Entering the labour market creates challenges for both graduates and employers, and agreeing on compensation can be one of the most difficult parts of the process. Candidates with little or no professional experience may find it difficult to assess their true market value, while unrealistic salary expectations can make recruitment significantly more complicated.

Today’s entry-level candidates are predominantly members of Generation Z and have grown up in a highly digital environment.

They have immediate access to salary information, career advice, professional content and social media, which can help them make more informed decisions — but can also create unrealistic comparisons.

For young professionals entering the labour market for the first time, it can therefore be difficult to understand what represents an ambitious but achievable expectation and what the market is actually willing to pay.

Ambitious or unrealistic?

According to Szabina Király, Head of HR at Hansa-Kontakt Kft., salary expectations among entry-level candidates had increased significantly in the years preceding the original article.

Several factors may contribute to this.

The cost of living increased considerably, particularly for young professionals moving away from home and paying rent independently.

At the same time, minimum wages also rose.

Király notes that the issue may not always be that graduate expectations are objectively excessive.

In some organisations, the salaries of longer-serving employees may have increased more slowly, making new candidates’ expectations appear disproportionately high.

Salary expectations and actual salaries do not always move together

Ágnes Lovas, IT Recruitment Consultant at Vision Recruitment, similarly observed a significant increase in the salary expectations of younger candidates.

However, she highlights an important distinction:

salary expectations and actual market salaries do not necessarily rise at the same rate.

The difference varies significantly between industries and professions.

In areas where demand for entry-level professionals is particularly strong, candidates may have greater room to negotiate.

In weaker or more competitive segments, employers may be considerably less flexible.

Why do graduates sometimes ask for too much?

One of the most obvious reasons is simply lack of market experience.

Someone entering their first professional recruitment process may have very little information about:

• typical salary bands;
• how employers value internships;
• which technical skills command a premium;
• how much language knowledge adds to market value;
• differences between industries;
• differences between Budapest and regional markets;
• the total value of benefits beyond base salary.

Without this context, candidates can easily choose a figure based on incomplete or anecdotal information.

Fear of asking for too little can push expectations upwards

Lovas highlights another common reason.

Entry-level candidates may fear that if they give a salary expectation that is too low, they will undervalue themselves and have no opportunity to correct the figure later.

As a result, some deliberately start with a higher amount.

This does not necessarily mean that the number represents their true minimum expectation.

In recruitment practice, candidates may initially state a relatively high figure and later happily accept an offer below that amount once they gain a clearer understanding of the market.

Career advice can also influence expectations

Young professionals are regularly encouraged to:

• be ambitious;
• know their value;
• negotiate confidently;
• avoid settling for the first opportunity;
• build a career on their own terms.

These messages can be positive and empowering.

However, without sufficient labour-market context, they may also contribute to unrealistic expectations.

For many candidates, the first few recruitment processes therefore become an important learning experience.

The market quickly provides feedback

Candidates usually adjust their expectations once they experience real recruitment processes.

If several employers reject the same salary requirement, or if offers consistently arrive within a lower range, the candidate receives concrete market feedback.

Most people adapt accordingly.

Others may continue searching for an opportunity that meets a very specific combination of salary, flexibility, role content and benefits.

Neither approach is automatically wrong — but waiting for the “perfect” role can extend the job search considerably.

Not all graduate skills have the same market value

Entry-level salaries vary significantly between professions.

Certain skills can substantially increase a candidate’s value even without several years of work experience.

Examples highlighted by Lovas include rare foreign-language knowledge and qualifications in areas where employers face particularly strong demand.

For example, electrical engineers may have stronger negotiating power in markets experiencing a shortage of relevant specialists.

By contrast, changing conditions in industries such as automotive or software development can weaken the negotiating position of entry-level candidates in those fields.

Rare language skills can make a major difference

A graduate who speaks a commonly used language may compete with a relatively large candidate pool.

A candidate who combines professional knowledge with a less common language may face significantly less competition.

This is particularly relevant in:

• Shared Service Centres;
• customer support;
• procurement;
• finance;
• international sales;
• multilingual business operations.

For employers supporting specific international markets, these capabilities can justify stronger entry-level compensation.

Experience remains an important part of the equation

One of the fundamental challenges in graduate recruitment is balancing potential with proven capability.

Entry-level candidates may have strong theoretical knowledge but little experience applying it in a professional environment.

Employers often need to invest in:

• onboarding;
• training;
• mentoring;
• supervision;
• professional development.

This investment influences how companies structure entry-level compensation.

The employer is not only paying for current productivity, but also investing in future potential.

Salary is not the only priority for entry-level candidates

Although compensation is important, it is only one part of the decision.

Young professionals increasingly evaluate employers according to the complete working experience.

Common priorities can include:

• home office;
• flexible working hours;
• work-life balance;
• extra days off;
• mental wellbeing;
• workplace atmosphere;
• career development;
• training opportunities.

Time can sometimes be worth more than money

Lovas highlights free time as a particularly important consideration for some entry-level candidates.

Candidates may occasionally be willing to accept a lower base salary if the overall package includes more flexibility or additional leave.

This may reflect a stronger preference for travel, personal interests or simply a better balance between work and private life.

For employers, this creates an opportunity to build compensation packages that are attractive without relying exclusively on higher salaries.

Home office has become part of competitiveness

For office-based roles, hybrid working has also become an important expectation.

The widespread adoption of remote work during the pandemic changed how many employees think about the workplace.

For candidates accustomed to flexibility, several compulsory office days can influence whether they apply for or accept a position.

Employers therefore need to consider remote-working policies as part of their overall talent proposition.

Employers face a difficult salary balance

From the employer’s perspective, one of the most difficult challenges is finding candidates whose expectations fit the company’s internal compensation structure.

