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Motivating human resources in Russia

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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