

✓

90

✓

✓

–

35

✓

–

–

–

✓

–

5

–

✓

–

✓

✓

–

20

✓

✓

–

–

✓

100

20

✓

–

10

✓

✓

–

5

✓

✓

–

–

✓

–

10

✓

oWNeRsHip (%) HuNgaRiaN NoN-HuNgaRiaN

top loCal exeCutive Cfo maRketiNg diReCtoR

addRess pHoNe fax email

–

2005 1 1

Györgyi Marton (50) AM-PLUS Consulting AG (50)

györgyi marton – –

1036 Budapest, Lajos utca 93-99.

Building D (1) 391-0228 (1) 391-0229 office@tredis.hu

–

2000 1 1

Eszter Mező (80), other (20) –

Eszter Mező – –

2800 Tatabánya, Szent Borbála tér 6.

(34) 511-734 (34) 511-735 thr@t-hr.hu

–

1993 17 17

(100) –

katalin bor, tibor urbán – –

1075 Budapest, Holló utca 2.

(1) 877-0900 (1) 877-0936 info@humancentrum.hu

✓

2000 8 8

Csilla Vidó (100) –

Csilla vidó Tímea Hornyák Judit Repka

–

2011 1 1

Anett Jusztin (100) –

anett Jusztin – –

1023 Budapest, Ürömi utca 42-44.

(30) 532-6320 – hr@pearlhunt.hu

–

2005 1 1

Péter Bogdanovits (60), Anikó Pethő (40) –

Anikó Pethő – –

1143 Budapest, Gizella út 42-44.

(1) 225-1079 (1) 201-4408 office@aarenson.hu

✓

2007 1 1,401

(100) –

andrea Jamniczky – –

1103 Budapest, Kőér utca 2/A (1) 235-3010 (1) 266-6438 office@bdo.hu

–

1998 6 7

Volano Kft. (100) –

Csaba ottó Orsolya Horvai Módné Kinga Kincső Tóth

8272 Óbudavár, Fő utca 31.

(88) 400-453 (88) 400-453 manatwork@ manatwork.hu

✓

1992 2 2

László Hadi, Botond Csordás, Attila Pál, Attila Dobár (100) –

attila dobár György Thury –

1094 Budapest, Angyal utca 24.

(1) 239-9922 (1) 239-9926 info@job.hu

laW

ssC/bsC

pHaRmaCeutiCal/CHemiCal

it/teleCom

sales/tRade/maRketiNg

touRism

pRoduCtioN/eNgiNeeRNg

baNkiNg aNd fiNaNCe

guaRaNtee peRiod ReCRuitmeNt time

iNdustRy speClializatioN iN 2016

otHeR

middle maNagemeNt

peRCeNtage of CaNdidates plaCed iN 2016 (%)

top maNagemeNt

No. of CaNdidates plaCed iN 2016 No. of employees iN seaRCH aNd CoNsultiNg oN maRCH 1, 2017

otHeR

plaCemeNt fRom database

adveRtisiNg

diReCt seaRCH

total Net ReveNue iN 2016 (Huf mlN)

CompaNy Website

bReakdoWN by seaRCH metHods iN 2016 (%)

Special Report | 35

yeaR establisHed No. of offiCes iN HuNgaRy WoRldWide

22

Net ReveNue fRom ReCRuitmeNt iN 2016 (Huf mlN)

RaNk

Budapest Business Journal | April 21 – May 4, 2017

1117 Budapest, Móricz Zsigmond körtér 14.4/1.

(1) 878-0145 (1) 878-0160 info@hrcv.hu

maN at WoRk kft. www.manatwork.hu

57

29

4,715

15

30

50

5

142 7

5

86 8

5

10

85

3-6 months 2-12 weeks

80

3 months 3-5 weeks

–

70

–

5

10

–

15

Job személyzeti taNáCsadó kft. www.job.hu

53

30

DologiDő Kft. 31

42

www.dologido.hu

1,278

1,683

80

40

10

25

5

25

10

128 8

5

135 5

–

53 5

–

11

20

41

48

Test period 4-6 weeks

30

1-3 months 1-4 weeks

86

3-4 months 1-10 weeks

✓

–

✓

✓

–

✓

✓

✓

✓

✓

✓

–

✓

✓

–

2001 12 12

Péter Vida (14.30), Zoltán Egerszegi (32), gábor Csizmadia, Erika Pintér (32), péter vida Via Pannónia Kft. László Pintér (17.70), Gábor Bence Husi Csizmadia (4) –