An organisation cannot simply increase every entry-level salary indefinitely.

If newly hired graduates receive compensation that is too close to, or even above, more experienced employees, internal salary tension can develop.

This can create retention problems among existing staff.

The challenge is therefore to remain competitive externally while maintaining fairness internally.

Business Service Centres can be particularly open to graduates

According to Lovas, Business Service Centres are among the employers that frequently recruit entry-level candidates.

Many provide several weeks or even months of structured training after employees join.

This allows companies to recruit for potential and transferable skills rather than requiring every candidate to arrive with complete job-specific knowledge.

In high-volume recruitment areas, employers may be especially open to graduates if they have:

• strong language skills;
• good communication;
• learning ability;
• digital confidence;
• the right attitude.

Training costs influence employers’ decisions

Companies also need to consider how long a newly trained employee is likely to remain.

If an organisation invests heavily in onboarding and professional development but the employee leaves shortly afterwards, the investment may not have time to generate sufficient value.

This can make some employers cautious when recruiting inexperienced candidates.

The issue should not be reduced to age or generation, however.

Retention is influenced by many factors, including:

• compensation;
• career progression;
• management quality;
• job content;
• flexibility;
• workplace culture.

Frequent job changes can sometimes accelerate salary growth

One reason professionals may move relatively frequently early in their careers is that external job changes can produce larger salary increases than internal annual reviews.

This creates a difficult situation for employers.

Companies invest in developing junior talent, but once employees gain valuable experience, competitors may approach them with higher offers.

Retention therefore needs to begin long before the employee receives another opportunity.

Entry-level employees also bring significant advantages

Despite the challenges, many organisations actively seek graduate talent.

Király highlights several positive characteristics frequently seen among newly qualified professionals:

• strong theoretical knowledge;
• willingness to learn;
• enthusiasm;
• adaptability;
• digital confidence;
• openness to company culture.

Young professionals may require more initial training, but they can also bring new knowledge, energy and different perspectives into an organisation.

A higher salary request does not automatically mean entitlement

It can be tempting to interpret ambitious entry-level salary expectations as evidence that younger candidates are unrealistic.

In practice, the situation is more complicated.

Higher expectations may reflect:

• increased living costs;
• housing expenses;
• inflation;
• salary information available online;
• skills that are genuinely in short supply;
• uncertainty about appropriate negotiation.

The candidate may simply be trying to understand their position in a market they have never experienced before.

Employers can make salary expectations more realistic

Transparency can help both sides.

Where appropriate, employers can communicate:

• salary ranges;
• the logic behind entry-level compensation;
• expected salary progression;
• training opportunities;
• career paths;
• the monetary value of benefits.

This allows candidates to evaluate the complete opportunity instead of focusing exclusively on the starting salary.

Recruiters can help bridge the information gap

Recruitment consultants can also play an important role in aligning expectations.

Because recruiters work continuously with both employers and candidates, they can provide practical feedback about:

• current market salary ranges;
• which skills command a premium;
• how realistic a candidate’s expectations are;
• which benefits may compensate for a lower salary;
• where the candidate has genuine negotiating power.

This is particularly valuable for graduates who have little experience negotiating compensation.

The best first job is not necessarily the highest-paying one

For entry-level candidates, starting salary matters, but it should ideally be evaluated alongside the long-term value of the opportunity.

A strong first position can provide:

• marketable professional skills;
• mentoring;
• recognised industry experience;
• foreign-language practice;
• international exposure;
• a clear career path.

These benefits can significantly increase future earning potential.

Choosing solely according to the highest immediate salary may therefore not always produce the strongest long-term career outcome.

Employers also need to adapt to new expectations

Every new generation entering the labour market brings somewhat different expectations and communication habits.

Rather than dismissing these differences, employers can examine which changes make sense for their organisation.

Flexible working, attention to mental wellbeing and a healthy work-life balance are not relevant only to younger employees.

These are increasingly common priorities across age groups.

Realistic expectations require reliable information

The debate around entry-level salary expectations is therefore not simply about whether graduates are asking for too much.

Young candidates are entering a complicated market shaped by inflation, changing skills demand, flexible working and highly visible salary information.

Employers, meanwhile, need to balance external competitiveness with internal salary fairness and the cost of training inexperienced employees.

The most productive approach is transparency from both sides.

Candidates benefit from realistic labour-market information and an understanding of the complete employment package.

Employers benefit from recognising that salary is only one part of what makes an opportunity attractive.

When expectations are discussed openly, ambitious graduates and employers can usually find common ground — and build an employment relationship that creates value well beyond the starting salary.

Source: Behaviour HR Magazine

The business services sector is one of the fastest-developing areas of the global economy. Hungary has also become an important SSC location, with more than 200 multinational organisations employing over 100,000 people according to figures cited in the original article. Yet as the sector expands and moves towards increasingly complex work, attracting and retaining qualified professionals has become more challenging. Career development, meaningful work, flexibility and employee engagement are becoming central to the question: what makes an SSC an attractive employer?

As the business environment changes, Shared Service Centres continue to evolve as well.

The employee experience can differ considerably depending on where an organisation is in that development process.

A newly established SSC may initially focus on building and standardising processes.

More mature Business Services Centres or Global Business Services organisations may take responsibility for complex regional or global activities involving significantly higher levels of expertise.

SSCs are moving towards higher-value work

AGCO Hungary, for example, originally developed as an IT centre before gradually taking responsibility for additional business functions.

According to Annamária Gaál, HR Leader at AGCO Hungary, the organisation was entering another stage of development at the time of the original article, moving towards a competence-centre model with more sophisticated, higher-value positions.

This evolution is important for employees as well as employers.

As business service centres take on more complex activities, they can offer broader professional opportunities and more specialised career paths.

