"Specialists in the labor market are fewer than employers' needs"

Reporter: We are going through a period of high inflation, rising interest rates and a war on the border. What impact do all these things have on Pehart's work?

Claudiu Câmpan: The geopolitical scene is indeed marked by multiple crises, which, however, did not have a direct negative impact on our business, neither from the point of view of the logistics chain, nor of the final consumer. 2023 was quite a volatile year, but I believe that the business environment was better prepared and learned to operate in this markedly unpredictable context. Pehart Grup was therefore able to continue its forecasted investment plans for 2023, carry out portfolio diversification projects and even approach new international markets.

Reporter: According to the information available on the company's website, Pehart has 600 employees today. Where do you recruit your human resources and how do you manage to retain them?

Claudiu Câmpan: We share the same pool of available labor with the other companies on the market. We have so far managed to hire and address exclusively jobseekers, without resorting to importing labor from outside, although there is a great temptation, and more recently recruitment firms rely almost exclusively on such alternatives. Thus, there are three pillars on which we support our recruitment efforts:

• Our own recruitment campaigns carried out (physically in the communities where we operate, but also through social media);

• Internal referrals received from own employees (channel ranked #2 in terms of the volume of CVs received);

• And #3, the development of an own "nursery", but with a long-term impact, through a close connection with the school environment, namely dual education.

Reporter: How would you characterize the education system in our country? Does it meet the needs of specialists in the labor market?

Claudiu Câmpan: At the moment, there are fewer specialists on the labor market than employers' needs, and here I mean both those from professional schools and the university environment. But this cannot be attributed only to schools and the quality of education in Romania. Migration and, implicitly, free access to a European labor market have an impact on the number of specialists.

As for schools, in specific areas the involvement of teachers makes a difference and the interaction with the industrial environment exists, so that the training process of the new generations is aligned with the knowledge and skills requirements of the market. But this is not a general characteristic of education in Romania, unfortunately.

Reporter: In the case of Pehart, does the education system in Romania offer you people with minimal training in the field or are the specialists trained from scratch by the company?

Claudiu Câmpan: At this moment, a specialty specific to our industry, namely "Paper and pulp production", no longer exists in schools/universities in Romania; likewise, today's technology is different from the technology used when these specialties existed. Therefore, the training of the specialists with whom we operate today is the responsibility of the employer. However, I would not point to zero as the acceptance threshold in the industry, because there are "neighboring" specialties, which thus ensure a level from which we can enter into a dialogue with future colleagues: Chemical Industry, Machine Construction Technology, Applied Mechanics and Electrical.

Reporter: One of the elements that has been emphasized in recent years refers to ESG (Environmental, Social and Governance). How does Pehart position itself from this point of view? Can you elaborate?

Claudiu Câmpan: Of course, Pehart also operates with these necessary pillars in any modern business. Environmental responsibility, involvement in the community in which you operate, along with compliance with standards, provisions and regulations in force are part of the priorities of Pehart and our shareholder, Abris Capital Partners. Thus, in recent years, we pay more attention to the principles of sustainable business, through investments that reduce the carbon footprint and energy efficiency in the production process.

At the same time, we pay attention to Inclusion and Diversity programs in the workplace, with an emphasis on age diversity and gender diversity. We continue our employee professional development program, as well as involvement in community projects: supporting local sports, local hospitals and, last but not least, other actions initiated by third-party players through direct sponsorships.

Reporter: What are the trends in the paper industry? How do you adapt?

Claudiu Câmpan: Paper is a consumer good with a stable market. We expect that in the medium-long term this market will grow due to the current low consumption of consumers in Romania compared to other countries. However, we constantly monitor consumer behavior and market developments and innovate to respond to trends: we have introduced wet toilet paper to our portfolio, more economical and environmentally friendly products.

Reporter: What objectives does Pehart have for the next three to five years and what is the role of human resources in achieving them?

Claudiu Câmpan: The HR team positions itself as a partner within Pehart. In our activity, we start from understanding the business and the market in which we operate, understanding the organization and, first of all, understanding people and their needs. We ensure our contribution to the development of organizational leadership through agility, internal communication, as well as support in the direction of strengthening the desired organizational culture.

Pehart's plans for the next five years are for sustained growth and consolidation of the position in the local market, by building new, modern, energy-efficient production facilities, increasing processing capacity and diversifying the portfolio with high-quality products that meet the principles of sustainability. This year we entered a new market for us, Away-from-Home, which will contribute to our growth plans. Likewise, a third important direction on Pehart's agenda remains export, increasing the presence of our products on the international market.

Reporter: Thank you!