Labour Remuneration in St. Petersburg: what employers offer Anna Egorova,

1. Labour Remuneration inSt. Petersburg:what employers offer Anna Egorova, Head of Labour Market Research Department St. Petersburg, May 2008

2. AVANTA Personnel • AVANTA Personnel is established in 2007 by high professionals with more than15 years experience in the market of human resources services and solid reputation. • We carry business in 9 regions of Russia, our staff is over 300 employees. • By 2010 we plan to occupy the leader’s position in HR services market by the high quality of services, size of business and geography of business. • Our Services: • Management and Specialists Permanent Recruitment(middle and top level) • Staff Leasing • Temporary Staffing • Large Scale Projects • Outstaffing • Labor Market Researches (Compensation Surveys) • Assessment Services and HR Consulting St. Petersburg, May 2008

3. Compensation Surveys • We conduct : • Regular salary & compensation surveys in following regions: • Customized salary & compensation surveys for the definite market niche upon the client’s request • Other investigations: labour market situation analysis, motivation surveys, etc. St. Petersburg, May 2008

4. Salary and Compensation Survey in St. Petersburg • Salary and Compensations Survey for many years serves the source of trusted information for the companies working on St. Petersburg market. • Recent Salary and Compensations Survey- March 2008*: • analyzed data received directly from 92 international and Russian companies • includes data on HR-policies of over 43 500 employees • investigates Salaries of over 27 400 employees Brief characteristics of the companies participated in the Survey: • Investments: • 49% foreign companies • 40% Russian companies and • 11 % joint ventures • Activity: • 71% are manufacturing companies • 54% have Sales Departments • 18 % provides Services • Products: • 40% - FMCG • 54% - Industrial goods & services • 18 % - Software Development • 2% - other • *this presentation contains only short extracts from the Survey. To know more about the detailed report please follow the link: http://www.avantapersonnel.ru/news/obzor_zp_spb_08/ St. Petersburg, May 2008

5. Employers & Employees:Offers & Expectations • 1 competitivesalary • 2 flexible& clear bonus systems • 3 compensations & benefits • 4 training programs & career planning • 5 incentive programs St. Petersburg, May 2008

6. Competitive Salary • «white» salary, night work/ overtime compensation according to Labour Code - 92% companies • regular salary review based on inflation rate – 54% companies • regular salary review based on personal achievements, appraisal, company results – 93% companies 2007 • 95% companies increased salaries • average salary increase came to12-13%, maximum – 30% • factors influenced on the increase: 2008 • 91% companies plans to increase salaries • average planning salary increase comes to 10-12%,maximum – 30% St. Petersburg, May 2008

7. Bonuses & Sales Commissions Bonuses: • 66% of participants pay performance-based bonus (company performance, department performance, personal performance) average amount of bonus is 12-20% of annual base salary depending on position level • 37% pay guaranteed bonuses (once/ twice a year, monthly, etc.) • for foreign companies average amount of bonus is 7-11% of annual base salary depending on position level • for Russian companies average amount of bonus is 12-18% of annual base salary depending on position level • 47% pay anniversary bonuses Sales commissions: in average amounts 40-50% from base salary St. Petersburg, May 2008

8. Compensations & Benefits The most common benefits: • medical insurance for employees – 78% companies: Insurance can cover: - out-patient treatment - inpatient treatment - dental service - pregnancy management average annual cost of medical insurance per employeeRUR 14 803 • lunch benefits - 73% companies: - lunches in own cafeteria - compensation in cash average daily compensation for lunch is RUR 107 Depending on the position: • Corporate vehicle: - for top-managers - in57%of companies - for managers – 29% - for sales personnel – 20-35% • > 90% companies compensate cellular phone expenses average monthly compensation amounts from RUR 380 to 3150 depending on position • > 80% covers business trips expenses (daily allowance) over the standards of Russian legislation • 95% provide different training programs for employees St. Petersburg, May 2008

9. Compensations & Benefits Other benefits: St. Petersburg, May 2008

10. Some examples Average monthly cash = base salary + actual bonuses St. Petersburg, May 2008

11. Training programs & Career development In general: • coaching at job - 83% companies • internal programs of professional improvement – 58% companies For specialists/ supervisors: • Short-term (1-7 days) seminars on professional qualification improvement conducted by external providers – 58% companies • Long-term (1-12 months) courses of professional education and qualification improvement conducted by external providers – 50% companies • Higher education For managers/ top-managers: • Advanced education programs in management (MBA, CIMA, etc.) – 27% companies • Advanced professional education programs (ACCA, etc.) – 26% companies St. Petersburg, May 2008

12. Incentive programs Basic Level: • Corporate monthly, quarterly, semi-annual and annual contest on the appointment to a title “The Best” in various nominations with or without the Prize Pool • Placing the employee’s photo on the board of honor or mentioning the employee in corporate newspaper with his/her photo • Awarding employees with souvenirs with logos and corporate identities, presentation with corporate pins etc. For specialists/ supervisors: • interesting professional tasks, perspectives • career planning – in 40% companies, enrolling the employee into personnel reserve • well–known name of the company, good reputation of the employer etc. For managers/ top-managers: • interesting professional tasks • long-term perspectives in career development • freedom of choice, decision making • stability and positive dynamicsof the business • well–known name of the company, good reputation of the employer , etc. St. Petersburg, May 2008

13. Comparison with regions of Russia Average monthly cash = base salary + actual bonuses in total: St. Petersburg, May 2008

14. Comparison with regions of Russia Benefits: St. Petersburg, May 2008

15. Anna Egorova, • Head of Labour Market Research Department • phone: 7 (812) 329-57-70 • e-mail: egorova@avantapersonnel.ru Thank you for your attention!