Latviski English По-русски
Saturday 24.02.2018 | Name days: Diāna, Dina, Dins

Job seekers in Lithuania want Western salaries, employers dumbstruck

(+2 rating, 2 votes)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

Linas Jegelevičius for the BNN

Although Lithuanian labour market is in desperate for workforce, but those willing to toil will nod to a job offer only if the pay is really big. So big that the country‘s hirers feel like grabbing their heads upon hearing the candidates‘ salary expectations.

«Indeed, there are big and quite inadequate wishes when it comes to pay,» says Laura Gylienė, head of Talent Lab, a recruiter. «A few days ago, we dealt with a candidate, a recent University graduate, who was ready to take a job with the starting salary no less than 1500 euros. Note, after deduction of taxes. What she asked for was too much, especially considering her zero work experience.»

This is hardly a single case when the job seeker‘s expectations for pay and the employer‘s financial capabilities went sideways.

«Today‘s job seeker in his or her 30ies is quite different from that years ago. A big deal of the people who look for job through local Labour exchanges have worked abroad and have some savings, thence their demands for high salaries,» Mindaugas Skritulskas, director of Klaipėda Territorial Labour Exchange, told BNN.

Coupled with the young generation‘s striving for independence and quick results in an activity, employers often find themselves struggling in filling up free vacancies.

Polls show that around 40 percent of respondents on payroll believe that they are worth a bigger pay and are set to ask for it in the near future. A whopping 80 per cent has said they are unhappy with the reward for the job, another finding.

«Indeed, the new Labour Code that goes into force from the new year also spurs workers to attempt to secure a larger salary now, before the kick-in,» says Virginija Kazlauskienė, owner of a small business.

Skritulskas, of the regional Labour Exchange, has not noticed so far any impacts of the Code on Klaipėda‘s labour market.

«Taking into account the deeply enshrined letter of labour relations liberalism in the new labour law, my guess is that we will gradually start seeing more long-term labour contracts. In other words, employers will be interested in keeping right workers long, thence their chances for wage growth,» the Labour exchange director believes.

Recent surveys have also shown that every fifth worker has upped his or her pay expectations over the last year. The appetite of dwellers in the largest cities is usually a lot bigger, salary-wise, than of those living in bucolic areas.

«Those who said that they were discontent with their salary now believe that a 44 per cent pay rise would be reasonable for their efforts. But with the middle management positions being paid 44 per cent higher, Lithuanian salaries would catch up with those in Estonia. The truth, however, is the Lithuanian economy- and the employers just cannot keep up the pace. Altogether, pay cannot rise rapidly, it is a process subject to slow changes,» says Rita Karavaitienė, marketing head at CV-Online, a major online job database.

The euro, needless to say, is another driving force for higher salaries.

«Naturally, with a lot higher prices after the adoption of euro, people want to earn more,» Gylienė says. «The shortage of skilled workforce, a result of emigration and demographical shifts, has to be taken into consideration, too.»

Yet unsubstantiated big pay expectations catch many employers off guard. Some of them, upon hearing unrealistic wishes, seem dumbfounded, she notes.

«Others engage in negotiations offering some added values to the candidates of their interest,» she said.

What does the term «added value» imply, you wonder? Gylienė explains: «An additional package usually includes all social guarantees, insurance, possibilities of growth in the company and et cetera.»

Yet they may be just not enough in getting the right candidate to sign the labour contract.

«If salary expectations do not stop swelling, many employers will be forced soonto look for workforce elsewhere, in Belarus or Ukraine, for example,» predicts the HR representative.

Skritulskas claims that the topic of high salaries resonates within the youth in particular.

«Today‘s 20 or 30-year-olds are way different from us, quadragenarians or so. The young generation is less likely to be loyal to employers today. Unlike us, young people nowadays do not want to wait years for a chance of promotion and often quit the job after just warming up the new work place,» Skritulskas suggested to BNN.

