Replacing International Staff with Local Staff: Questions & Answers

1. Natalia Kurkchi | Country Manager Antal Kazakhstan t: +7 727 261 90 95/96 e: natalia.kurkchi@antalkazakhstan.com Replacing International Staff with Local Staff: Questions & Answers

2. Who needs expats?

3. Pros Connections with business community globally International experience Transparent business methodologies Knowledge of business specifics on a global level High loyalty to employers Experience of teamwork Sees the bigger picture Ability to implement best practices of multinational companies Hardworking Understanding of business processes Ability to make quick decisions Expiates Pros & Cons. What survey participants say? • Cons • Lack of knowledge of the local market • Lack of connections in local business community • Bad Russian • Poor understanding of local mentality • Lack of communication with local employees • Less proactive • Expensive • Stereotypical view • No responsibility for results • Long period of adapting

4. Replacing • How to make the process of replacing expats with locals smooth and not hurtful for the businesses and economy?

5. Education: Western VS Local Approach • There should be a constant sharing of information, skills and experiences internationally. • There should be significant investments brought to the local professional education, which would make it easier for local professionals adopt to the international companies’ standards.

6. On-Job Training • Day-to-day training and education of the local staff by the international top-management is essential.

7. Exchange of staff internationally • Implementation of international secondment programs is a very efficient way to develop staff.

8. Promotions of the local personnel • Give opportunities to the local staff to equally participate in the top-level roles.

9. Promotions of the local personnel • What is the level of foreign (non-CIS) employees in your company? 89% The majority of respondents (44%) consider that there should be less than 5% of foreign employees working in company operating in Russia and CIS 48% 17% Manager Director Specialist

10. Promotions of the local personnel • Do foreign employees in your company receive higher salaries than local employees at the similar level? 10% 12% 77% No Don’t know Yes

11. Issues • There is an obvious lack of highly-qualified professionals on the local market. • The majority of our international clients have to lower their expectations when they are trying to find the appropriate staff on the local market.

12. Conclusions • The idea of developing the local staff as opposed to just bringing more expatriates is good. However, the implementation of it should be very careful and smooth.

13. Thank you! • Natalia Kurkchi • Country Manager, Antal Kazakhstan t: +7 727 261 90 95/96 e: natalia.kurkchi@antalkazakhstan.com