| MAIN FEATURE >
Salaries: end of the golden era
Written by: Tomáš Prouza, Petr Vykoukal (www.penize.cz)
Photo: V&V, Petr Poliak
Looking for a new job because you
consider yourself underpaid? Choosing a new employee and not
sure how much to offer? Our exclusive salary survey will guide
you through the jungle.
FINDING A NEW JOB in middle management is
not as easy as it once was. Firms are making their selection procedures
more strict and
more comprehensive, and they are often paying less. Candidates
don't have as strong a negotiating position as they did before.
It's no wonder, considering that the number of available positions
has not kept pace with the amount of suitable, high-quality candidates
entering the employment market. So what can you expect when you
decide to find a new job?
Several years ago it was enough just to
be in the right place at the right time. Today the market demands
are substantially greater. "The
time of the revolution is over. Back then it was enough to have
a university education and a little experience. Today the prerequisites
are a high-quality university degree, experience and a willingness
to educate yourself," says Iva Šubrtová, senior manager at
PricewaterhouseCoopers. Šubrtová adds that the applicant also has
to be patient, because it is necessary to have at least five to
six years experience before one can become a manager. According
to personnel experts, people interested in managerial positions
are a lot better prepared. "In most cases they purposefully
target one position and are better equipped with skills to succeed
in the selection process," says Olga Marušová, head of the
recruitment department at Česká spořitelna. According to Jiří Vacek,
human resources director at Nestlé Česko, the once typical fast-track
to the top could now be an obstacle, since such people don't have
the experience in the "lower ranks", and in the future
they could be rolled over by the coming generation. This generation
has been largely educated since the Velvet Revolution, it has study
and work experience abroad and, thanks to a slower rise to the
top, it has deeper knowledge and experience. For now, insufficient
managerial skills are its main weakness, and these skills are considered
essential by many firms. "In most cases we are not looking
for top experts to fill middle management positions, but a person
with good managerial skills and a broad focus," says Marušová. "For
us, managerial skills are the key for middle management positions," she
adds.
Good things to those who wait
Most personnel managers confirm that only a few years ago, finding
a job was not only easier, but also substantially quicker. According
to Petr Žídek, senior consultant at Synergie Recruitment, filling
a managerial position in two to three weeks was not rare. Today
the selection process often takes two to three months, and most
candidates are "browsing the market" while still working
in their existing positions. According to Dita Závorová, sales
and marketing division manager for Robert Half, being unemployed
for three months is regarded differently now. The view of personnel
managers towards changing jobs often has also changed. According
to Žídek, in the mid-90's it was usual for candidates oriented
towards a career to change jobs every year or two. Today, this
period has extended to approximately three years. Candidates who
change positions more often are now considered to be fluctuants,
which could negatively influence how they are regarded by prospective
employers. But Renata Součková, consultant for Hill International,
notes that frequent changes are usually tolerated in the case of
recent graduates who are trying to "find themselves" in
their early job search.
Change doesn't improve salary
The development of the market can also be seen through the willingness
of candidates to lower their salary expectations. Žídek has met
candidates several times who have worked for CZK 120,000 per month
and today, due to problems in finding adequate positions, are willing
to work for half this amount. Součková feels that this is an understandable
trend. "These people gained experience, devoted themselves
to their job and worked overtime in previous jobs," she explains. "Now
they wish to enjoy work and life more and so are willing to work
for less money." Závorová agrees that many people working
in middle or higher management are tired of the tempo of their
life and are looking for a better balance between their work and
their leisure time. Besides wages, benefits connected to the job
also play a significant role when choosing. In the experience of
Robert Sládek, consultant at World Experts, these benefits can
make up for the significant wage difference between two offers
for many management candidates. Some are willing to accept a position
with lower salary with a more prestigious company. Besides factors
like image or market position, the employees also value a personal
approach of the top management and the feeling that the company
values their work. "A personal thank-you from the company's
CEO or public acknowledgement are more important for many employees
than a bonus of a few thousand crowns," Sládek points out.
While in the beginning of the '90s it was not unusual for the same
position in two different firms to offer up to three times the
difference in salary, today the differences are significantly smaller.
Vacek claims that today salary differences in FMCG firms do not
exceed 20% and are becoming more balanced in other sectors as well.
However, companies and sectors still exist where salaries are out-of-line
from the average. One such sector is the tobacco industry, where
the reasons for overpayment are large profits and the fact that
many candidates don't want to work in these firms. "They tell
us that they would not be able to identify themselves with the
product," Sládek explains.