Career development can make SSC work more attractive

One common criticism of service-centre work is that certain roles can feel repetitive or narrowly defined.

Ágnes Lovas, Senior HR Consultant at Vision Recruitment, notes that some SSC positions may indeed be less varied than comparable roles within smaller organisations.

However, larger service centres can compensate for this through internal mobility.

Employees may have opportunities to:

• move between departments;
• progress into more senior positions;
• specialise in a particular professional field;
• join international projects;
• develop leadership capabilities;
• build a long-term career within the same organisation.

For candidates, the opportunity to move internally can be an important advantage that is not always immediately visible from the original job description.

International projects can be a major attraction

One of the defining strengths of business service centres is their international environment.

Employees may collaborate with colleagues, customers and stakeholders across several countries.

They may also participate in projects extending beyond the Hungarian operation.

For professionals looking to gain international experience without relocating abroad, this can be particularly attractive.

Employers should therefore make international exposure and internal mobility much more visible during recruitment.

Employees need to understand how their work contributes to the wider business

A particular employer-branding challenge for SSCs is that support functions may appear distant from the core activity of the parent company.

An IT, finance or HR professional working in a service centre may never directly interact with the organisation’s end customers or products.

This can make it more difficult to create a sense of purpose and belonging.

Employers therefore need to help employees understand how their contribution connects to the organisation’s wider mission.

Connecting service-centre employees with the parent company’s mission

AGCO provides an example of how this connection can be strengthened.

The company’s broader business is focused on agricultural machinery, precision agriculture and digital solutions for farmers.

Its Farmer-First strategy provides employees in supporting functions with a clearer understanding of the purpose behind their work.

Activities described in the original article included:

• bringing employees to brand-related events;
• introducing products through team-building activities;
• using workplace visuals and videos to communicate the corporate brand;
• organising regular connection events;
• providing insight into areas such as sustainability, soil quality and agricultural technology.

These initiatives help employees see the wider impact of work that might otherwise feel disconnected from the company’s core business.

Engagement cannot be created through salary alone

The original article referenced research by Follow The Yellow Communications and media-analysis company Neticle in which 84% of surveyed Hungarian SSC employees said they felt they could easily change employers if they received a better offer.

As a survey finding from the period discussed, this illustrates an important retention challenge.

Employees may be relatively open to switching companies when they do not feel strongly connected to their current employer.

This means retention needs to extend beyond compensation.

Employees are more likely to develop commitment when they can see:

• how their work creates value;
• where their career can progress;
• what they can learn;
• how they belong to the wider organisation.

Qualified professionals are becoming harder to find

As business service centres become more sophisticated, recruitment requirements also increase.

According to Gaál, SSC employers increasingly compete not only with one another, but also with international organisations and specialist employers in finance, IT and other sectors.

The shortage is particularly noticeable among highly qualified professionals.

This creates a fundamental challenge for SSC employee attraction and retention: the sector is expanding into more complex work at the same time as the pool of candidates capable of performing that work becomes harder to access.

Some SSC roles are entirely new to the Hungarian market

Lovas also highlights that companies increasingly bring positions to Hungary that previously did not exist locally in the same form.

This can make recruitment particularly difficult.

When there is no established local talent pool, recruiters may need to search across adjacent industries or identify candidates with transferable skills.

Employers may also need to:

• provide more extensive training;
• reconsider rigid experience requirements;
• search nationally rather than locally;
• use direct headhunting;
• develop talent internally.

Counteroffers make recruitment even more difficult

Employers are also placing greater emphasis on retaining existing professionals.

As a result, candidates progressing through an external recruitment process may receive counteroffers from their current company.

According to Lovas, these retention attempts most commonly involve salary increases.

However, increasing compensation does not necessarily solve the original reason the employee considered leaving.

If the main source of dissatisfaction involves career progression, leadership, flexibility or job content, a salary increase may provide only temporary motivation.

Counteroffers can therefore extend recruitment processes and make successful hiring less predictable.

Home office has become a critical recruitment factor

One of the traditional advantages of the SSC sector is flexibility.

Many business service employers offer:

• flexible working hours;
• broad benefit packages;
• hybrid working;
• relatively flexible leave arrangements.

However, Lovas points out that some organisations had begun reducing the number of home-office days available.

For SSC recruitment, this can have a particularly significant impact.

Why flexibility matters so much in SSC recruitment

Business service centres often have large numbers of vacancies and may require highly specific combinations of skills.

A candidate may need:

• specialist professional experience;
• advanced English;
• another foreign language;
• particular technical knowledge;
• experience within an international organisation.

Restricting recruitment to professionals living close to the office can dramatically reduce the available talent pool.

High levels of home office make it possible to reach candidates living significantly further away.

For rare or specialist profiles, this can make the difference between successfully filling a vacancy and leaving it open for months.

Remote work is more than an employee benefit

Flexible working is often described primarily as something organisations provide to employees.

From a recruitment perspective, however, it is also a strategic sourcing tool.

A company allowing significant remote work can recruit from a much larger geographical area.

This can help employers reach:

• professionals outside Budapest;
• candidates living in smaller cities;
• employees unwilling to relocate;
• specialists for whom regular commuting would otherwise be unrealistic.

The more specialised the role, the greater the potential value of geographical flexibility.

Different candidate groups value different things

Lovas emphasises the importance of understanding the motivations of the particular talent group an employer wants to attract.

Seniority, life situation, profession and personal preferences can all influence what candidates value.

For example, some younger professionals or employees with young children may place particularly strong emphasis on flexible working arrangements.

Other candidates may prioritise:

• international exposure;
• compensation;
• career progression;
• professional challenge;
• job security.

The most effective recruitment proposition therefore needs to reflect the actual target group rather than assuming that every candidate is motivated by the same benefits.

