hr management of foreign companies operating srp

8/13/2019 HR Management of Foreign Companies Operating SRP

http://slidepdf.com/reader/full/hr-management-of-foreign-companies-operating-srp 1/49

HR Management of foreign companies operatingin Russia today

Recruitment tools

Foreign companies operating in Russia today use the following recruitmenttools:

internal recruitment, recruiting agencies and head-hunters, internet jobengines,

newspapers ads, contacts or networking, and college graduate recruitment.

Thechoice of a particular recruiting tool is based on the type of vacancy, the

internalrecruitment policies and procedures and the location of a particular company

cf.!enisova-"chmidt #$$%b, Frank #$$&, #$$'b(.

Fey et al. )''':&*( argue that many foreign companies operating in Russia

try to keep careful track of the Russians who are studying abroad, as theyare

attractive candidates to recruit when they finish their studies. Russians livingabroad for a long time re-emigrants( could, however, face some obstacles

to

their acceptance into Russian society cf. +iasoedov #$$*:&'-%)(. tcertainly

varies from industry to industry and among different management levels, oraccording to the duration of the work assignment of a re-emigrant. This

uestion

has not been investigated so far. +oreover, business techniues learnt in the

est might not be applicable in Russian settings on a one-to-one basis. Theycould be transferred to Russian subsidiaries, but they should be adapted tosuit

Russian labour regulations and cultural norms.

Selection of employeesnterviews are the most appropriate method of selecting new employees.

nterviewsare usually conducted in several rounds. Transcripts and diplomas are also

normally looked at, but they are less important than the perception of theperson

as ambitious, hard-working, and beneficial to the company because of his or

herprevious professional e/perience cf. Fey et al. )''':&*(. 0oth Russian and

esterncompanies reuire applicants to submit a 123resume. 45owever, since

resumes

have not traditionally been used in Russia, they are still poorly done andprovide varying amounts of information about the candidate6 cf. Fey et al.



)''':&*(. 7ften misrepresentations in language proficiency, computerliteracy,

and previous employment dates, duties and responsibilities appear in these

resumes,and should be investigated. References are not usually reuired, but

submittedreferences are appreciated.

"ome recruiting agencies provide 4reference check6 services. t is crucial to

specify what a recruiting agency actually means by the term 4referencecheck,6

however. They might just contact a referee or a previous employer and ask ifshe

or he had written a letter of reference for a certain person, or whether thisperson

had indeed once worked for a certain employer. n fact, consulting a previous

employer without the written consent of a candidate is not allowed underRussian

law, but this practice is nonetheless widespread Russian 8abour 8aw #$$)(.+oreover, as the system of providing working certificates is still in its

infancy,

some companies simply make a statement about a particular person in termsof

whether she or he has worked for a particular company9 ualifications, dutiesand

other characteristics are not mentioned. Fey et al. )'''(, urkov #$$#(

and

!enisova-"chmidt #$$%a( argue that developing a formal set of criteria isdifficultfor Russian 5R +anagers, and they usually rely on their 4gut feeling6 during

the

hiring process.;ccording to Russian labour law, companies must use a three-month for

nonmanagementand management positions( or si/-month for top management positions(

probation period after someone has been hired to evaluate the newemployee

before entering into a long-term relationship Russian 8abour 8aw #$$)(.

Retention of employees!ifferent companies use different tools to keep their employees. t is not so

simpleto summari<e the best practices and give a general recipe9 it depends on the

industry, vacancies, age, and other factors. 7n the basis of interviews in the

field,



augmented by an analysis of the literature, the author identifies the followingdeciding

factors in retaining employees !enisova-"chmidt #$$%a9 Frank #$$&,

#$$'a, #$$'b9 Fey et al. )''', Fey et al. #$$$, Fey #$$%9 +agura #$$*9+ordovin

#$$=9 "cherl #$$%(: Good working conditions: enough space, security, parking, access to

cafeteria,

etc. >4ood working conditions6 in this sense go without saying formanyestern readers, but in Russia, this is indeed a crucial criterion for a

job seeker. 7verloaded offices, suboptimal room temperatures, and obsoletesanitary facilities are still common for some companies. "pecifically, in

+oscow

and "t. ?etersburg, transport accessibility and time spent commuting tothe workplace are also important factors. 8ong distances from home to the

workplace are a huge problem in big cities in Russia. f a job seeker has tospend about two hours commuting in only one direction which is very

common(, it might be a strong stimulus to look for a new job 4closer6 to

home.

Professional and personnel development : training, further education > Fey

et al. )'''( found that some managers would even forgo a one-time bonus

of #,$$$ @"! in order to receive one week of training. Frank #$$&, #$$'b(also emphasi<es the necessity of orientation and training, especially at the

main corporate headuarters outside Russia. 2isits to other non-Russiansubsidiaries are highlighted by Fey et al. )'''( too. "ome foreign

companies,

however, underestimate the importance to Russians of going abroad.For many, travelling abroad is more important than receiving training.

1ertainly,motivation to attend a training session at the headuarters or anywhere

abroad( is likely to be higher than in the case of a training seminar

organi<ed in Russia. +oreover, 5R professionals should be aware that manyRussians grew up with frontal teaching techniues and have different

e/pectationsfrom a trainer and a learning environment Artelt-2ieth and !enisova-

"chmidt #$$', !enisova-"chmidt #$$&, 0lanchard-1attarossi and

?shenichnikova#$$%(.

Open and accessible information dissemination concerning the aims, goals,

strategy and (possible) changes in an organization > Foreign enterprises

should choose techniues that are more appropriate for their Russian

employees.;ccording to interview partners, Russian employees are usually



happier to learn about possible changes by a simple e/planation > fore/ample,

by hearing it directly from their bosses during a meeting, or through

corporate newsletters or videotaped interviews > rather than through aninteractive

flash-based presentation with a strategy map, for e/ample. Internal rotation and promotion based on performance, knowledge and

career

growth > This is still a challenge, especially in local Russian companieswith a long tradition, where senior managers still try to place their friends

and relatives.

Initiative should be welcomed . Traditionally, bottom-up initiative is not very

welcome in Russia cf. !enisova-"chmidt #$$&:%*, Fey #$$%:#=&(.

reating professional mistakes > f an employee makes a mistake, she or

he

should not be punished, but the reason for the mistake should beinvestigatedand appropriate corrective actions taken e.g. additional training for

an employee( cf. !enisova-"chmidt #$$&:%#-%*, Fey #$$%: #=&-#=%(

! different attitude to critical feedback > Typically, Russians do not receive

criticism in public > which could be a challenge for estern managers.+oreover, if Russians start to critici<e each other, it is usually not

constructive,

but ratherpersonal. The best critiue in Russia is a critiue in private.

Good salaries and competitive social benefits > ood salaries and competitive

social benefits are important to Russian employees, and firms withnoncompetitive

salaries or benefits will have difficulty attracting, motivating,and retaining employees.

Salary and social benefits

"alaries and social benefits are regularly handled by international and localagencies

working in Russia. They use different approaches. "ome perform surveys forvarious positions in specific industries in a particular region, e.g., only in the

consumer

goods sector in +oscow, while others analy<e salaries according to suchcriteria as human relation skills, job scope and duties > so-called 4job

grading6.5owever, the main problem for 5R in Russia is keeping up-to-date with

current



levels of salary and social benefits offered to managers. For e/ample, theresults

of the 5;B survey submitted in Culy will be not available until Canuary, and

theywill already be obsolete in si/ months. This, among other factors, is related

to theturnover of employees cf. Frank #$$'a:##$, "mid #$$'(.

+oreover, some Russian companies tend to pay official and unofficial

salaries.Russian enterprises have long traditions of keeping two sets of books: one

withactual results for internal usage and one with desired results for e/ternal

auditsand3or reports by the old "oviet ministries cf. "uutari )''%(. There are still

some

reasons for paying in official and unofficial ways, such as the reduction ofsocial

ta/ation and additional options for non-authori<ed work on holidays,vacations,

and overtime hours. This fact of unofficial income is even accepted by

internainternational

banks operating in Russia and providing loans for Russian citi<ens.

ConclusionsForeign companies working and3or planning to work in Russia should knowthat

Russia is not a terra nova" Russia is a country with a long history and manytraditions

that penetrate all fields, including 5R management. ?ersonnel managementin turn is affected by "oviet-era practices, which can sometimes remain

unknown

to those Russian 5R managers without professional e/perience in the "oviet@nion

or in modern large Russian corporations that retain elements of "ovietcorporate

culture. hile considering how estern 5R practices could be transferred to

Russiansubsidiaries, one should e/amine the possibility of updating "oviet 5R

practicesinstead of reinventing the wheel. +oreover, it would be very useful to study



some of the unwritten and3or unspoken rules that are widely used in Russianpersonnel

management in order to understand how to operate more successfully

General Background - RussiaOrganizations exist within certain environmental conditions which affect their operations.

Because of continuous political, economic, and social change, what is said about Russia oneweek may be obsolete by the next. The following information provides a brief sketch of some of

the key challenges facing Russia during the period that this study was conducted.

learly, economic conditions underlie many of the other concerns faced by Russianstoday. The economy has contracted !"# since $eltsin came to power in %&&%, a deeper

contraction than that experienced by the '( during the great depression. )owever, inflation,

which was *,+%# in %&&*, fell to %*# in %&&- and is proected to be as low as !# in %&&./ross domestic product and industrial production rose slightly in %&&- and were expected to

more in %&&. 0any Russian work * or + obs and are paid under the table in cash or goods. 1s

much as 2"# of Russia3s economy is off the books. (o, according to some experts, the economymay be healthier than government figures indicate. 4/oldberg, %&&, p. %"&5 )owever, as of latesummer, %&&, the currency and stock market were collapsing, and the economy seemed far from

recovery. 46vint, %&&5

Tax and cash flow problems persist. Only ! million out of %!" million citizens hand intax returns, and companies often hide their income overseas. The government has done little to

collect from certain industrial groups that traditionally ignore taxes. 1lthough newly appointed

director of the (tate Tax (ervice, Boris 7yodorov, has begun reforms, he faces an uphill battle46ranz, %&&, p. !%5. 8uestions surface about the ultimate recipients of 907 funds, as well,

leading some to conclude that without maor reform of the tax code and strong anti:mafia

measures, additional funds will do little good. 47orbes, %&&5

;olitical uncertainty and change on national, regional and local levels lend instability tothe general climate. <espite the presence of $eltsin at the national helm for seven years,

dissenting rumbles continue to emerge from legislators and other government officials. =ith

each new economic crisis, calls for $eltsin3s resignation leader burst forth. Regional and localleaders are still sorting out their domains, as evidenced by the open, on:going feud between the

governor of the ;rimorye region and the mayor of >ladivostok.

9n a climate of political and economic transition, social problems naturally emerge.Businesses, small and large, are pressured to provide protection money to organized crime or

face retaliation, sometimes fatal. ?nvironmental degradation and continuing high levels of

pollution threaten health and safety in many areas. 9nade@uate health care leaves many

Results

Based on the data, Russian clients expressed the most interest in and seemed the most concernedabout the following )R issuesA

Compensation, bonuses, incentives

1ll of the volunteers reported high levels of interest in compensation practices. 0any of

the smaller companies had no standard compensation system, and were interested in how to set

up systematic, e@uitable pay scales and incentive structures flexible enough to withstand periodsof growth and change. ompanies have come to recognize that the traditional system in which

full employment was a main goal, and employees were paid whether they performed or not, will



not work in a market economy. The challenge is to replace those systems with new ones that

will fit new economic realities and yet fit with the Russian culture.1lthough incentive pay was a traditional part of the Russian compensation system, most

bonuses were divided e@ually across the organization or among members of a specific work

group. (ince workers received incentives regardless of individual performance, they came to see

them more as an entitlement than as a reward for good performance. 4;uffer (hekshnia, %&&C50any of the individuals we worked with are still grappling with the idea of individual

performance incentives. Dot only do such systems go against the traditional approach, but they

may also contradict inherent aspects of the Russian culture, such as collectivism and highHuman Resources in Russia: A Case Study 7uncertainty avoidance. 47or a more complete discussion of the cultural aspects of compensation

in Russia, see ;uffer (hekshnia, %&&C, and (chuler Rogovsky, %&&5.

Management of individual performance

9n connection with the issue of compensation, clients also expressed a great deal of

interest in individual performance management and constructive discipline. /iven the emphasis

in 1merican performance management on constructive discipline, one aspect of a few Russianorganizations seemed particularly unusual to the volunteer teamA the use of fines as a central

focus of discipline systems. (everal clients described organizations in which employees were

fined for every conceivable infraction, and in at least one case the list of standard fines was posted to remind employees of the conse@uences of breaking the rules. =hile perhaps not a

widespread practice, such scenarios help to explain the keen interest of many of our clients in

new approaches to positive reinforcement and effective feedback techni@ues. The idea of formalized performance appraisal and feedback, a common part of the 1merican business world,

also elicited considerable interest.

Motivation techniques

9n relation to the previous two items, our clients fre@uently asked @uestions regarding the

broader area of employee motivation :: not only how to motivate employees but also how to

maintain a high level of motivation. 1 great deal has been written about the negative effects of a

centralized planning system on individual motivation. 4Remnick, %&&2E Randolph, %&&C5 9nsome cases the sheer lack of experience in motivating workers has left company managers trying

whatever seems to work at the time. One client recounted the fact that for Dew $ear3s she gave

her employees substantial gifts. This did not improve their performance, however, and theyexpected even more the next year. 0any of my clients were clearly intrigued by ob enrichment,

cross:training, and organizational support of training and education as non:monetary

motivational strategies.

Organizational structure, authorit levels

0any of our Russian clients also wanted information about appropriate organizational

structures and decision:making levels for their individual operations. <eveloping ob

descriptions, determining levels of authority, and devising systems to coordinate companyfunctions were popular topics and discussion points. Because of their familiarity with a more

authoritative, hierarchical, bureaucratic type of structure, they were also interested in more

participative management approaches, team concepts, and greater employee involvementE andyet many were clearly uncomfortable with some of the ambiguities and loss of authority such

approaches entail. Our observations suggest that structures must be strong enough to provide

stability, yet flexible enough to enable the organization to survive an uncertain environment.

Recruiting and staffing

Human Resources in Russia: A Case Study 8



'nder central planning systems, workers were often assigned to specific obs, precluding

the need for companies to be involved in recruitment and staffing. =hile recruiting and staffingare fairly straightforward processes for most 1merican companies, some Russian companies are

having to start from scratch. 9n one case, a client seemed surprised that he should spend time and

money looking for @ualified employees :: he assumed that prospective employees must somehow

come to him. 9n another case, a new entrepreneur seemed surprised by the idea that companiescould develop reputations as good places to work in order to attract the best employees. 1nother

company, with a number of kiosk vendors, had never considered advertising for new employees

at the kiosks. lients also posed @uestions about the merits of selection strategies, such astesting, group and individual interviewing, and application processes.

