Oleg and Mark are project managers at the Moscow subsidiary
of a multibillion dollar international company. Oleg is a
Russian local and Mark an American expatriate. Although
raised in vastly different countries, they have a lot in corn- I mon. Both 30 years old, they graduated from top universities
in their home countries with degrees in economics, worked
for prestigious organizations, went back to graduate school,
and now work side by side in the challenging environment of
Russia's emerging market economy. They work long hours,
have unpredictable schedules, manage difficult relations with
vendors and government agencies, and endure the ups and
downs in corporate attitudes toward the Russian market.
They often work together, attend the same meetings, face
similar problems, and send countless faxes and e-mail messages
to corporate headquarters in North America. They have
an excellent relationship and often help each other. They like
what they do and their boss sees a bright future for both of
them,
But when the working day is over, the similarity abruptly
ends. Mark drives his Volvo 760 to a lavish four-room apartment
in the prestigious Southeast district of Moscow, while
Oleg has to take the subway to the dark apartment in a run-
down building downtown that he shares with four room-
mates. On the weekends Mark likes to dine out at the fashionable
Savoy restaurant, where dinner costs as much as
$200, while Oleg has a few beers at a friend's apartment.
Three times a year Mark goes on vacation to Western Europe,
the Caribbean. or the United States; once a year Oleg goes to
see his parents in Siberia. Neither his car, apartment, or vacation
costs Mark anything. They are part of the 'hardship
package” he receives as compensation for living in Moscow
on top of his regular salary of U.S. $6,000 per month. Oleg
does not get any “hardship benefits” since he is a local resident
and his salary is $200 per month.
Says Oleg: “I like my job and I like the people I work with.
I think we have a great organization here in Moscow. Most of
our expatriates are very open and knowledgeable. I think we
learn a lot from each other and the company benefits from
having this multinational team.
“My compensation? Well, it's a bit frustrating to know that
your buddies, who do the same work you do and who you
often help, since many of them don't speak Russian, make 30
times more than you do. This summer we had an intern from
an American business school, who worked under me. He used
to take me out for lunch to hard-currency restaurants and pay
as much as my monthly salary for it! He was a nice guy, but I don't think our relations were quite normal, because I could not even buy a bottle of wine for that lunch, and he knew it.
'Eut at work I don't think about it. I'm too busy to think
like that. Sometimes, late at night, some crazy thoughts come to my mind: “Gee, something must be wrong - they treat you like a second-class citizen, cheap labor, they exploit you.” ... But the next morning, I am up for work and those thoughts are
jone. How long will my patience last? I don't know.”
According to the company's managing director for Russia:
Some of our Russian managers, such as Oleg, are equally, if not better qualified than expatriates. They perfectly understand our business and they are truly bilingual, while most of our expatriates can barely speak Russian. We are very fortunate to
have these Russian employees - their contribution is hard to
overestimate. Compensation? We pay them what the market tells us here in Moscow. Yes, it is extremely low pay according to Western standards, but why should I pay a manager $5,000 if I can hire him for $200? Are they bothered by the inequity? I don't think so. I haven't heard any complaints so far, and I think we have very good relations among Russians and expatriates.”
Mark comments. “Oleg is a great guy. We get along well, he helps me a lot, especially with my Russian. Do I feel sorry for him? No, I think he has a bright future. One day he will
manage this subsidiary. As far as money goes, we live in a
market economy. I was hired in the United States and what I get is what the job market pays there. It's different in Russia, so Oleg is being compensated differently. And I think he
makes more than Russians working for Russian organizations. Plus, one of the reasons why our company is here is the
cheap, skilled labor, and we've got to take advantage of this.”
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