Somebody's in, somebody's out
Market stabilization can be seen as well through the saturation
of formerly sought-after fields of education. While today graduates
from economics and the humanities find themselves in a more difficult
situation than before, there is still a large demand for graduates
of technology schools. The need has been more and more noticeable
with the arrival of new production plants of foreign companies.
Other factors reveal the advantages of a technological education. "A
technician can become a manager, but it is difficult for a manager
to become a technician," says Vacek.
The desired qualifications also include specialists in quality
control, production control, CRM, consumer services and call-center
management. In contrast, IT specialists, that were much demanded
before when there was a lack of such people, find themselves in
a saturated field because of the dwindling technological boom.
One of the few exceptions is the banking industry - a test case
for the striking reduction of employees in many areas, except for
IT specialists which banks need to suceed in the information age.
Likewise, top IT consultants need not be afraid of finding a job
since there are still some companies hiring headhunters to find
them. Positions in corporate IT system administration have staved
off saturation in this market.
Regardless of economic development, the smallest swings in demand
are in positions that bring money to the company directly, above
all salesmen. In contrast, the supportive and back office positions
such as public relations, marketing or human resources are disfavored
at the moment of economic problems and are the first to be scaled
back. Those people who, in past years, took it for granted that
it was possible to get a new position quickly, and even improve
their salary significantly, will have to change their attitude.
It is no longer advisable to begin looking for a new position after
leaving an existing one. Massive overpayment and headhunting of
middle managers are also matters of the past. "It is no longer
a problem to find several qualified candidates for most positions
- and employers are well aware of this," Šubrtová says with
a hint of warning.
| Salary survey of
middle management positions
Methodology and explanatory notes: Respondents to this
survey (from personnel agencies and large employers)
were given a description of each position and asked
to fill in the salary, benefits and main prerequisites.
A small company is here defined as having about 25
employees; a mid-sized firm has 70-100 employees; a
large firm over 100 employees. The gross monthly salary
stated here was calculated as an average of lower and
upper range answers, rounded by thousands down.
Advertising manager
For larger companies that frequently organize extensive
and expensive advertising campaigns. The advertising
manager meets with advertising agencies, purchasers
and media planners on the one hand and with the
marketing department on the other. Budget management
and coordinating sub-contractors is required. May
work individually or controls a small team of subordinates.
Salary: CZK 40-60,000 within mid-size companies,
in large CZK 62-77,000
Benefits: car in larger firms; financial bonuses
according to the success of the campaigns; various
supplementary insurance.
Main prerequisites: two to five years of previous
experience; managerial skills; communication and
organization skills; original approach to promotion.
PR manager
This position can be either very specialized (for
example, in PR, relationships with clients and
partners, internal or crisis communication, sponsorship
activities, public affairs, etc.), or it can cover
all these disciplines. In the case of a mid-sized
company, the PR manager covers everything, he has
no subordinates and his salary is about CZK 40-59,000.
In the large firms, he controls a team of up to
ten specialists, his title is PR or communications
director and his salary is around CZK 76-105,000.
Benefits: car in larger firms and some type of supplementary
insurance.
Main prerequisites: presentation and communication
skills; excellent verbal skills, diplomacy; flexibility;
resistance to stress and sudden changes; 2-5 years
of previous experience. Managerial skills may be
required.
Marketing manager/director
Covers all the company's marketing activities, often
in close cooperation with the sales manager (these
two positions may be combined). Usually no subordinates
in small companies, but may supervise the activities
of many sub-contractors. In mid-sized and large
companies, may manage a team of 10-12 employees.
Main activities include marketing research and
analysis, above the line and below the line advertising,
product management, sales support, PR, sponsorship.
Salary: CZK 33-56,000 in small firms, CZK 57-128,000
in large firms
Benefits: financial benefits, car in large firms;
various types of insurance; specialized training.
Main prerequisites: expertise and work experience
(at least three to five years); presentation and
communication skills (inside and outside the company);
managerial skills; creativity.
Key account manager
Responsible for the sale of goods or services to
key customers. Reports to the sales director and
works independently without the necessity of managing
subordinates. For example, in large FMCG companies,
he takes care of three to five retail chains and
works in a team of three to eight people. The name
of this position is also used for capable sales
representatives or sales managers in small and
mid-sized firms who are responsible for doing business
with the most important customers.
Salary: CZK 31-45,000 in small and mid-sized companies,
CZK 53-72,000 in large firms
Benefits: business car, notebook, other benefits,
most frequently financial, according to sales results
(in smaller companies they can double the income,
large companies tend to pay higher fixed salaries
and lower bonuses); supplementary insurance in large
firms.