«Today young people want it all today and now. If the employer next door will offer a 50-euro higher salary, majority of the young adults will move to it without giving a thought about the previous employer,» he underscored.

Having gained some work experience abroad or travelled extensively before starting a new job in Lithuania, youngsters exude overconfidence in their abilities, which, to tell the truth, rile many of the employers.

«Confidence is good and a look-after trait by the employers, not overconfidence, however,» stresses Skritulskas. «As nowadays only part of young job seekers use services of local labour exchanges,» he continues, explaining: «Many hunt for jobs through privately run hiring agencies, so the picture we see does not necessarily reflect the factual panorama of the labour market,» the Labour exchange head emphasised.

Wrapping up, he added: «At the end of the day, human traits- diligence, sincerity, integrity and so on – matter today no less than the skills. Finding a candidate with the fuse of both is what an employer dreams of today.»

Lithuanian salaries grew 8.1 per cent in average this year and, at the level, it has been the fastest growth over the recent years. The average wage before tax deduction was 771.9 euro.

Moreover, some more good news for Lithuanian job seekers may be ahead – SEB Latvia Bank analysts predict pay growth in Lithuania will be the fastest in the Baltics next year. Yet nowhere in the range with the Estonian salaries.

«It’s hard to tell when salaries in Latvia and Lithuania will be on par with Estonia’s. It is obviously something not of the coming two or three years,» says Dainis Gaspuitis, a SEB Bank analyst.

Latvia’s average salary during the year’s second quarter was 838 euros and 1,163 euros in Estonia.

Ref: 020/

Leave a reply

Baltic States ask European Commission to maintain EU Cohesion Fund financially strong

Baltic finance minister ask the European Commission to keep the European Union’s Cohesion Policy financially strong and aim it towards results, BNN was told by Finance Ministry.

Police commence investigation on possible money laundering schemes at ABLV Bank

Latvia’s State Police has commenced an investigation about the possible money laundering operations at ABLV Bank, which were reported by Financial Crimes Enforcement Network (FinCEN) US Department of Treasury.

S&P Global affirms Latvia’s credit rating at «A-»

On Thursday, 22 February, S&P Global reaffirmed Latvia’s credit rating on the «A-» level, retaining a positive outlook for the future, as BNN was informed by the State Treasury.

Kristovskis: state officials should be equally strict to Lembergs and Rimšēvičs

«Lack of consistency – such a conclusion appears after looking at the behaviour of state officials in regards to their request for Ilmārs Rimšēvičs’ to step down as governor of the Bank of Latvia,» says Ventspils City Council member Ģirts Valdis Kristovskis.

LSRTC: Zaķusala TV Tower’s reconstruction will cost several dozen million euros

According to chairman of Latvia’s State Radio and Television Centre (LSRTC) Jānis Bokta, reconstruction of Zaķusala TV Tower will cost several dozen million euros.

Trade union worried teachers may not have time to prepare for new education content

Teachers may not have enough time to prepare to work with new education content, said manager of Latvian Education and Science Workers' Union Inga Vanaga in an interview to Rīta Panorāma programme of LTV.

Judins, Loskutovs, Čigāne and Dālderis to continue working in Unity’s faction

Saeima members Andrejs Judins, Aleksejs Loskutovs, Lolita Čigāne and Ints Dālderis will continue working in Unity’s faction and coalition.

Saeima supports member’s proposal to publish wages of Bank of Latvia employees

Latvia’s parliament has decided to support Ints Dālderis’ proposal to publish wages paid to employees of the Bank of Latvia, education institutions, as well as municipal capital associations.

More snow expected on weekends; air temperature to drop even more next week

On the night to Friday, 23 February, air temperature in most of Latvia declined to -21° C… -27° C. It was only warmer in Kurzeme and some parts of Vidzeme, as reported by Latvia’s State Environment, Geology and Meteorology Centre.

