Salary Research Shows Wages Increasing

Local salaries climbed 12-13 percent in 2007, closing the gap between Moscow and St. Petersburg.

By Yekaterina Dranitsyna

Staff Writer

Published: March 25, 2008 (Issue # 1359)

Most private companies in St. Petersburg — 95 percent — increased staff salaries in 2007, according to the latest salary and remuneration survey issued by Avanta Personnel recruiting company, and more than 90 percent of local companies plan to raise wages this year.

During the last year, the average salary increase in the city was 12-13 percent, while the maximum increase was reported at 30 percent. In 2008, private companies in St. Petersburg will increase salaries by 10-12 percent on average, while the maximum increase is again planned at 30 percent, Avanta Personnel reported.

“The gap between salary rates in Moscow and St. Petersburg is narrowing. In St. Petersburg the average salary is 84 percent of that in Moscow. In Vladivostok, which holds the third place in Russia, the salaries are just 55 percent of Moscow’s level,” said Anna Yegorova, head of Labour Market Research at Avanta Personnel.

Yegorova indicated that the main factors that influenced last year’s increase were the personal achievements of employees and the labor market situation, though company performance and inflation also affected salary levels.

In the survey, Avanta Personnel analyzed data concerning the HR policies of over 43,500 employers and salaries of over 27,400 employees from 92 international and Russian companies. Half of these companies were foreign, 40 percent Russian and 11 percent joint ventures.

By January 2008, the average monthly income was reported at 31,090 rubles ($1,261) for office managers, 21,520 rubles ($873) for secretaries, 11,375 rubles ($461) for office cleaners, 28,713 rubles ($1,165) for HR managers, 42,828 rubles ($1,738) for shift managers, 23,502 rubles ($953) for production operators, 26,782 rubles ($1,087) for mechanics and 25,506 rubles ($1,035) for forklift truck drivers.

Average salaries in other categories included:

Unskilled workers: 19,726 rubles ($800)

Financial analysts: 32,280 rubles ($1,310)

Accountants: 22,513 rubles

($913)

Sales representatives: 33,322 rubles ($1,352)

Merchandisers: 18,610 rubles ($755)

Software engineers: 45,684 rubles ($1,854)

IT specialists: 29,290 rubles ($1,188)

Besides the basic salary, 66 percent of the survey participants paid performance-based bonuses (12-20 percent of the annual base salary), 47 percent paid bonuses on the occasion of the anniversary of the company or date an employee started to work there, or other one-off bonuses at the management’s discretion, and 37 percent paid guaranteed bonuses either monthly or once or twice a year.

In sales departments, average sales commissions amount to 40-50 percent of the base salary.

The most common benefits provided by employers in St. Petersburg include medical insurance (78 percent of companies) and lunch benefits (73 percent).

Depending on their position, employees could be awarded other privileges. Top-managers are provided with a company car in 57 percent of companies, managers in 29 percent, and sales personnel in 20-35 percent.

Over 90 percent of companies cover their employees’ cell phone expenses, over 80 percent cover business trip expenses and 95 percent provide training programs for employees.

The average annual turnover in personnel at St. Petersburg companies is 14 percent, according to Avanta Personnel.