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Reasons of Low Labor Productibity in Russia, with Comparison with Western Countries

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Reasons of Low Labor Productibity in Russia, with Comparison with Western Countries
Labor productivity is influenced by a number of factors. It is possible to call, at least, four key:

1) Outsourcing level

2) Equipment and production technologies

3) Extent of automation of production

4) The work organization (here it is possible to includу, qualification and skills of the personnel)

The first three factors significantly differ for the Russian and western enterprises.

Outsourcing level in the western companies is very high. There it is accepted to give everything on outsourcing that only it is possible: transport, repair, service and set of other "auxiliary" functions. While this practice is significantly less widespread in Russia owing to a number of circumstances (the general backwardness of this approach, sharp rise in price of services in case of their removal on outsourcing, decrease in quality of provided services, etc.). qualification and skills of the personnel)

The western enterprises are often aimed at continuous updating of the equipment and use of the latest production technologies that is impossible tell about the Russian. Examples of how our production workers in the most different branches manage are known to work at the equipment, to which, for example, more than hundred years. The same concerns also automation: in the west automation of production it is traditionally paid much attention, considerable means, and as a whole automation level are spent for statement of the automated systems significantly exceeds Russian.

The understanding of these traditional distinctions between the western and Russian enterprises strongly complicates opportunity to compare labor productivity. However if to counterbalance these factors (to choose the enterprises with identical level of outsourcing and the automation, using the similar equipment and the production technology), the enterprises quite can be comparable among themselves. That is we will be able to compare labor productivity of the Russian and western companies

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