Career paths need to be visible

If employees feel that there is nowhere to progress, even attractive compensation may not be sufficient to retain them.

This makes career-path design particularly important in large business service organisations.

Companies can strengthen retention by showing employees possible next steps such as:

• promotion within the existing function;
• movement into another department;
• international assignments;
• project leadership;
• specialist career tracks;
• people-management roles.

These opportunities should not remain theoretical.

Employees need to understand what capabilities and experience are required to reach them.

Training and development strengthen the employment proposition

As SSCs move towards higher-value work, continuous learning becomes even more important.

Employees may need to develop:

• technical skills;
• language capability;
• leadership skills;
• digital competencies;
• business understanding;
• project-management expertise.

Training therefore supports both sides.

Employees gain greater career opportunities, while companies build the capabilities they increasingly need.

Wellbeing has become part of the employee experience

Gaál also highlights the growing importance of wellbeing.

Employee support can extend beyond traditional benefits to include services connected with:

• mental health;
• career counselling;
• legal guidance;
• financial advice;
• physical wellbeing.

Some programmes may even be available to employees’ family members.

This broader approach recognises that employee performance and retention can be influenced by factors extending beyond the workplace itself.

Managers play an important role in recognising individual needs

Wellbeing programmes are most effective when employees know about them and feel comfortable using them.

Managers therefore have an important responsibility to recognise when someone may need additional support and help direct them towards appropriate resources.

This requires leadership based on observation, communication and trust rather than purely on performance metrics.

A supportive culture can strengthen retention

Workplace culture has become another important part of the SSC employment proposition.

Employees increasingly evaluate whether an organisation provides:

• supportive leadership;
• open communication;
• inclusion;
• psychological safety;
• recognition;
• opportunities to connect with colleagues.

These factors can be particularly important in hybrid environments, where employees may spend less time physically together.

Employer branding needs to reflect everyday reality

For SSCs competing for scarce professionals, employer branding can help communicate the opportunities available within the organisation.

However, the message needs to correspond with employees’ actual experience.

If a company promotes flexibility but regularly restricts home office, or advertises career development without providing realistic internal opportunities, the employer brand will quickly lose credibility.

Strong employer branding therefore begins with the underlying employee experience.

What makes an SSC attractive?

The factors highlighted throughout the original article suggest that the strongest SSC employment propositions typically combine several elements:

• flexibility – meaningful home-office opportunities and flexible schedules;
• career development – visible progression and internal mobility;
• learning – training and professional development;
• meaningful work – understanding how the role contributes to the wider organisation;
• international experience – projects and collaboration across markets;
• competitive compensation – salaries and benefits that reflect market conditions;
• wellbeing – support for mental, physical and financial wellbeing;
• culture – a supportive and inclusive workplace environment.

Retention begins with understanding employee motivation

There is no single formula for successful SSC employee attraction and retention.

Different professionals want different things from their careers.

The key is understanding which factors matter to the specific talent group an organisation needs.

For one candidate, the decisive factor may be salary.

For another, it may be the ability to work remotely from another part of the country.

For someone else, international projects or a clear route into a senior position may be more important.

The future of the SSC sector is increasingly about people, not just processes

Business service centres were originally built largely around efficiency, standardisation and centralisation.

Those principles remain important, but the sector is increasingly taking responsibility for sophisticated, high-value activities.

That transformation makes skilled employees more important rather than less.

Employers capable of combining flexibility with professional development, meaningful work, competitive compensation and a strong employee experience will be better positioned to compete for increasingly scarce talent.

The challenge for SSCs is therefore not simply to offer jobs.

It is to demonstrate that those jobs can become meaningful careers.

Source: Behaviour HR Magazine

After several difficult years in the labour market, the relief many employers expected still had not arrived in 2024. Skilled professionals remained difficult to find, while economic uncertainty made both companies and employees more cautious. The question was no longer simply how to recruit, but how to build a white-collar recruitment strategy that remained effective without creating unsustainable costs.

One of the most significant challenges facing employers was the shortage of qualified professionals across both white-collar and blue-collar occupations.

High employment levels also meant that strong demand for employees was not matched by an equally large supply of available candidates.

At the same time, economic uncertainty influenced both sides of the labour market.

Employers became more cautious about opening and approving positions, while professionals thought more carefully before leaving secure employment.

Recruitment decisions became more cautious

“The labour shortage has become increasingly severe in recent years, while the economic uncertainty caused by the pandemic and geopolitical developments intensified the situation, apart from a few temporary periods,” explains Dorottya Kis-Pákozdi, Division Head and Senior HR Consultant at Vision Recruitment.

She noted that although labour-market pressure had eased somewhat in areas such as IT and finance, qualified professionals were still difficult to find.

Another defining characteristic of the market was uncertainty.

Employers were taking longer to consider recruitment decisions, while employees were becoming more cautious about changing jobs.

Both sides therefore entered recruitment processes with greater consideration than in the previously more dynamic labour market.

There is no single recruitment strategy for every company

Dorottya Sámson, Country HR Manager at I.F.F. Hungary, also observed more cautious workforce planning.

However, the right recruitment approach depends heavily on the organisation itself.

A newly established Shared Service Centre may need to recruit large numbers of employees quickly.

A more mature organisation may instead restructure its portfolio and create a smaller number of new, highly specialised positions.

This distinction is important because the most cost-effective recruitment solution is not necessarily the same in every situation.

Transactional work is moving — and being automated

One development affecting the SSC sector has been the relocation of certain transactional activities to lower-cost markets.

Highly standardised processes can often be transferred to locations such as India or increasingly handled through automation.

These are typically tasks that are:

• repetitive;
• highly standardised;
• rule-based;
• easy to document;
• suitable for digital workflows.

As automation and artificial intelligence become more capable, the number of employees required for some of these activities may decrease.

