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E L G R O U P C O N S U L T I N G
D I G E S T
J U N E ’ 1 4
Why is it beneficial for
professionals to work in
Dushanbe
Advantages of professionals
who speak foreign languages
Culture, business
and expatriation
Objectives
and rules of their setting
W E O N
S O C I A L
N E T
T W I T T E R
F A C E B O O K
L I N K E D I N
D E A R C O L L E A G U E S !
We are pleased to present you the next issue of El Group Consulting Digest.
The first summer month has flown by; half of the year is left behind. Looking
back, we can already draw some conclusions. All of the El Group’s initiatives
which we talked in detail in the previous issue of the Digest about have “given
their sprouts” and we hope them to bring their first and significant results
soon.
With great joy I want to mention a huge interest aroused in the business com-
munity the first Market Research in Tajikistan launched by El Group in May of
this year. Our team’s initiative has been me with a great enthusiasm; at the
time of the Digest’s release 15 companies have already expressed their desire
to participate in it. Given the interest caused, in this issue we publish a com-
parative analysis of wages in Kyrgyzstan and Tajikistan. In the article “Why is
it beneficial for professionals to work in Dushanbe” we present the data of an
informal survey among our Tajik colleagues who revealed the local patterns
and showed, in particular, that the payment specialists positions in our coun-
tries might vary a few times.
I would like to draw your attention to an interesting analysis, which was con-
ducted by Zhypar Sattarova, Partner/Head of Compensations and Benefits Re-
search, El Group. Zhypara has compared the remuneration conditions of two
sectors: business companies and international organizations working in the
market of the Kyrgyz Republic. Conclusion: multilingual professionals in Kyr-
gyzstan have certain preferences.Which exactly—read the article “Advantages
of professionals who speak foreign languages.Working conditions in the inter-
national NGO’s and business sector of KR”.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
My colleague Christian Kroyplandt makes an interesting topic for discussion.
On the pages of El Group Digest he talks about how expats adapt and real-
ize their potential in a new country, including Kyrgyzstan; what qualities and
skills do the work of international experts and certainly very presence abroad
and certainly a very presence abroad successful. In this issue read the first part
of the article “Culture, Business, and Expatriation”.
In turn, I am happy to start an excursion and share my impressions of recently
read book by Brian Tracy “Maximum Achievement” with you.
In my opinion, despite the summer and a desire to “slow down” a little, the
June issue of El Group Digest has turned out interesting an eventful. I want to
believe that some topics of our teamwork will definitely appeal you.
Until next time
Parther/El Group Founder,
Jamilya Imankulova
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
W H Y I S I T B E N E F I -
C I A L F O R P R O F E S -
S I O N A L S T O W O R K
I N D U S H A N B E ?
C O M P A R A T I V E A N A LY S I S O F
P R O F E S S I O N A L S ’ S A L A R I E S
I N T A J I K I S T A N
A N D K Y R G Y Z S T A N
For over eight years, EL Group Consulting has been the only
provider of the industry-wide salaries market Research in
Kyrgyzstan. This year the company enters Tajik market with
a similar research for the first time. El Group team has
conducted an informal survey among its Tajik colleagues
in anticipation of the official launch of salaries market
Research in Tajikistan. Few interesting patterns had been
revealed.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
More than 50 major companies participate
in the traditional salaries market Research
in Kyrgyz Republic, representing all the
major sectors of the economy. Its results
give an idea on the market trends and perspectives of
its development. The analysis conducted by El Group
management during their visit to Tajikistan has revealed
a need of professional and independent information
of this kind. The study attended by 12 leading Tajik
companiesinsectorssuchasfinance,telecommunication,
and retail precedes the full Research.
It had been shown by a comparative analysis of wages in Tajikistan
and Kyrgyzstan of 2013 that some positions’ payments vary several
times. For example administrative assistants in Kyrgyzstan receive
4000 dollars a year, while their Tajik counterparts get 16000 dollars
(by median).The salary of an HR specialist in Kyrgyzstan is,on average,
6000 dollars; whereas their Tajik colleagues’ wage is 16500. Such
a significant gap (almost 3 times) exists among other primary and
secondary level positions as well.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Such a level of income among large Tajik companies is observed against the background of the average
wage for this country which is $111 (with a minimum consumer basket of $60 (data of the Statistical
Agency under the President of the Republic of Tajikistan)), while in Kyrgyzstan it is $211 (with a cost of
living of $87,5 (data of NSC KR)).
Having worked with the data of the survey conducted by El Group, we saw that Tajikistan has experienced
a steady growth in the payment to the middle management and employees. Meanwhile Kyrgyzstan
experiences a stable wage growth mainly in a top managers’ level. Historically, the situation in Kyrgyzstan
was different: wages of ordinary employees had been actively growing a few years ago. Experts suggest
that it was due to the lack of professionals which, in turn, had been caused by specialists’ outflow in
Kazakhstan and Russian Federation. Now the situation has changed. On one hand, the economic growth
in neighboring countries is reduced; on the other hand, migration policy is tangled. To some extent this
constrains the rates specialists’ and even encourages some of them to return home.