Main prerequisites: Similar to the area sales manager,
with an emphasis on communication skills.
Product manager
Handles marketing activities connected with entrusted
brand or brands. Mainly works independently but
sometimes manages several subordinates. Often coordinates
the activities of sub-contractors (market research,
advertising, PR and promotion agencies, media purchasers
and planners, etc.). Responsible to the marketing
manager or to the group product manager in large
companies.
Salary: CZK 30-45,000 in small firms,
CZK 50-78,000 in large firms
Benefits: financial benefits, car in large firms;
various supplementary insurance; training.
Main prerequisites: previous experience (at least
one to two years); presentation and communication
skills; analytic skills; organizational skills; flexibility;
creativity.
Sales manager/director
Controls all sales activities of the company. Responsible
for planning, implementation and results of sales.
In larger firms, usually manages teams of subordinates
- possibly more than a hundred employees. In small
companies, will usually have several colleagues
on the same level. Responsible directly to the
head of the company.
Salary: CZK 33-55,000 in small firms, CZK 62-150,000
in large firms
Benefits: business car, notebook, bonuses for sales
results and managerial achievements; supplementary
insurance in larger companies.
Main prerequisites: managerial and sales skills;
professional presentation and communication; good
organizational skills; flexibility; three to six
years of previous experience.
Area sales manager
This position is usual in large manufacturing, FMCG
and pharmaceutical companies. The manager is responsible
for team management (usually 3-15 sales reps) and
for the final sales results. Usually takes care
of a region and/or defined group of target customers.
Besides team management, participation in sales
activities with major clients is expected.
Salary: CZK 37-61,000
Benefits: business car, notebook, other benefits
are mostly financial, according to sales results;
insurance.
Main prerequisites: sales/managerial skills; professional
presentation; negotiating and persuasive abilities;
communication; contacts in the field; 1-5 years of
previous experience; willingness to travel.
Sales representative
Responsible for the sales of a certain product or
service, in a region which may cover several districts,
but also Bohemia or Moravia in their entirety.
He offers and sells goods; may also issue invoices
and accept payments. Sales representatives in pharmaceutical
firms are in a special category because they must
have specialized medical or pharmaceutical education.
Salary: CZK 17-32,000 at FMCG, CZK 26-46,000 at pharmaceuticals
Benefits: business car, sometimes notebooks; sales
bonuses (often significant); option to purchase company
goods at discount
Main prerequisites: experience; sales skills; communication
and presentation skills; flexibility; fortitude
Financial manager
Responsible for all financial matters and management
of the accounting department. Other duties include
financial planning, controlling, budgeting, cashflow
management, negotiations with the financial office
and cooperation with tax advisors and auditors.
This position may be combined with that of administration
manager. In this case, responsibilities include
the purchase of office equipment, management of
the administrative team, etc.
Salary: CZK 50-78,000 in small and mid-sized companies,
CZK 98-172,000 in large firms, according to the extent
of the responsibilities
Benefits: business car, specialized trainings, various
types of supplementary insurance, managerial bonuses.
Main prerequisites: specialized knowledge; previous
work experience; managerial and interpersonal skills.
International companies require knowledge of international
accounting standards (IAS, US GAAP).
HR manager
Responsible for the entire extent of HR management,
either alone or managing a team of 2-10 subordinates
(in larger firms). Recruitment, compensations and
benefits, career planning, creation of organizational
structures, trainings, internal communications
and payroll agenda are among the duties.
Salary: CZK 33-53,000 in small and mid-sized firms,
CZK 62-116,000 in large firms
Benefits: notebook, car in large firms; managerial
bonuses; various supplementary insurance; specialized
training.
Main prerequisites: expert knowledge; at least three
years of previous work experience; communication
and managerial skills.
Chief accountant
Manages accounting team (unlike the senior accountant,
who usually has no subordinates). Main responsibilities
include overall accounting activities - i.e. monthly
and annual balance sheets, control of accounting
documents and, in some companies, also participating
in financial planning, budgeting, reports to headquarters,
and payroll supervision via an external accounting
firm. The chief accountant is responsible to the
financial manager or financial director and sometimes
directly to the head of the company.
Salary: CZK 38-65,000
Benefits: specialized trainings; car possible.
Main prerequisites: expert knowledge; at least three
to five years of previous experience in accounting;
managerial skills if he manages a team; analytical
abilities.
