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Labor market in Russia
Main article: Labor market in Russia
2023
The Russian recruitment market grew by 20% over the year, to ₽417 billion
The Russian recruitment market for 2023 increased by 20%. According to the report of the Russian Association of Private Employment Agencies (ACAZ), this growth is associated with a shortage of personnel in the labor market and high demand for outsourcing and recruitment services. In 2023, the market volume amounted to ₽417 billion, and by the end of 2024 this figure could reach ₽500 billion, according to the materials of the association, published in September 2024.
According to Kommersant, a significant part of the market is outsourcing services. In 2023, the volume of this segment amounted to ₽386 billion. The main areas include outsourcing of sales personnel and merchandising (36%), production outsourcing (36%), administrative services (8%), IT outsourcing (4%) and other services (16%). This data demonstrates that many companies prefer to transfer non-core functions to specialized providers in order to concentrate on key business processes.
According to the ACAZ report, the demand for personnel agency services has grown significantly due to difficulties in providing personnel in the face of high worker turnover and wage growth. In 2023, the recruitment market increased by 33%, and this trend, according to experts, will continue in 2024. An increase in the cost of closing vacancies in the mass selection also stimulated the growth of the market. Experts expect that by the end of 2024, the volume of the recruitment market may increase by another 30-35%.
According to Konstantin Mirovich, CEO of Avanta Russia, companies are increasingly turning to the services of personnel agencies, since they have the necessary resources and knowledge of the labor market, which enterprises in the real sector often lack. He also noted that business process outsourcing will be one of the key drivers of further market growth.
In addition, Tatiana Baskina, Deputy General Director of ANCOR, highlighted another important trend - the desire of companies to retain valuable employees. In 2024, cases of counter-proposals from employers became more frequent, which became an alternative to finding new employees.[1]
81% of Russian companies conduct online interviews
Most Russian companies (81%) conduct interviews in a remote format. Such data are given in a joint study of the HeadHunter service and the Kontur Tolk video communication platform. The survey was conducted from June 19 to July 3, 2023. It was attended by 368 Russian companies from various industries and regions.
As Vedomosti writes with reference to this report, most often Russian employers remotely hire sales specialists. Of all applicants who undergo interviews in a remote format, more than a third (35%) are sales managers. IT specialists are in 2nd place: every fourth remote candidate is a development employee. Often, administrative staff also prefer online interviews (23%).
Convenience and time saving is the main argument to conduct interviews with the applicant via video link, and not meet in person. This was the answer of 54% of respondents. Employers admit that 31% of candidates are not ready to go to the office for an interview themselves: online meetings reduce the likelihood of "underperformance" from applicants.
A remote interview does not always mean that the candidate will work remotely. Only a third of respondents conduct interviews via video link because they select remote employees. At the same time, all stages of selection were transferred online to 21% of employers, another 60% meet with the candidate personally for the final interview.
 | The study confirms that online communication can be no less effective than face-to-face meetings, and employees are ready to work remotely without compromising the result. The main thing is to build business processes so that there are no failures, - said Pavel Skripnichenko, project manager at Kontur Tolk. |  |
Experts highlight several situations where online interviews are preferable. The first concerns customers from Moscow and St. Petersburg, when they are looking for specialists in local markets or in search of tourists with fewer requests. Here we are talking about both remote work and possible relocation to the city of the employer's presence. In the second case, these are requests from regional companies, the third situation is large corporations, whose staff is scattered across different regions and countries and they do not have a link to the physical location of employees.[2]
2019: The total volume of the Russian recruitment, staffing and outsourcing market showed an increase of 12.2%
On September 8, 2020, it became known that in August 2020, the results of a study of the recruitment, staffing and outsourcing market conducted annually by the Association of Private Employment Agencies (ACAZ) were summed up. The study was conducted by MAGRAM Market Research, an independent research agency for marketing and sociological research. In the study, all vacancies assigned to agencies are divided into three segments:
- recruitment of permanent personnel to the company's staff;
- provision of labor of employees in accordance with the FZ-116 - a service in demand for seasonal expansion of production and launch of projects;
- outsourcing - transfer of individual functions and business processes to an external contractor.
As explained, in 2019, the total volume of the Russian market for selection, provision of personnel and outsourcing showed an increase of 12.2% and amounted to 79.7 billion rubles. The recruitment market grew by 7.7%. The staffing and outsourcing market looked even more optimistic - the service of providing workers with labor in accordance with the FZ-116 showed an increase of 12.2%, and the outsourcing market by 14.7% (Fig. 1)
The recruitment market retained its focus on specialists and middle managers. Companies still prefer to close simple vacancies on their own, handing professionals a "difficult search" for candidates who are not in open sources.