$111 $60
$211 $87,5
Average wage
in Tajikistan
Average wage
in Kyrgyzstan
with a minimum
consumer basket of
with a minimum
consumer basket of
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Beginning from 2012, a new trend is starting to be traced in Kyrgyzstan.The previous studies’ results and
the current year forecasts (they can be made based on the results of the salaries market interim Research,
initiated by El Group Consulting starting this year) make it possible to talk about its sustainability. So, the
salary revision level has averaged 10%,while top and middle mangers’salaries have increased by 14—18%
in the first quarter of 2014.According to the interim Research participants, there are two main reasons for
the revision: quit significant one-off devaluation of the national currency (som) and the establishment of
a competitive salary levels for retention / attraction of highly qualified employees of the Board and Top
Management.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
“Competition increases; there are not enough of qualified personnel.Everyone understands that there are certain
conditions that have to be created for specialists. It is easier with lower-lever experts: they might me brought
up out of the former graduates. The situation, at least in the finance sector, at the moment is that it is easier
to educate the trainees at the workplace. Hence, we need a normal, qualified head-mentor. Requirements for
the senior managers as well as for the linear managers are strong, there is a lack of high-level specialists, we
have to find them somewhere and raise their salaries”, — Djamal Duishekeeva, head of human resources
department of “Rosinbank” commented the situation.
There is a different situation in Tajikistan, similar to the one that was in Kyrgyzstan 4 —5 years ago. Based
in the results of the survey, there is an obvious shortage of qualified professionals. As compared with
Kyrgyzstan, there is a higher demand for ordinary employees with positive experience and high level of
foreign languages proficiency. According to Tajik colleagues, that might be linked to the consequences of
‘90s political instability, when the country’s infrastructure of education system had been greatly damaged.
The whole generation of young people had actually no opportunity to learn, it has led to a clear shortage
of the skilled workers.
T H E W H O L E G E N E R A T I O N O F
Y O U N G P E O P L E H A D A C T U A L LY
N O O P P O R T U N I T Y T O L E A R N
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The situation is exacerbated by the continuing high professionals’ outflow.
The most educated and demanded experts leave Tajikistan.Thus, according to
the Russian Federal Migration Service, there one million 33thousands citizens
of Tajikistan working on their territory, which is 13% of the total population
(for comparison: there are 525 thousands of Kyrgyzstanis working in Russian
Federation, and it’s one tenth of the population).
To date, the problem is mainly solved by the independent training of new
employees; and by attracting new expatriates, mainly from CIS countries, and
Kyrgyzstan among them. But besides the unique experts, the enterprises and
companies of Tajikistan experience an acute shortage of unskilled workers.
Such jobs as maids and security guards are often vacant. Experts explain it by
the cultural differences of an ethnical group which is meticulously receptive
to a work from the point of it being prestigious.
1 033 000Amount of citizens of Tajikistan working
in Russian Federation.
525 000Amount of citizens of Kyrgyzstan working
in Russian Federation.
T H E S I T U A T I O N I S
E X A C E R B A T E D B Y T H E
C O N T I N U I N G H I G H
P R O F E S S I O N A L S ’ O U T F L O W
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Despite the fact that that the situation in the wage market of Tajikistan and Kyrgyzstan is different,
those two countries have some common trends. First of all, there is a significant gap between the level
of compensation offered by leading companies to their employees and the labor market as a whole.
Unofficial survey results presented in this article are mostly reflective of the compensatory policies of
large companies. In general, the situation in Tajikistan will certainly be different.
“I was surprised by the level of wages shown by the survey. I have been working here for two and a half years,
and I can tell that it’s not a fact that all the experts receive salaries that high.Of course in Dushanbe the incomes
as well as the standards of living are higher, but the gap between ordinary workers and top management in
Tajikistan is quit big as well. Nevertheless, I know that in sectors such as telecommunications and finance, an
unusual situation,different from the scope of hospitality and the overall labor market,develops”,— says Eugene
Luzhkova, who has an extensive experience in both countries.
Let us hope that our team will be able to get more objective results based on the figures of the first
participants in an industry-wide Research, which is conducted by the El Group company in Tajikistan
at present. The results of recently launched Research conducted by El Group Consulting will show the
detailed situation. Those will be presented for you consideration in September 2014.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
T H E L O N G
A W A I T E D S T U D Y
El Group Consulting is conducting the first in Tajikistan Salaries
Market Research. 27 large companies of the Tajik business sector have
received an invitation to participate.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
El Group consulting is the one to hold the first in Tajikistan Salaries Market Re-
search. Earlier the studies of market had been directed mainly by international
focus, the key focus of which was the situations of the nonprofit sector, donor
organization and foreign projects.
The target market for the first Research by El Group is a business sector which
is, according to the research participants, is very attractive to them. The survey
has already involved more than a dozen companies; several more have ex-
pressed their readiness. All participants are the business leaders in the Tajik
market representing such industries as telecommunications, hospitality and fi-
nance. According to Jamilya Imankulova, Partner/Founder of El Group Consult-
ing, once the Kyrgyz market has started with approximately the same number
of participants.
“Our first open Research of 2008 has gathered 13 participants-pioneers who trusted
our company. Now in 2014 the number of participants almost quadrupled” — says
Jamilya Imankulova.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Version of the first Salaries Market Research in Tajikistan will be short-
ened. In the questionnaire there are mainly questions concerning indus-
try-wide positions (there are about 140 of them). We are talking about
“transverse” positions that exist in every company regardless of the sec-
tor: accountant, IT-specialist, office manager. It is made in order for the
questionnaire to be compact enough so its filling is not time consuming.