Sourcing/Purchasing manager
This position (also called purchaser-buyer in retail
chains) is focused on either the purchase of goods
from suppliers or ensuring the central purchase
of goods, raw materials, and all other services
that the company uses through sub-contractors.
Declares tenders and negotiates with suppliers
in order to get the best conditions. This position
is utilized in retail chains, production companies
and large companies with a central purchasing department.
Salary: staff purchaser CZK 31-46,000; chief purchaser
or sourcing manager CZK 56-89,000
Benefits: cars for senior positions and/or in large
companies; specialized training.
Main prerequisites: previous experience for senior
positions; knowledge of languages in foreign companies
or where cooperation with foreign suppliers is established;
negotiation skills and analytic abilities for the
comparison and calculation of bids; natural authority.
In-house lawyer
Responsible for all legal matters - supervises contract
documentation, provides legal advice, ensures industrial/labor
relations and participates in the creation of the
firm's legal methodology. Must also monitor changes
in Czech legislation that could affect the company's
activities and then incorporate them into the documentation
and processes of the company. Close contact is
required with the external law firm, which has
experts available for specialized legal areas.
Salary: CZK 33-58,000 at small and mid-sized firms,
and CZK 60-108,000 at large multinational firms.
Benefits: notebook, financial benefits, car in large,
companies, training
Main prerequisites: expertise; previous experience;
communication skills; strong personality.
Office manager
Responsible for the management of the office or of
the entrusted department. Duties include ordering
office equipment, ensuring office operations, assisting
other employees, project management, etc. In many
cases, this position also covers the duties of
the personal assistant to the director or other
senior mana-gers and some simple accounting. The
office manager is usually responsible for assistants,
receptionists and students working on a temporary
basis.
Salary: CZK 23-38,000
Benefits: financial benefits, trainings.
Main prerequisites: organizational and communication
skills; responsible and precise; knowledge of at
least one foreign language is typically required.
IT manager
Covers the operation and development of the company's
IT and telecom systems. In small companies this
position is often called IT manager, and is a one-man
team. In large international firms, this position
is subordinate to the IT director or to the CIO
(chief information officer). Usually responsible
for leading a team of people; often a member of
the top management, responsible for communication
with suppliers of ICT technologies, budgeting,
etc. It is the key position in non-technological
companies (FMCG, production, finance) where the
internal IT department is also responsible for
user support.
Salary: CZK 40-53,000 in small firms, CZK 80-140,000
in large firms
Benefits: notebook, car in large firms; mana- gerial
bonuses; supplementary insurance; specialized training.
Main prerequisites: expert knowledge; previous work
experience on lower IT positions; managerial skills;
flexibility; the ability to quickly resolve sudden
technological problems.
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| Financial
benefits
You can get more money if the employer contributes to your
supplementary pension insurance or life insurance. You cannot
touch the money immediately, but it does force force you
to save for a pension that will be beneficial in the future.
You can also ask for an interest-free loan or
a loan with lower interest than a bank would ask.
Taxes: No taxes on state-supported supplementary pension
insurance up to 5% of your social security tax base, and
on life insurance up to CZK 12,000. No taxes on interest-free
loans either, unless they exceed CZK 20,000 for a loan the
law determines as "for getting through a difficult financial
situation" or CZK 100,000 for housing needs.
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| Cars
and phones
Company cars are the most visible "perks" and
are more common here than in other countries. For the firm,
it is less expensive to pay for leasing or buy the car than
to add enough to a salary for employees to buy a car themselves.
However, with regard to the strained economic situation,
the firms have started to look at the price/value ratio and
are buying more Škodas. These days, a company mobile phone
is not usually considered to be an above-standard benefit,
but rather a job-related tool.
Taxes: If an employee is allowed to use the car for private
purposes, 1% of the purchase price of the car, including
VAT, is added to the gross monthly tax base. Job-related
tools such as mobile phones and notebooks do not influence
the tax base, unless the employer also pays for private calls.
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| Other
benefits
Many employers offer various other benefits such as educational
courses, contributions to vacations, permanent passes to
fitness centers or squash clubs, membership in golf clubs,
or meals in the company cafeteria. Some employers even offer
the employees accommodation in company apartments free-of-charge
or the possibility to purchase company goods for lower prices.
Taxes: Non-monetary contributions from your employer (from
the Social and Cultural Needs Fund or from profit after taxes)
are tax-free for employees without a limit. The only limit
is set for holidays abroad, at CZK 10,000, including family
members. Taxes must also be paid on free or discounted goods
or services (including subsidized housing). The taxable income
is the difference between the price that you pay and the
market value.
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