✓

2000 12 13

László Mátyás (89), Erika Dékány (11) –

lászló mátyás Erika Dékány Imre Papp

4024 Debrecen, Batthyány utca 12/1.

(52) 316-242 (52) 530-965 job@hsakft.hu

–

2004 9 9

Róbert Csákvári (100) –

Róbert Csákvári Éva De Rossi –

1032 Budapest, Kiscelli utca 7–9.

(1) 354-3434 (1) 302-8246 titkarsag@work-force.hu

Hsa kft.

www.hsakft.hu 40

32

2,940

55

15

25

30

40

✓

✓

–

✓

✓

–

✓

1013 Budapest, Pauler utca 18.

(20) 328-3284 – info@dologido.hu

WoRk foRCe személyzeti taNáCsadó és szolgáltató kft. www.workforce.hu NR

Ÿ= would not disclose, NR = not ranked, NA = not applicable

Ÿ

5,347

30

10

60

4

10

–

80

–

–

10

–

10

This list was compiled from responses to questionnaires received by April 19, 2017 and publicly available data. Data is based on companies’ own data revelations. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

Notes: (1) Data of business year April 1, 2016-March 31, 2017. (2) Data of business year June 1, 2015-May 31, 2016.

BBJ_2508_special_report.indd 35

2017. 04. 19. 17:48

4

www.bbj.hu

Socialite

Budapest Business Journal | April 21 – May 4, 2017

Kékfrankos Continues to Come of Age38 What’s On?39

The Hungarian Easter BBJ_2508_socialite.indd 36

2017. 04. 19. 17:34

5

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Socialite | 37

A Traditional Country Easter in Szeged

Back in Szeged, David Holzer is looking forward to his second countryside Easter, complete with lots (and lots) of festival food, rituals and locsolkodás, the springkling of women that has its roots in pagan fertility rights.

DAVID HOLZER

Up until the Monday arrived, my first Easter in Szeged had been all about the eating. We’d eaten my partner’s boiled egg salad with delicious braided fresh milk-loaf, called kalács, and fiery horseradish sauce (torma). She had persuaded me, a highly superstitious vegetarian, that I should eat some smoked ham for luck. Eating meat for good fortune seems to be a particular feature of Hungarian religious festivals.

One of the things I like most about living in the Hungarian countryside is the fact that there’s still a fair amount of traditional ritual to be experienced.

This is very different from rural England, where my family still lives. England used to be every bit as rich in folk customs as Hungary. But, probably because of mass migration to cities and villages being gentrified by incomers, these have pretty much died out.

Magic Rituals

Even so, I’m not sure that traditional English folk customs placed so much significance on food. Apparently, ham – or lamb – together with the kalács – is traditionally eaten with eggs for breakfast on Easter Sunday. Before they sat down and tucked in, good Hungarian Catholics took their food to church to be blessed.

To make sure it kept its mojo, they rushed home with it as fast as they could. What they didn’t eat they used in magic rituals.

They scattered the crumbs from the bread in front of the chickens so they would lay more eggs in the year to come.

The bone from the ham was hung on a fruit tree to make it bring forth more fruit.

Today, however, anything that isn’t eaten is burned rather than thrown away.

Our own kalács had come from our local bakery, Rózsika néni’s (an affectionate name for an older woman). Rózsika’s is so packed full of tempting delicacies we only ever patronize it on special occasions. Even then, we always buy cakes of the smaller variety.

As is the case in every good Hungarian household, my partner had laid out a plate of cakes on the dining table throughout Easter to, in theory, offer visitors.

We ate slices of Easter beigli, the absolutely delicious pastry roll of sweet bread filled with either poppy seed, minced walnuts or chestnuts, and countless other cakes I’ll never be able to name.

The problem was that I cherry-picked the best of these, much to the outrage of my partner who had to go out to buy

BBJ_2508_socialite.indd 37

Participants in traditional costume at an Easter Festival in Hollókő (a UNESCO World Heritage Site about 100 km northeast of Budapest) perform the locsolkodás (sprinkling) ceremony in 2009. Photo by Ákos Horváth.

In the past, locsolkodás was purely a form of courtship. Today, the practice has grown to include a single woman of any age who asks the men to call round and bring her luck at Easter.

And in some families, all females from the youngest toddler to the oldest néni. more. Otherwise our visitors would have had to make do with the most boring cakes that I – and she, it has to be said – had turned up our noses at.

