McDonalds Hires You and Gives You a House as Well in Hungary

Economy Jamie Simon
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Generally known for low-paid jobs than generous benefits packages, McDonald’s is facing a crisis in Hungary workforce so acute that they offer free accommodation to employees who come from outside the city, writes Bloomberg.

Free accommodation, a rare benefit in more than 100 countries where the fast-food giant sells its products, is just one of the benefits that employers in Eastern Europe offer to lure employees. Other employees who enjoy the benefits are Lidl cashiers in Prague and software developers in Bucharest.

Once considered a land of cheap labor, the region began to give headaches to the employers. The aging populations and the exodus of millions of people in wealthier European countries, thousands of positions remain vacant and wages are pushed up. This announces increasing costs for companies and a possible decrease in investment for economies that have developed strong into the EU.

“The shortage of manpower causes insomnia to executives in Eastern Europe,” says Robert Bencze, director at PwC. “The first question that investors ask themselves now is whether to come to the region if they find enough employees”.

The result of the labor crisis: rising wages and expenses of increasingly large companies: gross wage in Romania rose by 12.4% annually since July, after rising 14.3% in June. In many cases, salaries are rising faster than effectiveness; Lithuania is expecting wages to grow by 6.5% per year by 2019, double the growth rate of productivity.

Eastern Europe continues to have advantages. Wages remain very low compared with the West, even after recent increases. Governments are reforming their educational institutions to adapt to labor market requirements.