!rust and related communication issues

The need to build or rebuild trust emerged as a constant theme throughout much of the proect. =ith a history of caution and secrecy, and the uncertain environment currently in place,

the reluctance to trust others is understandable. )owever, this lack of trust undoubtedly has

caused and will continue to be the source of communication problems and breakdowns in

authority and respect. One of the volunteers, working with one company for about a week, notedthat much of his time was spent dealing with the management in this area, with little time left

over for the )R issues that needed to be addressed.

"elegation

0any of the /eneral <irectors 4presidents5 of our client companies expressed concerns

about delegating :: what types of work to delegate, how much to delegate, how to supervise

delegated work, and so on. 1s a result of their limited delegation, many work long, hard days4and nights5 and suffer from the stress of overwork. <elegation of work and responsibility

re@uires a level of trust that many organizations have not yet been able to build, as discussed

above. 9t also implies a change in traditional views of hierarchy and authority which still exist inmany companies.

Other #ssues

lients also asked about a number of other issues, such as training and development, the

role of women, basic business development, marketing, and time and stress management.;erhaps one of the more beneficial results of our seminars and consulting was the introduction of

a systematic approach to )R in which recruiting, staffing, training, performance evaluation,

compensation, benefits, promotions and other )R activities are seen as interrelated. 1s in many1merican companies, these functions were often handled in a piecemeal way that led to conflict

and reduced productivity. 1lthough not an )R issue as such, @uestions about various aspects of

marketing were common, as well.

Current status of $R"%$RM

1s expected, the type and level of complexity of )R practices varied depending on the

Human Resources in Russia: A Case Study 9region, industry, size of company, age of company in its current form, and other factors. 9nmany instances, organizations seemed to have adopted traditional )R practices 4what they knew

best5 and are struggling to adapt these practices or replace them to better fit the demands of a

market:oriented economy. 9n some cases, organizations perceived )R as a compliance function,existing to fill out forms and enforce rules, rather than a strategic part of organizational

performance and success. 4Dot unlike the perception of many 1merican )R departments a few

years ago.5One of the aspects noted by some volunteers was the emphasis on testing and

psychological factors, which is somewhat different than the current 1merican view of )R as an



interdisciplinary field incorporating knowledge from psychology, business theory, sociology,

anthropology and other fields. (mall and newer companies were more likely to have a Fstaff psychologistG than an )R professional, in the 1merican sense, on board. >olunteers also

observed that while many of the Russians were well:educated in more technical fields, they did

not seem to have as much background in the management of people, and other FsoftG skills.

1nother observation seems @uite logical :: new companies in many cases had focusedfirst on getting the business going and survival. 1fter some time, they began to recognize they

needed to know how to manage the people, not ust the product. This seems to be a natural step

in the evolution of small businesses.

&hat is needed

Our experiences and observations suggest the following tips for )R professionals

working in Russia.(ince some of the operational approaches of Russian companies seem

somewhat behind the times, it may be tempting to introduce outdated )R

concepts to match this level of development. )owever, 1merican and ?uropean

)R professionals have learned a great deal over the last four decades. 9t would bemore beneficial to help them skip some of the mistakes that we made as we

learned through experience and introduce the latest in )R theory and practice.

=hether consulting or instructing, use a practical approach. Relategeneral theories or concepts to real:life examples, even if they aren3t Russian

examples. 1lso keep information simple and basic until you are able to gauge the

client3s level of understanding and experience.1s in any intervention address the client3s needs. =e all had to be

flexible to answer @uestions, address issues and work in areas we may not have

anticipated.To better serve the customer4s5, a good needs assessment is critical. 9n

the case of public seminars, it is much more difficult to define needs than for a

specific company intervention. )owever, some analysis of market needs is

useful. 1 seminar participant remarked that he had attended numerous seminars, but they seldom addressed his particular concerns.

1 practical tip for non:RussiansA 1 good interpreter and accurate

Human Resources in Russia: A Case Study 10translations can make or break your best effortsH

The need for Russian organizations to develop structure is strong ::

people need to have more clarity, sense that things are organized and under control. But at the same time, they need to be careful to also maintain flexibility.

Recognize that this is a tough balance for any managerH



The Transfer of WesternHuman Resource Practicesto Russian SubsidiariesElena Denisova-SchmidtSt !allen" S#it$erlandDe%artment o& 'nternational (usiness Communication)ienna *niversity o& Economics and (usiness Administration +,*,* .nline /a%ers in 'nternational (usiness CommunicationSeries .ne:'ntercultural Communication and an2ua2e earnin23

/a%er 45e6ruary 4008htt%:e%u6#u-#ienacathtt%:e%u6#u-#ienacat 4AbstractElena Denisova-Schmidt*niversity o& St !allen" S#it$erlandThe transfer of Western human resource practices to Russian subsidiaries*sin2 one su6sidiary o& one international consumer 2oods com%any as an eam%le" theauthor sho#s themain challen2es o& HR ana2ement and their conseuences &or 6usiness activities in

Russia ;his em%iricalstudy details HR %ractices at the Russian su6sidiary o& one international consumer2oods manu&acturer #ith headuarters in ,estern Euro%e +herea&ter re&erred to as A(C Russia &orcon&identiality ;he author s%ent a &e# #ee<s in osco# #ith the tas< o& 1 revie#in2 the recruitment mar<et andesta6lishin2 trends#ith re2ard to the availa6ility o& candidates" salary movements and turnover o&em%loyees= and 4 ma<in2recommendations on ho# A(C Russia should %roceed 6ased on the &indin2s't #as a 2reat o%%ortunity to o6serve A(C Russia em%loyees and %artly %artici%ate intheir daily 6usiness=have access to some internal in&ormation" es%ecially to HR %rocedures and rules= tal< tosome em%loyeesand 2et their im%ressions on #hat it means &or a #ell-<no#n international com%anydoin2 6usinessin RussiaKeyordsRussia= HR mana2ement= HR %ractices= Culture= 'ntercultural communication=Recruitment= Em%loyment=



E%atriates!ntroduction;his em%irical study details HR %ractices at A(C Russia ;he com%any #or<s in an areao& consumer 2oods and is one o& the to% 10 in its sector #orld#ide ;he &irst su6sidiary in Russia #as

esta6lished in themid 90s 'n 400> more than t#o hundred %eo%le #ere #or<in2 &or this com%any at threeo&&ices in osco#"St /eters6ur2 and ?e<aterin6ur2 and several home o&&ices in some other 6i2 cities inRussia5rom 400> on#ards" A(C %lanned %lans to have a %resence in all 6i2 cities in Russiaand some o& the&ormer Soviet Re%u6lics ;o com%ete more success&ully" A(C #ill %lace 2reaterem%hasis on HR mana2ementand develo%mentEmpirical Study"ain challen#es for HR mana#ement in RussiaHi#h turnover rate$ especially in "osco'n the Russian ca%ital this can 6e at least 40@ %er year" #hich creates a 6i2 %ro6lem &ora com%any '& em%loyeesleave a com%any" es%ecially #hen they 2o to a com%etitor" they ta<e a lot #ith them:%ro&essionale%erience" customer data6ases" technolo2ies" and com%any secrets" etc e#em%loyees need some timeto ada%tSome Russian com%anies try to %revent the hi2h turnover rate 6y di&&erent means 5oream%le" com%aniesin one mar<et mi2ht ma<e an oral a2reement not to em%loy any6ody &rom a com%etitor"creatin2 a <indo& 6lac<list ;hou2h com%any- or industry-sanctioned 6lac<lists are technically ille2al inRussia" the in&ormal%ractice o& 6lac<listin2 still 2oes on 6ehind the scenes +c& !ostev 400>Elena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4htt%:e%u6#u-#ienacat B%otice period is only & ee'sEce%tion: em%loyees #ith &inancial res%onsi6ilities 5inance Director and Accountant(e&ore leavin2 thecom%any they should com%lete their tas<s and introduce their successors to the6usiness *sually thista<es &rom one to t#o monthsSalary and social benefits;he salary and social 6ene&its mar<et is chan2in2 very &ast and is not easy to monitor"e2 su6mitted results&or the HA? survey +see htt%:###hay2rou%comru in uly #ill 6e availa6le only inanuary and



they #ill 6e o6soleteF in si months /eo%le tend to chan2e their Go6s almost every year+at least in the consumer 2oods sector (y chan2in2 their em%loyers" they may raise their salary 6ya%%roimately 40@ or more

oreover" some Russian com%anies tend to %ay o&&icial and uno&&icial salaries Russianenter%riseshave lon2 traditions o& <ee%in2 t#o sets o& 6oo<s: one #ith actual results &or internalusa2e and one #ithdesired results &or eternal audits andor re%orts 6y Soviet ministries +c& Suutari 1998;here are somereasons &or %ayin2 in o&&icial and uno&&icial #ays: e2 reduction o& social taation=o%tions &or non-authori$ed#or< on holidays" vacations" and overtime hours ;his &act o& uno&&icial income is evenacce%ted 6y international6an<s %rovidin2 loans &or Russian citi$ensResearch (uestions'n that contet" my tas< #as to analy$e the current tendencies in the Russian la6ormar<et:• ,ho is in the la6or mar<et• Ho# could these candidates 6e a%%roached• ,hat <ind o& uali&ications do they have• ,hen em%loyed" ho# lon2 #ill they stay #ith the com%any• ,hich &actors in&luence this decision'n order to ans#er these uestions" ' s%ent &ive #ee<s in osco# +%artici%ationo6servation and conductede%ert intervie#s #ith HR sta&&

Research desi#n5irst" the current situation in A(C Russia #as analy$ed to determine #hat 2ives thecom%any an advanta2eas an em%loyer andor #hat should 6e chan2ed in the HR #or< ;his #as necessary6ecause the turnover rate in the com%any #as I0@ in 400J" #hereas the avera2e turnover rate in osco##as 40@ A S,.;analysis #as then carried out1 S,.; analysis is a strate2y develo%ment techniue +S

internal Stren2ths", internal ,ea<nesses" . eternal .%%ortunities" ; eternal ;hreats

A&ter that" the recruitment instruments that are or could 6e used 6y A(C Russia #ere6enchmar<ed Descri6in2a %articular hirin2 o%tion" HR %ro&essionals and academics +Dessler 1999" a2ura 400B"!Kme$-eGia et al 400I usually mention its com%liance #ith com%any %ersonnel %olicy" cost"and em%loymentmar<et acce%tance Com%arin2 *S and Russian sources" it #as discovered that somerecruitment methods#idely used in the *nited States are not a%%lica6le yet or have di&&erent connotations inRussia and the C'S



countries So" &or eam%le" initiative +or 6lind a%%lications or television and 6roadcastannouncements arenot a common %ractice= similarly" #hen ma<in2 announcements in %rint media" theem%loyer should <no#that there are no national ne#s%a%ers commonly read 6y all Go6-see<ers in Russia '& a

com%any is loo<in2&or someone outside o& osco# and St /eters6ur2" an announcement should 6e %lacedin re2ional %a%ers;hen" a &rame#or< &or evaluatin2 each recruitment tool #as develo%ed" &ocusin2 on:• Com%liance #ith A(C /ersonnel /olicy"• Cost"• Em%loyment mar<et acce%tance"1 'n order to <ee% A(C Russia anonymous" #hat &ollo#s is an a66reviated version o& theS,.; analysisElena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4

htt%:e%u6#u-#ienacat I• Cultural adeuacy"• A(C Russia %ractices since A(C has 6een o%eratin2 in Russia &or more than ei2htyearsSW)T AnalysisStren#ths,hat are the advanta2es" s%ecial circumstances" o&&ers" that A(C Russia %ossesses,hy is A(C Russiaso attractive as an em%loyer• All la6or issues such as em%loyment and maternity leave" are handled accordin2 tothe Russian a6or

a# +4001 'n cases o& con&lict 6oth %arties can rely on this document ot allcom%anies in Russia im%lementsti%ulate the a6or a#• A(C Russia #or<s #ith trudovaia <ni$h<aF +la6or 6oo<F a6or 6oo<s are the maino&&icial documentconcernin2 em%loyment activities and their duration in Russia Any 2a%sF in em%loymentrecords meanconseuences &or %ension %ayment" medical insurance" &urther Go6s" etc Sometimes thela6or 6oo< hasmore value in Russia than a contract" rLsumL" or re&erences• A(C Russia o&&ers the %ossi6ility to 2ather #or< e%erience at an international

com%any" #hich increasescareer develo%ment and %ro&essional %ers%ectives in the la6or mar<et A(C Russia is#or<in2in a 2ro#in2 mar<et and has a 2ood %osition and 2ro#th o%tions in RussiaWea'nesses,hat is not 2ood yet ,hat should 6e im%roved• A low degree of identification with the company and company brands (potential

increase in turnover):



ot all em%loyees <no# ho# many 6rands or su6sidiaries A(C Russia has in the #orld.ne HR em%loyee"a #oman res%onsi6le &or the com%anyFs induction %rocess" actually had a mirror #ith thecom%etitorFslo2o lyin2 on her des<

• Little or no understanding of corporate values and culture : Each em%loyee should 2ainsuch values asharmony" mutual understandin2" &riendliness" lon2-term orientation" and res%onsi6ility;hese values arestill 6ein2 develo%ed 6y Russian em%loyees in osco# 'n the #ords o& one anonymousem%loyee:;hey do not listen to each other= they do not have lon2 term %lans on activities= they donot have a team s%irit andinitiative is still not #elcome ;hey do not #ant to ta<e decisions and ta<e res%onsi6ilityand %ro6lems are distri6utedinstead o& 6ein2 solved= they do not &ul&ill deadlines and do not in&orm their collea2ues

a6out this= they do not havein&ormation a6out res%onsi6ilities o& other de%artments3• Little or no understanding of the role of the HR department : 'n the communist era" the&unctions o& theHR De%artment #ere mostly administrative #or< As a result" some em%loyees #ith%revious #or< e%eriencein international com%anies Gud2e the #or< o& the HR de%artment to 6e insu&&icient: notenou2hrules and %rocedures" no team s%irit" no team 6uildin2 trainin2s• Low basic management skills such as communication skills; low conflict and time

management skills:Distri6ution o& non-structural in&ormation and in&ormation channels= the same in&ormationcomes very o&ten&rom di&&erent %eo%le= mana2ers o& all levels are not al#ays a6le to use in&ormation= notrational usa2eo& #or<in2 time= too many tas<s &or each em%loyee ot enou2h sta&& resources anyem%loyeesare overloaded Hierarchical levels o& communication" culture o& re-dele2ation" di&&erentleadershi%styles" and %eo%le are not a6le to critici$e their 6osses and collea2ues in %u6lic /eo%lethin< in the&rames o& their %ositions or de%artments" they do not thin< a6out the com%anyFs interestand the 6usinessin total)pportunities,hat are the relevant trends in the Russian la6or mar<etElena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4htt%:e%u6#u-#ienacat J• Large market of potential candidates: ?oun2" educated %eo%le are not s%oiledF 6y old%ractices and



routines o& Russian com%anies and are a6le to ada%t easily to #estern standards 6ut#ithout relevante%erience &or A(C Russia• Regions: /eo%le have lo# e%ectationsF &or career develo%ment o%tions" salaries"com%ensation" or

