Employers are introducing exotic ways of luring executives

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After the crisis, the salaries of top managers are growing very slowly, so that companies are willing to compensate the applicants profits, lost in the same place of work.

In recent years, salary offers executives practically grows – says Anton Storozhenko, partner headhunting company Amrop Hever Russia. – Before the crisis, employers, do not hesitate to throw 20-30% to the former head of the new salary, but now the candidates are getting used to the situation where the inviting party believes every penny. ” “Salary offers today significantly below pre-crisis, – says Igor Shehterman, managing partner and head of the practice of Executive Search consulting firm in management of capital RosExpert. – Now the salaries of the candidates suggest a 10-15% higher than the former. ” According to headhunters, in this situation, employers have resorted to incentives to attract forgotten directors, among whom there are also quite exotic – such as the welcome-bonus.

on par with inflation

on analysts’ estimates of Rosstat, in the past year, nominal wages in the country on average rose by 12.3%. Dynamics of growth of salaries of managers, which was in the lead up to the crisis, now is hardly falls short of the nationwide rate. “According to salary surveys conducted by our company over the past three years, salaries top executives of major companies operating in Russia, grew up in 8 to 10% a year – says Joan Dobritskaya, partner,” Ernst & Young ” , Head of Human Resources Consulting. – For example, in 2009, wage growth in other categories of personnel averaged 9.6%, and in 2010 – 11%. However, during this period, many large Russian companies have implemented a variety of long-term incentive program, which significantly increase the total income of the top managers. In addition, during the period 2008-2009. against the backdrop of the crisis, many managers have lost their annual awards. In subsequent years, the financial results have improved, which in turn affected the amount of paid annual bonuses for 2010 and 2011. ».

« In general, base salaries of senior managers in the past two years has grown significantly – on average by 6-7% per year, ie within the inflation rate “, – says Vera Rich, a senior manager in Human Resources Management PwC. She said the bonuses, which were slightly higher, led to an increase in total compensation on average by 15%, but this figure can not talk about a significant increase in the average market size of the variable remuneration.

Storozhenko of Amrop Hever believes that an experienced manager” prize money “- not the main thing.

Offering Units

This spring, the specialists of the Department” Marketing and sales “of the company recruiter Michael Page International jobs for Marketing Director for an international FMCG-company. Manager has agreed to move to a new job without waiting for the end of the fiscal year, only on condition that he would cancel the annual bonus – equivalent to 12% from the previous annual salary. According to the head of the Department of Alena Salakhova, the decision to grant the so-called welcome-bonus (sign-up-bonus) was unusual – rare kind of compensation, in principle, but during the crisis of them all was forgotten. Size welcome-bonus, according to experts Michael Page International, usually tied to the size of the guaranteed premium, and they range from 250,000 to 1 million rubles. For example, the Director of Financial Control, recently hosted by Michael Page specialists in the production company, received a welcome-bonus of 700,000 rubles. 800,000 rubles in salary. But, according to consultants in the financial sector is a little different: amounts received by the candidates, do not depend on their salaries are negotiable.

«Welcome-bonuses – a phenomenon that, in principle, and rare. Now this practice has returned after three years – says Artur Shamilov, partner headhunting agency TopContact. – But now it is paid only in special cases – if the company is in dire need of acquiring a specific top managers ».

Invite hire

« Before the crisis, such fees are provided for acquiring the top managers in 4-5 cases out of 100, whereas in 2008-2010. forgot all about it, “- commented Storozhenko. In his practice, a similar case last time was last year: the company of the financial sector has decided to offset the 30% annual bonus, CEO, who went to work in the summer (he lost half of the bonus, which in his former place of work shall be paid in January). However, the promised amount paid is not immediately on starting work – welcome-bonus was divided into several tranches and paid three months after the commencement of work. Storozhenko explains that this is an additional incentive for managers to show their best qualities to the new employer.

«Even in the investment banking segment, known for relatively high sign-up-bonus up to crisis This practice has been frozen, “- says Shehterman of RosExpert.

According to him, to date, customers are also quite negative attitude towards the payment of welcome-bonus. Before the crisis mechanism was tied to the compensation of the lost income of the candidate – the size of the bonus reached $ 1-2 million (and in some cases, the employer company is also partially offset the payment of the option), the current mechanism and procedure for calculating the amount has undergone significant changes. Currently, payments are mainly tied to the relocation of the candidate to compensate for his costs associated with moving to another city or country. And this bonus does not depend on the bonus, which is a candidate to lose in the transition to another job.

Shehterman says that some companies are not ready to offer senior manager sign-up-bonus offer a candidate for the highest administrative position other schemes that may interest him – such as an advance payment of compensation for six months at the output of a candidate for the job.

«Welcome-Bonus will never was the decisive factor for the transition of top managers, at least in our practice, such cases have not been – said Shehterman. – Candidates are more interested in the new proposal – a new level of tasks and responsibilities, as well as a potential compensation package, which the company is prepared to offer him ».

According Storozhenko than welcome-back bonuses Practice signed a detailed agreement on the “golden parachutes” in the case care manager from the company.

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