A recent report indicates that Russian firms are progressively reducing or eliminating bonuses and incentive payments to cut costs.
The findings, gathered by the HeadHunter recruiting agency in collaboration with the pension fund NPF Evolyutsiya, were disclosed by the pro-Kremlin newspaper Izvestia on Friday.
About a third of workers who previously received bonuses have noted a decrease or complete removal of these payments over the past year, reflecting the economic slowdown in Russia.
The survey revealed that 20% of participants experienced a fall in the amount of their bonuses, while 9% stated that they had stopped receiving bonuses altogether.
For 25% of the respondents, bonuses constituted 10% to 30% of their overall take-home salary.
Fifteen percent of employees reported receiving bonuses that amounted to 10% of their total pay, while a comparable group indicated that bonuses made up 30% to 50% of their earnings.
The data indicated that managers, IT professionals, realtors, and employees in sales, finance, and construction were the most affected by reductions or cancellations of bonuses.
Regions that reported the highest rates of bonus loss included Sverdlovsk (42%), Novosibirsk (36%), Samara (32%), Rostov (31%), and the Republic of Tatarstan (32%).
“Typically, bonuses and incentive payments are among the first expenditures companies cut when trying to save money without reducing salaries officially or laying off staff,” noted Vladimir Chernov, an analyst at online broker Freedom Finance Global, as reported by Izvestia.
“Firms are becoming less adaptable, particularly due to high interest rates and limited access to credit. Businesses have reached a point where financial incentives are not the only motivators,” commented Dmitry Dudarev, HR director at the communications firm CROS, highlighting the Central Bank’s key rate of 20%.
Alexander Vertekov, deputy general director of the headhunting agency Rabota.ru, mentioned that “companies are currently focused on optimizing their operations and boosting productivity. Lowering personnel expenses allows firms to reallocate funds towards the development and integration of new technologies.”
Maria Koleda, a spokesperson for the independent trade union Novy Trud, informed Izvestia that diminished bonuses lead to decreased employee motivation and an increased likelihood of turnover.
In an effort to retain key talent, companies are increasingly utilizing non-monetary incentives, such as flexible working hours, remote working opportunities, participation in engaging projects, and employer-sponsored training, according to Chernov.
Another job recruitment service, SuperJob, disclosed that employers have begun offering holiday gifts more frequently, providing interest-free loans, and facilitating free consultations with psychologists, legal advisors, and financial experts to offset the reduction in bonuses.
Additionally, companies are broadening their benefits packages and offering non-material recognitions such as certificates, mentions in internal communications, and access to strategic meetings, as noted by Chernov.
