In Russia, decision-making skills are often in certain individuals, without whose presence in a next round talks is not possible. Source: AP
A few months ago we started to write a little series within the series. In the articles there was now a question of light emerging markets with regard to possible risks of mergers and acquisitions and in terms of growth opportunities in these markets. In addition, we discussed the need for policy advice and public affairs in Emerging Markets. Today is about finding the right staff, particularly for executives and especially about finding these executives not only sustained but also to bind to the company.
China, Brazil and India after the crisis has experienced significant growth gains. Russia also is recovering from and after the crisis, which has the country compared to the other BRIC countries made no doubt the strongest. And here it is in one important aspect about winning managers with the right know-how and to keep particularly well. The turnover of managers in the emerging markets is relatively high. This is often a significant time and money and outflow of know-how to follow. Below we want – played on the theme of Russia – the issue of proper recruitment and shed more light on answering the same question, how local companies can make sustainable loyalty.
The process of globalization, namely the economic, political and cultural integration of the world progresses, moves forward. From the decision to invest abroad up to the office is functioning, but it a long way. There is often the first step is to send one person into the country, there to take hold. Only if the company has received such an access, it is ready to expand in order to strengthen his position. The central factor in this process is the selection of the appropriate personnel. But how can a company based in Frankfurt, qualified employees in a few thousand miles away? How can you get in touch with people whose language you do not speak and whose culture you do not know? And anyway – what do you need to open a business in a foreign country? And how is all this work apart from the actual business, so must also continue in some way?
This is the classic case for efforts to make the case not only with available materials, but rather a turn-qualified personnel and to place an international search. The most important element of international search operations is to understand the mentality and customs of the destination country. Russian is very interesting but also extremely diverse market.
Internationally active recruitment agencies not only have contacts in the countries and on technical experience in recruitment, but also have knowledge about the country, the population and the characteristics that should be heeded. Because cultural differences are one of the greatest stumbling blocks in the globalization process. Even if all the economic conditions necessary for a successful expansion abroad, companies can easily run into stumbling, if they let these circumstances taken into account.
Language and communication barriers – Вы говорите по-русски
In international search requests raised in the first place of course the language problem, because the client is talking mostly not the national language and English is not a given, especially in Eastern Europe and Russia. A reliable interpreter can overcome this problem. However, there are even more extensive communication difficulties due to cultural differences. Thus, a call to fail if only because it speaks to the inappropriate, incorrect hierarchical settled person. For in Russia are often decision-making powers in certain individuals, without whose presence an advancement in talks is not possible. Moreover, English is not the same as English: nuances in communication can make crucial differences, and especially when two non-native speakers can communicate in English with each other misunderstandings.
International search operations sometimes mean the mediation between two worlds: on the one hand there is the culturally influenced its mentality west client, who is also under the special influence of their own corporate culture. Against which the candidates are from the target country, who speak a different language and bring their own cultural understanding. Often gives the client the west shaped his ideas about people and organizations on a one to the new situation. This can not possibly work, however: Although it is contributing between the German and Russian culture large overlapping fields, and particularly the media to that in certain areas of life is a convergence of cultures, there are fundamental cultural differences between countries. Although Russia is geographically much closer than, say, the exotic China, one should not underestimate those differences.
One should invest in Russia, for example different time scales: How to call this the time factor four, which means that it takes four times longer to complete a transaction than in Germany or other Western cultures.
Also the understanding of right and law is different in these countries is precisely the Germans are generally very law-abiding and behave in accordance with the applicable rules. This is not necessarily the case in Russia, since laws very much subject to individual interpretation. Oral agreements are ephemeral, written fixations on the other hand is a must. In general, you meet in the Eastern European countries often have a vested in the past unerring need for security. In contracts it is necessary to consult a specialist in employment law matters, to protect themselves.
How do I find the right people?
For international search requests is not just about finding suitable staff for the vacant posts, but it also applies to the client with advice and experience from the target country to stand aside and to support him with hints, suggestions or contacts. Clients who want to expand their business internationally, often have no concrete ideas to all of the approach and of what awaits them in the destination country. In the initial interview, such uncertainties are quickly apparent. Personnel in these cases, ie not only the clients with good sector and market knowledge to support, but also to prepare him for the specific abroad and to help him in the circumnavigation of some cliffs.
In the first interview, therefore, the needs and wishes of the clients discussed in order to find out what exactly is needed. It is often the case that the position title and its anchorage in the corporate structure during the conversation with other aspects will be reconsidered and changed fundamentally. Companies tend to their Russian subsidiary to settle up in the organizational structure: report to the CEO, called the "Director General" to be, for example – as well as the directors of other subsidiaries – close to the German management. This successful combination in other countries, however, can not easily be transferred to Russian companies: In the Eastern European countries, there is a very pronounced focus on people. are replaced by processes and the achievement of milestones is a focus of communication to people who have sole decision making authority. This principle established in the existing hierarchy of behavior will cause required by the Western headquarters is a very close communication with the subsidiary. For a permanent contact and operational matters, the members of the management but have rarely time in everyday business. For these reasons it makes sense to entrust one (trust) person with the corresponding time capacity with the contact with the Russian subsidiary, driving the processes for all aspects available.
Local or Expatriate?
Another crucial factor is whether the position is filled by a candidate from the target country or from one expatriate, then a West Europeans with professional experience in the destination country. An expatriate is familiar with Western organizational structures and can therefore be suitable for the interface to the Russian subsidiary, very good. However, he knows the country, the language and cultural conditions not as good as a native, who has usually also on a better network and contacts. In addition, an expatriate will always be more expensive than a native. Depending on the position, the decision may be very crucial for one or the other variant. Such issues must be considered before the start of the actual recruitment to create a needs appropriate job profile.
Next Monday you read the second and final part to "How the right minds are provided in growth markets,"