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Legal Salary Is Little Motivation to Stay
To attract and retain a valuable employee, legal salary alone is not enough. An attractive benefits package is necessary as well, according to a survey conducted in November by the National Personnel Managers' Union. The majority of respondents (72 percent) confirmed that “legal salary alone is not enough, a good benefits package is also needed.” Only 13.6 percent stated that “salary is one of the most influential factors for attracting and retaining employees.” Finally, 12.5 percent of respondents stated that “a company working with under the table' salary schemes can retain employees well.”
Legalization of salaries is one of the most discussed problems on the Russian labor market. At a NPMU forum last month, Maxim Topilin, head of Federal Labor and Employment Service (Rostrud), stated that “about 40 percent of workplaces are outside the zone of the legal or semi-legal labor market, that is, they are not a source of insurance payments.” According to the Federal Tax Service, the share of illegal salaries in the total national salaries in Russia between January and September 2007 was 26.9 percent. The tax service says that legal salaries are of interest mainly to persons born after 1967 who are expecting to receive accumulated benefits.
“A legal salary is of no interest only to a working generation. It is more interested in a good benefits package – voluntary medical insurance, paid cellular communication, favorable crediting and private pension programs. At the same time, it is the benefits package that shows the company's loyalty to its workers, its interest in them,” the NPMC notes. According to the latest research by Kelly Services, in the last year, the size of the salary has taken on great importance in choosing a job. That research found a decreasing interest in benefits by employees.
www.kommersant.com
All the Article in Russian as of Dec. 07, 2007
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