Issue in Focus: Managing Compensation against the devaluation of the Rouble

Following deep structural problems, combined with geopolitical uncertainties and Western sanctions, the Russian economy and the Rouble experienced a sudden and significant drop at year-end 2014 with long term effects spilling over to 2015. The nearly flat economic growth of 0.6% in 2014 is expected to shrink further by -3.8% in 2015 and the outlook of the Ruble, which lost around half of its value against the US dollar in December 2014, is predicted to remain stagnant while oil prices continue to trend downwards.

The significant devaluation of the Rouble has caused a dramatic increase in the price of imports, foreign travel, purchases abroad as well as inland trading of US dollars. Addressing employees’ concerns at the loss of purchasing power, international management consulting firms in Russia have sought solutions on how to best manage the currency crises and ensure competitive compensation packages for their employees are in place.

Addressing these issues, Vencon Research International has gathered data from seventeen of the major international “Pure” Strategy and Operations-based Management consulting firms in Russia to publish our custom Pulse Survey titled “Managing Compensation Issues – Currency Devaluation in Russia”. Among its findings, the report describes the effect of the devaluation on the companies compared as well as the steps these companies have taken to mitigate damage in the wake of the crisis.

For more information on this report, please contact Muna Yaffai at muna.yaffai@venconresearch.com