1. 10 v Tuesday, April 24, 2012 M T C O N F E R E N C E S The Moscow Times
TOP 10 HR TRENDS 2012
Hiring Foreign Employees in 2013 — Changes to Quota Application Procedure
Service, Federal Migration Service, Eco- Online filing should save employers verifying whether the application has been mission may reduce all or part of an em-
nomic Development Ministry, Regional considerable time. The system provides completed correctly and an employer will ployer’s application on a number of
Development Ministry and Foreign Min- assistance (including codes for profes- be allowed to revise the application before grounds. Firstly, the ability to meet re-
istry). sions, economic activities, states of origin it is sent to the authority. quirements for workers using regional la-
From the beginning of 2012, the quota of foreign employees, etc.), the ability to The end result of all of the above is the bor resources, including by training or re-
procedure has been revised as follows: contact the relevant authority and system final application, which must be saved, training unemployed citizens, or hiring
• printed quota application forms for all developers if any questions arise and has printed, signed by the employer, stamped workers from other regions. Secondly,
regions are now generated only through a generally user-friendly interface. with the company’s seal, and submit- should the employer have outstanding vi-
the Health and Social Development Minis- Making an application through ADC Mi- ted to the relevant authority. The authority olations of the relevant procedure for hir-
try website (www.migrakvota.gov.ru); gration Quotas does not exempt an em- has the right to demand a letter substan- ing and use of foreign employees commit-
• if an organization has branches or ployer from the need to submit a pa- tiating the need to hire the number of for- ted with respect to quotas in previous or
separate divisions in several regions, it per application to the relevant author- eign workers requested in the application the current year. Outstanding unpaid sala-
must register and generate a quota appli- ity. Two copies of the application should and the address(es) where the employees ries is also a material factor, as well as la-
cation form in each region separately; be printed directly from the system and will reside. bor law violations found by the state labor
• information in respect of the re- duly certified (see information on certifi- The application process can be tracked inspectorate.
gional authorities responsible for quo- cation process below). The only inconve- at any time through the user’s account by Should an employer disagree with the
tas, including the name of the relevant au- nience with filing the hard copy of the ap- clicking on “Application Status.” Informa- interdepartmental commission’s decision,
thority, telephone numbers, and names plication printed using the ADC Migration tion on the status of any application gen- the employer may appeal the decision in
By Anna Sviridova of officials can now be found at www.mi- Quota system is that it must be filed with erated in the system received from the rel- accordance with the procedure provided
Associate grakvota.gov.ru; an extract from the Unified State Register evant authority will be displayed next to under the law of the Russian Federation.
Salans • previous applications can now be of Legal Entities or the Unified State Reg- such application. The application status After the relevant session of the interde-
used to generate new quota applications; ister of Individual Entrepreneurs, and ob- will change as it is processed, as follows: partmental commission, the relevant au-
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n January 2012, applications opened • title sub-descriptions (e.g., deputy, taining the extract can take several days. “confirmation of signed original,” “under thority must notify the employer of the re-
for quotas to hire foreign employ- vice, etc.) can now be used in quota ap- The extract must have been issued no ear- consideration by interdepartmental com- sults of its application. If the applica-
ees in 2013. In 2010, a Health and So- plications; lier than June 2011. mission,” “rejected by interdepartmental tion is approved, such notification should
cial Development Ministry decree intro- • application progress can be tracked; To begin using the system, an em- commission,” etc. The last stage for filing be given within a month, while if it is par-
duced a computerized system for pro- • quota applications for the current ployer must firstly register using the rele- using the system is the forwarding of the tially or entirely rejected, such notification
cessing regional proposals for determin- year can be adjusted downward (provided vant form. Registration is done once and application for consideration by the rele- should be given within 10 days.