I must admit I couldn’t quite understand why it was so important. Until Monday morning, that is.

Enter Locsolkodás

I wasn’t precisely sure why my partner was getting so dolled up. She’s hardly the earliest of risers at the best of times and she hadn’t said we were going anywhere.

Our doorbell rang and I heard her heels click-clacking as she tripped down the corridor to open the door. She squealed with what sounded like pleasure, although I couldn’t be quite sure. I padded after her, noticing an odd scent of perfume in the air that had appeared out of nowhere.

She was standing in the doorway smiling at three surprisingly tall men dressed formally in suits and ties who were squirting her with perfume and reciting something in Hungarian that sounded very much like a poem. I had the sense that I was intruding on an archaic ritual, made all the stranger

because it was taking place in our modern apartment. When the men had finished with the reciting and sprinkling, my beaming partner invited them in.

They proceeded to feast on kalács, ham, eggs, torma and beigli, washing the food down with good Hungarian wine and beer. After half an hour of polite conversation, munching and sipping, they stood up, kissed my partner, shook my hand and vanished.

“Who were they and what was that?” I asked my partner.

“They were my friend Attila and his sons.”

“And what were they were doing sprinkling perfume on your head?”

“That was locsolkodás. It’s a tradition.

The men do this for the women.”

“Why?” “It’s good luck.”

“Of course. And what were they saying?”

“It’s hard to translate but it’s something like ‘I was in a green forest. I saw blue violets. They were wilting. I gave them some water.’ It’s a special poem for locsolkodás. Have some more beigli. I think they left some.”

I still wasn’t entirely sure what locsolkodás was, but I was grateful that the three men had been so polite and left plenty of beigli for me to eat. “Where were they going?” I said.

“The next woman. They go to every house where there is a woman on her own.

Attila and his sons are very popular on this day.”

“But you’re not on your own.”

“They didn’t know that. And you’re not Hungarian. You don’t know the poem. It’s bad luck not to say the poem.”

I had no answer to that.

Cold Water

Later, when I looked up locsolkodás, I discovered that it’s a practice with its roots in pagan fertility ritual. Which, when you think it involves men, liquid and spraying, is appropriately symbolic.

It used to be that it was only women of marriagable-age who were sprinkled, which again is about right, and they had a bucket of cold water thrown over them.

Leaving aside the obvious, emptying a bucket of cold water over a young woman’s head during locsolkodás was a way of demonstrating that she was strong and healthy enough to withstand a shock. It was also supposed to toughen them up for the year to come.

Not that any Hungarian woman needs toughening up, of course.

In the past, locsolkodás was purely a form of courtship. Single wilting blue violets would be thrilled to be drenched by any dashing young men willing to knock on their door and sprinkle away.

(I wonder if there’s a connection to the English expression “shrinking violet” which refers to a modest, reclusive person.) Today, the practice has grown to include a single woman of any age who asks the men to call round and bring her luck at Easter. And in some families, all females from the youngest toddler to the oldest neni.

Traditionally, the guys doing the sprinkling were rewarded with cakes and booze, usually a shot of pálinka.

They were also given the wonderful hand painted eggs that may well exist in other parts of Eastern Europe but which I’ve only ever seen in Hungary.

(Incidentally, in Poland locsolkodás is called smígus-dyngus. Which sounds like a character from the Lord of the Rings.)

This year, my partner has informed me I’ll be doing locsolkodás. I don’t have to learn the “wilting blue violets in a green forest” poem in Hungarian but can make do with an English version.

To be honest, I’m not so worried about the poem. I’m more concerned with finding a tie before Monday and making sure I don’t sprinkle my partner with one of her most expensive perfumes in all the excitement. Then it would be me who got the bucket of cold water over my head.

2017. 04. 19. 17:34

38 | 5

Socialite

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Kékfrankos Continues to Come of Age

Hungary’s most widely planted red wine grape is continuing to cast off its shoddy reputation, which harks all the way back to the mass production mentality of the communist era, although there’s still a long way to go until local Kékfrankos can seriously rival Austria’s Blaufränkisch.

ROB SMYTH

I’ll never forget the reaction a couple of years back when I was set to unleash a flight of Kékfrankos wines at a tasting on guests, one of whom enquired what was in store for that particular evening. The face of this highly educated Hungarian woman dropped when I uttered the word “Kékfrankos”, which for her was so tarnished as she recalled the thin and vinegary excuse for red wine that it so often was – and still can be on occasion.

