RETENTION ISSUES IN

RUSSIA

Ankita Shrivastava
Anncie Aishwarya
Spoorthy Bhanu
 Presentation Agenda
 Russia – An overview
 HR Scenario
 Challenges
 Recommendations
 Conclusion

Image source : www.jbvic.com/

Russia – An overview
 Largest country
 73% in urban areas and 27% in rural areas
 Literacy rate: 99.4%(more graduates than Europe)
 In 2008, Moscow ranked top on the list of most
expensive cities for the third year in a row.
 Major MNC’s located in Moscow contributing to
large share of Russia’s profit.
HR SCENARIO
• Skill sets of Russian employees unmatched. 
• Money counts
• Russian Staffs are being bought at 25-100% higher
than normal rates ( After 2004 )
• Women better than men. Men – too ambitious.
• Live for the moment attitude.
• Luxury market for expatriates

Source: http://www.neumann-inter.com/reports-media/reports/human-resources-in-russia/
 HOFSTEDES…
DETAILS US RUSSIA

POWER DISTANCE 40 89

UNCERTANITY 46 87
AVOIDANCE

INDIVIDUALISM 91 40

MASCULINITY 62 50

Sources: Elenkov (1997) and Hofstede (1980)

Challenges
 Extremely Employee Friendly Labour Code..
 Inflation rates
 Prevailing illegal jobs
 Trust and Communication issues
 Over ambitious attitude

Source: http://www.neumann-inter.com/reports-media/reports/human-resources-in-russia/
Source : http://www.mercer.com/referencecontent.htm?idContent=1306530
 Recommendations
 Establish basic HR strategy.
 Employ more expatriates.
 Mentoring and training top executives
 Establish meaningful salary bands.
 Organizational culture and management style –
caring of employees.
 Enhance the job title of Executives. ( Hezerberg )
 Be prepared to deal with high turnover.
Source : http://www.mercer.com/referencecontent.htm?idContent=1306530