ing foreign worker requirements. This sys- that the quota previously applied for is not the information entered is automatically vant authority. In accordance with Federal Law No 115-
tem underwent regional testing for two used in the current year); and used when generating applications. Af- An employer’s application will be con- FZ on the Legal Status of Foreign Citizens
years and has been revised. As of Jan. 1, • the quota adjustment has been re- ter registration is successfully completed, sidered by an interdepartmental commis- in the Russian Federation of dated July
2012, a new version has been put into op- vised. Now, in order to change the title, the system will automatically generate a sion to determine whether an employer 25, 2002, the Russian government has
eration nationwide. The system is called citizenship or number of positions for for- user name and password on the following has committed migration offenses, paid the right to set annual limits on foreign
Automatic Data Complex Migration Quo- eign citizens in a quota, in addition to an terms, which should be retained by the its salaries, etc. An application is ap- workers in various sectors of the economy
tas (“ADC Migration Quotas”). application showing the changed posi- employer: proved by the regional interdepartmental for economic agents operating in one or
Details of the system can be accessed tions, an application to reduce the quota “user name” — INN (taxpayer identifica- commission and included in the regional more regions, or nationwide.
at www.migrakvota.gov.ru. Its intention is by the respective number of positions tion number) proposal forwarded to the Health and So- Once an employer’s jobs have been
to simplify the procedure for employers must also be filed. “password” — generated by the system cial Development Ministry. included in the information on jobs for
filing applications to hire foreign workers The use of ADC Migration Quotas is free The next stage of using the system is Any organization planning to hire for- which foreign workers will be hired in the
with regional authorities. of charge for employers. Employers can generating an application form to hire for- eign workers from countries with visa or current year (usually one month after the
ADC Migration Quotas has three types file applications without leaving the office, eign workers in the next year, or an appli- visa-free entry in 2013 must apply for a application is filed with the authority), the
of users: employers, regional executive or they can visit the authority if they do cation to revise the quota for the current quota by May 1, 2012. Applications to re- employer may file the documents required
authorities and federal executive author- not have Internet access (many regions year. The region where the foreign em- vise 2012 quotas are accepted in addition to obtain a work permit for the foreign
ities (the Health and Social Development have fully equipped offices for filing ap- ployees are to be hired must be submit- to the main application for 2013. worker with the territorial authority of the
Ministry, Federal Labor and Employment plications). ted. The system provides a function for The regional interdepartmental com- Federal Migration Service.
Russian Companies’ Secret Weapon: Taking the Next Step in Boosting Performance
in doing their jobs (vs. 85 percent in HPC, companies do. What do they do differently?
a 13-point gap); 61 percent of employees Eighty-two percent of the world’s most suc-
working in Russia (vs. 76 percent HPC) say cessful companies reinforce their reward
that they are motivated to put in additional strategy in communications with their em-
effort and to go the extra mile to achieve ployees on compensation policies; provide
success; while only 49 percent think that reward philosophy and total reward state-
their companies actually motivate them to ments. These companies’ employees know
do so (vs. 65 percent in HP companies). what they are paid for and why.
In other words employees admit that they Only 41 percent of Russian employees
have capacity to do more for their employ- see the link between their performance and
ers, but companies do not motivate them to pay, and 33 percent of employees in Rus-
run this extra mile. sia do not think that their good performance
The World’s Most Admired companies will be rewarded.
(WMAC) continue to focus on engage- “Our people are our greatest asset” may
ment even in tough times. Why? Engage- sound like a platitude, but for WMAC it is
ment drives growth. But engagement is only core to their success. They consistently
a part of the story. The missing piece is “en- work hard to ensure the right talent is in
ablement” — removing the barriers to per- place, by attracting, developing and retain-
By Anna Vyalova By Elena Kiyushina By Ella Shatova formance so engagement translates into re- ing best people.
Senior Consultant Consultant Consultant sults. In Russia, less than half of employ-
Hay Group Russia Hay Group Russia Hay Group Russia How to raise engagement and enable- ees (44 percent) believe that their compa-
ment of Russian employees, i.e. to do more nies are able to retain their best talents. The
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ursuing new opportunities created by ployees’ performance? survey results of top global companies that with the same resource? negative difference in number of employees
turbulent times in the global econ- Hay Group has been running employee have achieved outstanding ROA, ROI, ROE The research from Hay Group suggests who would like to stay in the company more
omy, Russian companies make am- effectiveness surveys in Russia since 2005 relative to industry peers and also have that regular communication and clarity on than five years in Russia vs. HPC is 13 per-
bitious goals for themselves: continuous and for 35 years globally in diverse indus- above average employee engagement and what is expected from employees and how cent. Employee retention is therefore now
growth, becoming a market leader, per- tries. Aggregated data for 2006 to 2010 enablement scores. The norm includes re- the job they do is related to larger goals is more important than ever.