For comparison: the study held by El Group in Kyrgyzstan contains in-
formation on 400 positions. And, according to Zhypar Sattarova, Partner/
Head of Analytical Business Line El Group Consulting, there is already a
demand for a Study with more volumetric spectrum of positions.
“There are companies that have already requested to come up with a more
extensive Research this year. But we adhere to the policy (as, indeed, all the
other colleagues of our business segment) to include purely compartmental-
ized positions only if there are four companies of the same sector. Only then
we can count on a relative objectivity and present an obtained data in the
report” — said Zhypar Sattarova.
V E R S I O N O F T H E F I R S T S A L A R I E S
M A R K E T R E S E A R C H I N T A J I K I S T A N W I L L
B E S H O R T E N E D . I N T H E Q U E S T I O N N A I R E
T H E R E A R E M A I N LY Q U E S T I O N S
C O N C E R N I N G I N D U S T R Y - W I D E P O S I T I O N S
( T H E R E A R E A B O U T 1 4 0 O F T H E M )
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
A D V A N T A G E S O F
P R O F E S S I O N A L S
W H O S P E A K
F O R E I G N
L A N G U A G E S
W O R K I N G C O N D I T I O N S
I N T H E I N T E R N A T I O N A L
D E V E L O P M E N T O R G A N I -
Z A T I O N S A N D B U S I N E S S
S E C T O R O F K R
Over the last eight years, El Group team
conducts an annual Salaries Market Research
and analyzes the compensation system of the
business companies operating in the Kyrgyz
market.
Z h y p a r S a t t a r o v a
P a r t n e r , R e s e a r c h
a n d A n a l y s i s P r a c t i c e L e a d e r
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The year of 2013 became a breakthrough for El Group team: besides the 49 companies —
participants a regular annual Research, the donor organizations of nonprofit sector in the
Kyrgyz Republic have entrusted us their data. International sector decided to walk the way of
getting the objective market rates and developing their salaries in accordance to the realities
of the local labor market. For projects’ realization the majority of international organization’s
representatives in Kyrgyzstan have been brought.
Bythe results of the Compensations and Benefits Research El Group team presents a comparative
analysis of compensations’ conditions of two sectors: business and international development
organizations.
While a business activity is focused on the generation and extraction of profit, international
development organizations are social in their nature and aim to use the funds entrusted to
them by a mandate. Their main goal is the achievement of public goods as well as social,
charitable, cultural, educational, political, and scientific purposes in various social spheres.
Correspondingly, the compensation systems of two distinct spheres will be different as well as
their goals.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Ratio of wages’ components
Chart №1 shows us an evident difference between the base salaries. International development
organizations sector’s base salaries is the larger half (76%) of wages compared to the business sector,
while the bonus part takes only 7%. This is hardly surprising. This tendency is related to the fact that the
system of motivation for international organizations is not focused on the increase in the level of wages
due to the increase of company’s profitability, whereas in the business sector bonus part takes up most of
the salary. This fact is pronounced in sales department’s employees, where 30% of the workers’ revenue
depends on the achievement of sales objectives.
Comparison of wage components’
ratio of international organizations
and business sectors and the
business sector’s sales direction
Annual Base Salary
Annual Bonuses and
Incentive Payouts
Social Package
International
non-profit sector
Bussines sector Bussines sector, sales
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The social package of international
organizations is focused on the long-term
prospects
Alternative pension system within an organization
The social package of international organizations is focused on the long-term
prospects with a view to employees’“orientation”on continuing loyalty. In con-
nection with what, the sufficient resources for motivation are marked in the
compensation policy; payments on social packages make us 17% of the wage
shares.
Alternative pension insurance is very well developed within the international
sector. It has its own PAF, where a certain amount of money is transferred
monthly; one part is reassigned at the expense of an employee’s salary, the
other one is invested by an organization. As can be seen in the chart №2, an
organization’s contribute is higher than the same of an employee.Accordingly,
it is beneficial for employees to “stash” and work as long as possible, since the
cumulative amount is paid in case of “exit out of an organization”: dismissal or
retirement.There is a number of international organizations which do not pay
a share of contribution from on organization if an employee leaves before the
age of retirement. This type of social benefits is virtually absent in the busi-
ness sector: only 2% of companies noted the availability of alternative pension
plan.
Alternative pension plan
Contribution
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Another important type of social package is health insurance and/or the costs
of medical care. 89% of international organizations provide and successfully
practice this type of social package, while among the business sector this
number equals to 12. In 45% international organizations surveyed, health
insurance is administrated by the internal policies of an organization; in this
case an employee must provide all the supporting documents on the costs of
treatment,and a company compensates some of the costs,on average 75—80%
of the total. The rest of the respondents appeals to the insurance companies
that fully take the responsibility of administration, payments, and employees’
maintenance on medical issues.
More often the salaries of international organizations are set in foreign
currencies — 75% of respondents. In commercial organizations 84% of the
companies set their wages in the national currency (som).
health insurance and/or the costs of medical care
Payments and conversion politics
Currency of salaries determined in
international organizations and business
sectors
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Iftherewardsysteminthebusinesscompaniesisdesignedtoensurethat
employeeshaveshowntheireffectivenessandefficiency,ininternational
organizations system is designed for stability and longevity.
Wage level in international development organizations is higher
than in the business sector
Total Cash Compensation (Gross SOM).
— 10th percentile;
— Median;
— 90th percentile
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
A famous proverb says: “The knowledge is force”. We do not just make sure that
the knowledge of foreign languages gives more opportunities in the labor mar-
ket. It’s not a secret that one of the main requirements in international organi-
zation recruitment — being fluent in a foreign language.
