Madalina Racovitan, Tax Partner, Head of People Services at KPMG in Romania, will be the moderator of the Closing Panel at BR’s upcoming Working Romania HR Conference. The panel, titled “Employer Branding | Get Inspired by the Best” is scheduled on December 13, starting with 2 PM.
Madalina Racovitan joined KPMG in 1999. Over the years she has been involved in projects focused on personal taxation, developing over a period of several years the Global Mobility Services (GMS) team within KPMG Romania. Madalina has coordinated numerous tax assistance projects for the oil, electronics, software, food and beverage industries. Currently, she is coordinating a broader area of services within KPMG, called People Services, which combines international mobility services (Global Mobility) with payroll (Payroll Outsourcing), employment law (Employment Law) and human resources advisory (Human Resources Advisory). As a Partner, Mădălina is in the right place to further develop the services offered by KPMG in order to anticipate clients’ needs in these uncertain times.
As most parts of the world begin to emerge from pandemic restrictions, it is clear that the many companies are planning for a future in which their employees will be able to continue to be able to work remotely for at least some of the time, a KPMG survey of over 530 companies in 46 jurisdictions reveals. The survey took place in the context of a global webcast: “Work from Anywhere: Insights from the research and government perspective”. Participants included board members, managers and experts from the fields of global mobility, human resources (HR), tax and labour law from a cross-section of industries.
“I’m sure that employees will increasingly expect to be able to work from anywhere and employers too will want to gain the benefits of the concept. However, for the policy to be successful, it is important to pay attention to certain issues. Most obviously, employers will need to take care over the tax residency status of an employee who spends large amounts of time outside their country of employment. The rules are quite complex and depend on a number of factors. There could also be social security implications. Immigration rules might need to be considered too as well as legal issues related to employment law and work contracts. In some cases, a formal secondment might be necessary, especially for a longer period spent outside the country of origin. However, it is not only personal tax and social security which should be considered. In some situations, an employee who spends time working in another country may create a Permanent Establishment, potentially generating profit tax liabilities and compliance requirements for the company in that country. The global trends with respect to remote working are extremely relevant for Romania too. We see more and more local Romanian companies who are looking into the possibility to offer their employees work from anywhere benefits. Remote working within the country has become more the norm rather than the exception during the pandemics, and we do not see this trend changing significantly in short and medium term. Although some companies are making efforts to bring the employees to the office, such return needs to be carefully planned and thought through in order to get the best from the flexibility it may offer but also drive the engagement levels and the organization needs.” Madalina Racovitan commented about the survey.
In today’s world, one thing is for sure: employees will continue to expect flexibility in all forms, from workspaces to delivery hours and available tools. Plus, behavioural changes have also given way to some new attitudes regarding work-life balance, and people have started to rethink their personal and family habits, priorities, and career aspirations. As a result, we might see a higher number of people planning to make a complete career shift. “Employees’ demands will have to do with more than just a paycheck, and they’ll be looking for a strong purpose, clear strategy, and meaningful employee experience,” Racovitan thinks.
Last but not least, companies will need to actively listen to employees’ voices and make sure that communication channels are open at both ends. “We expect business leaders and HR teams to remain positive and creative about finding new ways to build connections with their employees and to work together to redesign people processes (recruitment, onboarding, reward and performance management) and respond to new working principles,” Madalina Racovitan concludes.