The Russian economy has been expanding very rapidly, and there is a huge demand for work force at all levels. There is a lack of skilled workers, for example, in the field of construction. Production and sales people as well as accountants are needed everywhere, just to mention a few. Finding experienced and competent managers is not any easier. In St. Petersburg there are more open vacancies than those that are actually being filled. The unemployment rate is low. Talented people can choose the highest offer, and the salaries have been escalating accordingly. In this situation corporate loyalty is very low.

Yury Mikhailov is a partner of CONSORT Consulting Group, and he is running the group’s subsidiary company in St. Petersburg, Consort Petersburg, specializing in executive search and management selection. CONSORT Consulting Group has about one hundred employees and about 700 clients, both Russian and multinational companies. Mikhailov is considered an expert on HR issues. In his opinion, there are still possibilities to find good staff.«University students are a vast resource of employees. It is virtually an untouched territory, because companies usually want to have already experienced personnel. Undergraduates have the theoretical knowledge but they don’t have the experience. That’s why companies should look for talented undergraduates and provide the needed experience themselves,» he says.«Set up educational centers on the premises, recruit people and train them.»Most of the talented students want to have jobs already after a third year in college, at the latest. Without relevant work experience they would get entry-level, low-paid and not really challenging jobs after graduating, which is not tempting.«Everybody in Russia wants to be a manager,» Mikhailov laughs.

Choosing the right people for the right jobs is not easy. First of all, a person must be interested in the company. Psychometric testing can be useful. The applicant’s strengths and weaknesses become visible and easier to evaluate.«You can test, evaluate and measure people, but they are not machines. You can never predict a person’s behavior one hundred percent, but after a year, about 95 percent of what we have predicted by psychometric testing proves to be correct,» Mikhailov says.According to Mikhailov, best employees are the younger ones. Young generation doesn’t have the Soviet mentality of older generations.The problem in Russia is that people have been somewhat spoiled ten years after the financial crisis of 1998. Some people think they can use at least 30 percent of their working time on the Internet, taking care of their personal matters or just having a chat. And if the employer doesn’t like that, they can easily find another job — but for how long?

Economic situations can change quite rapidly, as we all know. Yury Mikhailov doesn’t want to be a prophet, but he sees some warning signs around him. Last year people were hungry for new jobs, but last summer everyone in St. Petersburg seemed to have taken a vacation at the same time in August.«Applicants told us not to call during their vacation. It rings some bells to me. The economic situation now very much re?sembles the situation before the financial meltdown in 1998. I don’t know if people realize it, but we are nearing some kind of recession.»

After talented people have been located and trained, the next thing is to keep them happy and motivated. The turnover of the staff can be about 30-40 percent in Russian companies.«I don’t know how they survive. If west?ern companies have a turnover of 14 percent they think they are in trouble. That’s a huge waste of time, money and competence. Everytime you lose a person, you lose the money and time spent on recruiting and training, and most importantly, you lose the business competence. Then you have to start all over again. It’s a vicious circle.»Mikhailov’s recipe for retaining person?nel is quire simple.«You need to understand the people who are working for you. Look after people, not only the processes. It is people who are do?ing the job.»Mikhailov points out that understanding people is easier if you talk to them regu?larly. Ask if there is something bothering them. A person who looks sad or angry all the time is probably looking for another job. But there can be very talented people who are under loaded and getting more respon?sibility will bring them more satisfaction. Motivating is the key issue, but different things motivate different people.«You must make sure that people are happy in their jobs, that they perform well and achieve the goals you set before them. They should understand that they will be rewarded for their efforts, both by monetary-means as well as other rewards. You can provide additional training or send people abroad to your mother company, and so on. You can also let other people know they have achieved above the standard,» he says.If the person is not growing personally or professionally, you must also notice that.«Some people who worked for my company have received HR jobs in larger companies, and they are very happy themselves. If I see that I can’t give them any more challenge, that they are not growing anymore in my company, I am happy that they have the op?portunity for personal growth elsewhere.»by Katrina Krabbe, photo Aino Huovio