Given the complexity of high quality professionals with an excellent knowledge
of foreign languages vacancies’ closure, international projects and organiza-
tions offer the most competitive conditions compared to the business sector.
And we shouldn’t forget that HRM systems of these organizations rely on nearly
100 years of experience in the sphere of effective human resource manage-
ment. The integration of international experience along with the best HR-de-
velopments of the local market can significantly affect the development of the
labor market in Kyrgyzstan as a whole.
G I V E N T H E C O M P L E X I T Y O F H I G H Q U A L I T Y
P R O F E S S I O N A L S W I T H A N E X C E L L E N T K N O W L E D G E
O F F O R E I G N L A N G U A G E S V A C A N C I E S ’ C L O S U R E ,
I N T E R N A T I O N A L P R O J E C T S A N D O R G A N I Z A T I O N S
O F F E R T H E M O S T C O M P E T I T I V E C O N D I T I O N S
C O M P A R E D T O T H E B U S I N E S S S E C T O R
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
C U L T U R E ,
B U S I N E S S A N D
E X P A T R I A T I O N
P A R T I .
W H I C H Q U A L I T I E S D E T E R M I N E
T H E S U C C E S S O F A N E X P A T The international development of business
brings more and more people to interact with
different cultures, to work with expatriates
or to move themselves and to work in foreign
countries.
C h r i s t i a n C r u y p l a n d t
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
How to make business and how to workwith members of other cultures became
a critical topic with the development of a multipolar world, where no country
or region could claim a supremacy and where mutual understanding
appeared to be the way to sustainable business relations.
Cultural differences in business environment 	
The first scientific developments on this topic were led by Pr. Geert Hofstede. Pr.
Geert Hofstede is a Dutch social psychologist who did a pioneering study of cultures
across modern nations. His research played a major role in developing a systematic
framework for assessing and differentiating cultures. Geert Hofstede’s study has
been widely used as a starting point for cross-cultural studies. The robustness of
Geert Hofstede’s model is acknowledged beyond the academic world.
Geert Hofstede initially identified 4 dimensions that differentiate cultures. This
means that for these dimensions,the members of one culture can perceive situations
or can behave differently than the members of another culture.
The 4 initial dimensions that differentiate
cultures identified by Hofstede
1P O W E R D I S T A N C E
2I N D I V I D U A L I S M V S . C O L L E C T I V I S M
3M A S C U L I N I T Y V S . F E M I N I N I T Y
4U N C E R T A I N T Y A V O I D A N C E
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Power distance
The power distance refers to the degree of inequality that exists in a society,
in other words, the extent to which less powerful members expect and accept
unequal power distribution. People from a culture with high power distance
perceive the disparately allocated power and richness as a given,while people
from a culture with a low power distance perceive disparity as an injustice. In
these countries, equality and equal opportunities are highly appreciated.
Individualism vs. Collectivism
This dimension refers to the degree to which a society assures and supports
group performance and interpersonal relationships. In highly individualistic
cultures, the “I” is important and responsibilities are mostly considered at in-
dividual level only. In highly collectivist cultures, people consider themselves
first as members of a “we” (extended family, tribe, clan, etc.) and expect their
group will protect them in exchange of their loyalty.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Masculinity vs. Femininity
The gender terminology of this dimension is very controversial.This dimension
shows to what extent people prefer a harder (assertive,moneyand achievement
oriented) versus a softer (caring for others and for quality of life) dimension in
work-related cultures. In masculine cultures, challenging work, assertiveness,
advancement,control,power,high earnings,and individual recognition are the
aim. In feminine cultures working interdependently with cooperative people
is important.
Uncertainty Avoidance
This dimension shows to what extend a culture feels threatened by uncertainty
and ambiguityin terms of behavior,future events,unknown situations and rules
or procedures. In cultures with weak uncertainty avoidance, people can take
each day as it comes, avoid creating a sense of structure through rules and are
more willing to take risks.In culture with strong uncertainty avoidance,people
have an emotional need for job security and written rules or regulations.They
experience higher anxiety and stress due to the uncertainty inherent in life.
After Hofstede, many authors further developed the understanding of
differences between cultures. Fons Trompenaars, Edward Hall, and Richard
Lewis brought significant contributions in this domain.
These comparisons between cultures help to understand better how members
of other cultures behave,and how they expect others to behave.Beyond simple
business etiquette, the knowledge of cultural profiles strengthens the ability
to adjust to a diversity of cultures.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Working with other cultures, working abroad
The practical contribution of cultures comparisons to international careers is limited by the fact that it does
not address the question «what is needed to succeed in expatriation».The approach compares cultures but
says nothing on how an individual will adapt to another culture or to expatriation in general. Many theories
have been written on success factors in expatriation but they lack a solid scientific ground. The question
is critical, as failed expatriations have a huge business and human cost. If we consider only the financial
aspect, the cost of a failed expat contract is about three times the employee’s annual package. Without a
solid pre-expatriation assessment and preparation, 40% of expatriations fail.
In 2001, the company NetExpat launched a major research on this topic and assessed characteristics of
thousands of expatriates worldwide. As a result of this research, a new scientifically-validated tool had
been created. Its main goal is to help employers, future expats and their families anticipate potential issues
linked to the challenges of expatriation. The tool assesses a subject’s «expatriability» to a specific location.
