KPMG: Results of Benchmarking Survey on Human Resources Management Systems at Russian Companies

 

KPMG, the global network of professional service firms providing audit tax and advisory services, announces the results of a benchmarking survey on human resource management systems at Russian companies based on analysis of final data for 2009.

At a time of falling direct investments in human resources in 2009 and increasing activity on the labour market, most companies have been focusing on long-term employee incentive and retention programs.

Main findings of the research:

  • Based on the results of the annual survey, the number of open positions filled at respondents amounted to 96%, which represents a perceptible improvement compared to the situation after six months (85%) and is in general a good indicator of the recovery of the labour market and demonstrates the increasing effectiveness of corporate personnel recruitment departments.
  • Almost two-thirds of the companies participating in the research were forced to cut headcount to optimize expenses in 2009. At the same time, however, 42% of these companies managed to outplace the dismissed employees. Redundancies at more than half the respondents were accompanied by an information campaign involving the use of various communications channels.
  • In 2010 85% of companies plan to raise their salaries; they will raise salaries on average by 8-10% depending on the category of personnel.
  • Over 70% of the companies have formal criteria for promoting employees. However, according to the results of the survey, approximately 5% of employees at respondents were promoted in 2009.
  • As a rule senior management accounted for 1.5% of total headcount of the companies in the sample. The largest proportion of senior managers’ work is in the pharmaceuticals sector, and the smallest percentage - in industry.
  • A third of the participants in the survey have trade unions, primarily in industry.
  • The proportion of personnel expenses in revenues/net operating income as a whole for the sample amounted to almost 14% of the total. This proportion fluctuates materially depending on the sector.
  • Payroll accounted for the largest proportion of the workforce cost structure (payroll and taxes).
  • Benefits represented the second largest expense item in terms of workforce costs at all the companies.
  • Virtually all the participants in the survey use external service suppliers to establish effective HR management systems.
  • A formalized practice of mentorship is in place at only a third of the respondents. In addition, only 50% of these respondents provide material compensation to mentors for this work.
  • Corporate branding programs on the labour market have become an integral part of corporate policy. Such programs are implemented at 54% of survey participants. Proceeding from the data received during the survey, on average companies spent approximately 0.1% of revenues on such branding programs.

Alevtina Borisova, Head of People Services, KPMG in Russia, noted:

“By the second half of 2009 there had been a perceptible recovery in internal processes: the number of vacancies increased and as a result the number of participants in succession pool programs rose. Despite this increase, however, I would like to highlight here the heightened attention paid to evaluations of the performance of the HR management function, appraisals of the effectiveness of investments in human resources and the benchmarking of the company's performance with the market as a whole. In addition, interest in the optimization and automation of HR processes and the implementation of HR management information systems has risen significantly.”

 

About the survey:

The survey Benchmarking Study: Human Resources Management System was performed in February-March 2010 based on analysis of the results of company data in 2009.

The purpose of the HR benchmarking survey was to compare key indicators characterizing the human resources management system and also HR policies and practices with the corresponding indicators of other companies.

A total of 41 companies from manufacturing, banking and finance, FMCG & pharmaceuticals companies took part in the HR Benchmarking survey. The respondents were representatives of large companies doing business in Russia.

 

Should you require additional information, please contact Irina Pashinkina, Head of PR Group, KPMG in Russia and the CIS, tel.: +7 (495) 937 44 77 (ext. 15355), Mobile tel.: +7 (916) 396 25 33.

 

 

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