However, this does not necessarily mean that demand for white-collar employees disappears.

Higher-value roles are becoming more important

As lower-complexity processes become automated or relocated, Hungary increasingly receives functions involving higher added value.

These positions may require:

• complex professional knowledge;
• analytical thinking;
• technical expertise;
• process development;
• decision-making;
• stakeholder management;
• specialist language skills.

Automation itself can also create new positions.

Companies need professionals capable of designing, implementing, maintaining and continuously improving automated processes.

In other words, technology can reduce demand for one type of role while simultaneously increasing demand for another.

Specialist technology talent remains difficult to find

According to Kis-Pákozdi, professionals with knowledge of specialised technologies continued to be highly sought after during the period discussed.

The challenge for employers was not simply availability.

Salary expectations had also increased significantly as employees responded to inflation and a prolonged shortage of specialist talent.

This created a difficult equation for many organisations whose revenues had not increased at the same pace as labour costs.

Remote work has expanded the potential talent pool

One of the advantages available to employers is that physical location matters less for many white-collar roles than it once did.

Hybrid and remote working allow companies to recruit from a much wider geographical area.

Instead of limiting a search to professionals who live within commuting distance of an office, employers may be able to reach:

• candidates elsewhere in Hungary;
• professionals living in regional cities;
• people unwilling to relocate;
• in some cases, international talent.

This can significantly increase the available candidate pool for specialist positions.

But wider reach does not automatically solve the talent shortage

Removing geographical restrictions helps only when the required professionals actually exist in sufficient numbers.

Employers may still struggle to find candidates combining several difficult-to-source capabilities.

For example, a position may require:

• specialist technical knowledge;
• several years of experience;
• advanced English;
• another foreign language;
• industry knowledge;
• strong communication skills.

The more requirements are combined, the smaller the realistic talent pool becomes.

Should companies bring recruitment in-house?

Cost efficiency became an increasingly important consideration for employers, leading many organisations to perform more recruitment activities internally.

At first glance, eliminating external recruitment fees can appear to provide an obvious saving.

However, a meaningful comparison needs to consider the complete cost of internal recruitment.

This may include:

• internal recruiter salaries;
• advertising costs;
• recruitment technology;
• LinkedIn and sourcing tools;
• employer-branding expenditure;
• social-media activity;
• employee referral bonuses;
• management time;
• the cost of long vacancies.

A lower visible recruitment fee does not necessarily mean a lower total cost.

Internal recruitment can work extremely well

There are many situations in which an internal recruitment team is highly effective.

Companies hiring regularly for familiar profiles can develop strong internal expertise and reusable talent pools.

Internal teams also have direct access to hiring managers, organisational knowledge and the employer brand.

This can make in-house recruitment particularly suitable for:

• recurring vacancies;
• standardised positions;
• roles generating sufficient direct applications;
• organisations with a strong employer brand;
• companies with experienced internal sourcing teams.

Specialist positions require a different approach

Companies traditionally turn to headhunting firms more frequently when recruiting for highly specialised or senior positions.

These vacancies often involve candidates who are not actively looking for a new role.

The challenge is therefore not merely advertising the position.

Recruiters must identify, approach and engage professionals who may already be satisfied in their current employment.

This requires:

• market mapping;
• direct search;
• specialist networks;
• candidate research;
• persuasive communication;
• knowledge of salary expectations;
• understanding of competing employers.

These capabilities can be difficult to reproduce internally for every specialist market.

The apparent saving can become expensive

A company may decide to avoid agency costs by handling a difficult search internally.

If the position remains vacant for several additional months, however, the organisation may experience costs through:

• lost productivity;
• management workload;
• delayed projects;
• overtime for existing employees;
• lost revenue;
• customer-service problems.

In such cases, the key question is not simply:

“How much does recruitment cost?”

It is:

“What is the total cost of successfully filling this position?”

Volume recruitment may also justify external support

External recruitment partners are not useful only for executive search.

Sámson notes that high-volume recruitment can also justify using a specialised provider.

An organisation launching a new operation or rapidly expanding a department may temporarily require recruitment capacity far beyond what its internal team normally needs.

Building a large permanent recruitment team for a temporary peak may not be efficient.

An external partner can provide additional capacity without permanently increasing internal headcount.

SSC recruitment often requires continuous hiring

Shared Service Centres can experience relatively high employee turnover compared with some other corporate environments.

This can create almost continuous recruitment activity.

The challenge is therefore not always filling one specialist vacancy.

Companies may need a sustainable system capable of repeatedly delivering qualified, multilingual employees across several functions.

That can require a combination of:

• internal recruitment;
• external agencies;
• employee referrals;
• employer branding;
• university partnerships;
• social recruitment.

Employer branding is now part of recruitment infrastructure

As more organisations bring recruitment activities in-house, employer branding has become increasingly important.

A strong employer brand can generate more direct applications and make proactive candidate approaches more effective.

Companies therefore invest in:

• social-media presence;
• career websites;
• employee stories;
• recruitment campaigns;
• professional events;
• candidate communication.

These activities support recruitment, but they also require financial and professional resources.

They should therefore be included when comparing the true cost of internal and external recruitment.

Salary expectations created a difficult cycle

Inflation also had a significant impact on candidate behaviour during the period discussed.

More employees and passive candidates became open to new opportunities, with higher compensation frequently being an important motivation.

Professionals considering a change typically wanted a meaningful salary increase compared with their current package.

This created difficulties for employers that were already struggling with cost pressures.

Hiring new employees can create internal salary tension

Companies sometimes need to offer a new employee significantly more than existing colleagues in order to secure the hire.

This can create a difficult internal situation.

If employees performing comparable work discover that a new colleague earns considerably more, they may also expect salary adjustments.