An interesting point is also to identify some «root»
personal traits that characterize successful expats,
independently of their destination. A research on
this topic based on the method of contrasting
T H E P R A C T I C A L C O N T R I B U T I O N O F C U L T U R E S
C O M P A R I S O N S T O I N T E R N A T I O N A L C A R E E R S
I S L I M I T E D B Y T H E F A C T T H A T I T D O E S N O T
A D D R E S S T H E Q U E S T I O N “ W H A T I S N E E D E D
T O S U C C E E D I N E X P A T R I A T I O N ”
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
groups was HR specialists of NetExpat. They have identified a sample of
successful expats (people with several expatriations, each lasting 1 year
minimum, with systematic successful social and professional integration, and
with operational success in their job), and a sample of unsuccessful expats
(people showing major difficulties in integrating a newcultural environment,in
terms of social and professional integration, and of operational performance).
People of both groups were tested with the ExpAdviser©. The comparison
between the groups showed significant differences (p<.01) for some factors.
Successful expats are able to take risks and balance the risks with reasonable preventive measures. In
comparison, unsuccessful expats tend to be risk avoidant.
When issues arise, successful expats prefer to address one issue after another rather than trying to solve
everything in parallel. The pressure is a positive motivational factor and they can live for a while with
unsolved issues. Unsuccessful expats tend to try to address all issues at the same time and show a limited
capacity to overpass the short term inconvenience of frustrating situations.
Successful expats are self-confident and have energyto achieve mid-long term goals.These characteristics
are less present in unsuccessful expats.
At work, successful expats give a priority in building good relations with their colleagues, compared to
achievingquickbusinessresults;theyareconsideredasgoodteamplayers.Unsuccessfulexpatdemonstrate
the opposite pattern.
Successful expats prefer to adopt «soft» cooperative attitudes and to avoid conflicts, while unsuccessful
expats value competition and do not make much effort to avoid conflicts.
S U C C E S S F U L E X P A T S A R E A B L E T O T A K E
R I S K S A N D B A L A N C E T H E R I S K S W I T H
R E A S O N A B L E P R E V E N T I V E M E A S U R E S
Successful expats communicate very explicitly
and double check their understanding, when
unsuccessfulexpatssimplyassumetheyunderstand
and are understood.
Successful expats are ready to reconsider their
point of view according to experience and feedback
while unsuccessful expats tend to stick to their
point of view. Successful expats are comfortable
in finding connections in apparently unrelated
aspects of a situation and in addressing complexity.
This characteristic is often missing in unsuccessful
expats.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Successful expats Unsuccessful expats
Able to take risks; balance the risks with reasonable
preventive measures
When issues arise, prefer to address one issue after another
rather than trying to solve everything in parallel
Pressure is a positive motivational factor; can live for a while
with unsolved issues
Self-confidence and energy to achieve mid- long term goals.
At work, give a priority in building good relations with their
colleagues, compared to achieving quick business results.
Considered as good teamplayers
Prefer to adopt “soft” cooperative attitudes and to avoid
conflicts
Communicate very explicitly and double check their
understanding
Ready to reconsider their point of view according to
experience and feedback
Comfortable in finding connections in apparently unrelated
aspects of a situation and in addressing complexity
Tend to be risk avoidant
Tend to try to address all issues at the same time
Show a limited capacity to overpass the short term
inconvenience of frustrating situations
These characteristics are less present
At work, give a priority in achieving quick business
results compared to building good relations with their
colleagues. Not considered as good teamplayers
Value competition and do not make efforts to avoid
conflicts
Assume they understand and are understood
Tend to stick to their point of view
These characteristics are less present
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Though these patterns are not entirely surprising, they contribute to a precise profiling of people
who are likely to succeed in expatriation and clearly identify the development needs of people
who are statistically less likely to succeed.
A multipolar personal development for a multipolar global market
Beyond expatriation, in a world that is more and more interconnected and where working only
with people of one’s own culture will become more the exception that the rule, it is likely that
developing the traits identified above will be a solid advantage to perform in the global market.
What would be a personal development program for global worker?
It should combine the following dimensions:
Functional aspects: risk management, self-confidence development, resilience and coping skills
development
Thinking aspects: complexity management, mind flexibility
Relational aspects: explicit communication, active listening skills, cooperative attitudes,
… and cultural aspects,where a cornerstone is probably to integrate that one’s own culture is not
universal.This requires a deep questioning on one’s cultural and personal values to identify what
is essential to a feeling of identity and how this is shared — or not — with hosts cultures.
Read the second part of the article to learn about
Kyrgyz culture through the lens of Hofstede’s
model and adaptation features of the expatriates
in Kyrgyzstan.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
O B J E C T I V E S
A N D R U L E S O F
T H E I R S E T T I N G
D O E S I T W O R K ?
I D O N O T K N O W Y E T …
Since I found myself interested in professional
and personal development and began to study
the issues of the goals’ effective setting and
achievement, I became assailed by doubts:
whether I really have the ability of defining
my objectives.
J a m i l y a I m a n k u l o v a .
P a r t h e r / E l G r o u p F o u n d e r
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The time of the first independent steps in my career path was the first time I
faced the need to set conscious and significant goals. Frankly speaking, until
recently I was certain of my ability to define the objectives and make them
possible to achieve.
Moreover,there is a group of people around me who did and still do believe that
I have achieved a considerable success in this matter although,as I understand
it now, a lot was given on a whim.
