Russia’s Economic Recovery Prompts Salary Renewal and New Jobs

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Apr. 28 – St. Petersburg’s private sector is showing some signs of recovery from the Global Economic Crisis. Companies have gradually started to renew revision of salaries with the average increase estimated at 10 percent, reports the Vedomosti newspaper.

This month a British-American tobacco giant in St. Petersburg factory raised the salaries of 95 percent of its employees, the director for corporate relations for the company, Alexander Ljutyj said to the paper.

Brewing concern Heineken Group also intends to reconsider salaries in the May, planning to increase it up to 12 percent on average. The company did not reduce salaries last year compared to one of the biggest consulting firm, Aster-St. Petersburg, which lowered salaries in its serving divisions in 2009. Many marketing department salaries have been reduced by 13 percent for six months, but this year salary amounts have returned to pre-crisis levels, confirms the director for business development, Lyudmila Reva .

From April 1, the VTB 24 bank raised salaries of 70 percent of its employees to an average of 10 percent.

“Almost 25 percent of all private companies in the city revised salaries at end of 2009. This month and in coming May, another quarter is going to raise it,” estimates the Head of Personnel Selection Department of Avanta Personnel Petersburg, Oksana Pochtivaja .

In 2009 the Eurasia chain of restaurants and fitness houses level of salaries (without bonus) did not vary. “Amounts of the bonus depend on the position of employees and can make up 20 percent to 50 percent of the salary”, the president of Eurasia holding Alexey Fursov said to Vedomosti while added that during the crisis it was difficult to achieve good results, therefore the sum of total payments became less.

“About half of the larger companies will pay compensations for 2009, but because of the decreased sales volumes amounts will be less than before crisis,” said the regional director for Northwest Kelly Serviсes, Anna Ustijants. Last year only 20 percent of the companies paid compensations, though amounts fell by 40-50 percent compared with 2008..

According to headhunter estimations, level of salaries of financial directors, analysts and accountants in Russia on the average has increased.

“In the beginning of last year, employers cut down budgets on personnel and lowered their salaries, from about 120,000 rubles (around US$4300) to 100,000 rubles (US$3600), now for the similar positions candidates can get the offer of 115 000 roubles (around $4160) per month,” revealed Antal Russia manager, Olga Ivanova.

The increased number of vacancies in the financial sector is also evidence of the beginning of recovery from the crisis. From January 2010 their numbers have grown to 70 percent in comparison with the same period of last year, said Ivanova, referring to amount of works of her department.Vacancies for financiers in Contact agency doubled since last year.

“Demand has increased both for supervising and even for the lowest positions”, said company official Emma Kirichenko. “There is more possibility to begin careers in the financial sphere which was impossible last year.”