Current HR Issues in Russia General Introduction

1
Current HR Issues in RussiaGeneral Introduction

• Tim Carty
• Chair, HR Committee EBC

2
General Economic Themes

• Buoyant Economy
• Increasing Levels of External Investment
• Upgrading of Russian Business
• Separation of Russia from EU expansion BRIC
  approach
• Focus on Russias Regions
• Inflation and dollar devaluation

3
HR Implications of General Themes

• Increasing demand for skilled employees
• Remuneration Issues
• Career Skills Development Issues
• Recruitment Strategies
• Pressure on Compensation
• Retention
• Whitening

4
Compensation Themes

• More money
• Increased use of deferral as a retention tool
• Increased use of performance related compensation
  to improve efficiency of return
• Greater sophistication in benefits policies in
  general
• More interest in pensions in particular

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Compensation Themes

• But is this
• What is happening nowor
• What is happening next

6
Recruitment Themes

• Competitors (and even non-competitors) will be
  targeting your staff
• On occasion money may not be that big an object
• Some of the basics of attack and defence in these
  areas may be being neglected at precisely the
  time they are most important

7
Recruitment Themes

• The Basics
• Attack What are you (really) trying to achieve
  when you seek to hire in additional staff?
• Defence Why would anyone (really) want to stay
  working for you?

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Skills Development

• Again a back to basics approach could be helpful
• What skills are needed in your organisation?
• What systems do you have for evaluating what your
  shortfalls are?
• What systems do you have for evaluating how well
  your TD programs fill these shortfalls?
• How does this fit in to overall career
  development? (and this is potentially within and
  without your organisation).

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Communication

• You may have a great strategy but its no good to
  anyone if you dont sell it to your staff
  communication is all important
• Everyone knows the grass is greener on the
  other side of the stream
• HR can make a huge difference in the current
  market environment, especially in facilitating
  communication.

10
More Work More Sophistication

• There is now much more for HR to cope with
• Higher employee turnover
• Greater level of unsettled employees
• Greater pressure on compensation budgets
• More types of comp to deal with and no rules
• More recruitment
• More regional focus
• More mobility
• Plus - all that HR compliance still

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The positive message

• HR is increasingly recognised as a strategic
  element of business
• There is better understanding and data available
• Those businesses that ignore it will lose

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Todays Agenda - Compensation

• Benefits Packages
• Pensions
• Setting Compensation
• Breaking down the Compensation Package

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Todays Agenda - Recruitment

• 2004 Russian Labour Market Trends a sellers
  market replaces a buyers market
• Recruiting in Moscow Region
• Graduate Recruitment
• Outstaffing Panacea or a waste of effort?
• Outstaffing Case study of a merchandising
  project

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Todays Agenda Skills Development

• Career Pathing
• HC Cultural Differences
• Education Development
• Organisational Development
• Cultural Differences in Assessment

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Logistics Questions