Recently, the goal setting and achievement became my new obsession.
At this time I get acquainted with the writing of Brian Tracy, the author of
numerous books on personal development, professional, personal, financial,
and even social success, known to many as “Mr. Success”. I found it interesting
the way he defines the success itself and his description of the goals’ setting
and achievement tools. A lot of material looks not even very easy to read or
heard too many times, but not that thoughtful. Nevertheless, according to the
author and specialist who spent last 20 years of his professional life on the
issues of defining the objectives, I think there is something I still have to learn
and understand. That is the reason why the desire to follow his advices even
increases each passing day: I am a quit curious person.
So, I decided to use the pages provided to me by the June issue of El Group
Digest in order to start the discussion of the “Achieving Maximum” by Brian
Tracy. I would like to start with Tracy’s explanation “goals determination rules”.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
Here is a list of the most important fundamental rules
for defining the objectives by Brian Tracy:
The objectives should be in harmony with each other
There can be no objectives of the same significance and importance. For
example, you have an important goal which is to create a successful business
and a half-day of free time to dedicate to yourself, your hobby (e.g. doing
yoga or playing golf). Certainly, unless yoga (or golf) is not the area you are
building your business in. That is, the goals should be mutually supportive
and reinforcing.
As for me, I used to believe that for a person who is hungry for life and curious
enough, everything is possible. When something would go wrong, I thought that I
hadn’t worked hard enough despite the early wake-ups and long hours of work.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The goals should be challenging yet achievable
When it comes to the degree of goals being achievable, it is at least 50% to
begin with. This rule is strongly correlated to the level of your motivation.
That is,the probabilityof achieving of the goals you’ve set should be tangible
yet quite complicated at the same time. E.g. losing a weight and getting
yourself into shape. It is real to lose 3 kg a month but still kind of tricky if
you are used to eating without limiting yourself and don’t do any sports. At
the same time it is almost impossible to get rid of 10 extra kg in a month
without damaging your body and health.
It seemed to me so easy to achieve an aim if wanting hard enough. But now I
understand why on my way to achieving the unrealistically overestimated goals
I was getting my motivation disappeared instead of success and enjoyment of
the process itself.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The targets desirable should be both quantitative and qualitative
In my honest opinion, for an individual striving for the harmonious development, the
achievement of quantitative goals only leads to a narrow perception and the failure of personal
values.
There are many examples where successful people while being on their path to financial and
professional success had been developing their quality components and eventually achieved greater
success than those that considered their personal (read: spiritual, emotional, and mental) development
as the work which is not worth their attention. In my opinion, this rule should be fundamental, and the
first one to be listed.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
The objectives should be both short- and long-term
As in any other business, we need to deal with both long-term (5-10 years) and short-term
goal setting. The author considers 90 days to be an ideal period for short-term goals related
to business, career, and personal life and up to 3 years for the long-term ones. According to
various studies conducted in the area of goal setting, these terms are the most suitable ones
to maintain a sufficient motivation in achieving one’s targets.
Brian Tracy recommends to divide the long-term aims into the objectives that are achievable in
the context of 90 days, divide those into months, and, in turn, to divide those months into weeks
and days. What is the secret? The author believes that it helps us to feel ourselves heroes every
day while achieving small goals that lead us to the main and important ones.
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
I would like to add from myself that to properly identify the goals, we still need to understand our life
and a certain global orientation which is the understanding of «Who am I and what do I want to achieve?
What to devote myself to and what I want/can do?» Here is when the things get complicated. To answer
the question if the rules described above really do work, I confess — I do not know yet. We need to
understand,analyze and consciously apply them to our goal-setting process,and decide whether the rules
for identifying the goals by Brian Tracy are important and effective enough.
See you in our July issue,
Parther/El Group Founder,
Jamilya Imankulova.
W E S T I L L N E E D T O U N D E R S T A N D O U R L I F E A N D A
C E R T A I N G L O B A L O R I E N T A T I O N
E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
T W I T T E R F A C E B O O K L I N K E D I N

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Digest El Group, June 2014

  • 1. E L G R O U P C O N S U L T I N G D I G E S T J U N E ’ 1 4 Why is it beneficial for professionals to work in Dushanbe Advantages of professionals who speak foreign languages Culture, business and expatriation Objectives and rules of their setting
  • 2. W E O N S O C I A L N E T T W I T T E R F A C E B O O K L I N K E D I N
  • 3. D E A R C O L L E A G U E S ! We are pleased to present you the next issue of El Group Consulting Digest. The first summer month has flown by; half of the year is left behind. Looking back, we can already draw some conclusions. All of the El Group’s initiatives which we talked in detail in the previous issue of the Digest about have “given their sprouts” and we hope them to bring their first and significant results soon. With great joy I want to mention a huge interest aroused in the business com- munity the first Market Research in Tajikistan launched by El Group in May of this year. Our team’s initiative has been me with a great enthusiasm; at the time of the Digest’s release 15 companies have already expressed their desire to participate in it. Given the interest caused, in this issue we publish a com- parative analysis of wages in Kyrgyzstan and Tajikistan. In the article “Why is it beneficial for professionals to work in Dushanbe” we present the data of an informal survey among our Tajik colleagues who revealed the local patterns and showed, in particular, that the payment specialists positions in our coun- tries might vary a few times. I would like to draw your attention to an interesting analysis, which was con- ducted by Zhypar Sattarova, Partner/Head of Compensations and Benefits Re- search, El Group. Zhypara has compared the remuneration conditions of two sectors: business companies and international organizations working in the market of the Kyrgyz Republic. Conclusion: multilingual professionals in Kyr- gyzstan have certain preferences.Which exactly—read the article “Advantages of professionals who speak foreign languages.Working conditions in the inter- national NGO’s and business sector of KR”. