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The motivation issue is difficult to address since workers,
under the communist system, were paid whether they performed
or not. After 70 years of such system, it is difficult to change
or make understand the principles of the market economy.
Employers are free to decide the level and delivery of compensations.
A way to attract high-qualified workforce and to keep pace with
one's competitors is to implement intelligent remuneration structures.
There is a variety of benefits that employers can provide that
can reduce payroll costs and in some cases be provided tax exempt
to employee. This could especially include non-monetary incentives
like health care, day care, housing, and transportation loans.
Since the Russian taxation system is heavy, this is a good
way to reduce the tax burden. Typically, benefits focus on medical
insurance and company car provision for executives. As well,
companies pay a lot of attention to the remuneration structures
and benefits packages that motivate and retain staff.
Titles are appreciated, because they give to the worker a higher
social status. The same applies for company cars. A company
in Russia often needs catering facilities since there are not
enough restaurants to cover the demand and sometimes it can
also be suitable to offer delivery services and even housing.
Even when people do not receive any salary from their job,
many refuse to leave the company since they want to keep their
social benefits and social network associated with a job.
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IMPORTANT !
The current version of Centreeurope.org is not fully updated anymore. A new version with thousands of pages about Central and Eastern European countries will be launched at the end of 2008, in seven languages.
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