Published: 10 September, 2007, 13:44
Edited: 10 September, 2007, 13:44
A fast-emerging breed of New Russians is evident in post-Soviet society. Not the brash, gold-dripping hallmarks from the rough-and-tumble, free-wheeling advent of reform. The butt of 1990s jokes are less evident now. The new New Russians are more sober fi
Advisors in the recruitment agency business are following, steering even, the paths of young Russian executives setting standards, reaching new top-job heights in pay and conditions packages. Surveys of what these drivers earn are now as much a part of the human resources sector here as in mature markets.
Studies record Russian staff of international firms winning terms that reflect powering economic growth. Compensation, in corporate-speak, from global players in the European Union, the United States, Japan. Personnel practice is under scrutiny like never before. Plotting pay trends that keep competing organisations in line with their rivals – better ahead as top talent moves around.
Researchers from international employment agencies and Russian equivalents, chambers of commerce too, are analysing data on jobs from boardroom to switchboard at selected foreign firms, alongside Russian organisations in the energy sector, banking and financial services.
The spotlight’s been principally on trends in Moscow and St. Petersburg. But the long-term look is eastward – to Ekaterinburg in the Urals, to Novosibirsk, the transport hub of western Siberia, to Sakhalin island neighbouring Japan, when untapped oil reserves await in massive quantities. These are new locations where big-money earners will be heading.
Surveys show Russian staff attracting steady gains from foreign enterprises. They confirm evidence that talented personnel unburdened by cosseted expat pay-plusses are in increasing demand. These are pointers to western-trained Russian executives moving into positions of power at global business offices operating here, bringing local knowledge and international experience.
Benefits common in big foreign firms are now established practice for Russia's new domestic winners, as year-on-year comparisons reveal. One survey showed private medical cover as policy in 87% of foreign companies surveyed. Private pensions and savings plans are surging, car purchase loan schemes doubling.
But bosses have increasing hunger for their pound of flesh, basing reward for local staff at higher levels more on performance these days, increasing the ratio of bonus to total take-home pay. They’re paying well above the rates found in offices of Russian companies.
This is a price that thrusting young blood is prepared to pay. Personal, disposable wealth is a priority in today’s Russia as property prices and ambitions soar along with skyscrapers starting to dominate the capital’s landscape and as smart foreign cars drive ageing Russian Zhigulis and Volgas off the busy, fashion-conscious streets.