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 4. My colleague Christian Kroyplandt makes an interesting topic for discussion. On the pages of El Group Digest he talks about how expats adapt and real- ize their potential in a new country, including Kyrgyzstan; what qualities and skills do the work of international experts and certainly very presence abroad and certainly a very presence abroad successful. In this issue read the first part of the article “Culture, Business, and Expatriation”. In turn, I am happy to start an excursion and share my impressions of recently read book by Brian Tracy “Maximum Achievement” with you. In my opinion, despite the summer and a desire to “slow down” a little, the June issue of El Group Digest has turned out interesting an eventful. I want to believe that some topics of our teamwork will definitely appeal you. Until next time Parther/El Group Founder, Jamilya Imankulova E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 5. W H Y I S I T B E N E F I - C I A L F O R P R O F E S - S I O N A L S T O W O R K I N D U S H A N B E ? C O M P A R A T I V E A N A LY S I S O F P R O F E S S I O N A L S ’ S A L A R I E S I N T A J I K I S T A N A N D K Y R G Y Z S T A N For over eight years, EL Group Consulting has been the only provider of the industry-wide salaries market Research in Kyrgyzstan. This year the company enters Tajik market with a similar research for the first time. El Group team has conducted an informal survey among its Tajik colleagues in anticipation of the official launch of salaries market Research in Tajikistan. Few interesting patterns had been revealed. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 6. More than 50 major companies participate in the traditional salaries market Research in Kyrgyz Republic, representing all the major sectors of the economy. Its results give an idea on the market trends and perspectives of its development. The analysis conducted by El Group management during their visit to Tajikistan has revealed a need of professional and independent information of this kind. The study attended by 12 leading Tajik companiesinsectorssuchasfinance,telecommunication, and retail precedes the full Research. It had been shown by a comparative analysis of wages in Tajikistan and Kyrgyzstan of 2013 that some positions’ payments vary several times. For example administrative assistants in Kyrgyzstan receive 4000 dollars a year, while their Tajik counterparts get 16000 dollars (by median).The salary of an HR specialist in Kyrgyzstan is,on average, 6000 dollars; whereas their Tajik colleagues’ wage is 16500. Such a significant gap (almost 3 times) exists among other primary and secondary level positions as well. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 7. Such a level of income among large Tajik companies is observed against the background of the average wage for this country which is $111 (with a minimum consumer basket of $60 (data of the Statistical Agency under the President of the Republic of Tajikistan)), while in Kyrgyzstan it is $211 (with a cost of living of $87,5 (data of NSC KR)). Having worked with the data of the survey conducted by El Group, we saw that Tajikistan has experienced a steady growth in the payment to the middle management and employees. Meanwhile Kyrgyzstan experiences a stable wage growth mainly in a top managers’ level. Historically, the situation in Kyrgyzstan was different: wages of ordinary employees had been actively growing a few years ago. Experts suggest that it was due to the lack of professionals which, in turn, had been caused by specialists’ outflow in Kazakhstan and Russian Federation. Now the situation has changed. On one hand, the economic growth in neighboring countries is reduced; on the other hand, migration policy is tangled. To some extent this constrains the rates specialists’ and even encourages some of them to return home. $111 $60 $211 $87,5 Average wage in Tajikistan Average wage in Kyrgyzstan with a minimum consumer basket of with a minimum consumer basket of E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 8. Beginning from 2012, a new trend is starting to be traced in Kyrgyzstan.The previous studies’ results and the current year forecasts (they can be made based on the results of the salaries market interim Research, initiated by El Group Consulting starting this year) make it possible to talk about its sustainability. So, the salary revision level has averaged 10%,while top and middle mangers’salaries have increased by 14—18% in the first quarter of 2014.According to the interim Research participants, there are two main reasons for the revision: quit significant one-off devaluation of the national currency (som) and the establishment of a competitive salary levels for retention / attraction of highly qualified employees of the Board and Top Management. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 9. “Competition increases; there are not enough of qualified personnel.Everyone understands that there are certain conditions that have to be created for specialists. It is easier with lower-lever experts: they might me brought up out of the former graduates. The situation, at least in the finance sector, at the moment is that it is easier to educate the trainees at the workplace. Hence, we need a normal, qualified head-mentor. Requirements for the senior managers as well as for the linear managers are strong, there is a lack of high-level specialists, we have to find them somewhere and raise their salaries”, — Djamal Duishekeeva, head of human resources department of “Rosinbank” commented the situation. There is a different situation in Tajikistan, similar to the one that was in Kyrgyzstan 4 —5 years ago. Based in the results of the survey, there is an obvious shortage of qualified professionals. As compared with Kyrgyzstan, there is a higher demand for ordinary employees with positive experience and high level of foreign languages proficiency. According to Tajik colleagues, that might be linked to the consequences of ‘90s political instability, when the country’s infrastructure of education system had been greatly damaged. The whole generation of young people had actually