6onusesThreats,hat are the o6stacles that A(C Russia is &aced #ith or could 6e &aced #ith• Moscow : small %ool o& %otential candidates #ith relevant e%erience• Moscow : lon2 distances &rom home to the #or<%lace +a%%ro 4 hours 6y train undervery 6ad conditionsor in tra&&ic Gams osco# under2round is overloaded 6ecause o& overcro#din2 in thecity• Moscow : /assin2 throu2h the city reuires a valid identi&ication card +%ass%ort= thereis a very hi2hli<elihood o& 6ein2 sto%%ed 6y Russian %olicemen #ho #ill chec< your identity ;he

Russian %olicemenhave the ri2ht to ta<e any %erson to a %olice station /eo%le &rom the Caucasus re2ionare more a&&ected+the %ro6lem o& Chechen terrorism• or employees without private real estate: Rentin2 or 6uyin2 an a%artment +es%eciallyin 6i2 cities isvery e%ensive= additional time is needed to arran2e" &urnish" and renovate it= o&ten it is&ar a#ay &romthe o&&ice= there are a lot o& un&air deals #ithin the real estate mar<et• or employees with children under school age: a challen2e to &ind a %lace in a<inder2arten +there are

not enou2h <inder2artens= 2ood <inder2artens are situated &ar a#ay &rom the home or#or< %lace= theyare very e%ensive and have &ied #or<in2 hours" they ty%ically close at > %mRussian universities %rovide di&&erent ty%es o& trainin2 in mar<etin2" &inance" andaccountin2 .nly eliteuniversities and #ell-<no#n 6usiness schools #or< #ith modern teachin2 %ro2rams andtechniues such as6usiness case studies" 6rainstormin2" or creative mind ma%s .ther universities are stillin develo%ment"e2 some mar<etin2 %ro&essors may #or< #ith methods o& Motler +4007" 6ut at thesame time" they do nothave any %ractical or consultin2 e%erience" nor do they conduct em%irical research*onclusions

A&ter conductin2 the S,.; analysis" the investi2ator has the &ollo#in2recommendations &or ho# to em%hasi$estren2ths and a6olish #ea<nesses #ith the main aim o& minimi$in2 any %otentialincrease in turnoverProblems *orrective actions

A lo# de2ree o& identi&ication



#ith the com%any andcom%any 6randsMee% current activities in educatin2 em%loyees a6out 6rand loyalty +usin2 cor%oratecolors= 2i&tsthat carry the lo2o= an o%tion to %urchase %roducts at cost %rice" etc

Mee% u% to date a6out the com%any activities" usin2 6alanced score card andor strate2yma%ittle or no understandin2o& cor%orate values andculture;al< to each em%loyee a6out cor%orate values and culture +c& other su6sidiaries o& A(CinEastern Euro%eittle or no understandin2o& the role o& the HR de%artmentE%lain the role o& the HR de%artment &rom the very 6e2innin2 +durin2 the induction%rocess.r2ani$e an HR #ee< or HR days +e2 #ith a general %ro2ram includin2 lecturese%lainin2 HR2oals" o%tions" and o&&ers" etc or #ith specific %ro2rams e2 con&lict mediation 6et#eenlinemana2ers and em%loyees" etc Do not underestimate the im%ortance o& &ollo#-u%meetin2sDemand &or trainin2;rainin2 needed in 6asic mana2ement s<ills" moderation" con&lict and timemana2ement" etc/ro&essional trainin2 &or sales &orce(e a#are that not all em%loyees are ready &or ne#F trainin2 techniues E%lain ho# to2et<no#led2e in a di&&erent #ay +o%%osite to lecture-oriented-a%%roach= see 5ey et al1999" 4000and 4001Elena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4htt%:e%u6#u-#ienacat >a<e sure that line mana2ers allo# their su6ordinates to attend trainin2s(: (e a#are that some em%loyees really do need trainin2 in 6asic communications<illsac< o& team#or< andcommunication 6et#eende%artments;eam-6uildin2 s%ort activities e2 &oot6all" 6as<et6allRe#ards &or s%ortsmen and active &ansCor%orate ne#sletter #ith in&ormation a6out ne# em%loyees" ne# %roduct launches"6est %er&ormanceso& em%loyees" etc



'n addition to induction 6oo<let" a di&&erent 6oo<let &or current em%loyees #ithe%lanation o& com%any structure and &unctions o& other de%artments #ith certain eam%lesShado#in2 as an o%tion to 2et an im%ression o& other de%artmentsF &unctions andres%onsi6ilities

Cor%orate events involvin2 re2ional em%loyees +e2 a #ee<end outsideFDo not underestimate the im%ortance to Russian em%loyees o& 2oin2 a6roadSalaries N social 6ene&its;he salary and social 6ene&its mar<et is chan2in2 very &ast and is not easy to monitor"es%eciallyin osco#;ry to &ind alternative solutions +e2 use social channels in recruitment a2encies" etc

A(C RussiaFs ima2e asem%loyer aster6achelor thesis'nternshi%s &or students and hi2h school students

A(C Days: lecture series made 6y A(C Russia re%resentatives in HR ana2ement"ar<etin2"5inance" etc

A(C Russia re%resentatives lecturin2 at local universitiesoint trainin2 +*niversity %ro&essors O A(C Russia em%loyeesCom%any su%%ort &or &aculty %ositions in <ey areas.%en Door Days(: (e sure that all %lannedconducted actions ma<e sense &or involved %artici%ants!able ": S,.; analysis" conclusionsRecruitment'n this %art the recruitment o%tions" #hich are +or could 6e used 6y A(C &or hirin2%eo%le in Russia" areanaly$ed ;he attem%t #as made to consider all o& the %otential sources &or see<in2candidates mentionedin the literature ;hey are usually divided into internal and e#ternal recruitmento%%ortunities 'nternal recruitmentincludes e%atriates" local em%loyees" internal recruitment via com%any em%loyees=eternal recruitmentincludes recruitment a2encies= announcements in mass media= state em%loyment o&&ice=universities=alumni clu6s and associations!nternal RecruitmentE+patriates;he %artici%ation o& e%atriates #ith international e%erience is necessary and hel%&ul inthe early sta2es o& com%any develo%ment ;hey trans&er not only <no#led2e" 6ut also cor%orate cultureSo" &or eam%le" the !eneral Director +e%atriate" country o& ori2in: (el2ium and hisde%uty and at thesame time HR and e2al Director +e%atriate" country o& ori2in: *M 6e2in their #or<in2day 6y 2reetin2 all



em%loyees ;hey 2o throu2h the #hole o&&ice" loo< in every o&&ice suite" #ish a 2ood dayand as< a6out#ell-6ein2" 6oth 2entlemen add to this small-tal< some #ords in Russian ,hen theyleave the o&&ice" theyusually say 2ood6ye to everyone and #ish 2ood evenin2 or 2ood #ee<end at the end o&

the #ee< +this6ehavior small-tal<" a 6oss 2reetin2 all em%loyees" etc is not a normal %art o& theRussian culture +c&Ertelt-)ieth N Denisova-Schmidt 400>" 19>-197't should 6e noted that the maGority o& Russian em%loyees are startin2 to ado%t this%ractice in communicatin2#ith their Russian collea2ues oreover" #hen the Director or his de%uty 6ro<e thatritual &or #hatElenaDenisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in '(C"Series .ne" /a%er 4htt%:e%u6#u-#ienacat 7ever reason" some Russians 6e2in #orryin2 a6out their #ell-6ein2$mployment market acceptance: Accordin2 to the HR Director the #hole e%atriateteam +&rom !ermany"the *M" (el2ium" 5rance and (ul2aria &ive %eo%le in to%-mana2ement and t#o at themiddle mana2ementlevel is &ully acce%ted 6y the local Russian em%loyees All e%atriates have the &eelin2that theyare a team" and they could achieve a lot o& thin2s to2etherocal em%loyees +%articularly in ,estern Euro%e and the *S o&ten assume thate%atriates do not understandho# to do 6usiness in a %articular country and that they only disru%tF the normal &lo# o&activitiesin a local su6sidiary Every candidate is usually as<ed a uestion 6y the HR Directordurin2 a &inal intervie#:,hom #ould you li<e to have as your 6oss: a Russian or an e%atriate 100@ o& theintervie#ees ans#er e%atriates ;he reasons candidates 2ive are:• ' could re%lace him or her in the &uture +she or he #ill %ro6a6ly 2o a#ay=• ' can learn a lot o& thin2s &rom herhim=• ' can learn #hat #estern mana2ement style really means%ultural ade&uacy : E%atriates could &ace many o6stacles caused 6y varied di&&erentcultural 6ac<2rounds;hey need some time to reco2ni$e and ada%t to them an2ua2e-6ased %ro6lems could6e raisedDurin2 my stay in osco# ' o6served a &e# &reuent cultural misunderstandin2s6et#een e%atriates andRussian em%loyees:• Small-tal< &rom the #estern side is usually Gud2ed as com%limentary 6y #omen or&rivolous 6y men&rom Russian side=



• Collea2ues and 6osses are not critici$ed in %u6lic 6y Russians" as they are 6y the#esterners.&ten e%atriates are acce%ted 6ecause they are in to%-mana2ement %ositions+hierarchy 6ein2 im%ortantin Russia and they are &orei2ners &rom the ,est +s%ecial admiration &or &orei2ners &rom

the ,est 5or eam%le" one e%atriate +a youn2 #oman is #or<in2 in middle mana2ement ;his is her&irst a%%ointmentat this level in the ar<etin2 De%artment Her collea2ues com%lain to the HRDe%artment that she does nothave any e%erience in ar<etin2 or in Russia" #hy #as she #as sent As a result shedoes not haveenou2h su%%ort &rom her Russian collea2ues An additional reason is the di&&erences insalaries and career develo%ment o%tions 6et#een e%atriates and local em%loyees ;his is envied on theRussian side oreover"

in this %articular case the decidin2 role is %layed 6y the a%%earance o& the youn2!erman #omanShe is not &eminine &rom the Russian %oint o& vie#" ie she doesnFt #ear sey clothin2"

Ge#elry" or cosmetics"and she #al<s #ith a very heavy ste%Rotation Pro#rams inside A,* Russia'nternal candidates are the 6est source o& recruits ;he advanta2es are that em%loyerssee their hard #or<and com%etency 6ein2 re#arded" thus enhancin2 motivation and %er&ormance Also"internal candidatesreuire less orientation" ada%tation and trainin2 than outsiders ;he disadvanta2es o&this %ractice are thatinsiders do not usually 6rin2 ne# ideas or e%erience and they may have a %ro6lem #ithacce%tance a&ter 6ein2 a%%ointed as a 6oss #ithin their o#n ran<s ReGected internal candidates may6ecome dissatis&ied"#hich could im%act their daily activities +c& Dessler 1999" !Kme$-eGia et al 400I%ompliance with A'% ersonnel olicy : 'nternally" HR advertises on an in&ormation6oard and in thes%eci&ied &ile on the echan2e server A(C Russia has started this recently Em%loyeesare in&ormed a6outne# vacancies via email once %er month%ost : 5inancial costs include a one-time %ayment mo6ility allo#ance" relocation su%%ort+%ac<in2" trans%ortation"real estate a2ent &ee and rent &ee &or a &ied time +si months" and medical insurance&or the#hole &amily .nly one %erson" ho#ever" has 6een %romoted to a hi2her %osition andmoved &rom Samarato St /eters6ur2$mployment market acceptance: Russian em%loyees could 6rin2 their <no#led2e ande%erience to assist



A(C activities in the C'S countries Russian em%loyees could 6e %romoted to hi2her%ositions%ultural ade&uacy : )ery di&&icult= em%loyees in Russia are not very mo6ile ;hey usuallydo not 2et anysu%%ort &rom their &amilies 't is socially di&&icult to move a#ay &rom home 't is really a

6i2 challen2e" es%eciallyi& a %erson has a #or<in2 s%ouse or sic< %arents Russians do not move very o&ten +c&edeneva4001" Aleashin 400J" Denisova-Schmidt 4007 Accordin2 to the HR Director there arenot that many %ro6ElenaDenisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in '(C"Series .ne" /a%er 4htt%:e%u6#u-#ienacat 8lems #ith mo6ility &rom the Re2ions to osco# or &rom the Re2ions and osco# a6roadto ,esternEuro%e or the *nited States

A'% Russia practice: Some em%loyees thin< that their so&tF s<ills are not chec<eddurin2 intervie#sine mana2ers and HR De%artment do not <no# a6out the other talents or <no#led2e o&their em%loyees 'tde%ends on the vacant %osts and #ho is intervie#in2 at #hich sta2es +either the initial or&inal sta2e Em%loyees2et in&ormation a6out ne# vacancies throu2h eternal channels li<e the cor%orate#e6site - notthrou2h internal channelsPersonal Referrals%ompliance with A'% ersonnel olicy : ot s%eci&ied in internal %rocedures%ost : one$mployment market acceptance: ;his o%tion su%%orts the %ositive ima2e o& thecom%any" 6ut &riendsand relatives o& em%loyees could 6uild their o#n em%ires inside the com%any and mi2htnot 6e com%letelyo6Gective in %er&ormin2 their tas<s%ultural ade&uacy : )ery hi2h /eo%le in Russia are convinced that all the interestin2"#ell-%aid Go6s canonly 6e &ound 6y usin2 2ood connectionsF

A'% Russia practice: A(C Russia has had a very 6ad e%erience An .&&ice ana2er6rou2ht her &riendto the com%any" #ho #as a%%ointed as a Car 5leet ana2er (oth #ere over J0 ;heCar 5leet mana2er #as sus%ected o& stealin2 durin2 the %ast &our years ,hen it #as discovered" he #asdismissed and the.&&ice ana2er &elt hersel& res%onsi6le &or the incident All em%loyees are a#are o& this&act Some em%loyeesthin< the HR De%artment no lon2er acce%ts i& they ma<e %ersonal re&errals no#= otherem%loyees stilldo it" 6ut more care&ully



E+ternal RecruitmentRecruitment A#encies;he &irst recruitment a2encies #ere or2ani$ed in the &ormer Soviet *nion in the late 80so#adays thereare more than 400 recruitment a2encies in osco# and 100 recruitment a2encies in St

/eters6ur2 +c%a2ura 400B" >0%ompliance with ersonnel olicy : Accordin2 to A(C HR %olicies and %rocedures thereare t#o o%tions&or recruitment: recruitment a2encies and announcements in mass media%ost : )aria6le .n avera2e 40 to B0@ o& the annual 2ross remuneration o& the hiredcandidate &or mana2ement%ositions= on avera2e u% to 40@ o& the annual 2ross remuneration o& the hired candidate&or nonmana2ement%ositions$mployment market acceptance: Recruitment a2encies are still not a #ell-<no#n and#idely-used o%tionto &ind a Go6 &or em%loyees in the Re2ions +outside o& osco# and St /eters6ur2%ultural ade&uacy : Recruitment a2encies are overloaded ;hey %re&er to #or< #ithsim%leF inuiries"#hich do not reuire much time ;he A(C case is com%licated" 6ecause the com%anyhas hi2h reuirements&or %otential candidates As a rule" the inuiry is %rocessed 6y t#o re%resentatives: anaccount mana2er and a recruiter ;he account mana2er is res%onsi6le &or ne2otiatin2 #ith a com%anyFsHR De%artment"the recruiter is res%onsi6le &or searchin2 &or and intervie#in2 candidates Sometimes theaccount mana2er and the recruiter have a di&&erent understandin2 o& a com%anyFs needs Recruiters arenot al#ays %ro&essionals,hen they ma<e a recommendation" it could 6e limited to: She is a 2ood 2irl" she usedto #or< &or an international com%anyPF #hich" o& course" is not su&&icient &or an adeuate and &ullestimate o& %otentialcandidates

A'% Russia practice: 't is very im%ortant to &ormulate very eact Go6 descri%tions"reuirements andcom%etencies 'n the contet o& this study" ' 6enchmar<ed recruitment a2encies in termso& search andevaluation tools" timin2 and %ricin2 %olicies" and re%lacement 2uaranteeAnnouncements in the "ass "edia Print and !nternet.

