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Labor Market and Salary Survey in Russia

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  • 1. OVERVIEW OF LABOR MARKET IN RUSSIA September, 2013
  • 2. Agenda Labor Market in Million Cities Salary Levels in Moscow Recruitment Time
  • 3. LABOR MARKET IN MILLION CITIES
  • 4. 12 Million Cities in Russia
  • 5. Million Cities in Russia 11.51 4.85 1.47 1.35 1.25 1.16 1.15 1.14 1.13 1.09 1.06 1.02 Population in millions (census 2010)
  • 6. Labor Force in Russia 6.8 2.9 4.0 1.0 1.4 2.3 1.8 1.7 1.0 2.1 1.9 2.2 2.0 1.3 Labor force, millions of people
  • 7. Unemployment in Russia 5.5 0.8 1.1 2.9 3.2 5.6 5.8 5.4 3.4 6.9 4.1 6.4 6.0 6.1 6.0 Unemployment rate (%) in 2012
  • 8. Salary Index in Russia (Russia average 100) 100% 197% 125% 121% 100% 85% 94% 78% 78% 82% 86% 84% 72% 75% 70% Russia Moscow Saint Petersburg Moscow oblast Leningrad oblast Novosibirsk oblast Sverdlovsk oblast Nizhny Novgorod oblast Samara oblast Omsk oblast Republic of Tatarstan Chelyabinsk oblast Rostov oblast Republic of Bashkortostan Volgograd oblast
  • 9. Increase of Wage to Previous Year vs. Inflation 2000 - 2012 20,9 19,9 16,2 10,9 10,6 12,6 13,3 17,2 11,5 -3,5 5,2 2,8 8,4 21,0 21,6 15,8 13,7 10,9 12,7 9,7 9,0 14,1 11,7 6,9 8,5 5,1 Increase of Average Monthly Wage to Previous Year (%) Inflation (%)
  • 10. Employer’s Insurance Contributions • The insurance contributions are paid in full at a rate of 30% for an annual income (from the same employer) of up to RUR 512,000 (EUR 11540), after which limit the income is subject to a rate of 10% without any further limitations. • Under the general rule the 30% insurance contributions are divided as follows: • 22% is contributed to the Pension Fund (10% tail exceeding the limit goes here as well); • 2.9% is contributed to the Social Insurance Fund; • 5.1% is contributed to the Compulsory Medical Insurance Federal Fund.
  • 11. Calculation of Insurance Contributions Salary (monthly, EUR) Salary (annual, EUR) Insurance contribution rate (%) Insurance contributions (annual, EUR) 1200 EUR 14400 EUR 30% on 11540 EUR + 10% on 2860 EUR over the limit 3748 EUR 3000 EUR 36000 EUR 30% on 11540 EUR + 10% on 24460 EUR over the limit 5908 EUR 9000 EUR 108000 EUR 30% on 11540 EUR + 10% on 96460 EUR over the limit 13108 EUR
  • 12. Insurance Contributions • In addition, the rates for mandatory work-related accident and health insurance range from 0.2% to 8.5% of the total salary. • Foreign nationals that have received a work permit under the privileged status of a so-called highly qualified specialist are exempt from insurance contributions (except mandatory work-related accident and health insurance).
