CRITIQUE OF EXPATRIATE Recruitment

Critique of Expatriate Recruitment

Critique of Expatriate Recruitment

Recruitment of Expatriates has always been one of major differences between Western and Russian companies. The former brought specialists and managers with international training and experience onto Russian soil. The latter considered it to be experimental in nature rather than a real asset to business. But times have changed. With growing maturity of the Russian labor market, we are now bearing witness to tendencies many outside observers might have found improbable a few years ago. Expatriates are recruited vigorously by Russian companies who offer greater, and sometimes, unreasonably higher compensation packages than their western counterparts operating in Russia. Expatriates with an impressive track record on the Russian market are being sought out and coerced into joining Russian companies. But in order to have a clearer picture of what is going on, what the major tendencies are and what to expect in the foreseeable future, let us approach the problem from an analytical standpoint.

First, we must be aware that two ways of recruiting expatriate personnel exist. The first is through an international search, which is typically conducted when local specialists don't possess a sufficient level of required expertise. The second is recruiting expatriates from the labor market within the country of employment. The advantages of the first method are self-evident. The advantages of the second are more diverse in nature .One of the main advantages is that in addition to possessing the necessary qualifications and experience, such candidates are usually conversant with the local specifics and culture, have a clearer motivation for staying within the country and many have a decent command of the language. Plus, they are less costly and problematic in terms of relocation / country adaptation issues. The reason why Russian companies began recruiting expatriates is the very same that propelled Western employers in the past few years - knowledge and experience. With the rising incomes of Russian companies, the difference in compensation packages has long since been reduced to a minimum. Furthermore, major Russian companies are willing to pay more for the same set of skills and experience. They are the ones who employ headhunting and international executive search services increasingly often. The leaders in this sphere are; investment banking, insurance, oil producing, and real estate companies, although no sector is immune to this trend.

On the other hand, the levels of compensation between Russian managers and expatriates have shrunk. More Russian professionals are eligible for executive positions within multinational companies and more expatriates are getting employed by Russian companies. Of course, the remuneration is still in favor of the expatriate employees, many of whom enjoy social packages valued at approximately the same amount as their actual salaries. These expenses include, but are not limited to, relocation and living allowance, country risk payments, complete medical and travel insurance for all family members, corporate cars (often with personal drivers), total coverage of apartment costs etc. Add to these a foreigner status with all inherent visa proceedings, and you'll get a very ...