Advertisin2 in the mass media could 6e considered as a source o& eternal recruitment'n order to use thistool e&&iciently" it is im%ortant to address t#o issues: the media that is to 6e used and theconstruction o& theElena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4



htt%:e%u6#u-#ienacat 9advertisements +c% Dessler 1999 Advertisin2 in the mass media can 2enerate a lot o&a%%lications and alar2e %ool o& candidates" 6ut this recruitment o%tion could %rovide the HR De%artment#ith additionalF #or<

+readin2" re%lyin2" invitin2 &or intervie#" sendin2 out con&irmations or reGections" etc%ompliance with A'% ersonnel olicy : Accordin2 to A(C" the HR %olicies and%rocedures there aret#o o%tions &or recruitin2 %ersonnel: recruitment a2encies and announcements in themass media +seea6ove%ost : )aria6le= a%%ro I00 *SD &or %rint add e2 Elitnyi %ersonalF= a%%ro 800 *SD&or online add e2osco# e#s home%a2e$mployment market acceptance: ;he &ollo#in2 ma2a$ines" ne#s%a%ers and #e6sitesare more %o%ular amon2 Go6 see<ers +c% a2ura 400B" %% >8-70= osco#: Ra6ota dlia )asF= Ra6ota i$ar%lataF= Ra6otase2odniaF= Elitnyi %ersonalF= osco# ;imesF= '$ ru< v ru<iF= Career 5orumF= )edomostiF=EstF ra6otaF= Ma<naiti ra6otuF= St /eters6ur2: /ro&essiiaF= (ir$ha trudaF= Ra6ota dlia )asF= )a<ansiaF=/od6or %ersonalaF=/ersonalF= Delovoi /eter6ur2F= )edomostiF= ;he St /eters6ur2 ;imesF= 'nternet:Russian Go6 search en2ines"e2 ###Go6ru= ###headhunterru Concernin2 Re2ions there are no nationalne#s%a%ers commonlyread 6y all Go6-see<ers in Russia '& a com%any is loo<in2 &or someone in" &or eam%le"ovosi6irs<"an announcement should 6e %laced in re2ional %a%ers li<e the ovosi6irs< Daily e#sF%ultural ade&uacy : Accordin2 to the HR Director and the HR ana2er" this o%tion is note&&ective inosco# today as it creates a lar2e %ool o& candidates" es%ecially a%%licants &or thear<etin2 De%artment"#ithout any education or relevant e%erience in mar<etin2

A'% practice: A(C %u6lishes ads in Eclusive /ersonnelF +osco#" Delovoi/eters6ur2F +St /eters6ur2"and in some re2ional ne#s%a%ers de%endin2 on the demand in a %articular re2ion 'tuses its o#ncor%orate #e6site and ###headhunterru &or advertisin2 on the 'nternettructure of the advertisement : 5or this study" &our advertisements #ere analy$ed threeads &or the %ositiono& Area Sales ana2erF and one ad &or the %osition o& .&&ice ana2erF ;he reason &orchoosin2 theseads #as that A(C Russia #as startin2 to recruit at the time ' #as there +to analy$e theadsF structures" auestionnaire su22ested 6y cConnell 4001 #as used



;he recruitment advertisements contain the &ollo#in2 Go6 %articulars: or2ani$ation name=%osition titleand reuirements= location Com%ensation and 6ene&its are mentioned" 6ut not #hat<ind o& com%ensationand 6ene&its the com%any %rovides" some international com%anies #or<in2 in Russia do

this ;here is noname o& the %erson to contact" tele%hone num6er or in&ormation on ho# the or2ani$ation#ill res%ond tore%lies A%%lications are reuested via &a or emailSur%risin2ly" the email addresses mentioned in the ads are not chec<ed re2ularly ;heHR de%artmentdoes not con&irm the recei%t o& a%%lications or send reGections +neither a&ter revie#in2and reGectin2 C)s"nor a&ter conductin2 intervie#sSome recruitment issues are certainly ne# &or 6oth em%loyers and candidates in Russia"6ut even RussianHR %ro&essionals +e2 a2ura 400B recommend ta<in2 the time to #rite a reGectionletter ;heir ar2umentsare that it creates a 2ood re%utation &or the com%any as an em%loyer" and that itconsiders the lon2term +%erha%s this %erson may one day 6e a su%%lier or #e could <ee% hishera%%lication and contact &or other vacant %ositions oreover A(C Russia has a %ractice o& contactin2 reGectedcandidates Some o& these contacts are success&ul" some not

All ads are %u6lished in Russian" and one even contained &our errors: oneortho2ra%hical and t#o %unctuationerrors" and one #ord #as used that does not eist in the Russian lan2ua2e +a 6adtranslation &romEn2lishState Employment )ffice%ompliance with A'% ersonnel olicy : ot s%eci&ied in internal %rocedures%ost : one$mployment market acceptance: ;his is not a very satis&actory o%tion &or recruitment inRussia ;his or2ani$ation#as esta6lished in the early 90s and does not have a very 2ood re%utation +%rimarilyamon2uali&ied candidates 't lac<s educated %ersonnel" 6ut re%resents many #ho could 6e%laced in such %ositionsas Ganitorial sta&&" car drivers" or rece%tionistsElena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4htt%:e%u6#u-#ienacat 10%ultural ade&uacy : +.&&icial lo# unem%loyment rate in Russia - a%%roimately >@

Address in Russia/ ###rostrudin&o A'% practice: A(C Russia does not have any e%erience #ith local State Em%loyment.&&ices Accordin2



to the A(C HR de%artment it is not a su&&icient recruitment tool ;he reason o&ten 2iven&or this is thatthe candidates at the State Em%loyment .&&ices are usually dismissed&ired em%loyees

Also" it is di&&icult todismiss some6ody in Russia accordin2 to the a6or a# 'n the HR de%artmentFs

o%inion a dismissed %ersonis usually 2uiltyF ;hey do not 6elieve any storiesF told 6y dismissed candidates Author*s opinion: 'ndeed it is not so easy to dismiss some6ody accordin2 to the Russiana6or a#+4001" 6ut domestic com%anies in Russia have enou2h e%erience in &irin2 %eo%le#ithout any reasons5or eam%le" em%loyees startin2 to #or< &or one Russian com%any +A(CFs com%etitorare &orced to #ritean a%%lication &or voluntary leave &rom the com%any #ithout statin2 a date Em%loyeesare 6lac<mailed #iththis letter &or as lon2 as they #or< &or this com%any

Also" the HR sta&& can contradict themselves 5or eam%le" in connection #ith therelocation o& one Director &rom St /eters6ur2 to Ma$a<hstan" his %ersonal driver #ill 6e dismissed &or sta&&reductionF reasons5or three months a&ter dismissal he has the %ossi6ility o& receivin2 &inancial su%%orteual to his %resentincome +1st month %aid 6y the com%any" 4nd and Brd %aid 6y the State 'n order toreceive this &inancial su%%ort"he must 6e re2istered #ith the *nem%loyment .&&ice 'n that case there are no storiesF0niversities%ompliance with A'% ersonnel olicy : ot s%eci&ied in internal %rocedures%ost : )aria6le$mployment market acceptance: 't is a very 2ood o%tion to hire youn2" hi2h-%otentialcandidates 't is#orth #or<in2 #ith local universities on a lon2-term 6asis +e2 to im%rove the universitycurriculum andcom6ine international e%erience #ith local %ractices%ultural ade&uacy : Recommendations &rom %ro&essors may not 6e very relia6le andcom%any intervie#ers#ould 6e reuired to maintain o6Gectivity

A'% Russia practice: /ossi6le coo%eration #ith universities:• A(C Days lecture series made 6y A(C re%resentatives in HR ana2ement"ar<etin2" 5inance"etc"• oint trainin2 +*niversity %ro&essors and A(C em%loyees"• Com%any su%%ort &or &aculty %ositions in <ey areas

A(C Russia has not 6een very success&ul #ith universities u% to no# ;hey %lanned to%er&orm a!raduate /ro2ramF in the Sales de%artment (ut the HR De%artment did not su%%ortthis idea 6ecause:



• A&ter internshi%s in di&&erent de%artments" %artici%ants %ro6a6ly not #ish to #or< &orthe Sales de%artment• entors +Sales &orce: ana2ers are overloaded #ith their daily tas<s and are notready to su%ervisementor some6ody

;he HR De%artmentFs strate2y in 2eneral is to not em%loy recent 2raduates &or mostvacant %ositions;hey loo< more &or %eo%le #ith relevant e%erience

Arguments:• ;hey are very am6itions +es%ecially &rom elite universities• ;hey need more time &or ado%tion themselves hard s<ills +additional instructions"etc and so&ts<ills +con&lict mana2ement" etcAlumni *lubs and Associations*nder alumni clu6s and associations only alumni clu6s and associations o& Euro%eanand *S (usiness

Schools and *niversities and alumni associations and clu6s su%%orted 6y &orei2nmissions or &unds in Russia#ere considered 'ncidentally" the HR ana2er has never heard a6out Alumni Clu6s%ompliance with A'% ersonnel olicy : ot s%eci&ied in internal %roceduresElena Denisova-Schmidt: ;he ;rans&er o& ,estern HR /ractices ,* .nline /a%ers in'(C" Series .ne" /a%er 4htt%:e%u6#u-#ienacat 11%ost : one$mployment market acceptance: 't is a very 2ood o%tion to a%%roach youn2%ro&essionals #ho havestudied in Euro%e and the *SA and to use their net#or<%ultural ade&uacy

: ?oun2 %ro&essionals #ith #estern educations <no# the #esternstandard style o& li&e"are a6le to s%ea< modern lan2ua2es" ma<e small-tal<" esta6lish contacts" etc

A'% Russia practice: ;he HR ana2er does not understand the im%ortance o& socialnet#or<in2 Shethin<s it is a #aste o& her time ;his is a cultural thin2Qsociali$in2 in Russia ta<esdi&&erent &orms 5or eam%le"&or candidates see<in2 Go6s in one C'S country" ' su22ested usin2 her social channels atone 6usinessschool y su22estions #ere heard only a&ter the third time" as the HR-mana2er initiallythou2ht thatthe coordinator o& the 6usiness school #ould send a 6ill &or his services ,hat &inallyhel%ed me to %ersuadeher #as that the 6usiness school in this country ma<es its certi&ication &rom time to timeand one o& manydiscussed issues is career trac<in2 't #ould 6e interestin2 &or the coordinator to haveadditional %oints inthat issue,hen ' learned that someone had sent his or her rLsumL &rom this country" ' <indlyas<ed the HR ana2er



and the HR unior S%ecialist to chec< to con&irm that &act" 6ut #as told succinctly thatneither #omanhas enou2h time to chec< their email +to see i& some6ody a%%lied &or that %osition ornot ;he uestion#as %ro6a6ly inter%reted as controllin2 or dele2atin2 tas<s

Regrutovanje i izborRegrutovanje

Nedovoljna pomoć koju većina ruskih kompanija može dobiti od svojih HR

odeljenja za ljudske resurse koja se tiče kvalitativnih pitanja regrutacije iizbora prilično dovodi u pitanje takve funkcije.

Regrutovanje je posebno teko obzirom da ruski menadžeri preferirajurazmatranje kandidata !zaposlenih" kojima nije potrebna posebna obuka prenego to do#u na odgovarajuću poziciju i kojima je tako#e potrebanminimalan period prilago#avanja !vidi $abelu %".

&ored dokaza o stečenoj kvalifikacij i radnom iskustvu' ruski direktori potujuobrazovanost' ne samo menadžera' već i radnika. $ako#e' treba naglasiti dasu (lične veze ( velika prednost u Rusiji' gde većina preduzeća zavisi od

povoljnihstavova lokalnih vlasti i tolerancije konkurenata i poslovnih partnera.Naravno' dolaženje do takve (idealne( radne snage je veoma teko' tako dakompanije koriste čitave skupove metoda radi dolaženja do kandidata kojiobećavaju !vidi $abelu )".

***************************+baciti $abelu ) ovde********************************,ične veze menadžera i učeće u stručnim udruženjima !jo jedan oblik ličneveze" su i dalje glavni načini dolaženja do kandidata koji obećavaju u svim

sektorima. -e#utim' uprkos njihovoj volji da prona#u radnu snagu saiskustvom u praksi' danas bi ruske kompanije trebalo da budu usmerene kadiplomcima koledža iuniverziteta. vaj trend je naročito vidljiv u konstruisanju maina'elektronici'proizvodnji lekova. -e#utim' u drvnoj industriji i poljoprivredi koja je bilazapostavljena /0 godina kao potencijalni sektori za zapoljavanje' nedostatakmladih stručnjaka je posebno izražen.



