The brains have arrived

Dov Rivkin, the former Vladimir, left Russia at the very beginning of the 90s: from bandits and food stamps. He never would have thought that the place of his birth would be such a significant advantage. “Now I earn a third more than my Israeli classmates,” says a senior consultant in the investment appraisal department of the Moscow office of SAP. Rivkin is young (37 years old), has experience of living in capitalist countries and, most importantly, speaks Russian fluently. It was the knowledge of the language that helped him find a job in Moscow.

The economic colony of foreigners in Russia, devastated by the 1998 crisis, has fully recovered. According to the headhunting company TRANSEARCH International, about 10,000 top specialists (salary from $200,000 per year and more) with foreign citizenship are currently working in our country. But since the mid-90s, the composition of this “fifth column” has changed a lot. Emigrants of the fourth wave reached their former homeland for a long ruble. Feeling the competition, "real" expats (from the Latin ex patria, "outside the homeland") began to learn Russian - in a country where many are not at odds with English, this was an unexpected competitive advantage.

SPEECH PROBLEMS

The demand for qualified specialists, primarily managers, is extremely high in Russia today, and the domestic market does not cover the needs of the economy. Up to 77% of large and medium-sized companies operating in the Russian market attract or consider hiring foreigners, says Stanislav Alekseev, managing partner of TRANSEARCH International. Foreigners willingly respond to the call, because the growth of salaries of highly qualified specialists in Russia in 2007 alone, according to TopContact Executive Search, amounted to about 30-35%. According to the forecasts of the agency, 2008 will give the same increase.

A good worker in Russia earns more than his colleague in Europe by more than 20-40%. The most impressive examples of salary growth are among investment bankers, says Artur Shamilov, partner at TopContact Executive Search. So, the head of the M&A (mergers and acquisitions) service of one of the American banks, having moved to Russia, doubled his salary - from $500,000 to $1 million per year (excluding bonuses). On average, the indicators are more modest. According to TRANSEARCH, the head of a small company (about €200 million in annual turnover) in Europe receives about €300,000 a year - in Russia he can safely count on €400,000–500,000 a year, including bonuses.

High salaries - high demands. The owner of the company now wants to communicate with the hired manager in the same language, preferably Russian. Over the years that have passed since the beginning of the capitalist experiment in Russia, it turned out that the "classic" expat manager - a highly qualified specialist without knowledge of the local language and mentality - has localization problems. “A few years ago, an employer in Russia thought that a top manager could simply hire a translator. Now it has become clear that this is not enough for a full-fledged work,” says Artur Shamilov from TopContact Executive Search.

“You cannot be a leader in a Russian company without knowing the Russian language,” confirms Anna Koff, partner at the headhunting company Rosexpert. The Bounty Hunters, speaking on condition of anonymity, tell two similar stories. Large Russian metallurgical holdings "ordered" top managers with a number of requirements, including international work experience. Appropriate candidates were found, the customer was delighted. However, it soon became clear that the newcomers were unable to fully communicate and build relationships with Russian subordinates - both had to be abandoned.

“It is highly desirable for a manager to speak Russian, his effectiveness directly depends on this,” says Sergey Sharov, MTS HR Director. The bonus for knowledge of the Russian language can be 10% of the salary, specifies Shamilov from TopContact Executive Search.

The same requirements are put forward by the Moscow divisions of transnational corporations. “Everyone in our company, with the exception of a few top managers, speaks Russian. Those who do not speak actively teach it,” the press service of the Russian office of Audi reports. “If you work in Russia, speak Russian,” sums up Alok Kumar, General Director of Amtel Soft Drinks, an Indian by nationality. Where, first of all, knowledge of the state language is in demand today - of course, in sales. According to Dov Rivkin from SAP, without the Russian language, one can feel more or less comfortable only in telecommunications companies, IT and banking. But in industry and transport you can’t speak English with anyone.

“In other emerging markets, there is no urgent need for managers to learn the local language,” comments Anna Koff of Rosexpert. - In India and Eastern Europe, the population is fluent in English, in China it is unrealistic to master the language because of the problem of local dialects. But in Russia, where most of the population has not mastered English, knowledge of Russian is simply necessary.”