formance and efficiency improvement, ex- highlights that Russian employees (the sponses from 1.1 million employees), while critical. So, how do you make the current staff
panding up to global presence. One of the norm is based on data collected from over they are almost equal on enablement (70 In 2012, the World’s Most Admired Com- more effective? Quite simply: Combine
key success factors to realize these ambi- 40 companies in a wide variety of industries percent/69.5 percent). panies did a much better job in business managing pay levels and headcounts with
tions is to find out how to get more from the and includes data from about 42,000 em- So, why do we have this gap? One of the strategy communication throughout all lev- managing the return on investment. Effec-
current resources. ployees who work in Russia in these com- reasons is that top managers in Russia still els of organization than their peer group. In tive performance management delivered by
According to a McKinsey study, labor ef- panies) are less engaged (66 percent/75 underestimate the “intangible assets” that Russia, the gap between desired and exist- line managers, focus on clarity and com-
ficiency in Russia in 2009 was just 26 per- percent) than employees of high perform- their work force possesses. ing level of clarity employees is 20 percent! munication around pay, strategy and per-
cent compared with the U.S. So, where are ing companies (the HPC norm is a “stretch” For example, 72 percent of Russian em- Talking about pay is not less important. formance and the right people for the right
the hidden triggers to improve Russian em- benchmark that comprises the employee ployees believe they give their best efforts But pay does not equal motivation. Our roles are becoming the most important
studies show that world leading companies pieces of the employee effectiveness puz-
The MT Conferences section did not involve the reporting or the editorial staff of The Moscow Times. do not pay their employees more than other zle in Russia.

2. Tuesday, April 24, 2012 M T C O N F E R E N C E S The Moscow Times v 11
Investing in the Science of People
multibillion-dollar business, recruiting be prescriptive or too academic, these While all the above are prerequisites talent to drive change. Good talent man-
and retaining the right people with the are some of the tools and processes we for success, companies must ensure the agement can help slowly shift a compa-
right skills to meet the needs of an or- believe make difference: right culture is underpinning their sys- ny’s dominant logic from yesterday’s to
ganization has to be a science. At Pep- • Projecting future talent demand tems. These might come across as sim- tomorrow’s needs.
siCo, talent management is deeply em- through detailed modeling. Driven by in- ple and fairly straightforward statements • Balancing the short and the long
bedded in the way we do and understand puts from the different business strate- but, at the same time, they are the most term. Great talent management requires
business. gic plans, multi-scenario outputs reveal powerful component of the talent man- not only addressing immediate short-
All great strategies come from defining quantity and quality gaps and help in- agement success formula and quite of- ages but also taking a long-term per-
the right answers for the right questions, crease transparency for talent manage- ten the missing link leading to failure: spective. Five• to 10-year development
and talent management is not any dif- ment resources globally. • An art but also a science. Talent plans are a powerful base for critical tal-
ferent. Any successful business should • Talent segmentations and develop- management must be handled much ent.