$ako#e možemo videti da je 1nternet postao važan izvor informacija i zai zaposlene i za poslodavce. -e#utim' u popularnom vi#enju' 1nternet je joodvojen od ostalih izvora masovnih komunikacija.1ako postoje vidljive razlike u korićenju metoda regrutovanja na nivoimaindustrije' ne postoje značajne razlike izme#u različitih oblika svojine' ali sa

jednim značajnim izuzetkom * državna preduzeća se čeće obraćaju državnimcentrima za zapoljavanje !videti $abelu 0".

*********************+baciti $abelu 0 ovde

**************************%+Procedure izbora

2ko postoji veliki izbor metoda regrutovanja' metode izbora u većini ruskih

preduzeća su svedene samo na dva oblika 3 intervjui i period probnograda/%. stali oblici izbora ne zauzimaju značajno mesto u životu Rusa.&reporuke u pismenoj formi nisu popularne zbog preovla#ujućih stavovaposlodavaca da gledaju na lica koja naputaju kompaniju kao na (izdajice/).(4toga ruski radnici preferiraju da prona#u novi posao' pro#u postupak izborai pregovaraju o uslovima rada pre naputanja trenutnog poslodavca. Različititestovi tako#e nisu popularni u većini ruskih firmi kao metode izbora. $eko je sastaviti profesionalne testove' obzirom da se za mnoge poslove smatra dasu jedinstveni i prilago#eni specifičnim potrebama odre#enog preduzeća.&siholoki testovi su bili veoma popularni devedesetih godina' ali su izgubilina značaju poto su sami testovi postali standardni i dobro poznati. &ored

toga' menadžeri i inženjeri proizvodnje su optuživali psihologe u jedinicamaza izbor da previe posmatraju lične osobine pretendenata i da ne moguotkriti (prave profesionalce(' koji mogu biti previe arogantni ili previeskromni.5ao rezultat toga' intervjui i periodi probnog rada su dva metoda koja su sezadržala i koja se smatraju pouzdanim i efikasnim. 1ntervjui (Ruski stil( seobično sprovode u dva ili tri koraka. &rvi intervju obavlja lice iz kadrovskeslužbe. $akavintervju je često veoma formalan i pomaže da se ispuni (kartica za posao!prijava"( sa ličnim podacima pretendenta. Na ovom nivou se ne donoseozbiljne odluke. -e#utim' ako osoba iz odeljenja za upravljanje ljudskim

resursima otkrije neke čudne činjenice u biografiji pretendenta' on 6 ona morapodeliti te sumnje sa efom obezbe#enja/0 kompanije. 7rugi intervju seobavlja sa budućim neposrednim supervizorom. vaj intervju se sprovodi uvećini slučajeva na vrlo neformalan način. 8a osobu koja tek prvi put ulazi natržite rada' glavni cilj intervjua je da pokaže kvalitete koji ruski supervizorinajvie cene * pouzdanost' poverenje' poslunost' skromnost i spremnost zanaporan rad !vidi 9urkov i -aital' :;;;". 8a iskusniju osobu najbolje taktike utakvim /% stranim kompanijama' koje posluju u Rusiji' na primer' 2rtur



2ndersen' koriste svoje standardne procedure izbora' primenljive na svezemlje poslovanja./) &oto ruski 8akon o radu postulira primat zakona' sve klauzule uindividualnim ugovorima o radu koje zabranjuju neposredno prebacivanjezaposlenog direktnom konkurentu prethodnog poslodavca ne važe' jer se

kose sa slobodom zapoljavanja./0. -uki ko*autor se seća uznemirujuće priče' koju mu je jedan HR- efispričao u toku zavrnog seminara< ''=a obavljam rutinski razgovor sa osobomkoja je konkurisala za poziciju vozača kamiona u naoj kompaniji.>> 4edeosam za mojim stolom' popunjavajući (karticu za posao(' i čak ne gledajućičoveka u svojim kasnim četrdesetim' koji je sedeo upravo preko puta mene.5ada sam doao do tačke (bračni status(' i dobio odgovor (neoženjen('nesvesno sam postavio jo jedno pitanje< ''8ato?( dgovor koji sam odmahdobio je bio< ''=a sam je ubio.(+ toku intervjua treba pomenuti @reference.A 8a svaki posao i specijalnostreference mogu biti različite * za kvalifikovanog radnika to mogu biti i

tehničke karakteristike(trikovi( koji se tiču opreme sa kojom su on 6 ona radili' za menadžera iliinženjera to može biti ime ugledne (glave6glavnog čoveka( odre#ene oblasti'koga lično poznaje' itd./)&odsetimo' kako se skoro B;C poslova nalazi preko (ličnih veza'( zajedničkiinteres je uspostavljen pre intervjua. 5ada je uspostavljen zajednički interes iprona#ene reference' smatra se da je pretendent uspeno proao (prijatelj*ili*neprijatelj( sistem ispitivanja. 8a niže rangirane pozicije' ovde je kraj procesaizbora. 8a najvie pozicije može biti neophodan treći sastanak. Na ovomsastanku

budući supervizor vodi potencijalnog pretendenta kod njegovog 6 njenogsopstvenog efa. $okom ovog sastanka supervizor izjavljuje da lice koje on 6ona dovodi je pravo !za taj posao". 4am kandidat obično ne govori veći deovremena' učtivo odgovara na neka standardna pitanja. 2ko glavni efpostavlja teka pitanja i pokazuje neodlučnost' to znači da je (sastanak loepripremljen(. vo se smatra kao slabost supervizora' a ne kandidata.Nakon pozitivnog odobrenja glavnog efa' pravi pregovori o uslovima posla'naročito na nivou plate' mogu da počnu. 1skusni pretendenti pokuavaju dapomeredogovor o uslovima plaćanja na sam kraj procesa izbora' gde se (dodatnizahtevi( kompenzuju trokovima i vremenom ponavljanja procesa iznova. 7a

bi sporazum doao do samog kraja pregovora je pojednostavljeno činjenicomda jo nema standarda za naknadu za rukovodeća mesta' a iznos koji se nosikući može da se razlikuje za 0;*D;C za slične pozicije u sličnimkompanijama.5ada pro#u svi intervjui i pregovori o uslovima plaćanja budu obostranoprihvaćeni i zaključeni ' zapoljenje ili period probnog rada može da počne.&eriod probnog rada se jo uvek ne smatra početkom pravog zapoljenja uRusiji' već kao trik poslodavca da utedi na plati i beneficijama. 8aista' ruski



poslodavci danas izuzetno često preferiraju da ne sklapaju Enormalneugovore o radu> uz posebnu klauzulu perioda probnog rada koji ne možetrajati duže od tri !za menadžere * est meseci" i treba da ima jasnekriterijume po pitanju uspeha6neuspeha.+mesto toga' oni primoravaju zaposlene da prave posebne privremene

ugovore zasebno u odnosu na probni period. + takvim ugovorima plate suobično minimalne. &rivremeni radnici su tako#e isključeni iz svih drutvenihpogodnosti koje se nude Estandardnim kolegama*radnicima>. $akav ugovor semože raskinuti u bilo koje vreme bez objanjenja od strane poslodavca.7akle' probni period je prihvaćensamo od strane lica koja nemaju drugog izbora.

Nagrada i kontrola radne efikasnosti zaposlenih5ao i u većini drugih zemalja' tržite rada u Rusiji je podeljeno na tri u velikojmeri zasebne grupe< industrijski radnici i zaposleni u proizvodnji u službamaF

menadžeri !uključujući poslovo#e i supervizore" i kvalifikovani @stručnjaciAsa fakultetskim obrazovanjemF direktori.Gilo bi bolje opisati nagrade i kontrole radne efikasnosti za ove grupezasebno' poto se značajno razlikuju na nivou plate i kriterijuma efikasnosti.-e#utim' treba prvo da prezentujemo zakonske odredbe u vezi sanagradama i kontrolom radne efikasnosti za sve kategorije zaposlenih./08vanični sistem nagra#ivanja se zasniva na dve osnove 3 minimalac i tarifnisistem. + skladu sa članom /%%. 8akona o radu minimalna zarada seistovremeno odre#uje na celoj teritoriji Ruske ederacije saveznim zakonom.

&lata radnika sa punim radnim vremenom ne može biti niža od minimalnezarade. d /. maja :;;D. godine' minimalna zarada u Rusiji je //;; rubalja!oko %: evra" mesečno. d /. maja :;;I' minimalna plata je iznosila /);;rubalja' a od /. septembra. :;;I * do :%;; rubalja !DD evra".Nepotrebno je reći da je stopa životnog standarda znatno via. Na primer' u-oskviminimalni nivo životnog standarda radnika !bez zavisnih" je u drugomkvartalu :;;I. godine bio negde oko 0B;; rubalja mesečno.4kala zarada je odre#ena u skladu sa tarifnim sistemom. $arifni sistemodre#ujesloženost pojedinih radova i relativni nivo plaćanja za pojedine poslove

različite složenosti.Ruski tarifni sistem uključuje< tarifne stope !fiksna zarada po satu za posao odre#ene složenosti"F tarifna mreža ! raspodela svih poslova u skladu sa odgovarajućim tarifnimstopama"F tarifni koeficijenti ! razlika izme#u odre#ene tarifne stope i nivoa najnižestope !za najjednostavniji tip posla".%C



d /. septembra :;;I. godine tarifne stope su odvojene od minimalne plate'regionalni organi vlasti su mogli da odrede tarifne stope da budu vie ili nižeod minimalne plate. $ako#e treba podsetiti da su porezi na zaradu u :;;D. godini postali manji'uzimajući )I':C od ukupnog platnog fonda u pore#enju sa D)'0C :;;:.

godine !videti $abelu D".*******************************+baciti $abelu D ovde*****************************8vanični odredbe tako#e predvi#aju da radna mesta sa posebnim uslovima!veoma nezdravi uslovi' poslovi na 7alekom istoku ili na severnimteritorijama" budu plaćena viom tarifom. 8akonom je tako#e predvi#eno dadva velika sistema plata 3 plaćanje zasnovano na vremenu i delu posla mogubiti kombinovani na različite načine. Ne postoje zakonska ograničenja zadodatne isplate i beneficije od neto dobitka' kao i da ne postoje ograničenjaza socijalne doprinose za zaposlene

!mada se neke beneficije obračunavaju kao plata i imaju dvostrukooporezivanje * porez na dobit za kompaniju i porez na dohodak za zaposlene".Jažno je napomenuti da ruski pravni sistem negira bilo kakve kaznezaposlenih.+ sistemima plaćanja posla po delu posla' može se desiti da posloviunutranjeg kvaliteta ne budu prihvaćeni i kasnije' da ne budu plaćeni. +sistemu plaćanja zasnovanom na vremenu !po satu"' zadatak supervizora jeobezbe#ivanje odgovarajućeg kvaliteta.4amo se dodatni bonus za zaposlene može smanjiti ili ukinuti' ali osnovnatarifa po satu se ne može menjati.&rakse nagra#ivanja i kontrole radne efikasnosti za radnike i zaposlene u

proizvodnji5ako zvanično postavljen tarifni sistem i zvanične tarife zadovoljavaju samopotrebu za prehranjivanjem' većina sistema nagra#ivanja za radnike izaposlene u proizvodnji se zasniva na dva dela plate.snovna plata' ponekad odre#ena u skladu sa zvaničnim tarifnim sistemom!u privatizovanim i državnim preduzećima tarifni sistem se koristi čeće" jeprvi deo koji može zauzimati izme#u /; i D;C od isplate koja se nosi kući.7rugi deo se zove (nagrada(' ali se obično smatra da se ista automatskidobija. &ored sistema plata' danas ruska preduzeća ponovo grade sistemsocijalnih beneficija' kako u monetarnim tako i u prirodnim oblicima !videti $abelu I".

***********************%-+baciti $abelu I ovde******************************-e#u najpopularnijim beneficijama je dodatno zdravstveno osiguranje kojeomogućava zaposlenima korićenje usluga privatnih klinika i bolnica' obroka iprevoza i specijalne naknade za godinji odmor. $ako#e treba naglasiti



iru upotrebu naknade za obrazovanje.&opularnost naknade za obrazovanje je delimično objanjena činjenicom da 8akon o radu upozorava da je tanaknada data kao kredit radniku koja može biti potpuno ili delimičnootplaćena poslodavcu kada zaposleni napusti kompaniju. 7akle' naknada zaobrazovanje se smatra dobrim (sidrom( za zadržavanje veoma važnih

obrazovanih radnika. Nivoi drutvenihbeneficija se obično zasnivaju na principima staža 3 to je ukupno vreme koje je zaposleni proveo u firmi duže' to je veća (pita(. + praksi većina stalnozaposlenih imaju pravo na sve oblike beneficija' samo učeće njihovogdirektnog doprinosa varira. Na primer' student druge godine mora da plati0;*D;C od ukupne vrednosti dodatnog zdravstvenog osiguranja' posle 0godina staža takva opcija je data bez naknade itd. +z sve plate i socijalnebeneficije ruski radnici očekuju specijalni božićni bonus * (trinaesta plata ('koja je zaista približno jednaka mesečnoj plati koja se nosi kući.5ako se većina sistema nagra#ivanja sastoji od malih plata i solidnih(nagrada(' osiguravanje adekvatno obavljenog posla od strane jednog

radnika nije problem * dovoljno je da se isti lii mesečne nagrade kako bion6ona postao6la posluan6na i Ekoristan>.5ontrola radne efikasnosti radnika i zaposlenih u proizvodnji je zasnovana nadirektnim zapažanjima i registraciji kvantiteta i kvaliteta rada od stranesupervizora !nadzornika".bično samo jedna žalba na kvalitet rada može da dovede do delimičnog ilipotpunog gubitka mesečne (nagrade(' pa neposredni nadzornik obično imapotpunu kontrolu nad (životom i smrću( podre#enih. + principu' radnik možepodneti prigovor na svog 6 ju direktnog supervizora viim menadžerima' alisamo se nekoliko radnika usudi na to' obzirom da mnoge firme prave dugespiskove E>uzroka za neisplaćivanje nagrade/D>>. 8a radnike koji rade deo po

deo posla' i direktno su plaćeni za količinu odra#enog posla prihvatljivogkvaliteta' radnik tako#e može biti zamoljen da nadoknadi celokupnu vrednostpojedinosti !proizvoda" firmi' koji se dalje ne može koristiti uslednepreciznosti !nemara" radnika./D $akve liste obično sadrže detaljne opise situacija ( krenja pravila rada( ili(nedoličnog ponaanja(.vo drugo se uglavnom primenjuje u uslužnim delatnostima. Na primer'samo jedna žalba gosta na konobara može kotati konobara mesečnenagrade./B&oto postoji čitav skup kaznenih mera za svakog radnika' ruske kompanije

danas pokuavaju da izbegnu sisteme procene efikasnosti rada na osnovukolega !popularni /KB;.god."' obzirom da ti sistemi promoviu saradnju i jedinstvo radnika u borbi sa njihovim supervizorima.+ principu' nagra#ivanje i sistemi performansi za radnike koji se sprovode uruskimkompanijama mogu izgledati zastarelo' ali su oni konzistentni i efikasni. 2kokompanija može obezbediti dovoljna sredstva za direktan nadzor i socijalne



beneficije' sistemi obezbe#uju potovanje pravila rada i pružaju mogućnostizapoboljanje produktivnosti.&rakse nagra#ivanja i upravljanja efikasnoću za menadžere i kvalifikovane(stručnjake(

