The Compensation and Benefits System: Private Companies vs. Budgetary System

Abstract

The economic evolution of the last decades has entailed major changes concerning the Human Resource Management practices, in both private and budgetary sector of Romania. In order to maintain efficiency and market competitivity, a company must adapt to these changes by altering its human resource strategy since managers are encountering increasingly complex challenges as to attracting, motivating and retaining employees. Such an objective might be accomplished by elaborating a competitive system of employee compensation. This article focuses on the stage reached by the Human Resource Management in the compensation and benefits system of the private and budgetary sector. For the latter, we are focusing on the romanian system of higher education. This study demonstrates that the compensation and benefits system which is implemented in romanian universities is limited and can offer few opportunities as compared to the one implemented by private companies. It is worth saying that the legal system has a negative impact in this matter.