be constantly assessing: What should ment prioritization. Ensures we custom- more as a science not just an art. At PepsiCo, we believe an integrated
be the key talent and capability priori- ize the right solutions for enterprise high • A collective sense of ownership. Tal- and advanced talent management sys-
ties for the greatest business value? How value, continuity and opportunity talent. ent management must be owned by ev- tem is a definitive competitive advan-
should we define and assess talent and • Role classification. Segments cor- eryone, driven by the CEO, but owned by tage. In the battle to attract and retain
potential within the company? How can porate functions versus operational roles everyone. top talent in Russia, PepsiCo has some
we drive performance, engagement and and prioritizes among critical, develop- • Courageous leadership and bold real unique attributes compared to West-
commitment to the organization? How mental and other roles. Comparing tal- moves. Talent management requires ern or Russian rivals. At the end of the
By Sergio Ezama can we effectively attract critical talent ent and roles might highlight relevant op- courage, makes people move before it is day, the marriage of the most advanced
East Europe Human Resources Senior groups? portunities. too late and does not rely only on home- talent management systems and tools
Vice President Realizing there is no such thing as • Talent playbook. Establishes harmo- grown talent. and a fascinating business is the most
PepsiCo, Europe a single silver bullet, we believe there nious boundaries (guardrails, tools us- • Embracing diversity. When manag- powerful of the combinations. Thanks to
are integrated talent management sys- age and consistent criteria) and develop- ing and developing talent, pay particular the acquisition of Wimm-Bill-Dann, we
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n our personal lives, whether it is our tems that can effectively support busi- ment expectations for enterprise talent. attention to leveraging and integrating are by far Russia’s largest food and bev-
friends or spouse or kids, we all know ness leaders to further develop their tal- • Succession and people planning. diversity in a broad sense (race, gender, erage player, offering Russia’s top young
that relationships are an art. Some ent agenda. At the same time, it can cre- Provides a centralized process to intro- generation, thinking, background, expe- talent a virtually unlimited horizon of op-
people are better at it than others, and ate a common language and architecture duce global transparency and eliminate rience, capability, culture, etc.) portunities across different categories,
we all have good and bad days. But in a for the entire business. Without trying to unnecessary duplicity in planning. — Leveraging the full potential of your countries and functions.
Mediation of Employment Disputes in Russia
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s of January 2011, when the new already been much criticized. However, tial, it allows both parties to save face and parties may select one or more mediators.
law on mediation came into force, mediation is attractive for businesses, even remain partners. Current practice in Almost anyone (with rare exceptions) may
employment disputes in Russia, courts and even legal advisers, so it is ex- the West and in Russia suggests that the act as a non-professional mediator.
as well as commercial and family law dis- pected soon to become a reliable, work- parties reach a resolution in the major- Mediation can be used at any time be-
putes, can be resolved using mediators. able tool. ity of cases where both parties are willing fore a dispute reaches court and even
Mediation is an out-of-court dispute Mediation differs from traditional litiga- to initiate mediation to resolve a dispute. once the court proceedings are initiated.
resolution tool and is popular in many tion dramatically. It is an alternative dis- Because the process is voluntary and the Importantly, court proceedings will be
countries outside Russia, including Aus- pute resolution method where the parties agreement reached is mutually accept- suspended to allow mediation, but only if
tralia, the United States and Britain. This in conflict find an amicable solution as- able, execution of the mediation agree- a professional mediator is used.
is because it facilitates effective, afford- sisted by an independent, unbiased me- ment normally is not an issue; however, Generally, mediation should not take
able, flexible and quick solutions, espe- diator. The principal difference is that the the law is silent as to how it could be en- more than two months, but in exceptional
cially essential in sensitive employment mediator is not a judge; he issues no rul- forced if the need arises. This is an impor- cases this can extend to six months.
disputes. ing. The decision involves the parties tant uncertainty, which holds mediation We recommend including a mediation
Mediation has existed in Russia for themselves arriving at a mutually accept- back in Russia. clause in employment agreements with
years but was never previously legally able solution. The mediation process is Another key issue is that the mediation all employees. Such a provision would re-
regulated. Mediators, including profes- voluntary, and the parties are free to with- process is fully confidential, which is very quire the parties to go through media-
sional ones, assisted in resolving many draw at any time. The mediator’s role is important for sensitive disputes, such as tion before they file a court case. This will
commercial disputes. However, mediation not to judge or comment on the parties’ with key managers, where commercial se- not fully eliminate the risk of litigation or
By Julia Borozdna was almost never used for resolving em- legal positions but to help them to identify crets and other sensitive information are of complaints being filed with the labor in-
Head of Employment and ployment disputes. their interests and to compromise, ideally involved. Because court proceedings are spectorates or the prosecutor’s office be-
Migration Law Practice The new law on mediation is a great finding a win-win solution. The final stage public and decisions are published, stan- cause the mediation process can be re-
Pepeliaev Group Law Firm achievement, although further steps will of successful mediation is executing a dard litigation could damage a company’s jected at any time. However, the chances
be required to make it work properly and mediation agreement outlining the solu- reputation. of avoiding litigation — the main aim, af-
become popular. The current version of tion the parties have found. Under the law, a mediator can be pro- ter all — are much higher if the mediation
the law is far from being perfect and has Because this process is fully confiden- fessional or non-professional, and the clause is included from the outset.