2ko pozitivno ocenimo preovla#ujuće ruske sisteme nagra#ivanja i proceneefikasnosti rada za radnike' slični sistemi za menadžere se mogu opisati kao(haotični( i proizvoljni. Na prvi pogled' sistem nagra#ivanja za menadžere jeveoma sličan sistemu nagra#ivanja radnika * postoji isti dvostepeni sistemosnovne plate/I i nagrade' kao i razvijen sistem socijalnih beneficija !kojimože sadržati mnoge dodatne privilegije kao to su (dodatak za mobilnitelefon(' (dodatak za obrazovanje dece'( (specijalni kredit od strane firme(itd.". Razlika ovde je u stabilnosti plate. 2ko radnici očekuju stabilnu platu zarutinski rad zadovoljavajućeg kvaliteta' iznos plate menadžera koju nose kućinikada nije stabilan.4astoji se od stalnog dela !koji se ne tiče učinka" i promenljivog dela' u

zavisnosti od procene efikasnosti rada. 8a proizvodne jedinice' inženjering'1$ ili HR funkcije' promenljivi deo je obično utvr#en na :;*);C od plate !kojase nosi kući". 8a odeljenje prodaje !montaže promenljivi deo može biti 0;*I;C plate !koja se nosi kući". &ravi problem ovde nije relativni iznospromenljivog dela' već mere učinka koje ga odre#uju. 8a tradicionalnefunkcije' kao to su proizvodnja i inženjering' ispunjenje mesečnog plana ilidostava porudžbine na vreme je obično jedina mera učinka.4toga' sami planovi su postavljeni na koliko je to moguće nizak nivo' rokoviza isporuke su postavljeni na krajnje prihvatljive termine. +z to' direktnitrokovi takvog postignuća se retko uzimaju u obzir' poto se proizvodnja iinženjering čuvaju to je moguće dalje od finansija i E>pravog novca>>.

/I 2ko se koristi tarifni sistem' tarifni !osnovni" deo obično zauzima izme#u 0i :;C od plate !koja se nosi kući".%&8a relativno nove funkcije !prodaja' marketing" situacija je jo gora. Nema niutvr#ene tradicije mera učinka' niti dobrih @recepataA zaodre#ivanje učinka za takve stručnjake. 5ao rezultat toga' najjednostavnijiuočljivi parametri' koje ne mogu kontrolisati pojedini menadžeri' postali sukriterijumi njihovog uspeha 6 neuspeha. Na primer' ef prodaje' koji !obično"nema direktnu nadležnost nad reklamnim budžetom' nema ovlaćenje danapravi izmene u cenovniku i ne može da odre#uje prioritete po pitanjuisporuka se ocenjuje u odnosu na dinamiku prodaje kompanije.

5ada ruske kompanije pokuavaju da sprovedu nedavno usvojenemenadžerske(trendove(' kao to je Gonitetna kartica !G4L"' situacija postaje potpunoapsurdna. G4L eme se uvode u pristupu od vrha ka dnu' tako da srednjimenadžeri nisu odgovorni ni za jednu meru' već za skup mera' od kojih susve izvan njihovog direktnog uticaja.



pisano stanje stvari u proceni efektivnosti rada menadžera kompanija nijenovo 3 ono odražava ustanovljenu rusku tradiciju (delegiranja odgovornosti(naniže nivoe menadžerske hijerarhije' zadržavajući pravu moć i resurse uvrhu/B.

4istem tako#e u mnogim slučajevima dovodi do situacija kadanovoimenovani menadžeri dobijaju mnogo veće plate od ljudi koji su radili upreduzeću duži vremenski period' jer novoimenovani počinju pregovore saviim nivoom. Miroka disperzija prakse postavljanja veoma različitih nivoaplaćanja za iste poslove dovodi do toga da mnoge ruske kompanijeprimoravaju zaposlene da potpiu posebne dokumente kojima se zabranjujeotkrivanje njihovih pravih iznosa primanja bilo kome izvan a naročito unutarkompanije.7odatna posledica situacije je vidljiva superiornost u privlačnosti poslastranih filijala u odnosu na njihove ruske konkurente za iskusne srednjemenadžere i stručnjake. 4trane filijale multinacionalnih kompanija obično

nude anse za skromniju karijeru !obzirom da se najvie pozicije čestozadržavaju za Edoseljene> menadžere" i !danas" manje plate' ali ruski srednjimenadžeri koji imaju samopotovanje vrednuju redovnu i konzistentnuprocenu učinka' to ih čini gospodarima svoje sudbine.&rakse nagra#ivanja i upravljanja efikasnoću za rukovodioce6direktore/B 4toga' za svaki neuspeh ef ima svako pravo da krivi (neodgovorne inesposobne( podre#ene a da sebe lično sačuva od krivice .*"7irektori su efovi kompanija !generalni direktori i' za akcionarska drutva'predsednici odbora direktora/K" i njihovih direktnih podre#enih!potpredsednici' glavne računovo#e i' u nekim slučajevima' pouzdani lični

asistenti". + Rusiji postoji jasna razlika izme#u nagrade i upravljanja učinkomza direktore najvećih otvorenih akcionarskih drutava i onih u manjimpreduzećima.Ruska velika otvorena akcionarska drutva su uspeno sprovodila u proteklih0*D godina sve (trikove( za izvrnu kompenzaciju' razvijene u velikimameričkimkorporacijama u poslednjih %;*); godina. Na primer' ruski naftni gigant(,+5il(pravi svoju emu izvrne kompenzacije na @Lhevron*u.A &ostoje % delasistema nagra#ivanja za direktore 3 osnovna godinja plata' bonus' koji setiče finansijskog učinka korporacije !oko /;;*/0;C od godinje plate'

isplaćen iz jednog dela na kraju godine"' i nagrade vezane za berzu. 1ako serazličiti opcioni planovi i @fantomske akcijeA danas nairoko koriste u velikimruskim korporacijama' direktori na vrhu i dalje vie vole realnu berzu. Naprimer' u 25 (4istema(' koji je najveći visokotehnoloki ruski konglomerat'na kraju :;;0. kontrolni vlasnik je spremio božićni poklon za nekolikodirektora kao direktan prenos akcija u njihove ruke !u vrednosti koja je u tovreme iznosila nekoliko miliona američkih dolara".



+ (običnim( ruskim kompanijama' kojih nema na spiskovima na berzama'oblik izvrne kompenzacije koji preovladava su eme deljenja profita. +velikoj meri se veruje da raspodela neto dobitka reava problem (glavnogčinioca(. &ored toga' utvr#ivanje jedinstvene mere za sve top menadžerepreduzeća povećava koherentnost tima menadžera.

buka i razvojJideli smo da ruski menadžeri cene obrazovanje kao kriterijum izbora čak i zaradnike. &otovanje prema obrazovanju u ruskom drutvu doprinosi brzojekspanziji različitih oblika stručnog i poslovnog obrazovanja u poslednjih /0godina.7anas su sve vrste prekvalifikacija na raspolaganju svakoj ruskoj kompanijikoja jespremna da za iste plati * od jednodnevnih seminara (ažuriranja( dome#unarodno priznatih programa doktora za poslovnu administraciju. Ruska2socijacija za poslovno obrazovanje !R2G" sada obuhvata vie od /);uglednih poslovnih kola a

/K ruski zakon o akcionarskim drutvima predvi#a razdvajanje ove dvepozicije.:/Lentri za prekvalifikaciju formiraju %% regiona. Ruske poslovne kole sunedavno dobile akreditaciju od strane 2-G2 a čak su se pojavile na listi /;;najboljih evropskih -G2.Jlada obraća posebnu pažnju na promovisanje obrazovanja koje se tičeposlovanja iupravljanja. /KKB. godine' pod pokroviteljstvom predsednika Rusije' bio jepokrenut veliki program koji je za cilj imao menadžere malih i srednjihpreduzeća.

vaj program kombinuje intenzivne teorijske časove !do 0;; aktivnih časova"sa produženim periodom !do D meseci" rada u drugoj kompaniji' uključujućistrane kompanije. 4vake godine od /KKB. vie od :D;; menadžera je proloovaj program' tako da je ukupan broj učenika sada veći od :;';;;.1ako je ovaj program umnogome jedinstven' podaci koji se dobiju od učenikaistog predstavljaju posledice dobro napravljenog programa za ponovnu obukuo upravljanju.!videti $abelu B".**************************+baciti $abelu B ovde******************************

Oe maP see that time and moneP spent on managerial retraining is a verPeffectiveinvestment 3 more than a half of all alumni immediatelP received job offersfrom othercompanies. 4alarP raise and job promotions are also likelP outcomes of theretrainingprogram.



1f Qe look at more detailed impact of the acuisition of neQ knoQledge andskills !see $able K"' Qe Qill see the ingredients that contribute to the career andbusinessadvancement of alumni 3 raise in self*respect' better understanding of

companP>sbusiness' better vision of overall perspectives of an industrP or particularsectors of thenational economP.**********************1nsert $able K here*****************************2lthough individual participation in re*training programs has a clear positiveimpact'noQadaPs Russian companies prefer to order special companP*tailoredprograms. 4uch

**programs usuallP embrace all managers of a particular level of the companP.1n somecases' the Qhole -anaging Goard !/;*/: eSecutives" is enrolled to an -G2program:;.4ome estimates put the overall demand for -G2 programs in Russia at/;;';;;!5uzminov' ilonovich' :;;0".2s business and management education prospers and eSpands' professionalretrainingfor Qorkers is still struggles the conseuences of its total neglect in /KK;s.

$he mostprofessional staff of vocational schools and technical colleges have left thepubliceducational establishments for managerial positions in business' eSperiencedQorkersand technicians Qith pedagogical skills are not Qilling to occupP poorlP paid jobs in thepublic sector. $he temporarP solution manP Russian industrial companies seeas aneffective tool to overcome the shortage of ualified Pounger Qorkers is to re*build the incompanP

mentoring sPstem. +nskilled persons maP be taken for a special@apprenticeshipA contract' Qhich sets the obligations of the companP to traina persontoQards particular specialtP and level of ualification. -ore important'instructors Qhoprovide such on*job training !presumablP' the most eSperienced and patientQorkers and



technicians" usuallP receive significant additional paPment for such duties.

$he uture of HR- in RussiaOe have retraced the main features of HR- in Russia. 4ome of them aredeeplP rootedin the previous historical and social development of the countrP' some aremore volatileand are subjects of alteration and change. 1n this respect' Qe dare to makesome insightsinto the future of HR-.2s the Qhole Russian economP !and politics" is largelP dependent on oilprices' the future

of HR- is also predetermined bP this point. $he crucial assumption for all ourpredictions is that the current high prices for oil' gas and energP*relatedproducts!fertilizers etc." Qill last for the neSt %*) Pears. 1n such a situation thefolloQingdevelopments are highlP likelP< $he energP sector in Russia Qill prosper' accumulating more financialresources inthe large state*controlled companies.*- $Qo sectors that directlP depend on the energP sector 3 the financial

sector andthe Russian government ** Qill also eSperience @fattP times.A 1n all the three sectors salaries and incomes Qill groQ uicklP' thusQidening theeSisting large gap betQeen those sectors and the rest of the economP !see2ppendiS' $able 20". =ob attractiveness in those sectors also Qill be high.Gesides'more and more families Qith high incomes earned from @petrodollarsA Qillaffordpersonal servants. Oith plentP coffers the government Qill embark on large infrastructure

projects'thus creating more demand in construction:/. Spansion of energP sectorsalsoneeds more construction Qorks. ,ast but not least' as Russia currentlP @fleSes its musclesA Qith sharpincrease of defense budget' the moneP Qill also be poured into production ofarmaments. Reincarnation



of the Russian industrial militarP sector' largelP neglected for adecade' Qill depend on creation of a neQ generation of scientists' engineersandualified Qorkers.1n general' siS sectors Qill eSpand uicklP in the neSt :*) Pears 3 energP'

financialservices' government service' heavP industrP' construction' householdservices. $he firstfour sectors Qill create demand for highlP educated and ualified QorkforceFthe tQo lastsectors Qill absorb less ualified personnel. $hose siS sectors Qill be also theprimarPdirections for Poung people. =ob attractiveness of other sectors Qill be muchloQer. $aking into account the demographic @pauseA in :;;D*:;;B' the shortage oflabor force'

especiallP in sectors Qith no direct links for petrodollars' Qill become criticalin :;;B::.Lompanies in those @not*so*luckPA sectors' limited in financial resources Qillbe unable toraise the proportion of labor eSpenses in the total costs. $he onlP solution Qillbe greaterattention to productivitP improvement and better utilization of the laborforce. $hus' QeeSpect !as an optimistic scenario" that unprivileged sectors of the RussianeconomP Qillgive the impetus to the accelerated changes in HR-. $hese changes are

likelP in severaldicetions.*% The success of (ochi in the context to host the =inter Olympic in *"%2 refocuses those

contraction proects ust to asmall strip on the Black see.

** 7or example, in Ielenograd, a satellite city of 0oscow with 2-,""" persons currently

employed in industry and services,in (eptember *""- there was C,!"" unfilled vacancies.

*irst' recruitment Qill still be largelP based on @personal connections'A butselection

procedures Qill become tighter. 2lreadP in :;;0**:;;D there Qas the demandQasbooming for @Qorking testsA and @ualification assessmentsA for Qorkers'engineersand managers alike. 1n addition' for search for personnel companies Qill lookdeeper.2lreadP in :;;D*:;;I companies start earlP recruiting campaigns inuniversities'



attracting second and third*Pear students as part*time or even full*timeemploPees forshop*floor supervising and other loQer managerial positions.4econd' performance assessment Qill become more tight but variable'reflecting the

demand for greater labor productivitP 1n addition' some forms of peer*revieQassessment Qill be re*introduced' especiallP Qhen the possibilities to retainand to reallocatedthe salarP of the dismissed co*Qorkers Qill be offered to their moreproductive colleagues. $hird' in reQard sPstems' more attention Qill be given to social benefits thatQill beconsidered as a good device to both to attract neQ emploPees and toincrease the costsof leaving the companP for the eSisting ones. $hus' more tPpes of benefitsQill be

offered not just for an emploPee' but for the Qhole familP !as Qe have seen inthe caseof @TakutskenergoA".orth' more attention Qill be given to training and development. $heP Qill beconsidered more and more not as perks' but as joint investments ofemploPee andemploPer into human capital. $hus' greater return on such investments QillbeeSpected both bP emploPees !promotions and salarP increases" andemploPer !loPaltPand productivitP". 1n training and development greater cooperation betQeen

emploPers' including the establishing of joint training centers' Qill becameQidedispersedpractice.ifth' the greater use of fleSible Qorking is also likelP' especiallP for engineersandother specialists. $his Qill include fleSible Qorking times' higher use of part*timeemploPment and teleQorking. Russian emploPers Qill also embark on sub*contractorsfor particular Qorks rather then emploPing oQn permanent personnel.*&

2ll the abovementioned developments Qill put stronger demand for HR-function' Qhichshould take the lead in such changes. $his demand Qill be met bP uickdissemination of the best practices via professional associations' informal communications ofHRmanagers' Qider use of eSternal trainers and consultants:%. 1n the mostoptimistic case'



someQhere around :;;B*:;;K there Qill be a fresh start of -G2*likeprograms in HR-that Qill combine international standards of the profession Qith properattention andknoQledge of the local specifics:).

