Human Resource Management
Human resources in Russia: The greatest opportunity, the greatest challenge
A report from the Economist Intelligence Unit
Sponsored by
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Contents
Russian human resources today The best in the world? Educated and cultured Quality is deteriorating at the margins Which are the difficult positions to full?
3 3 3 4 6
Salaries – what do you pay? The role of pay in staff motivation Competition for talent forcing pay rises The battle with HQ The dollar peg: weak US dollar – what currency to pay in? Defending against the lure of Russian companies The era of 100% pay rises to keep staff?
7 7 7 9 10 10 12
Managing staff turnover and retention Is retention getting tougher? The changing role of expatriates Russians vs. expats The Russian repatriate
13 13 15 15 16
The challenge of Russia’s legal environment
17
Leadership issues Russian zeal can be disruptive Women outperform men
19 19 19
Company profiles Baker & McKenzie Ernst & Young Neumann International 22 23 24
Corporate Network 2007
www.eiu.com
© The Economist Intelligence Unit Limited 2007
2
Human resources in Russia:
The greatest opportunity, the greatest challenge
By Daniel Thorniley Senior Vice President, Economist Intelligence Unit
The “war for talent” is a cliché, but an accurate one. In nearly all major emerging markets (Russia, China and India among many others), management of human resources is the critical operational business issue today: finding staff, retaining staff, and paying staff are major HR problems facing companies operating in these markets today. In recent EIU surveys of business in China and India, HR issues rated as three of the top six challenges facing western multinational corporations (MNCs) in these markets—and the same would almost certainly apply to Russia too. Put 25 country or regional managers working in Russia together in a room to talk about business in emerging or developed markets and sooner or later the conversation
A report from the Economist Intelligence Unit
Sponsored by
1
Contents
Russian human resources today The best in the world? Educated and cultured Quality is deteriorating at the margins Which are the difficult positions to full?
3 3 3 4 6
Salaries – what do you pay? The role of pay in staff motivation Competition for talent forcing pay rises The battle with HQ The dollar peg: weak US dollar – what currency to pay in? Defending against the lure of Russian companies The era of 100% pay rises to keep staff?
7 7 7 9 10 10 12
Managing staff turnover and retention Is retention getting tougher? The changing role of expatriates Russians vs. expats The Russian repatriate
13 13 15 15 16
The challenge of Russia’s legal environment
17
Leadership issues Russian zeal can be disruptive Women outperform men
19 19 19
Company profiles Baker & McKenzie Ernst & Young Neumann International 22 23 24
Corporate Network 2007
www.eiu.com
© The Economist Intelligence Unit Limited 2007
2
Human resources in Russia:
The greatest opportunity, the greatest challenge
By Daniel Thorniley Senior Vice President, Economist Intelligence Unit
The “war for talent” is a cliché, but an accurate one. In nearly all major emerging markets (Russia, China and India among many others), management of human resources is the critical operational business issue today: finding staff, retaining staff, and paying staff are major HR problems facing companies operating in these markets today. In recent EIU surveys of business in China and India, HR issues rated as three of the top six challenges facing western multinational corporations (MNCs) in these markets—and the same would almost certainly apply to Russia too. Put 25 country or regional managers working in Russia together in a room to talk about business in emerging or developed markets and sooner or later the conversation