Building the Team of the Future: Do Employees Need a Purpose to Work For?
ern-day employees willing to work for a money. In addition, women care about the cialists under the age of 25 show the larg- than half of the respondents believe that
purpose and be purpose-driven? Or is purpose they work for more than men do: est number of purpose-motivated em- the companies they work for do not care
that left in the Soviet past, and nowadays Women find more enjoyment in their work ployees: young people are easier to get about purpose-driven motivation at all. To
is money the only motivation for employ- and concentrate less on well-being. involved, and they are ready to lower their make the purpose-driven motivation pro-
ees to go to work? In March 2012, we car- Different regions of Russia also evi- salary expectations in order to gain ex- gram effective, managers should prove it
ried out a federal study that revealed that dence an interesting trend: the North- perience and be engaged in challenging with their own examples, and also choose
modern-day employees feel zest for work, Western Federal District turns out to be projects. appropriate motivation tools. The ma-
but they want fair compensation for the the most “money-oriented” since it is the For sure, modern business wants these jor factor that encourages employees to
work they do. region that has the largest number of em- people: They are committed to their job work for a purpose is formed by challeng-
To begin with, we should specify what ployees who are not willing to work for a and to the company, they are self-moti- ing goals and projects which are particu-
employees mean by “work for a purpose.” larly required to “drive enthusiasm” of Y-
More than a half of the respondents de- generation employees: They do need an
fine it as love for their job; for 20 per- Competent management may control and raise “idea-driven” team as well as a creative
cent it means putting more effort in at- and pleasant working environment. Mid-
taining better job performance, for 7 per- efficiency, and idea-driven motivation may dle-aged people note that they are highly
cent it is love for the company. While only become a real lifesaver for a company. motivated by a good salary: It is not until
8 percent consider it to be irrational fa- they are well-paid that they are willing to
naticism, and just as little as 6 percent work for a purpose.
By Natalia Fridrikova define it as a low-paid job. The respon- purpose at all. Surprisingly, most of the vated and deeply involved in the process. In order to build an “idea-driven” team,
General Manager dents dispel the myth that work for a pur- employees who are purpose-motivated But they need continuous encourage- it is very important to identify such em-
Beagle Recruitment Company pose is an equivalent to a low-paid job: It and, at the same time, low-paid, reside in ment, and this responsibility falls on both ployees as early as at the stage of recruit-
turns out that good compensation does the Central Federal District, while the ma- HR department and the general manager ment and competently “sell” a company
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urrently HR professionals in many not discourage enthusiastic approach to jority of employees who are both purpose- along with the immediate supervisor, who and its ideas to a would-be employee.
companies face the challenge of job performance, and it is true for most motivated and well-paid live in Tatarstan. create a team environment. According to Obviously, when having and develop-
improving employee efficiency, cases. 60 percent admit that they work for Besides the geographical factors the employees, it is a line manager who en- ing idea-driven employees in the team,
and one of the recent trends is enhanc- a purpose, yet they are paid a good sal- employees’ age also affects their will- courages most of them. one should keep in mind the related risks
ing employee commitment not only to re- ary. 22 percent are motivated by finan- ingness to work for a purpose. In spite The least contribution of HR special- — ideas change, for example, and it may
sults but to the process as well. We all cial compensation and do not care about of “ideological tempering” of the So- ists to this motivation process is seen by be difficult for an idea-driven person to
know that professionals who are passion- commitment to purpose: They work just viet times, the 40 to 50 years age group employees in Tatarstan and the Central adopt new ones. But competent manage-
ate about their work generate the high- for money. And only 18 percent work for has the lowest number of purpose-moti- Federal District, while the most is in the ment may control and raise efficiency, and
est profit for a company since they are en- a purpose while their salary is low, thus vated employees: apparently, having lived Northwest Federal District. And there em- idea-driven motivation may become a real
gaged in corporate life and do care about supporting the fact that nowadays a pur- through perestroika few people still be- ployees feel the lowest purpose-driven lifesaver for a company during tough eco-
their performance results. But are mod- pose may be still more precious than lieve in such ephemeral things. And spe- motivation. It is interesting that more nomic times.