HoQever' some features of HR- Qill not be altered. 1n our opinion' theposition of HR-eSecutives in the management hierarchP Qill not improve too much' HR-function stillQill be the @dead endA in eSecutive careerF and organized labor Qill still be aneSception'

especiallP in small business.

5.3 Recruitment practices

$he elaborate and detailed sPstem of ualifications contrasts Qith the loQformalisation of personnel recruitment procedures. 2ccording to 7Prin' I;Cof uestioned personnel managers reported that neQ emploPees Qererecruited on the basis of recommendations of the emploPees. /IC of therespondents mentioned contacts Qith universities' secondarP technicalschools and vocational schools as a means to recruit neQ people !7Prin':;;D< /;;".

Giziukov states that the tPpical recruitment procedure for productive Qorkersconsisted of an intervieQ Qith the head of a production shop' Qho took thedecision about the emploPment<

@-ost freuentlP this is a more or less detailed intervieQ' during Qhich themanager evaluates the professional and personal ualities of the candidateand makes decision Qhether he Efits> or doesn>t. UVW 4uch selection sPstemhas a disadvantage< the head of the unit does not alQaPs have theinformation about all the candidates for a vacancP or has met Qith themeven if the personnel service formed such a group Uof candidatesW. HeemploPs the first' Qho seems fitting from the ones sent UbP the personnelserviceW and does not consider the ones' Qho can come later.A !GizPukov':;;0< )%3))"

$he line managers at most enterprises focused on Efilling up the gap> as soonas possible rather than folloQing the selection procedure. HoQever' at some

of the enterprises studied bP Giziukov the personnel departments QereempoQered to influence the selection process. $his happened Qhen thereQere some Ecentralized reuirements> toQards the staff !e.g. making the staffPounger or higher ualified" or Qhen the personnel department collaboratedQith educational organisations.

oreign companies' according to eP et al.' reported about Ethe tQo Qorkforce dilemma> that theP face' Qhen selecting emploPees in Russia !eP'



Nordahl and 8XtterstrYm /KKB". $he emploPees under the age of thirtP haveno negative eSperience Qith a planned economP and those over fortP Qeresocialized in the old sPstem' but are often not ualified enough. $hese tQoQork forces have different eSpectations and are motivated bP differentfactors' e.g. Pounger emploPees appreciate groQth opportunities and

international interaction more than the older ones.4hekshnia found that Russian affiliates of Oestern multinationals hadchanged their recruitment practices regarding managers and Qhite*collaremploPees in /KKB compared to /KK) !4hekshnia /KKB". Ohereas in /KK)EQord*of*mouth> Qas sufficient for recruiting' other methods Qere used in/KKB< recruitment agencies and head*hunting' advertisements in the media'on*campus recruiting at universities. eP et al. found that headhuntingagencies Qas the most important method of recruitment used bP over 0;C offoreign firms in Russia !eP' ngstrYm and GjYrkman /KKB". $hese firms QereprimarilP interested in the candidates> personalities' previous Qork

eSperience' and command of nglish' Qhen hiring Russian managers. 4killsQere found to be less important than personalitPF foreign firms Qereinterested in honestP' ambitiousness' hard*Qorking' abilitP to learn fast' andbeing a team plaPer. &revious Qork eSperience at a foreign firm QasespeciallP valued.

Table 8: Work values of Russianemployees in 1991 and 2004 Workvalues/)

Frequency of coosin! as impor"an"# $

%1991& %2004&

9ood paP B0 KD =ob securitP ); B;1nteresting Qork DB I:Lonvenient Qorking hours )K 0IpportunitP to achieve something :B )) =ob that is respected bP a large circleof people

); %D

Lorrespondence of Qorkreuirements and oQn capabilities

0I %)

,ong vacation )D %:pportunitP to take initiative %; :)Responsible Qork :/ :;

Not too intensive Qork :; /B

Recruitment in Russia. Past. Present. Future.

18 A%ril 4014 'ssue I8>7

Coleman Services *M



)l#a ,antse'ina Chairman" AE( HR Committeeand Chie& Re%resentative"

Coleman Services *M

Returnin2 in my memories 6ac< to 199J" ' can hardly remem6er any o& myacuaintances #ho #ould not as< T#hat do you say you are doin2T a&ter my mentionin2my &irst Go6 in the recruitment &ield &or a #orld leader in the recruitment industry ' 6elievealmost no one <ne# #hat recruitment #as a6out at that time in Russia" moreover" '#ould not ma<e a 6i2 historical mista<e i& ' say recruitment %ractically did not eist yetin this country

;han<s to the #orld#ide #ell-<no#n industry leaders +ne#comers to the Russian mar<etin the early U90s recruitment arose as a conce%t and started its develo%ment on this

hu2e territory

't is interestin2 to remem6er today ho# the mar<et loo<ed li<e at that time Q &e#international 6usinesses in rare 6usiness &ields such as consultin2" 5C! or oiland 2as" a#aitin2 international standards o& recruitment they had 2otten used to inEuro%e or America Q &rom one side= even less num6ers o& a2encies %resent in Russia#ith an a6solutely di&&erent attitude to search and selection %rocesses to #hat #ase%ected +' need to state here that the maGority o& local Russian a2encies #ere so-calledTGo6 %lacementT a2encies that earned money ta<in2 certain &ees &rom candidates" tryin2to %lace them &urther on &or any %osition" 6e it a%%ro%riate &or the %erson or not Q&rom the other= semi-uali&ied Soviet-ty%e candidates #ith %oor lan2ua2e s<ills +i& anyat all Q &rom the third

Com%anies as #ell as a2encies themselves e%erienced a hu2e shorta2e o& %otentialcandidates &or the maGority o& %ositions due to s%eci&ics o& the Soviet-style educationand 6usiness" lac< o& needed uali&ications and e%erience" as #ell as the overall %oor&orei2n lan2ua2e s<ills in Russia

/ro&essional recruiters <ne# each o& their 2ood candidates %ersonally &or years"6ecomin2 T6usiness &riendsT &or them" al#ays 6ein2 a#are not only o& their Go6 intentionsand %lans 6ut also o& all their &amily ne#s and 6ein2 constantly ready to su%%ort themin their career develo%ment and ma<e them the net vacancy %ro%osition #ith anotherclient com%any as soon as the 2uarantee %eriod #ith the %revious one #as over

o2ically" recruitment in Russia started &rom the ca%itals Q osco# and St /ete" 6utthe situation started chan2in2 in the early 4000s" 6oth international and 6i2 Russian+usually osco#-6ased a2encies o%enin2 their re2ional o&&ices and 6rin2in2 hi2herstandards o& service to2ether #ith hi2her &ees to the local recruitment mar<ets" 2ivin2rise to com%etition #ith the local a2encies" %ushin2 u% the level o& %ro&essionalismand ma<in2 locals 6etter meet clientsU reuirements



;his move #as stimulated 6y ne# investment %lans o& di&&erent international 6usinesses"es%ecially retail and industrial enter%rises" headed to#ard the Russian re2ions in theirsearch o& 6etter investment o%%ortunities

Ho#ever" thou2h it should 6e ta<en into account that due to RussiaUs vast si$e" re2ional

di&&erences are al#ays etremely mar<ed and have a %ro&ound im%act on therecruitment 6usiness Some trends that #e have o6served in osco# and St /etein the U90s have &ound their re&lection in the re2ions durin2 the net decade ;hus"com%anies <een to develo% their 6usiness outside o& the ca%itals encountereda shorta2e o& uali&ied %ersonnel in many sectors" es%ecially hi2h-tech and en2ineerin2"as #ell as candidatesU %oor lan2ua2e s<ills

Another 2eneral trend has al#ays 6een motivation o& %otential candidates to considerne# Go6 o%enin2s .&ten" durin2 intervie#s" a candidate #ill tal< a lot a6out his#illin2ness to develo% %ro&essionally" 6ut #hen %resented #ith a choice 6et#eeninterestin2 %roGects and continuous trainin2" or a hi2her salary Q he #ill choose

the latter (rand names and %ro&essional interest are o&ten o& lesser consideration thannet salary &or Russians

Since the U90s recruitment mar<et has 2radually develo%ed

,hile the ca%italsU la6or mar<ets a%%roached maturity some time a2o" the re2ional onesare still develo%in2 at di&&erent rates de%endin2 on their 2eneral economic situationand investment climate

o#adays #e have many recruitment com%anies" 6oth local and international" 6i2and small" o%enin2 ne# o&&ices all over the country accordin2 to their clientsU 6usinessneeds and #or<in2 on a distant 6asis" a%%lyin2 international standards and 6est%ractices not only in recruitment and eecutive search itsel&" 6ut also in %ersonneloutsta&&in2 and leasin2" industrial sta&&in2" HR consultin2 and outsourcin2 services

Recruitment com%anies are #or<in2 hard des%ite the serious dra#6ac<s o& the Russianeducational system" its la6or le2islation" %oor demo2ra%hic situation havin2 its roots6ac< in the late U80s and early U90s ;hey are ada%tin2 to the constantly chan2in2environment and clientsU demands" chan2in2 their &ees and #idenin2 service conditions"com%etin2 #ith one another &or 6etter contracts

;he recruitment mar<et in Russia has %assed di&&erent sta2es o& 2ro#th and maturation"the candidatesU mar<et has trans&ormed to the em%loyersU one and 6ac<#ard" #esurvived the t#o economic crises +1998 and 4008" destructive &or the industry" learnedour lessons and chan2ed our attitudes Still" recruitment is uite a s%eci&ic 6usiness areain Russia

Com%etition here is hi2h and tou2h" mar<et in&ormation is still close to $ero or unrelia6le"many a2encies are o%eratin2 throu2h nonle2itimate T2rayT schemes till no#adays+es%ecially it concerns the outsta&&in2 area" #hich" un&ortunately" is not yet re2ulated6y the Russian la6or la#



;hese days" as al#ays" #e are short o& %ro&essional" e%erienced and #ell-educated%otential candidates Recruiters" 6oth eternal and internal are constantly searchin2the mar<et #ith the only %ur%ose to identi&y and attract the 6est availa6le talent +o&tenstartin2 almost #ith the candidatesU school days or &irst years at colle2e

;he mo6ility o& em%loyees has &inally started 2ro#in2 in 6oth directions +&rom osco#and St /ete and 6ac<#ard &rom the re2ions" thou2h certain re2ional %re&erencesand s%eci&ic com%ensation demands are o6vious and the rise in mo6ility not 6ein2o& any su6stantial hel% under the in&luence o& the Russian demo2ra%hic %it&all

Com%lainin2 o& all the hardshi%s o& the local la6or mar<et" #e are still loo<in2 into the&uture o& the recruitment industry in this country uite o%timistically" our 6elie& 6asedon the evident 6rea<throu2h it has already e%erienced recently and the hu2e ste%s it isma<in2 at %resent

Recruitment in Russia. Past. Present. Future.

18 A%ril 4014 'ssue I8>7

Coleman Services *M

)l#a ,antse'ina Chairman" AE( HR Committee

and Chie& Re%resentative"Coleman Services *M

Returnin2 in my memories 6ac< to 199J" ' can hardly remem6er any o& myacuaintances #ho #ould not as< T#hat do you say you are doin2T a&ter my mentionin2my &irst Go6 in the recruitment &ield &or a #orld leader in the recruitment industry ' 6elievealmost no one <ne# #hat recruitment #as a6out at that time in Russia" moreover" '#ould not ma<e a 6i2 historical mista<e i& ' say recruitment %ractically did not eist yetin this country

;han<s to the #orld#ide #ell-<no#n industry leaders +ne#comers to the Russian mar<etin the early U90s recruitment arose as a conce%t and started its develo%ment on thishu2e territory

't is interestin2 to remem6er today ho# the mar<et loo<ed li<e at that time Q &e#international 6usinesses in rare 6usiness &ields such as consultin2" 5C! or oiland 2as" a#aitin2 international standards o& recruitment they had 2otten used to inEuro%e or America Q &rom one side= even less num6ers o& a2encies %resent in Russia#ith an a6solutely di&&erent attitude to search and selection %rocesses to #hat #as



e%ected +' need to state here that the maGority o& local Russian a2encies #ere so-calledTGo6 %lacementT a2encies that earned money ta<in2 certain &ees &rom candidates" tryin2to %lace them &urther on &or any %osition" 6e it a%%ro%riate &or the %erson or not Q&rom the other= semi-uali&ied Soviet-ty%e candidates #ith %oor lan2ua2e s<ills +i& anyat all Q &rom the third

Com%anies as #ell as a2encies themselves e%erienced a hu2e shorta2e o& %otentialcandidates &or the maGority o& %ositions due to s%eci&ics o& the Soviet-style educationand 6usiness" lac< o& needed uali&ications and e%erience" as #ell as the overall %oor&orei2n lan2ua2e s<ills in Russia

/ro&essional recruiters <ne# each o& their 2ood candidates %ersonally &or years"6ecomin2 T6usiness &riendsT &or them" al#ays 6ein2 a#are not only o& their Go6 intentionsand %lans 6ut also o& all their &amily ne#s and 6ein2 constantly ready to su%%ort themin their career develo%ment and ma<e them the net vacancy %ro%osition #ith anotherclient com%any as soon as the 2uarantee %eriod #ith the %revious one #as over

o2ically" recruitment in Russia started &rom the ca%itals Q osco# and St /ete" 6utthe situation started chan2in2 in the early 4000s" 6oth international and 6i2 Russian+usually osco#-6ased a2encies o%enin2 their re2ional o&&ices and 6rin2in2 hi2herstandards o& service to2ether #ith hi2her &ees to the local recruitment mar<ets" 2ivin2rise to com%etition #ith the local a2encies" %ushin2 u% the level o& %ro&essionalismand ma<in2 locals 6etter meet clientsU reuirements

