Is this the long awaited upturn of the Russian economy ?

Is this the long awaited upturn of the Russian economy ?

As usual when people return from their summer holidays we ask our clients what are their plans for the coming three to six months. Moreover, for many companies the 4th quarter will be budgeting time, so everybody has to try to guess a lot of things they may happen or not happen next year from the oil price to salaries...

Lets start with the positives. 31% of companies are actually going to hire additional people and they are doing this because of increasing sales/business activity. The number of companies planning to reduce headcount has fallen to its lowest amount (7 percent) since we have been running this survey. The sectors planning to add the most people in the coming months ar IT, Retail and professional services. More cutting is ahead in the FMCG, Packaging and Construction sectors.

Moreover, from the chart below you can see that many more companies than last year have actually done something with salaries. This shows that companies are spending more on their staff this year (or at least on those people they didnt make redundent).

When you however talk to the average candidate who is looking for a new job be it a General Manager candidate, a lawyer or a personal assistent the positive sentiment has not yet arrived. Its taking them much longer to find a new job. And if you are out of job and try to find a job you will most likely be earning less than in your last occupation - which is why we recommend not resign first and then look for a new job but do it the other way around.

The big question remains - have we reached the bottom or are our statistics as flawed as the State statistics agency or economics ministry etc. who have already since last summer been predicting that they have found the bottom many times...?

Finally, what I can say for sure is that there are open vacancies that I am personally now involved with for key clients, so feel free to forward your CV or recommend candidates who you would like to do something pleasent for.

Positions include:

  1. General Manager for a B2B company in the construction field.
  2. COO / Operations Director for a Major Retail Chain
  3. CFO - international Retail chain
  4. Sales Director for a Building Materials Firm.
  5. Legal Director for a large FMCG firm.
  6. General Manager for a System Integrator offering ERP solutions,
  7. M&A VP for a B2B Producer who is planning to buy further companies.
  8. Director Land Planning - somebody who will design future cities / parts of cities

PS: And for those who are wondering, how Olga from the previous post is doing - she actually managed to sell up and got her boss a better deal with me...:)

Igor Moskalets

Business Development Manager

8 年

Thank you, Michael interesting statistic

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Eugen Zentner

... at RENOLIT RUS

8 年

Die Frage des wirtschaftlichen Aufschwungs ist nach wie vor eng mit der politischen Entwicklung bzw. Russlands Au?enpolitik verbunden - siehe Syrien und evtl. neue Sanktionen von der EU (wenn auch nur in der heutigen Presse)

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Zelimkhan Suleimanov

Helping Mid-market and Enterprises Cut Costs & Build Strategic Procurement Functions | CEO, PrECA | Procurement Outsourcing, Digitalization & Business Impact

8 年

Upturn of Russian economy will be when Russia stops being "rogue state" and "nuke gangster", starts integrating into global economic environment, realizes political and economic reforms. Until that time Russian economy will be isolated, weak and bound to fail

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Keith Smith

Retired senior retail executive . Amatuer Historian

8 年

Looking at latest Rosstat figures and LFLs of major retailers I would say it has a long way to go before you can talk about an upturn.

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