Most often, companies were attracted with the help of agencies: specialists - 40%, line managers - 35%, initial positions - 13% and senior managers - 12% (Fig. 2).
The tendency to transfer complex vacancies to professionals also influenced the average cost of the position - agency fees in professional selection increased (273,754 rubles in 2019 compared to 253,197 rubles in 2018). Despite the active development of technologies and sourcing tools, resumes and contact information of inactive candidates are often not presented on job boards or in professional communities, and companies are willing to pay for the search and selection of such specialists.
Modern technologies reduce costs, allow companies to save on attracting mass personnel - positions that do not require experience or special skills from the applicant. The average cost of a position in mass selection decreased and amounted to 35,978 rubles. in 2019 (compared with 47,901 rubles in 2018).
| | I would like to note the following trends in the recruitment of working personnel in the first half of 2020: a shortage of working personnel caused by the outflow of workers from the CIS countries and a ban on return entry to the Russian Federation; recently (July - August 2020) there has been an outflow of resources from production to retail, which, in our opinion, is explained by an increase in demand for labor in retail with their constant tariffs in production; the widespread use of rotational methods of work for industries located in large cities, attracting resources from less developed regions, compensates for the lack of local resources in cities; there is a general decrease in the mobility of working personnel, which can be explained by a decrease in the confidence of employees when changing employers due to the unpredictability of the economic situation. told Konstantin Mirovich, CEO of Adecco Russia | |
In 2019, the demand for the selection of engineers and specialists in STEM (Science, Technology, Engineering and Math), IT specialists remained. The main turnover of recruiting companies in the recruitment of permanent personnel fell on five industries. In the first place is Natural Resources (Oil and,,, Gas Chemistry Production Processing,) - 24 Power %, then - Consumer Goods, Life Sciences (Pharma, Clinical Research, Medical Equipment) - 11% each, Retail, trade restaurants, hotels, Industrial production (except for TNP) - 10% each. Further in demand are vacancies in the Hi-Tech (IT & Telecom, B2B) spheres - 7%, and - 5%,,, Construction real estate Finance Investments Banks- 4%, and service, and, Consulting Transport logistics agro-industrial complex and - all 3% Automotive industry each (Fig. 3).
| | For September 2020 goals, the recruitment market is at the peak of transformation. If in the 1990-2000s the business did not have enough resources and needs to close vacancies on its own, then since 2010. in many large companies qualified teams have been formed that independently component the states. This does not mean the rejection of the services of external recruiters. However, customers now expect providers not just to find and select candidates for a job. They are ready to pay for "added value" - such a level of expertise and integrated solution of personnel tasks that is impossible or irrelevant to provide internal resources. For example, large projects that include selection, assessment and personnel consulting on convenient digital platforms. This trend is intensifying in 2020 due to the impact of the coronavirus pandemic on the global and Russian economies and the labor market. In the first half of the year, the recruitment market decreased by 40-60% compared to 2019 - the largest drop among personnel services. Will 2020 show negative dynamics by analogy with the crisis of 2015 from 12.8 billion rubles. in 2014 to 6.9 billion rubles. in 2015. At this stage, experts predict a recovery in the selection market not earlier than 2022. told Tatyana Baskina, Deputy General Director of the international company "ANCOR" | |
| | In the Natural Resources sector, we continue to see a shortage of skilled professionals and workers, demand for which has not decreased in 2020. This is also facilitated by the closure of borders caused by the pandemic, which makes it difficult to attract foreign specialists to this sector. In general, the crisis situation in the market did not lead to serious reductions in employees of the oil and gas, chemical and energy industries in Russia. As of September 2020, we can talk about a slight slowdown in the pace of hiring by employers and a slight increase in the number of vacated applicants for this sector. noted Tatiana Markina, Head of Recruitment at Brunel | |
| | In terms of the volume of positions in 2020, the FMCG, Lux and even a little Life Sciences markets sank a lot, although back in 2019 we saw a slight increase in FMCG, and Lux grew due to perfume brands and cosmetics. The production market remained unchanged in 2020 and 2019, as many production did not stop, but continue their work. The IT market, on the contrary, is actively growing both in 2019 and in 2020. Among the functional areas, the volume of backoffice positions has decreased - legal, HR, office support. If we talk about controllers, then the percentage of those who agree to a counter-proposal and remain in the company has increased. This is due to the fact that people assess risks and do not seek to radically change something. However, if we talk about positions, then top-level professionals will rather leave the company, despite the controller, while middle-level and junior-level professionals prefer to stay if they are held. supplemented by Olga Chamber, Hays COO | |
In 2016, the law on the provision of labor of workers (FZ-116) came into force, allowing employment agencies to provide services for the provision of labor of workers. Three years after its entry into force, the companies appreciated this legal and fully controlled state service. In 2019, the total volume of the labor services market for workers in accordance with the FZ-116 amounted to 12.4 billion. rubles
In the context of the unstable economic situation in 2020, companies are increasingly forced to respond to changing business needs by attracting additional labor resources to temporarily increase production or services.
