Labour Remuneration in St Petersburg what employers offer

Labour Remuneration in St. Petersburg: what employers offer Anna Egorova, Head of Labour Market Research Department St. Petersburg, May 2008

AVANTA Personnel is established in 2007 by high professionals with more than 15 years experience in the market of human resources services and solid reputation. We carry business in 9 regions of Russia, our staff is over 300 employees. By 2010 we plan to occupy the leader’s position in HR services market by the high quality of services, size of business and geography of business. Our Services: ь Management and Specialists Permanent Recruitment (middle and top level) ь Staff Leasing ь Temporary Staffing ь Large Scale Projects ь Outstaffing ь Labor Market Researches (Compensation Surveys) ь Assessment Services and HR Consulting St. Petersburg, May 2008 2

Compensation Surveys We conduct : ü Regular salary & compensation surveys in following regions: ü Customized salary & compensation surveys for the definite market niche upon the client’s request ü Other investigations: labour market situation analysis, motivation surveys, etc. St. Petersburg, May 2008 3

Salary and Compensation Survey in St. Petersburg Salary and Compensations Survey for many years serves the source of trusted information for the companies working on St. Petersburg market. Recent Salary and Compensations Survey - March 2008*: ü analyzed data received directly from 92 international and Russian companies ü includes data on HR-policies of over 43 500 employees ü investigates Salaries of over 27 400 employees Brief characteristics of the companies participated in the Survey: ü Investments: § § § ü 49% foreign companies 40% Russian companies and 11 % joint ventures Activity: § § § 71% are manufacturing companies 54% have Sales Departments 18 % provides Services ü Products: § § 40% - FMCG 54% - Industrial goods & services 18 % - Software Development 2% - other * this presentation contains only short extracts from the Survey. To know more about the detailed report please follow the link: http: //www. avantapersonnel. ru/news/obzor_zp_spb_08/ St. Petersburg, May 2008 4

Employers & Employees: Offers & Expectations ь1 competitive salary ь2 flexible & clear bonus systems ь3 compensations & benefits ь4 training programs & career planning ь5 incentive programs St. Petersburg, May 2008 5

Competitive Salary ь «white» salary, night work/ overtime compensation according to Labour Code - 92% companies ь regular salary review based on inflation rate – 54% companies ь regular salary review based on personal achievements, appraisal, company results – 93% companies 2007 95% companies increased salaries average salary increase came to 12 -13%, maximum – 30% factors influenced on the increase: 2008 91% companies plans to increase salaries average planning salary increase comes to 10 -12%, maximum – 30% St. Petersburg, May 2008 6

Bonuses & Sales Commissions Bonuses: ь 66% of participants pay performance-based bonus (company performance, department performance, personal performance) average amount of bonus is 12 -20% of annual base salary depending on position level ь 37% pay guaranteed bonuses (once/ twice a year, monthly, etc. ) – foreign companies average amount of bonus is 7 -11% of annual base salary depending on position level – for Russian companies average amount of bonus is 12 -18% of annual base salary depending on position level ь 47% pay anniversary bonuses Sales commissions: in average amounts 40 -50% from base salary St. Petersburg, May 2008 7

Compensations & Benefits The most common benefits: ü medical insurance for employees – 78% companies: Insurance can cover: - out-patient treatment - inpatient treatment - dental service - pregnancy management average annual cost of medical insurance per employee RUR 14 803 ü lunch benefits - 73% companies: - lunches in own cafeteria - compensation in cash average daily compensation for lunch is RUR 107 Depending on the position: ü Corporate vehicle: - for top-managers - in 57% of companies - for managers – 29% - for sales personnel – 20 -35% ü > 90% companies compensate cellular phone expenses average monthly compensation amounts from RUR 380 to 3150 depending on position ü > 80% covers business trips expenses (daily allowance) over the standards of Russian legislation ü 95% provide different training programs for employees St. Petersburg, May 2008 8

Compensations & Benefits Other benefits: St. Petersburg, May 2008 9

Some examples Average monthly cash = base salary + actual bonuses St. Petersburg, May 2008 10

Training programs & Career development In general: ü coaching at job - 83% companies ü internal programs of professional improvement – 58% companies For specialists/ supervisors: ü Short-term (1 -7 days) seminars on professional qualification improvement conducted by external providers – 58% companies ü Long-term (1 -12 months) courses of professional education and qualification improvement conducted by external providers – 50% companies ü Higher education For managers/ top-managers: ü Advanced education programs in management (MBA, CIMA, etc. ) – 27% companies ü Advanced professional education programs (ACCA, etc. ) – 26% companies St. Petersburg, May 2008 11

Incentive programs Basic Level: ь Corporate monthly, quarterly, semi-annual and annual contest on the appointment to a title “The Best” in various nominations with or without the Prize Pool ь Placing the employee’s photo on the board of honor or mentioning the employee in corporate newspaper with his/her photo ь Awarding employees with souvenirs with logos and corporate identities, presentation with corporate pins etc. For specialists/ supervisors: ь interesting professional tasks, perspectives ь career planning – in 40% companies, enrolling the employee into personnel reserve ь well–known name of the company, good reputation of the employer etc. For managers/ top-managers: ь interesting professional tasks ь long-term perspectives in career development ь freedom of choice, decision making ь stability and positive dynamics of the business ь well–known name of the company, good reputation of the employer , etc. St. Petersburg, May 2008 12