The Most Challenging Aspect of Investing in Russia: Employment and Human Resources
Establishing a factory or managing a construction site in the Russian Federation is not merely a technical process. The key to success lies in establishing the right human resources and managing them in accordance with Russia's complex Labour Code (Trudovoy Kodeks).
At RFCONS, we act as a strategic partner for Turkish companies investing in Russia, not only during the company formation stage but also in personnel planning, work permits, and payroll processes.
1. Critical Decision: Turkish Personnel or Local Personnel?
The first dilemma for investors is: ‘Should I bring my own team from Turkey, or should I find personnel in Russia?’
The answer to this question lies in cost and legislation:
Bringing Turkish Personnel: Advantageous in terms of quality and work discipline, but subject to ‘quota’ restrictions and visa costs.
Hiring Local Staff: There is no language barrier and no visa costs, but mastering Russian work culture and finding the right talent is difficult.
The RFCONS Approach: We generally recommend a Hybrid Model. Managers and key technical personnel should be from Turkey (with VKS status), while intermediate staff and blue-collar workers should be sourced locally (or from CIS countries).
2. The Nightmare of the Construction and Manufacturing Sector: The ‘Quota’ System
Russia limits the employment of foreign workers through quotas determined annually on a sectoral basis. Companies planning to bring in hundreds of workers, especially for construction projects, cannot start the project if they have not submitted a ‘Quota Application’ months in advance.
Quota-Free Options: Citizens of Belarus, Kyrgyzstan, Armenia, and Kazakhstan (Eurasian Union) can work without quotas or visas. Using CIS personnel on your construction sites is a strategic move.
3. VKS: The Golden Key for White-Collar Workers
You do not need to wait for quotas for your engineers, factory managers, and senior executives.
VKS (Highly Qualified Specialist) Visa: Personnel contracted for an annual salary above a certain threshold (Gross ~2 Million Rubles/year) can obtain a 3-year work permit within 15-20 days. At RFCONS, we manage the VKS processes for your key personnel on a turnkey basis.
4. Russian Labour Law is No Joke
Russian labour law is extremely **‘employee-friendly’**.
Dismissing staff is not as easy as it is in Turkey.
Failure to pay salaries on time results in criminal liability.
Occupational health and safety (OHS) inspections are very strict and penalties are severe.
An incorrectly drafted employment contract or an incomplete ‘Work Book’ (Trudovaya Knijka) record can tie up your company in court for years.
5. RFCONS HR Solutions
We take the HR burden off your shoulders when setting up your factory or construction site:
A. Recruitment
We offer our extensive database to find experienced engineers, accountants, sales managers or administrative staff who speak Turkish/Russian in the Russian market.
B. Outstaffing
If you do not yet have legal personality in Russia or do not wish to assume legal liability (payroll, tax, Labour Code risks), we can hire personnel through RFCONS partner companies and invoice you for the ‘service’. This is the safest starting method for foreign companies.
C. Immigration and Permit Management
Submitting quota applications.
Obtaining work visas and residence permits.
- Workplace safety records for construction site personnel.
"Have you completed your staffing planning?" "How many Turkish and how many local personnel do you need for your project in Russia? Let us prepare the quota and VKS cost table for you."[Request Employment Cost Analysis]