The leaders in attracting the labor of design workers are Natural Resources (Oil and Gas, Chemistry, Production, Refining, Power) - 20%, Consumer Goods - 14%, Consulting and Service - 13%, Retail, trade restaurants, hotels - 12%, (Industrial production except for TNP) - 11% and Hi Tech (IT & Telecom, B2B) - 10%. Further, in terms of demand, Automotive - 5%, Life Sciences (Pharma, Clinical Research, Medical Equipment) - 4%, Construction - Real estate 3%, Transport and Logistics, Finance, Banks, Investments, Insurance and Agro-Industrial Complex - all 1% each (Fig. 4).
| | According to the data for the period 2015-2019, we see a strong decrease in the number of days of work per assignment/employment for temporary personnel. On average, in 2019, our temporary employees worked 42 days per job, while in 2015 this figure was 190 days. At the same time, it should be noted that for employees who have several jobs for the specified period the number of days per job is even lower: 33 days and 141 laziness, respectively. narrated by Mikhail Tuzov, Head of Analytical Services at ManpowerGroup (ManpauerGroup) | |
The demand for the provision of work of office specialists continues to grow. 76% of the employed project workers in 2019 were from the category of "white" collars: office employees, employees, managers, engineering and technical personnel and others. Another 24% belonged to the blue collar category.
| | The number of project employees in the field of office staff and highly professional employees increased by 15% - in 2018 there were 64% of them. It can be assumed that in 2019, companies tested for efficiency the approach of "hiring project teams" to solve specific tasks. In this sense, Russia fully follows world trends. We predict the demand for a similar format by the end of 2020, for example, during the quarantine period, employers actively considered the format of project hiring for themselves and for September 2020, such trends continue. noted Lyudmila Zorina, Operations Director of the International Personnel Holding Gi Group | |
The percentage of men and women among temporary staff has remained practically unchanged in recent years - the number of men (53%) is slightly higher, women (47%).
Most of the project employees are employees aged 31-45 years (43%) and from 25 to 30 years (29%). 13% are young people under the age of 24, 12% are workers between 46 and 55, 3% are workers 56 and older.
Most project workers have higher education (72%), slightly less than a third have received a diploma of secondary special education (28%).
The outsourcing market in Russia continues to grow actively. As in previous years, the turnover of outsourcing services occupies the most significant share of 14.8% (58.7 billion rubles). This service has become most popular due to the transfer of non-basic functions of companies to the hands of experienced specialists. According to experts, outsourcing indicators could be significantly higher - the market share represented by law-abiding agencies is growing, but a large number of "gray" providers remain on the Russian market.
Among the most popular in the Russian market, experts highlight services for outsourcing administrative (reception, call centers), financial (accounting, document management), IT (support, development), as well as logistics (warehouses, procurement) and trading (merchandising) processes.
| | As of September 2020, the need for all flexible forms of employment is growing in a volatile market. Project work and flexible employment in any form will be the main trends of the 2020 season. Companies fear a "second wave" of the coronavirus crisis and prefer not to hire other permanent employees. Meanwhile, no one has canceled projects and tasks. Therefore, design people and design solutions become very in demand in times of crisis. As of September 2020, according to ACAZ, more than 110,000 project workers are legally (76% of them are experienced professionals), employed in the largest Russian and international companies. The growing demand for flexible forms of employment in Russia is in line with global market trends. According to the World Employment Confederation (WEC), the growth of the global workforce market is 1.5-2 times ahead of the recruitment market and, according to experts, will remain the leader in the coming years. Project work is becoming an existing reality. It is no longer something unusual, on the contrary, it is in demand both among employers and among candidates. | |
Notes
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