However, on tasting the said wines with gusto she clearly sensed the progress and came up to thank me at the end of the night for helping her to see the grape in a new and more refined light.

Kékfrankos is extremely important for Hungarian wine and enables distinctive reds to be made that are fruity and flavorsome but also vibrant with zesty acidity, nicely structured, with medium rather than teeth-coating tannins and easy to drink with their less than full-bodied character.

Even in Hungary, but especially internationally, tastes are starting to favor elegance over intensity, which suits the grape’s natural characteristics. If you try to dress the grape up in oak to add body and weight, then you force it to become something it is not.

This pan-Central European grape ADVERTISEMENT

BBJ_2508_socialite.indd 38

Seriously Challenging

The collaborative Egytőről, available from a number of Budapest wine bars.

is nevertheless capable of very high quality, as the Austrians have shown with world-class wines made from the same grape over in the Burgenland. It is also now making some impressive wine around Hungary. While for some, Hungary’s noted red wine region of Villány, tucked away and hemmed in down in the country’s south eastern corner, is too hot and in wine terms almost a million miles away from the breezy and cooler-climate from which the Burgenland benchmark hails – it was notable that the test tasting for Kékfrankos Április saw a wine from Villány, Zsolt Gere’s Gentleman 2013, claim top spot.

While by no means all of the country’s best examples of Kékfrankos were entered for consideration in the test, the results revealed a spread of good quality from up and down the land, taking in the key wines regions of Eger, Sopron (neighboring Burgenland), Szekszárd and Villány.

Vylyan’s 2015 was the second wine from Villány in the top five (it came joint fifth) and it really impressed me with its varietal character of sour cherry and cherry plus violet aromas, followed by a juicy and quite fullbodied palate, with serious length.

Incidentally, Etyeki Kúria’s linear and focused Kékfrankos, the 2014 of which claimed second place in the test, actually hails from Sopron where the winery also own vineyards. While 2014 was a seriously challenging vintage in which fungal diseases and foul weather blighted the vineyards, another very good example comes from Garger, also in Sopron. This wine came in seventh position in the test, in which I also judged.

Kékfrankos is a wine that ages well as the tannins become more finegrained with the passage of time and the acidity keeps things fresh, although most of it is drunk up before it gets the chance to mature. The third-placed Csötönyi-völgy 2013 from Szekszárd’s György Toronyi, had well-defined red fruit, including the likes of blood orange and pomegranate, with the acidity, tannins and fruit in ideal balance.

It was quite southern Rhône in character.

From Mohács, Planina Borház’s Kékfrankos 2011, which came in joint fifth, showed similar traits.

Kékfrankos is also playing a key role in forming the backbone of the everimproving Bikavér wines from Eger and Szekszárd – which enable both international and local grapes to come together and create something unique.

Depending on when you pick up this paper, more than 100 Kékfrankos and Bikavér wines from 12 Hungarian regions are either set to be poured, or already have been, at the grand tasting of Kékfrankos Április, at the Corinthia Hotel Budapest on April 22.

Note that Kékfrankos also makes crispy and refreshing rosé that slips down a treat in the summer months.

Fresh out of Szekszárd is Egytőről, a 2016 Kékfrankos from the Sebestyén winery, which was made in cooperation between several wine bars, wine distributor Bortársaság and wine

website wineflow.hu. Winemaker Csaba Sebestyén, who runs the family winery together with his sister Csilla, worked together with the partners at all the key grape growing and winemaking stages to conjure a red wine that’s light and lively and ideal for imbibing in a wine bar setting. It is available exclusively at Doblo, 0,75 bistró, Palack, Andante Borpatika, Köz’Pont, ETAP, Tasting Table and VinoPiano and Sebestyén Pince.

It is the blend of eight barrels and tanks. The name for the wine, which was thought up by Boglárka Kovács, was selected from a large number of suggestions and emphasizes the cooperation and coming together of like minds. This is an excellent initiative. I for one am often disappointed at the lack of light, fresh and fruity reds available at wine bars when I fancy a quick glass rather than sitting down to eat and often find myself sticking to white (at which Hungary excels).

Egytőről 2016, Szekszárd Fresh and zesty on the nose and palate. Strawberry jelly and raspberry aromas and flavors. Lighter bodied with light tannins and a very pleasant peppery finish.

Good drinkability, ideal for a wine bar setting and a nice addition to the red wine scene.