Employers can therefore find themselves caught between two competing problems:

• offering too little means losing candidates;
• offering more can destabilise internal salary structures.

This is one reason why compensation strategy and recruitment strategy cannot be treated separately.

Salary growth without productivity growth creates pressure

Kis-Pákozdi also highlighted the broader economic challenge created when labour costs increase faster than productivity.

A persistent labour shortage can reduce organisational capacity while simultaneously increasing costs.

Some employers may find themselves in particularly difficult circumstances when revenue remains weak but salary expectations continue rising.

Can digitalisation solve labour shortages?

Some companies respond by accelerating digitalisation and automation.

This can reduce dependence on scarce employees over time.

However, transformation projects can require substantial initial investment in:

• technology;
• implementation;
• consulting;
• training;
• process redesign.

The benefits may therefore take time to materialise.

Reskilling existing employees is another option

Rather than recruiting externally for every new capability, organisations can develop existing employees.

Reskilling can be particularly effective when employees already understand the business but need new technical or professional capabilities.

This may help companies:

• retain valuable organisational knowledge;
• reduce external recruitment;
• create internal career opportunities;
• respond to technological change.

However, reskilling also requires time and investment, and existing employees may face increased workloads during organisational transitions.

Every recruitment strategy has a cost

This is the central issue behind the question of whether companies can “save” on white-collar recruitment.

Internal recruitment has costs.

External recruitment has costs.

Employer branding has costs.

Long vacancies have costs.

Training and reskilling have costs.

Automation has costs.

The objective should therefore not be to eliminate recruitment expenditure at all costs.

It should be to identify the most efficient combination of methods for each type of position.

A hybrid recruitment model can be the most practical solution

For many employers, the strongest white-collar recruitment strategy may combine internal and external resources.

For example:

• internal teams can manage recurring and easier-to-fill vacancies;
• specialist headhunters can support niche and senior searches;
• agencies can add capacity during volume recruitment;
• employee referrals can activate internal networks;
• employer branding can support all recruitment channels.

This allows companies to use specialised external expertise selectively rather than relying entirely on either outsourcing or insourcing.

Flexibility will remain critical

Both experts emphasised that organisations need to remain adaptable.

Unexpected economic and labour-market developments have repeatedly demonstrated how quickly assumptions can become outdated.

Companies able to adjust their workforce strategy, recruitment channels and organisational structure are better positioned to respond.

Remote work can remain part of the solution

Flexible and remote working can help companies reach professionals outside their traditional geographic labour market.

This is particularly useful for roles where physical office presence is not essential.

For candidates, flexibility can also significantly increase the attractiveness of an opportunity.

Remote work should therefore be viewed not only as an employee benefit, but also as a recruitment tool.

Retention remains inseparable from recruitment

Employers cannot recruit their way out of every workforce problem.

If turnover remains high, constantly replacing employees becomes expensive regardless of how efficient the recruitment process is.

Kis-Pákozdi therefore highlights the importance of compensation systems that support retention.

These may include:

• competitive base salaries;
• performance-related bonuses;
• other financial incentives;
• development opportunities;
• flexible working.

Reducing unnecessary turnover can be one of the most effective ways to reduce recruitment costs.

Automation will continue to reshape the SSC sector

Sámson also highlighted the long-term importance of automation.

The trend had already been discussed for more than a decade, but advances in artificial intelligence were expected to accelerate the transformation.

Transactional work may increasingly move either to lower-cost markets or automated systems, while higher-value functions continue to develop in Hungary.

This means employers will increasingly need professionals capable of working alongside, developing and managing these technologies.

White-collar recruitment cannot simply be eliminated

Technology can reduce the human resources required for certain processes.

Internal recruitment teams can lower dependence on external suppliers.

Employer branding can generate more direct candidates.

Existing employees can be retrained.

But none of these developments eliminates the need to find and attract people with the right expertise.

As work becomes more complex, recruitment itself can also become more specialised.

Spend recruitment resources where they create the most value

The most important question is therefore not whether white-collar recruitment can be avoided.

It is where companies should allocate their recruitment resources.

Standard positions may be efficiently managed internally.

Specialist roles may justify direct headhunting.

Large hiring projects may require external recruitment capacity.

Meanwhile, training, employer branding and retention can reduce future recruitment pressure.

An effective white-collar recruitment strategy combines these tools according to the organisation’s actual needs instead of assuming that one model will work equally well for every vacancy.

In a labour market shaped by specialist talent shortages, salary pressure, automation and changing employee expectations, companies are unlikely to succeed simply by spending less on recruitment.

The more sustainable objective is to recruit more intelligently — investing the right resources in the positions where they create the greatest business value.

Source: Behaviour HR Magazine

For many years, Shared Service Centres offered an accessible route into the white-collar labour market for candidates with strong language skills, often regardless of their original professional background. Employers once had large pools of applicants to choose from, but the market has changed significantly. Today, SSCs increasingly compete for skilled candidates while adapting to new expectations around remote work, compensation, technology and career development.

Some professions have struggled with talent shortages for decades, but this was not always the case across the entire labour market.

Shared Service Centres were traditionally among the areas where employers could often choose from a relatively broad range of candidates.

As the sector expanded in Hungary, multilingual professionals were attracted by international working environments, structured career paths and the opportunity to enter white-collar positions even without extensive sector-specific experience.

That balance has gradually shifted.

“Four or five years ago, Hungary already had a significant number of SSCs offering attractive opportunities to job seekers. At the time, candidates were more likely to compete for positions, while employers could choose from the strongest applicants. Today, however, the market is considerably more saturated and the trend has reversed: employers increasingly compete for high-quality candidates,” explains Beáta Bodonyi, HR Manager at Alcoa.

From one crisis to another

The SSC sector has had to adapt to several periods of economic uncertainty in rapid succession.