;his move #as stimulated 6y ne# investment %lans o& di&&erent international 6usinesses"es%ecially retail and industrial enter%rises" headed to#ard the Russian re2ions in theirsearch o& 6etter investment o%%ortunities

Ho#ever" thou2h it should 6e ta<en into account that due to RussiaUs vast si$e" re2ionaldi&&erences are al#ays etremely mar<ed and have a %ro&ound im%act on therecruitment 6usiness Some trends that #e have o6served in osco# and St /etein the U90s have &ound their re&lection in the re2ions durin2 the net decade ;hus"com%anies <een to develo% their 6usiness outside o& the ca%itals encountereda shorta2e o& uali&ied %ersonnel in many sectors" es%ecially hi2h-tech and en2ineerin2"as #ell as candidatesU %oor lan2ua2e s<ills

Another 2eneral trend has al#ays 6een motivation o& %otential candidates to considerne# Go6 o%enin2s .&ten" durin2 intervie#s" a candidate #ill tal< a lot a6out his#illin2ness to develo% %ro&essionally" 6ut #hen %resented #ith a choice 6et#eeninterestin2 %roGects and continuous trainin2" or a hi2her salary Q he #ill choosethe latter (rand names and %ro&essional interest are o&ten o& lesser consideration thannet salary &or Russians

Since the U90s recruitment mar<et has 2radually develo%ed



,hile the ca%italsU la6or mar<ets a%%roached maturity some time a2o" the re2ional onesare still develo%in2 at di&&erent rates de%endin2 on their 2eneral economic situationand investment climate

o#adays #e have many recruitment com%anies" 6oth local and international" 6i2

and small" o%enin2 ne# o&&ices all over the country accordin2 to their clientsU 6usinessneeds and #or<in2 on a distant 6asis" a%%lyin2 international standards and 6est%ractices not only in recruitment and eecutive search itsel&" 6ut also in %ersonneloutsta&&in2 and leasin2" industrial sta&&in2" HR consultin2 and outsourcin2 services

Recruitment com%anies are #or<in2 hard des%ite the serious dra#6ac<s o& the Russianeducational system" its la6or le2islation" %oor demo2ra%hic situation havin2 its roots6ac< in the late U80s and early U90s ;hey are ada%tin2 to the constantly chan2in2environment and clientsU demands" chan2in2 their &ees and #idenin2 service conditions"com%etin2 #ith one another &or 6etter contracts

;he recruitment mar<et in Russia has %assed di&&erent sta2es o& 2ro#th and maturation"the candidatesU mar<et has trans&ormed to the em%loyersU one and 6ac<#ard" #esurvived the t#o economic crises +1998 and 4008" destructive &or the industry" learnedour lessons and chan2ed our attitudes Still" recruitment is uite a s%eci&ic 6usiness areain Russia

Com%etition here is hi2h and tou2h" mar<et in&ormation is still close to $ero or unrelia6le"many a2encies are o%eratin2 throu2h nonle2itimate T2rayT schemes till no#adays+es%ecially it concerns the outsta&&in2 area" #hich" un&ortunately" is not yet re2ulated6y the Russian la6or la#

;hese days" as al#ays" #e are short o& %ro&essional" e%erienced and #ell-educated%otential candidates Recruiters" 6oth eternal and internal are constantly searchin2the mar<et #ith the only %ur%ose to identi&y and attract the 6est availa6le talent +o&tenstartin2 almost #ith the candidatesU school days or &irst years at colle2e

;he mo6ility o& em%loyees has &inally started 2ro#in2 in 6oth directions +&rom osco#and St /ete and 6ac<#ard &rom the re2ions" thou2h certain re2ional %re&erencesand s%eci&ic com%ensation demands are o6vious and the rise in mo6ility not 6ein2o& any su6stantial hel% under the in&luence o& the Russian demo2ra%hic %it&all

Com%lainin2 o& all the hardshi%s o& the local la6or mar<et" #e are still loo<in2 into the&uture o& the recruitment industry in this country uite o%timistically" our 6elie& 6asedon the evident 6rea<throu2h it has already e%erienced recently and the hu2e ste%s it isma<in2 at %resent

Read more: htt%:###themosco#timescom6usinessV&orV6usinessarticlerecruitment-in-russia-%ast-%resent-&utureIJ>949htmlWi$$4;(t8nna1 ;he osco# ;imes

http://www.themoscowtimes.com/business_for_business/article/recruitment-in-russia-past-present-future/456929.html#ixzz2TBt8nna1






Global HR: Russia and China

5riday 04 .cto6er 4009 17:1>

;he vast states o& Russia and China have a lot in common" not least a shared 6order o&I"B00<m" and a lon2standin2 strate2ic %artnershi% that earlier this year resulted inan intensi&ied %ro2ramme o& military co-o%eration

.n a more human scale" 6oth countries have a ra%idly maturin2 HR %ro&ession 'nRussia" HR is a youn2er disci%line than in the *M" and has only 2ro#n &rom 6ein2considered a merely administrative &unction to a %ro&essional disci%line in the %ast 10years" accordin2 to Ste%hen Xuic<" director" human resource consultin2 services" at

/rice#aterhouseCoo%ers Russia

Developin# e+pertise

TAs a result o& this" HR is still develo%in2 its e%ertise" learnin2 a6out sound HR %oliciesand %ractices &rom collea2ues in other countries and ada%tin2 them as necessary &or theRussian environment"T says Xuic<

TAnother &actor is that &or historical" as #ell as uniue mar<et and economic reasons" the&ocus o& HR in Russia is di&&erent to the *M Russian HR teams have ty%ically 6een#or<in2 to trans&orm outdated" com%licated and ri2id %ay systems into a &orm that 6etter

connects s<ills and %er&ormance #ith re#ard" and allo#s &or merit-6ased career%ro2ressionT

;he ra%id 2ro#th o& the economy in recent years has &ocused the ener2ies o& many HR&unctions on recruitment +and in the &inancial crisis" on do#nsi$in2 rather than on%eo%le-develo%ment areas such as talent mana2ement" Xuic< adds

Ho#ever" there are si2ns that" in the contet o& the economic tur6ulence o& the %ast 14months" com%anies in Russia are chan2in2 the #ay they thin< a6out HR matters" andare reco2nisin2 that a #ell thou2ht-out and lon2-term HR strate2y is <ey to their successin the &ace o& do#n#ard %ressures on cost and demo2ra%hic challen2es

All chan#e in *hina

;he most si2ni&icant di&&erences 6et#een HR in the *M and in mainland China arise &romthe ra%id develo%ment o& the /eo%leUs Re%u6lic o& China +/RC le2ally" culturally andeconomically over the %ast B0 years" accordin2 to onica De6ia<" an associate in theem%loyment de%artment #ith international la# &irm /aul Hastin2s

http://www.timesonline.co.uk/tol/news/world/europe/article6188506.ece

http://www.timesonline.co.uk/tol/news/world/europe/article6188506.ece



;he %olicies and la#s o& the /RC continue to ra%idly develo% and are su6Gect to &reuentchan2e" in contrast to the mature em%loyment la#s o& the *M T'n the %ast t#o years"numerous la#s and %olicies have 6een issued in the /RC" some that have had a 2reatim%act on the #or<%lace" such as the Em%loyment Contracts a#" the Em%loyment/romotions a#" numerous %rovincial re2ulations on seual harassment" and

re2ulations on vacation" to name Gust a &e#"T says De6ia<

THR %ro&essionals in the /RC over the %ast &e# years have e%erienced constantchan2e in the la# and 6est %ractice Althou2h the *M has %romul2ated ne# la#sre2ardin2 anti-discrimination %ursuant to E* directives" ' thin< the main di&&erence is thatin the *M" HR %ro&essionals are dealin2 #ith a mature le2al system" and there&ore cano&ten ma<e decisions uic<ly and #ith more certaintyT

HR %ro&essionals in the /RC o&ten must research the la# andor consult #ith their le2alde%artment and the 6usiness unit 6e&ore they are a6le to resolve even a mundane HRissue" De6ia< adds 'n contrast" an e%erienced HR %ro&essional in the *M is o&ten a6le

to deal #ith day-to-day issues #ithout consultin2 #ith the le2al de%artment

;he /RC continues to ra%idly develo% culturally as #ell (e&ore it ado%ted its Uo%en doorUeconomic re&orms in 1978" the conce%t o& the U iron rice 6o#lU eisted

T(e&ore 1978" the /RC had no %rivately-o#ned enter%rises and em%loyees #ere2uaranteed em%loyment &or li&e Em%loyees #ere on a lo# &ied #a2e" 6ut in turnreceived &ree housin2" education" &ood" clothin2 and medical care"T De6ia< says

TAs the /RC no# em6ar<s on 6uildin2 a socialist mar<et economy" such allo#anceshave chan2ed or 6een eliminated Such chan2es are di&&icult to im%lement" ho#ever"and em%loyees are still ada%tin2 to the ne# environmentT

HR %ro&essionals in the /RC have to s%end time #ith em%loyees care&ully e%lainin2 thene# 6ene&it re2ime" ne# #ays o& %rovidin2 com%ensation" or the di&&erences in &ied-term contracts versus li&etime em%loyment" 6ecause the culture o& em%loyment haschan2ed so ra%idly in China" she says

Similarly" sta&& in the /RC may ma<e reuests that #ould seem unusual in the *M" suchas reuests &or housin2" 6ut De6ia< says this stems &rom %ast cultural %ractices

T'n com%arison" em%loyees in the *M are a#are o& the em%loyment culture and norms As a result" the ne2otiation style concernin2 recruitment" %er&ormance" and terminationcan 6e very di&&erent in the /RC com%ared #ith the *MT

Perception of HR

'n the state-o#ned enter%rises" 6e&ore the economic re&orms" the trade unions o&ten&unctioned as HR Ho#ever" #ith the economic re&orm and the chan2e in enter%rises"trade unions are no# actin2 in a more ,estern style as advocates

http://en.wikipedia.org/wiki/Iron_rice_bowl





THR is there&ore a ne# 6ur2eonin2 area o& em%loyment that has o%%ortunity and%otential"T says De6ia< T,ith all the recent chan2es in em%loyment la#" it is also seenas a challen2in2 ne# &ieldT

;he advent o& the 2lo6al &inancial crisis has seen HR ra%idly chan2in2 in a &undamental

#ay in China" accordin2 to a recent re%ort &rom Cornell *niversityUs Center &or AdvancedHuman Resource Studies 't &ound that HR is 2radually emer2in2 as a strate2ic %artnerin reachin2 com%any o6Gectives" and durin2 the do#nturn and 2eneral talent shorta2e inChina" retention has 6een a <ey issue &or HR

'n addition" the re%ort &ound that the more contact a Chinese su6sidiary has #ith itsheaduarters a6road" the more li<ely the &irm is to have strate2ic HR mana2ement%ractices and ca%a6ilities T;his means there are more ,esternised %ractices #ithin the&irm and these chan2e ho# the com%any navi2ates throu2h the economic do#nturn"T there%ort &ound

Simple approach

'n Russia" HR is also in the early sta2es o& develo%ment 'rina Mo$lova" HR director &orRussian telecoms com%any ER-;elecom" says: T;he HR director here is more o& ano%erational %erson As such" &e# HR directors in Russia are strate2ic and sit on the6oardT (ut as HR in Russia esta6lishes itsel&" Mo$lova says it is T&ull o& ideas andinnovationsT

She adds that Russian HR %ro&essionals are a#are o& the hi2h uality o& HRmana2ement in the *M" seein2 it as a trans%arent and #ell-esta6lished HR system thatis easier to understand

T,e consider the a%%roaches to the system o& to%-mana2ement com%ensation to 6every use&ul" es%ecially lon2-term 6onus %lans #hich hel% to motivate to% mana2ementon the strate2ic 2oals o& the com%any and to &orm the loyalty o& em%loyersT

Althou2h it de%ends on the si$e o& the com%any +and #hether the com%any is a Russiancom%any or a multinational #ith o%erations in Russia" Xuic< says a ty%ical HR%ro&essional in Russia is more o& a 2eneralist than in the *M

T!iven that the HR &unction has develo%ed &rom 6ein2 a %urely administrative &unction inRussian com%anies" a vie# still eists in some uarters that HR is there to serve ratherthan to lead in the HR s%here"T he says T;he HR director is rarely" i& ever" on the 6oard"and des%ite havin2 the UdirectorU title" is sometimes uite Gunior in the or2anisationT

A conseuence o& this is can 6e the lac< o& HR in%ut 6y a suita6ly uali&ied ande%erienced %erson into the strate2y o& the com%any" Xuic< says Ho#ever" this is6ecomin2 less common as thin2s chan2e and HR directors continue to 2ain status

Employment standards/ Russia and *hina vs 0K

http://www.ilr.cornell.edu/cahrs/hrSpectrum/May09-globalEconomicCrisis.html






• Em%loyees in Russia are entitled to annual %aid leave o& at least 48 days" and

em%loyees are also 2enerally entitled to %aid sic< leave" #hich can vary 6et#een >0@to 80@ o& salary ,omen are entitled to %aid maternity leave" ran2in2 &rom 70 to 8Idays 6e&ore and 70 to 110 days a&ter the 6irth

• Em%loyees in China #ho have served one &ull year 6ut less than 10 years are

entitled to &ive daysU annual leave" #hile em%loyees #ho have 6et#een 10 and 40yearsU service receive 10 daysU annual leave and 1J days &or 40 years o& service,or<ers may receive si monthsU sic< leave at >0@ to 100@ o& salary" #hile maternityleave at &ull %ay is %rovided &or u% to 90 days

• (oth Russia and China set monthly minimum #a2es

HR earnin# poer/ Russia and *hina vs 0K

• 'n Russia" HR directors can earn 6et#een R*(1I0"000-I00"000 +Y4"800-Y8"000

%er month" #hile HR mana2ers earn R*(140"000-B00"000 +Y4"I00-Y>"000 %ermonth" accordin2 to a survey 6y Russian recruitment &irm Antal 'nternational

•

'n Shan2hai" an HR director can earn 6et#een C?700"000-1Im +Y>B"000-Y14I"000 annually" #hile a re2ional HR director 6ased outside Shan2hai can earn6et#een C?800"000-4m +Y71"000-Y177"000" accordin2 to a Hudson salary surveyHR o&&icers in Shan2hai can earn as little as Y7"000 +C?80"000 a year

http://antalrussia.fivetengroup.com/userfiles/AntalSalarySurvey_HRs_Eng.pdf

http://sg.hudson.com/documents/Hudson-Asia-Human-Resources-Salary-Information.pdf

http://antalrussia.fivetengroup.com/userfiles/AntalSalarySurvey_HRs_Eng.pdf

http://sg.hudson.com/documents/Hudson-Asia-Human-Resources-Salary-Information.pdf

hr management of foreign companies operating srp

Documents