HUF 950 for a 1.5 deciliter serving from the above listed wine bars.

Zsolt Gere Gentleman 2013, Villány

A typical criticism levelled at Kékfrankos is that it can be a bit too light but this one is really full yet manages to achieve this without ramping up the alcohol – keeping it below 13%.

Even though Kékfrankos is seldom high in alcohol, it is still something to keep it in check in such a warm sub-Mediterranean vineyard as the Kopár, from where this wine hails. It comes from low yields of 1kg per vine and was aged for 14 months in secondfill Hungarian barrique barrels. It has earthy, almost leathery aromas but is also backed up with plentiful black and red fruit, great structure, round tannins and considerable length.

HUF 3,750 from Selection.hu (a web shop with a bricks-and-mortar outlet at Lajos utca 91 in District III).

2017. 04. 19. 17:34

5

www.bbj.hu

Budapest Business Journal | April 21 – May 4, 2017

Socialite | 39

WHAT’S BUDAPEST PHOTO STREET FESTIVAL April 21-23 1065 Budapest, Nagymező utca Within the framework of the Budapest Spring Festival, the Mai Manó House and the Robert Capa Center of Contemporary Photography transform downtown Pest’s Nagymező utca – found just off august Andrássy út – into an alfresco festival dedicated to photography, providing an eclectic mix of free events from the morning into the late-night hours for analogue diehards and digital devotees alike. Throughout the festival, the whole street turns into an exhibition space, welcoming visitors and passersby with a wide range of creatively comprehensive programs that bring contemporary photography closer to camera buffs, such as guided tours, workshops, discussions, children’s programs, video screenings, costumed portrait shoots, performances, professional lectures, signings, and various concerts.

BUDAPEST100 April 22-23 Multiple locations along the Danube

Several of Budapest’s century-old buildings open their gates for curious visitors this year, enabling everyone to take a glimpse into what life is like in these extraordinary edifices. Budapest100 annually highlights a selection of the historic buildings that have been standing strong in the Hungarian capital for a century, this year focusing on those that are found along the Danube Quay between Rákóczi Bridge and Árpád Bridge. At many of the edifices, you can also participate in exciting artistic programs, or meet residents who might even reveal a few intriguing secrets about their building’s history.

I BIKE BUDAPEST April 22, 4-7 p.m.

Multiple streets around Budapest Several roads of Hungary’s capital will be cleared of cars to be filled with a true family-friendly festival feeling instead, with a great group of bikers who hit the streets, passing by the spectacular sights of the city. This immensely popular mass-cycling event began in Budapest in 2004, and by 2013’s group ride, more

FOOD TRUCK SHOW BUDAPEST , May 5-7 Kincsem Park, 1101 Budapest, Albertirsai út 2-4 The revolution of culinary trucks seems unstoppable in Budapest, and an everincreasing number of fresh gastronomy experiments roll into our lives each year.

This alfresco gastronomy spectacle aims to divert the food-filled vehicles to one location, providing gourmands with the chance to try a variety of handheld treats, including succulent burgers, innovatively served sausages, zesty barbecue treats, alongside many other mouth-watering meals and high-spirited drinks. than 100,000 people turned up to roam the empty city streets on two wheels, and to silently draw attention to the continuing need for creating better bike routes around town. I Bike Budapest starts at Szabadság tér, then proceeds to Móricz Zsigmond tér, Bartók Béla út, the Buda Castle Tunnel, the Chain Bridge and Andrássy út, concluding at Királydomb in City Park.

View a diverse range of traditional regional acts onstage, performed by musicians, dancers, and artists from all over the Carpathian Basin at this vibrant folklore festival. Besides the musical gigs, visitors can join varied workshops, or purchase traditional folk-art merchandise including apparel and accessories, while Serbia’s Boban Marković Orkestar fills the arena with good vibes on Sunday.

NATIONAL TÁNCHÁZ FESTIVAL AND FAIR April 22-23 Papp László Aréna, 1143 Budapest, Stefánia út 2

Text provided courtesy of WeLoveBudapest.com

ADVERTISEMENT

www.gourmetfesztival.hu

E

BBJ_2508_socialite.indd 39

18–21 may

mILLENÁRIS PaRK

2017. 04. 19. 17:34

BBJ_2508_socialite.indd 40 Alfa Stelvio Estero 280x360.indd 1

2017. 04. 19. 17:34 04/04/17 14:41