The Covid pandemic fundamentally changed the way companies operated, and many of the changes it accelerated continued well beyond the immediate crisis.

One of the most important consequences was a renewed focus on digitalisation and automation.

“Covid triggered a major wave of digitalisation, and service centres increasingly focused on digital transformation and automation. Technologies such as robotic process automation and cloud-based solutions can significantly improve efficiency,” explains Ágnes Lovas, Senior HR Consultant at Vision Recruitment.

However, increased automation did not necessarily mean fewer jobs.

At the time of the original article, Vision Recruitment was seeing new positions continue to emerge across the sector, including roles requiring increasingly sophisticated knowledge.

Automation changes jobs rather than simply eliminating them

Automation is sometimes discussed primarily in terms of replacing employees.

In practice, its impact on SSCs is more complex.

As repetitive and transactional processes become increasingly automated, employees can be expected to handle more tasks involving:

• analysis;
• professional judgement;
• problem-solving;
• process development;
• stakeholder management;
• technology;
• higher-value decision-making.

This can increase productivity while simultaneously changing the types of professionals employers need.

For recruiters, that means a growing emphasis on specialist knowledge, seniority and combinations of skills that are harder to find.

Technology can also damage candidate experience

Digitalisation is not automatically beneficial in every part of recruitment.

Lovas highlights automated video screening as an example of a technology that may appear efficient from an employer perspective but can negatively affect candidate experience.

In these processes, candidates may be asked to record answers to predetermined questions without interacting with a recruiter or hiring manager.

According to Vision Recruitment’s experience described in the original article, many candidates reacted negatively to this type of impersonal screening.

Even professionals working in technical fields could be reluctant to participate, while resistance could be even stronger in customer-facing positions where interpersonal communication forms an important part of the role.

Efficiency should not come at the expense of candidates

Automated screening may reduce administrative work, but employers also need to consider how many strong applicants abandon the process because of it.

If candidates delay completing an automated interview or withdraw entirely, a process designed to make recruitment faster may actually extend time to hire.

It can also place the company at a disadvantage against employers offering a more personal and responsive recruitment experience.

This illustrates a broader principle in recruitment technology:

the most efficient process internally is not necessarily the most effective process in the labour market.

Candidate expectations changed after the pandemic

One of the clearest changes affecting SSC recruitment in Hungary has been the increasing importance of flexible working.

During the pandemic, many SSCs moved rapidly to fully remote working.

Although companies subsequently began bringing employees back to the office, candidate expectations did not simply return to their pre-pandemic state.

Remote and hybrid working had become an established part of how professionals evaluated new opportunities.

At the same time, increased competition for employees contributed to higher salary expectations.

Counteroffers make recruitment even more difficult

Employers are not only competing against other vacancies.

They may also be competing against the candidate’s current employer.

When a professional receives a new offer, their existing company may respond with a counteroffer designed to persuade them to stay.

This creates additional uncertainty in the recruitment process.

A candidate may successfully complete several interviews and receive an offer, only to withdraw after their current employer improves their conditions.

As this behaviour becomes more common, employers may need to make several offers before successfully filling a single position.

Hybrid work has become the dominant model

Although full remote working expanded dramatically during the pandemic, many SSCs subsequently moved towards hybrid arrangements.

According to Lovas, the typical model described in the original article was around 50% home office.

However, employers offering significantly more flexibility could gain a meaningful recruitment advantage.

A service centre requiring employees to attend the office only once or twice a month could access professionals throughout Hungary rather than being limited mainly to candidates living within commuting distance.

Remote work expands the talent pool geographically

This is particularly important for roles requiring foreign languages.

A company recruiting exclusively around Budapest may have access to only a limited number of candidates with the necessary combination of language skills and professional expertise.

A largely remote position can dramatically expand the search area.

This can allow employers to reach professionals living in:

• regional cities;
• smaller towns;
• areas without a local SSC market;
• locations from which regular commuting to Budapest would be unrealistic.

For candidates, this can provide access to international career opportunities without relocation.

Less office attendance can become a competitive advantage

As more organisations require employees to spend a larger proportion of their time in the office, companies maintaining highly flexible arrangements can differentiate themselves.

This may be especially relevant for professionals who strongly prefer remote work.

Such candidates may have fewer suitable vacancies available, meaning employers capable of meeting their expectations can face less competition.

The result can be a larger candidate pool and potentially improved offer-acceptance rates.

Relocation and commuting are becoming less attractive

The original article also highlights a decline in candidates’ willingness to relocate or commute long distances for work.

For regional professionals, remote and flexible arrangements can provide an attractive alternative.

They may be able to:

• remain in their current home;
• avoid expensive relocation;
• reduce commuting time;
• maintain their existing lifestyle;
• access more competitive salaries;
• build a career with an international employer.

Employers able to offer this combination may also benefit from stronger employee commitment because the working arrangement solves a significant practical problem for the individual.

The salary gap between Budapest and regional locations is narrowing

Remote work has also affected regional salary differences.

Historically, SSCs outside Budapest often struggled to compete with compensation offered by organisations in the capital.

As remote working expanded, geographical boundaries became less important.

Regional professionals could increasingly access opportunities connected to Budapest or other markets without relocating.

This put upward pressure on local salary expectations and contributed to a gradual narrowing of regional differences.

Employers are competing on time, money and flexibility

The transformation of the SSC labour market means organisations now compete on several dimensions simultaneously.

Candidates may compare opportunities according to:

• salary;
• home-office policy;
• working hours;
• career progression;
• company culture;
• benefits;
• job security;
• international exposure;
• speed of the recruitment process.

This makes recruitment considerably more complex than simply offering a competitive salary.

International recruitment can help — but it also creates challenges

Some organisations have responded to local talent shortages by recruiting employees from other countries.