  • 13. Employer’s Expenses For an office employee in Moscow to receive 5000 EUR net salary, the employer must pay the following: • 5000 / 0.87 (13% income tax) = 5747 EUR gross monthly salary. Annual gross salary 5747 EUR x 12 = 68964 EUR • Annual Insurance contributions (30% on 11540 EUR + 10% on 57424 EUR over the limit) = 9204 EUR . • Mandatory work-related accident and health insurance (0.2% on annual gross salary 68964 EUR) = 138 EUR Total sum: 78306 EUR / year Monthly: 6526 EUR
  • 14. BASIC SALARY LEVELS IN MOSCOW (large international & Russian companies)
  • 15. General Management GENERAL MANAGEMENT Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Head of Representative Office 3500 EUR 11500 EUR General Director 4500 EUR 13500 EUR CEO 5500 EUR 13500 EUR
  • 16. Production, Technology & Engineering PRODUCTION, TECHNOLOGY AND ENGINEERING Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Process Engineer 1000 EUR 2500 EUR Product Developer 1500 EUR 3000 EUR Head of Laboratory 1000 EUR 3500 EUR Chief Technologist 1500 EUR 3500 EUR Quality Manager 2000 EUR 3500 EUR Operations Manager 3500 EUR 4500 EUR Chief Mechnical Engineer 2500 EUR 4500 EUR Head of R&D Department 2500 EUR 4500 EUR Chief Engineer 2000 EUR 5000 EUR Production Manager 2000 EUR 5000 EUR Quality Director 3500 EUR 5500 EUR Plant Manager 4000 EUR 6000 EUR Technical Director 2500 EUR 7000 EUR Managing Director 5500 EUR 9000 EUR
  • 17. Sales B2B SALES (B2B) Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Sales Manager 2500EUR 3500 EUR Regional Sales Manager 2500 EUR 4000 EUR Key Account Manager 2500 EUR 4000 EUR Business Development Manager 3500 EUR 4500 EUR National Sales Manager 3500 EUR 5500 EUR Regional Sales Director 4000 EUR 5500 EUR Sales Director 4500 EUR 8000 EUR Commercial Director 5500 EUR 9000 EUR
  • 18. Marketing MARKETING Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Junior Brand Manager 2000 EUR 2500 EUR Event Manager 1500 EUR 2500 EUR Brand Manager 2500 EUR 3500 EUR PR Manager 2500 EUR 3500 EUR Trade Marketing Manager 3500 EUR 4000 EUR Senior Brand Manager 3500 EUR 4500 EUR Marketing Research Manager 3500 EUR 4500 EUR Group Brand Manager 4000 EUR 5500 EUR PR Director 4500 EUR 5500 EUR Event Director 3500 EUR 5500 EUR Marketing Manager 5500 EUR 7000 EUR Head of Trade Marketing 4500 EUR 7000 EUR Head of Marketing Research 5500 EUR 8000 EUR Marketing Director 8000 EUR 12500 EUR
  • 19. Digital / Online Marketing DIGITAL / ONLINE MARKETING Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Internet Project Manager 2000 EUR 3500 EUR Online Communication Manager 2500 EUR 3500 EUR Social Media Manager 2500 EUR 3500 EUR Head of Internet Projects 3500 EUR 4500 EUR Online Marketing Manager 3500 EUR 4500 EUR Digital Marketing Manager 3500 EUR 5500 EUR E-Commerce Director 5500 EUR 8000 EUR
  • 20. Finance FINANCE Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Credit Controller 1500 EUR 2500 EUR Cost Controller 1500 EUR 2500 EUR IFRS / GAAP Specialist / Accountant 2000 EUR 3000 EUR Management Accountant 2000 EUR 3000 EUR Finance Analyst 2000 EUR 3500 EUR Business Controller 3500 EUR 4500 EUR Finance Controller 2500 EUR 5500 EUR Finance Manager 2500 EUR 5500 EUR Head of Budgeting / Budgeting Manager 3500 EUR 5500 EUR Head of IFRS / GAAP Reporting 3500 EUR 5500 EUR Depyty Finance Director 4500 EUR 7000 EUR CFO / Finance Director 5500 EUR 9000 EUR
  • 21. Accountancy ACCOUNTANCY Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Accountant 1000 EUR 2000 EUR Senior Accountant 1500 EUR 2000 EUR Payroll Accountant 1500 EUR 2000 EUR Deputy Chief Accountant 2500 EUR 4000 EUR Chief Accountant 2500 EUR 5000 EUR Chief Accountant / Financial Manager 2500 EUR 5500 EUR
  • 22. Tax / Audit / Control TAX / AUDIT / CONTROL Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Tax Specialist 1500 EUR 3500 EUR Internal Auditor / Controller 2000 EUR 4500 EUR Tax Manager 3000 EUR 7000 EUR Head of Internal Audit 3500 EUR 7500 EUR
