Salaries rise 15% in Russia in 2006

Russians have enjoyed salary increases averaging 15% in 2006, according to salary surveys. HR professionals have posted the biggest increases, but accountants, finance professionals and salespeople are all doing well.

The absolute leaders in terms of pay rises in Russia's labour-market have been those in charge of hiring. Human resources specialists saw their salaries go up by 18% in 2006. Accountants and financiers come second with their pay standings 17% higher than the year before. Salespeople take third place with a similar figure. Engineers and logistics specialists who led in 2005 are now the also-rans.

HR specialists have maintained their leading role for the past three years. Analysts say the greater the demand for a profession, the more expensive it becomes.

“Now the companies understand they need to invest in HR, just as they need to invest in management, reporting, finance, legal, and other support functions,” comments Yulia Kullanda, HR services director, PWC. “This has significantly increased the role and weight of HR functions. HR directors in the majority of countries in the Russian Federation are now on the management boards. They are now expected to understand business and to serve as business partners to executives.”

Demand for financiers and accountants rose by 80% last year. Some analysts explain the demand for these professions by companies luring employees from competitors. The high expectations of university graduates are another reason.

Often, however, it is not a matter of professions in high demand but the abilities of key persons to solve a company’s problems. And that is leading to the growth of payment linked to performance along with long-term compensation and pensions designed to ensure that once a company finds good people, the talent stays.