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Management and leadership in Russia


Training, assessment and promotion

Training programs are motivating; Russians enjoy receiving training.

Special training programs for Russians are attractive in economic terms. Training abroad is efficient because Russians employees can learn from their western counterparts in a real environment. This way Russians improve their skills fast. On-site training is also important. The focus should be on strengthening commitment to the company and to learn that costs are an important part in a successful company. Most staff also need training to understand the importance of offering service to customers and the productivity required to achieve a competitive advantage.

Leadership and team building

Collectivism and the importance of the group make of Russians good team workers. Hierarchy is highly respected. Subordinates rarely participate in the decision making progress. Trust and not qualification is the key of career growth.


Wages and motivation

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.


Non-monetary benefits, free meals, social activities, bonuses, friendly relationship in the company are necessary to satisfy/retain employees.

. The Russians are motivated to work in foreign-owned firms known for better wages.

Workers are motivated and appreciate non-monetary benefits in enterprises.

Business trips abroad, credits offered by companies to their employees are highly appreciated.



Maxim Nogotkov, founder of “ Maxus ”, a successful electronic goods wholesaler, promotes team-based bonuses and thus team-oriented corporate culture.   


The Russian internal decision making emphasizes on hierarchy. The leader has a strong power and must demonstrate it. As an example, Nikita Khrushchev has interupted a meeting in the United Nations in 1960, by banging his shoe on the table.

The communication of secret information to people outside the company is a common practise. Therefore, it is recommended for employers to build a relationship based on trust with their employees. It is not rare that employees have to cheat with their boss to have what they need. Thus one have to explain exactly what she or he is expecting. A period for adjustment can be needed for foreign leaders. Good communication and consideration for the employees can help achieve this goal.

In modern new Russian companies and in foreign companies, women in leading positions are quite common. In the new companies, a CEO is often not older than 35 years.

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