  • 23. Human Resources HUMAN RESOURCES Position Gross Monthly Basic Salary Lower Range Average Higher Range Average HR Specialist 2000 EUR 2500 EUR Compensation & Benefits Specialist 2000 EUR 2500 EUR HR Administration Manager 1500 EUR 2500 EUR Recruitment Manager 2000 EUR 3500 EUR Internal Communications Manager 2500 EUR 3500 EUR Head of HR Administration 2500 EUR 4000 EUR HR Business Partner 3000 EUR 5000 EUR Employer Branding Manager 2500 EUR 5000 EUR Head of Recruitment 3500 EUR 5000 EUR HR Manager 2500 EUR 5500 EUR Compensation & Benefits Manager 3500 EUR 5500 EUR Head of Internal Communications 3500 EUR 5500 EUR Head of Compensation & Benefits 3000 EUR 7000 EUR HR Director 4500 EUR 13500 EUR
  • 24. IT IT Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Service Engineer 1000 EUR 2000 EUR Technical Support Specialist 1000 EUR 2500 EUR Information Security Specialist 2000 EUR 3000 EUR System Administrator 1500 EUR 3000 EUR Telecommunications Project Manager 1500 EUR 3500 EUR Business Analyst 1500 EUR 3500 EUR Pre-Sale Engineer 2000 EUR 3500 EUR Network Engineer 1500 EUR 3500 EUR Programmer 1500 EUR 4000 EUR Developer / Analyst 2000 EUR 4500 EUR Consultant (ERP / CRM) 2000 EUR 4500 EUR IT Architect 2000 EUR 5500 EUR IT Manager 2000 EUR 7000 EUR Project Manager 2000 EUR 7000 EUR IT Director / CIO 2500 EUR 9000 EUR
  • 25. Supply Chain Management SUPPLY CHAIN MANAGEMENT IN HOUSE Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Logistics Specialist 1500 EUR 2000 EUR Planning Specialist 1500EUR 2500 EUR Logistics Manager 2000 EUR 2500 EUR Purchasing Specialist 2000 EUR 2500 EUR Warehouse Manager 2000 EUR 3500 EUR Planning Manager (head) 2500 EUR 4500 EUR Purchasing Manager (head) 2500 EUR 4500 EUR Logistics Director 3500 EUR 7000 EUR Purchasing Director 3500 EUR 7000 EUR
  • 26. Construction and Real Estate CONSTRUCTION AND REAL ESTATE Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Senior Architect 2000 EUR 2500 EUR Leasing Manager 1500 EUR 2500 EUR Electrical Engineer 500 EUR 2500 EUR Mechanical Engineer 500 EUR 2500 EUR Tenant Coordinator 1000 EUR 2500 EUR Chief Engineer 3000 EUR 4000 EUR Facilities Manager 1500 EUR 4000 EUR Head of Leasing 2500 EUR 4500 EUR Expansion Manager 1500 EUR 4500 EUR Head of Construction 2500 EUR 5500 EUR Technical Director 3000 EUR 5500 EUR Project Manager 2000 EUR 7000 EUR Centre Manager 4000 EUR 7000 EUR Development Director 4000 EUR 9000 EUR Real Estate Director 4500 EUR 10000 EUR
  • 27. B2B Sector B2B SECTOR Position Gross Monthly Basic Salary Lower Range Average Higher Range Average Service Engineer 1500 EUR 2500 EUR Service Manager 3500 EUR 5500 EUR
  • 28. RECRUITMENT TIME
  • 29. Recruitment Process of Awara • Analyzing the project carefully to understand the needs • Preparing Ideal Candidate Profile • Screening the labor market (market research) • Contacting & Matching qualifications of possible candidates (direct search) • Interviewing & Assessing potential candidates • Preparing analyses of the strengths and weaknesses of potential candidates and providing the information to client • Assisting in assessing the candidates’ professional skills • Assisting in candidate testing, competencies and personality • Conducting reference and background checks of final candidates • Assisting in negotiating compensation packages and other issues
  • 30. Recruitment Time at Awara • Blue collar workers: 2 – 4 weeks • Middle management and specialists: 2 – 5 weeks • Top management and board members: 3 – 6 weeks The above mentioned time periods are general recruitment times for different level of positions. Actual time of delivery depends on individual requirements and client’s commitment to providing necessary feedback and information.
  • 31. Contacts Awara Direct Search, part of Awara Group Global call center: +7 495 225 3038 E-mail: headhunters@awaragroup.com www.awara-search.com www.awaragroup.com

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