SEB Bank: more employment options will open up and workers will become more selective

«It is becoming easier to change jobs nowadays. The largest selection of employment options are found in regional centres and cities, especially Riga and Pieriga. We see fewer employment options in regions even though there is still considerable demand for workers there,» predicts SEB Bank’s macroeconomics expert Dainis Gašpuitis.

ABLV Bank’s manager claims the bank is ready for cancellation of payment restrictions

ABLV Bank is ready for cancellation of payment restrictions, said the bank’s chairman Ernests Bernis during a press-conference on Thursday, 22 February.

62.9% of Latvia’s population was employed in 2017

Compared to the year before, in 2017 employment rate grew by 1.3 percentage points and number of employed persons by 1.5 thousand. Employment rate among men grew faster than among women – by 1.6 percentage points and 1.0 percentage points, respectively. 894.8 thousand people or 62.9 % of Latvia population aged 15–74 were employed in 2017.

Lithuania and Latvia: the tale between two sisters marked with rivalry

Relations between Lithuania and Latvia, two tight-knit Baltic neighbours, may exemplify a sisterly relationship from the first sight, but just over the course of a single week, several pings rang, signalling that rivalry is, and has always been, a component of coexistence.

Lembergs unable to organize his private life because of intense court proceedings

Lembergs unable to organize his private life because of intense court proceedings

Unemployment level in Latvia decreased to 8.7% in 2017

85.4 thousand people aged 15–74 in Latvia were unemployed in 2017. Compared to 2016, the number of unemployed persons has dropped by 9.9 thousand or 10.4 %.

Council member: ECB is openly dissatisfied with restrictions imposed on Rimšēvičs

The European Central Bank (ECB) is openly dissatisfied with restrictions imposed on one of its council members – governor of the Bank of Latvia Ilmārs Rimšēvičs, said council member of the Bank of Latvia Edvards Kušners in an interview to 900 seconds programme of LNT.

Defence expenditures in Latvia planned at EUR 234 million in 2018

Latvian government plans to spend EUR 234 million on defence projects, including procurement of transports, ammunition, armaments and individual equipment, in 2018 as confirmed by Defence Ministry.

Ministry cancels mandatory procurement component permits for five CHP plants

Latvia’s Economy Ministry has made a decision to cancel the permit to sell electricity within mandatory procurement component for five other renewable energy co-generation plants plants: SIA Madonas Eko, SIA Eiro-Āzijas investment agency, SIA EVOKEM, SIA M Parks, and SIA Eco Latvis.

NSC proposes Maizītis for a second term as Chief of Constitution Protection Bureau

Members of Latvia’s National Security Council have decided to propose the current head of the Constitution Protection Bureau Jānis Maizītis for another term at the helm of this institution, as BNN was informed by the State President’s Chancellery.

Latvijas gāze’s subsidiary Gaso proposes reducing gas transmission price

Latvijas gāze’s subsidiary Gase has turned to Public Utilities Commission with a proposal for a new natural gas transmission system service’s tariff project, providing for a reducing gas transmission price by 18-46% for more than 95% gas consumers.

FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

Crime rate in 2017 was the lowest in Latvia’s history

Last year’s crime rate turned out the lowest in Latvia’s history, as reported by Prosecutor General Ēriks Kalnmeiers in his annual report.

LEC: government priorities should include searching for causes and solutions, not the guilty

Latvian Employers’ Confederation (LEC) is worried about ongoing events and their negative effect on the stability and future development of the country’s economy. LEC believes that stabilization of the financial situation requires careful coordination of actions between institutions and the government.

Producer price level in Latvia grew 0.9% in January

Compared to December 2017, level of producer prices in Latvian industry rose by 0.9 % in January 2018. Prices of products sold on the domestic market went up by 1.2 % and prices of exported products by 0.6 %.

Latvian President believes country’s financial system is stable; prime minister plans to report to European Council

«Latvia’s financial system is stable, and there is no reason to worry about possible instability of the banking system. Banks continue working as usual,» says the President of Latvia Raimonds Vējonis.