Jun 10 2018

Salary “bubble” May Burst

Posted by domain admin in News

The fall of the Russian stock market was the first sign of “overheating” economy, following which may occur no less important events, such as in respect to wages. “If the crisis of the world economy is still significantly affect in Russia, real wage growth, is likely to slow or even become negative, “- thinks Catherine , senior manager of consulting hr consulting firm Ernst & Young in the cis. Specialists have been told repeatedly that the Russian market wages “overheated”, which has led to some “spoiled” the applicant. “If people in the West is ready to move to a new place of work even for allowance of 10% of salary, many domestic competitors expect an increase once by 50% or even more, “- says Anna Krylov, head of recruiting personnel center” unity “, one of the recognized leaders in the market recruiting. Many want to get everything: top-managers, and yesterday’s students. For example, according to the survey, graduates of msu. mv University, even with no experience, just count on 2000-2500 dollars a month.

Today “needs of the employer and newly specialist are almost never the same – said a member of the commission on intellectual potential of the nation’s Public Chamber Love . – Graduates want good wages and high position, but the employer is not prepared to provide professionals with no experience. ” It would seem that the growth of wages – is good, so it is, but only if this process is accompanied by an increase in labor productivity. “The main problem of Russia’s economy today – it is extremely ineffective. Labour productivity in Russia remains very low.

The same labor costs as in most developed countries but in Russia several times lower “- these words of Russian Prime Minister Vladimir Putin is well characterize the situation. According to the World Bank, the productivity in our country is growing almost twice as more slowly than wages themselves. This contributes not only to increase inflation, but also reduce the competitiveness of the economy in the world market. In particular, the research competitiveness index IT-industry largest countries, conducted by Economist Intelligence Unit, revealed that Russia in this ranking takes place, only 49 out of 60. One of the reasons – the high personnel costs. “Of course, no one calls to reduce the income of our citizens. However, it is time to recognize that in some sectors of their size is clearly overstated and exaggerated as the “appetites” of some competitors, “- said the expert,” unity “Anna Krylova. Wages, indeed, must be “Earned” and not “bloated” under the influence of various processes. This is one of the main conditions for the formation of a stable economy.