This can expand the available workforce, particularly where companies struggle to find people with specific language or technical capabilities.

However, Lovas cautions that international hiring should not automatically be viewed as a simple or inexpensive solution.

Potential challenges can include:

• administrative requirements;
• relocation support;
• work permits;
• additional employer costs;
• integration;
• cultural differences;
• internal communication challenges.

In some situations, the total cost can be greater than initially expected.

International teams require thoughtful integration

More diverse teams can provide significant organisational benefits, but diversity also needs to be managed effectively.

Different cultural expectations around communication, management, hierarchy or workplace behaviour can create misunderstandings if organisations do not actively support integration.

The objective should therefore not simply be to recruit internationally, but to create a working environment where employees from different backgrounds can collaborate successfully.

The SSC workforce is becoming more experienced

Another major change is the increasing diversity of age and seniority within the sector.

Earlier generations of SSC roles often provided entry-level opportunities for young multilingual graduates.

Those positions still exist, but many centres have brought more complex and higher-value functions to Hungary.

This increases demand for professionals with:

• several years of experience;
• specialist knowledge;
• strong language capabilities;
• leadership potential;
• industry expertise.

As a result, the employee population within SSCs has become more professionally diverse.

Entry-level SSC careers have not disappeared

Despite greater demand for experienced professionals, SSCs continue to offer opportunities for graduates and less experienced candidates.

Strong foreign-language skills can still provide an important route into the sector.

According to Lovas, these roles had historically been particularly attractive to candidates with language-teaching qualifications because they could transfer their language skills into international corporate careers.

However, changes in salaries and employment conditions in other sectors can influence how attractive an SSC career appears to these candidates.

Shift patterns can influence candidate interest

Some SSC positions support customers or internal teams across several time zones.

This can require:

• early shifts;
• late shifts;
• rotating schedules;
• occasional weekend availability.

Such requirements can reduce candidate interest, particularly when professionals have competing opportunities with more conventional working hours.

Employers may therefore need to compensate for less attractive schedules through salary, flexibility or other benefits.

Cost efficiency remains central to the SSC model

Despite changes in the labour market, one fundamental requirement of the business service model remains unchanged: operations need to remain efficient.

Bodonyi highlights technological innovation, including artificial intelligence, as an important tool for maintaining cost-effective operations.

However, technology also introduces new risks and requires thoughtful implementation.

The challenge is to automate processes without damaging service quality, employee experience or recruitment.

AI is likely to reshape SSC work further

Artificial intelligence can potentially support many activities performed in business service environments, including:

• data processing;
• reporting;
• customer support;
• administration;
• financial analysis;
• process automation.

As these technologies develop, some tasks are likely to become more automated.

At the same time, employers may place greater value on capabilities that are more difficult to automate, including complex problem-solving, stakeholder management and professional judgement.

Flexibility has become part of the employer value proposition

For SSC employees, working arrangements are increasingly central to the overall employment proposition.

According to both experts quoted in the original article, candidates increasingly value:

• a high proportion of home office;
• flexible working hours;
• work-life balance;
• a supportive and inclusive culture;
• a positive workplace atmosphere.

Traditional factors such as salary, training and career development remain important, but they are now evaluated alongside a broader range of benefits.

Non-financial benefits are gaining importance

Employees may also consider benefits such as:

• wellbeing programmes;
• healthcare support;
• employee discounts;
• home-office equipment;
• remote-working allowances;
• community initiatives;
• volunteering opportunities.

These benefits can contribute to a broader sense of employee experience and help differentiate employers in a competitive market.

Employees still need connection

Remote work is highly valued, but flexibility does not eliminate the importance of human connection.

Bodonyi highlights the role of an inclusive culture, employee-led community initiatives and attractive office environments.

For hybrid organisations, the office increasingly needs to provide a reason to attend.

It can function as a place for:

• collaboration;
• relationship building;
• team events;
• learning;
• community.

This differs significantly from the traditional idea of the office simply being the place where work happens.

The SSC sector has changed, not disappeared

The developments described in the original 2024 article do not necessarily suggest that Hungary’s SSC sector was in decline.

Rather, they show a sector undergoing significant transformation.

The earlier environment of abundant candidates and relatively standardised roles had given way to:

• greater competition for professionals;
• higher candidate expectations;
• more complex positions;
• greater technological sophistication;
• increased demand for experienced specialists;
• stronger expectations around flexibility.

Recruitment needs to evolve with the sector

For companies operating in the sector, the implications for SSC recruitment in Hungary are significant.

Employers can no longer assume that qualified candidates will automatically apply.

They increasingly need to:

• actively identify suitable professionals;
• communicate opportunities effectively;
• move quickly through the recruitment process;
• provide a positive candidate experience;
• offer competitive flexibility;
• understand changing salary expectations;
• build a credible employer brand.

In specialist and senior positions, direct search and headhunting can become particularly important because many of the strongest candidates may not be actively searching for a new job.

After the golden age comes a more mature market

The SSC sector has clearly changed from the environment that characterised its earlier expansion in Hungary.

Employers once benefited from relatively large candidate pools and lower competition for multilingual professionals.

Today, companies increasingly compete for employees on salary, flexibility, candidate experience, professional development and workplace culture.

At the same time, SSCs are performing increasingly complex and higher-value work, creating new career opportunities for both experienced specialists and talented graduates.

The sector has therefore not simply lost momentum. It has become more mature, technologically advanced and demanding.

For employers, success increasingly depends on combining cost efficiency with an attractive employee proposition. For candidates, the transformation means broader career possibilities and greater influence over how and where they work.

And for recruitment professionals, the challenge is clear: finding the right candidate is no longer enough. Employers also need to create an opportunity strong enough to convince that candidate to say yes.

Source: Behaviour HR Magazine