Wage Structure and HR Management in Russian Companies

Abstract

Russian labour market uses price adjustment (wage flexibility) to shocks rather than quantitative one (employment). One of the main mechanisms of wage flexibility in Russian economy is a high share of the non-base (variable) wage component that makes it easier for enterprises to respond to shocks. Using data of survey of Russian enterprises from main sectors of the Russian economy for 2009–2017, the determinants of variability in the enterprises’ behavior of the nonbase wage component usage a were evaluated. The obtained results show that a higher proportion of the non-base wage component demonstrates enterprises in a good financial position, with large investments, higher wages and a large number of employees. During 2012–2017 a share of non-base wage component significantly increased.