Ward Howell: Compensation Systems in Russia
Although the end of 2014 was marked by a decline of the ruble’s value, it did not impact employee compensation. Ward Howell finds that the vast majority of those surveyed confirmed bonuses for 2014 will be paid in full and that there will not be any significant change in compensation. The reason for increasing budgets in 2015 is to help build trust among employees, and improve employer’s brand during the tough economic situation. It was often cited that companies had increased their 2015 payroll budgets by 10-12%.
Some companies benefitted from the ruble’s weakening – income from exports positively affected revenues and contributed to the achievement of key performance indicators (KPI). However, companies that were dependent on imports suffered – the weak ruble resulted in an increase in expenditures, and KPIs were frequently not met.
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