Recruitment in Russia and the demand for native candidates

Modern Russia recently spoke to Alexey Shteingardt Managing Director of Hays Russia, a part of Hays plc- a leading global professional recruiting group, about recruitment in Russia, the country’s recovery, and why it’s an exciting time to be working there.

How has the job market and recruitment in Russia evolved in recent years?

The economy is now back on track following the impact of the 2008 financial crisis, with growth expected to average more than four percent this year. However, the country still faces considerable challenges, including corruption, a declining population, and an overreliance on natural resources for growth. From a recruiter’s perspective, this means that specialist knowledge of this geographically vast and culturally complex country is essential. With a rapidly evolving recruitment industry estimated to be worth $400 million, Russia has seen high demand for both native and international job candidates.

Natural resources firms, many of them government–owned, have been responsible for much of the growth in Russia. Hays’ research into salaries in this sector indicates that the average annual pay for native Russian oil and gas workers is $59,100, while imported talent earns $138,200. However, while natural resources have created wealth, Russian leaders have committed to modernizing the economy, improving economic diversity, and reducing dependence on oil revenues.

Russia already supports many more industries than oil and gas, and growing numbers of multinational firms are also beginning to see the opportunities.

How has the growth in foreign firms contributed to demand for native talent?     

The Russian recruitment market was overheated in terms of client demand, particularly in 2008, due to scarce supplies of candidates. Unlike the 1990s, today there is a desire to employ managers who can speak Russian. But now even foreigners who speak fluent Russian will be competing for jobs with native Russians, which wouldn’t have been the case 20 years ago. We have a situation of candidate dominance – each job finalist has at least one other offer to consider and many of them have up to three. One offer is often from their current employer.

In terms of market characteristics, how does recruitment in Russia compare to other regions?

Technology is of growing importance here. Last year, the Russian Federation overtook Germany in having the highest number of Internet users in Europe, according to comScore. As a result, social media has become ever more important for recruiters.

However, when it comes to doing business, a more old-fashioned approach remains prevalent. Established relationships are important. Personal relationships may not matter as much in Russia as they do in parts of the Middle East and Asia, but it’s true that things aren’t as formal as in Europe. There is a difference in attitude and behavior between Western or Westernized companies, Russian ones and state-owned ones.

You mentioned the declining population. What are your views on warnings that the Russian economy risks brain drain with talented young Russian pursuing opportunities elsewhere?

I believe that many young people want to stay in their native land because they are aware of the power they yield. Russia is not an EU country, so it’s not easy for Russian nationals to emigrate. Plus, bright graduates realize that it’s much easier to find a job here as Russian graduates are in demand. All the major companies and global brands have a presence here today and they have brought best practice with them. It’s a very exciting time to be working in Russia.

Hays currently plans to expand into other parts of Russia. How do you see the recruitment market in Moscow comparing with recruitment in Russia as a whole?

Hays’ Moscow office opened in 2009 and now has 74 staff. It continues to rapidly increase its areas of expertise and has ambitious plans for expansion in Russia. Following the success of the Moscow office, we now plan to open offices in St. Petersburg and other major Russian cities.
Moscow, though, is not Russia – it has lots of wealth and good infrastructure. Other parts of Russia pose different challenges, but we have to change the recruitment landscape and also shape ourselves accordingly so we cover whichever local market we are in.