OUR PEOPLE

Foreigners are all the more diligent in mastering a new language because now they are competing for jobs with recent immigrants from Russia. Having left the country 15-20 years ago, by the mid-90s they were still enjoying the Western way of life - but now they are drawn to their former homeland. Dmitry, a real estate specialist, emigrated from Russia in the early 90s and returned to his homeland two years ago. He explains his move "back and forth" for personal reasons: he met an American and got so carried away that he had to move to the USA. However, the relationship did not work out, and two years ago Dmitry fell in love, as he assures, for real, and this time - in Russian. I had to go back.

Antal International recruiting partner Luke Jones says he hears stories like this on a regular basis. “A good half of the returnees explain that they have elderly parents in Russia, whom the immigrants really miss,” says Jones. However, they pay well for sentimentality - the demand for "former Russians" who have received a good education and experience abroad is especially high.

“For the Russian office, we are looking for consulting and sales specialists in the IT industry. And we are actively looking at Russians now living in other countries,” says SAP CIS HR Director Shlomit Gruman-Navot. “It is important that the manager can fully communicate with Russian clients.” “The Western general director does not understand that the execution of the instructions given must be checked at least five times. Hence - a sharp reaction and conflicts, "- describes a typical situation Alekseev from TRANSEARCH. Even a former Russian knows firsthand about such a trait of a national character.

Repats come from the USA, Israel, Great Britain, and other countries of Western Europe. “Many countries are in the initial stage of recession, and in Russia there are positive trends in the economy. Our country provides great opportunities for self-realization,” Felix Kugel, Managing Director for Russia and the CIS countries of Manpower Corporation, comments on the situation. First of all, of course, these are opportunities for specialists in the financial, banking and fuel and energy sectors, but doctors are also returning - from physiotherapists to dentists.

“The number of returnees is growing rapidly every year,” says Valery Oskin, director of the executive directorate of the Association of Recruitment Consultants (AKPP). According to Luke Jones of the recruiting agency Antal International, the current flow is at least 1,000 people a year. TopContact Executive Search partner Artur Shamilov agrees with him in his assessments. Having assessed the competition, foreigners who expect to get a job in Russia begin their preparations in advance.

This is the case, for example, of Martin Krügelstein, a marketing student at the Technical University of Berlin. He has been learning Russian since August 2007 and now he can read tolerably well and can carry on simple dialogues. The minimum program is to conduct business negotiations in Russian in a couple of years. In 2009, after graduating from university, Krugelstein would like to get a job in Russia, for example, in the office of one of the European companies - BMW or Airbus. “The money that I can get there is at least one and a half to two times more than what they offer me in Germany,” Martin is convinced.

West Virginia engineer James Oldendyck has spent his entire life in the aerospace industry. He is already over 40, he is tired of this work and wants to move to another area. James is learning Russian because he believes the mobile and dynamic Russian market will give him that opportunity. When asked about his financial expectations, Oldendik answers evasively: he expects from his Russian work the opportunity to buy (or rent) a decent apartment, not to think about daily bread and travel around the country.

RETURN PROBLEMS

In the XX century. Russia faced four waves of emigration - the White Guard in the 20s, the military after the Second World War, the dissident in the 70s and, finally, the emigration of the 90s, otherwise it is called "sausage". Despite the non-pejorative name, its consequences were perhaps the most severe. Moscow State University rector Viktor Sadovnichy believes that Russia has lost up to a third of its intellectual potential in this last wave.

In the unique conditions that have now developed in the labor market, former compatriots are starting to return to Russia - primarily those who left 10-15 years ago.

How big will this comeback ultimately be? Russia is not the first country to face brain flight. Luke Jones of Antal International cites the example of Ireland, whose authorities have been implementing a program for the return of compatriots over the past two decades: "The state should show initiative, an interest in the return of its former citizens, but it does not." Our authorities are indeed rather cold towards specialists returning to their homeland. A striking example is citizenship issues. “I recently came to the consulate, and they tell me that, as I left before 1992, according to the new law, I do not have Russian citizenship. I was in shock, but nothing can be done, ”Dmitry Berlin, a former resident of the United States who had emigrated, is indignant, one of the returnees.

Thanks to this approach, returning specialists are not yet inclined to make long-term plans related to their newfound homeland. “I feel comfortable in Russia, but I plan to spend my retirement in Israel,” says Dov Rivkin.