PricewaterhouseCoopers (PwC) financial sector compensation survey 2007
Since 1999, PwC has conducted an annual specialized survey among financial institutions. In 2007, 80 banks and financial institutions, including largest Russian banks, provided data on more than 24,500 employees. The survey provides analysis of all remuneration components, including base pay, incentives and benefits. Besides, the survey offers a detailed analytical section describing salary policies and practices. In 2007 the study covered 48 cities, apart from Moscow and St. Petersburg.
Results of HR Benchmarking Survey 2007
In recent years, with continuing economic growth Russia has furthered its integration into the global economy, evidenced by the entrance of major international players to different sectors of the Russian market and by the growing influence of major Russian companies abroad. Under these circumstances, evaluating human capital, which is one of a company's principal competitive advantages, and boosting personnel performance becomes a priority not only for HR professionals, but also for a company’s managers and shareholders. These stakeholders have different approaches and face different issues. In order to make HR divisions more efficient, their managers need not only data on the market level of salary and benefits, but also information on such issues as the average costs of personnel recruitment, training and development, and the effectiveness of various processes, from HR administration to personnel appraisal.
Leadership as a Talent and its Development
There is nothing new in programs for key talent. However, companies often apply the following pattern: they select same high potential employees and arrange a several days field workshop for them. The contents of such courses may vary, but they would normally include the leadership theory and team-building. Such programs undoubtedly will bring certain benefits, but it should be noted that leadership development is a chain of sequential actions, including both creation and implementation of training and development programs. Only if all components of the process are ensured, the highest possible result can be achieved. If one of the links in this chain is ignored, the efficiency is reduced.
Foreign Tax Credit — Theory and Practice
The Russian Tax Code provides for the possibility to offset tax paid outside the Russian Federation against personal income tax withheld in Russia.
Tax can be credited only if the country where it is paid has a valid double tax treaty with the Russian Federation. If there is no such treaty, an individual may find himself in a double taxation situation, meaning that two countries might tax the same income. At the moment, the Russian Federation has valid treaties with the majority of its trade partners, and a number of signed treaties will become effective as soon as they are ratified.
HR challenges for employers with secondees working outside the Russian Federation
It is a phenomenon of the modern world that individuals and their employers seek experiences outside their “home” country and Russia is not immune from this. We have seen a growing tendency for Russian businesses to be acquisitive, and increasingly so, outside the Russian Federation. Such Russian household names as Gazprom, Lukoil, Norilsk Nikel have a firm foothold in their respective markets overseas. Alongside this expansion of corporate reach goes the movement of individuals, representing their head office overseas, scouting for new opportunities and swelling the foreign labour forces in newly acquired subsidiaries. However, in addition, a continuing number of Russian employees of foreign multinationals are beginning to seek challenges outside Russia with their foreign employer. In industries as diverse as professional services, confectionary, financial services and electronics we are seeing a significant growth in the number of Russian nationals assigned overseas.
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