Fashionable cost-cutting method: firms replace expats with Romanian managers who worked abroad

A multinational can save at least 5,000-6,000 euros per month if it replaces a foreign manager with a Romanian one who worked abroad, and the trend of bringing Romanian managers from other countries at the helm of domestic companies is ever more visible.
“I’ve noticed recently that the number of expats has gone down, and a rising number are replaced by Romanian managers, who are cheaper. Companies need to bring to their top Romanian executives working abroad, because they have international expertise and better management abilities,” maintains Michael Schroeder, managing partner with Stein & Partner executive search company, one of the oldest players in the field on the market.
A multinational spends between 25,000 and 30,000 euros per month for an expat filling a CEO or general manager position, namely between 300,000 and 360,000 euros per annum.
“Costs related to a Romanian manager are at least 15% or 20% smaller on average than the salary of an expat filling a similar position in the same industry. (…),” says Elena Antoneac, a country manager with the domestic office of The Partners in Relocation Group (Pirgroup).