no opportunity to learn, it has led to a clear shortage of the skilled workers. T H E W H O L E G E N E R A T I O N O F Y O U N G P E O P L E H A D A C T U A L LY N O O P P O R T U N I T Y T O L E A R N E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 10. The situation is exacerbated by the continuing high professionals’ outflow. The most educated and demanded experts leave Tajikistan.Thus, according to the Russian Federal Migration Service, there one million 33thousands citizens of Tajikistan working on their territory, which is 13% of the total population (for comparison: there are 525 thousands of Kyrgyzstanis working in Russian Federation, and it’s one tenth of the population). To date, the problem is mainly solved by the independent training of new employees; and by attracting new expatriates, mainly from CIS countries, and Kyrgyzstan among them. But besides the unique experts, the enterprises and companies of Tajikistan experience an acute shortage of unskilled workers. Such jobs as maids and security guards are often vacant. Experts explain it by the cultural differences of an ethnical group which is meticulously receptive to a work from the point of it being prestigious. 1 033 000Amount of citizens of Tajikistan working in Russian Federation. 525 000Amount of citizens of Kyrgyzstan working in Russian Federation. T H E S I T U A T I O N I S E X A C E R B A T E D B Y T H E C O N T I N U I N G H I G H P R O F E S S I O N A L S ’ O U T F L O W E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 11. Despite the fact that that the situation in the wage market of Tajikistan and Kyrgyzstan is different, those two countries have some common trends. First of all, there is a significant gap between the level of compensation offered by leading companies to their employees and the labor market as a whole. Unofficial survey results presented in this article are mostly reflective of the compensatory policies of large companies. In general, the situation in Tajikistan will certainly be different. “I was surprised by the level of wages shown by the survey. I have been working here for two and a half years, and I can tell that it’s not a fact that all the experts receive salaries that high.Of course in Dushanbe the incomes as well as the standards of living are higher, but the gap between ordinary workers and top management in Tajikistan is quit big as well. Nevertheless, I know that in sectors such as telecommunications and finance, an unusual situation,different from the scope of hospitality and the overall labor market,develops”,— says Eugene Luzhkova, who has an extensive experience in both countries. Let us hope that our team will be able to get more objective results based on the figures of the first participants in an industry-wide Research, which is conducted by the El Group company in Tajikistan at present. The results of recently launched Research conducted by El Group Consulting will show the detailed situation. Those will be presented for you consideration in September 2014. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 12. T H E L O N G A W A I T E D S T U D Y El Group Consulting is conducting the first in Tajikistan Salaries Market Research. 27 large companies of the Tajik business sector have received an invitation to participate. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 13. El Group consulting is the one to hold the first in Tajikistan Salaries Market Re- search. Earlier the studies of market had been directed mainly by international focus, the key focus of which was the situations of the nonprofit sector, donor organization and foreign projects. The target market for the first Research by El Group is a business sector which is, according to the research participants, is very attractive to them. The survey has already involved more than a dozen companies; several more have ex- pressed their readiness. All participants are the business leaders in the Tajik market representing such industries as telecommunications, hospitality and fi- nance. According to Jamilya Imankulova, Partner/Founder of El Group Consult- ing, once the Kyrgyz market has started with approximately the same number of participants. “Our first open Research of 2008 has gathered 13 participants-pioneers who trusted our company. Now in 2014 the number of participants almost quadrupled” — says Jamilya Imankulova. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 14. Version of the first Salaries Market Research in Tajikistan will be short- ened. In the questionnaire there are mainly questions concerning indus- try-wide positions (there are about 140 of them). We are talking about “transverse” positions that exist in every company regardless of the sec- tor: accountant, IT-specialist, office manager. It is made in order for the questionnaire to be compact enough so its filling is not time consuming. For comparison: the study held by El Group in Kyrgyzstan contains in- formation on 400 positions. And, according to Zhypar Sattarova, Partner/ Head of Analytical Business Line El Group Consulting, there is already a demand for a Study with more volumetric spectrum of positions. “There are companies that have already requested to come up with a more extensive Research this year. But we adhere to the policy (as, indeed, all the other colleagues of our business segment) to include purely compartmental- ized positions only if there are four companies of the same sector. Only then we can count on a relative objectivity and present an obtained data in the report” — said Zhypar Sattarova. V E R S I O N O F T H E F I R S T S A L A R I E S M A R K E T R E S E A R C H I N T A J I K I S T A N W I L L B E S H O R T E N E D . I N T H E Q U E S T I O N N A I R E T H E R E A R E M A I N LY Q U E S T I O N S C O N C E R N I N G I N D U S T R Y - W I D E P O S I T I O N S ( T H E R E A R E A B O U T 1 4 0 O F T H E M ) E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 15. A D V A N T A G E S O F P R O F E S S I O N A L S W H O S P E A K F O R E I G N L A N G U A G E S W O R K I N G C O N D I T I O N S I N T H E I N T E R N A T I O N A L D E V E L O P M E N T O R G A N I - Z A T I O N S A N D B U S I N E S S S E C T O R O F K R Over the last eight years, El Group team conducts an annual Salaries Market Research and analyzes the compensation system of the business companies operating in the Kyrgyz market. Z h y p a r S a t t a r o v a P a r t n e r , R e s e a r c h a n d A n a l y s i s P r a c t i c e L e a d e r E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 16. The year of 2013 became a breakthrough for El Group team: besides the 49 companies — participants a regular annual Research, the donor organizations of nonprofit sector in the Kyrgyz Republic have entrusted us their data. International sector decided to walk the way of getting the objective market rates and developing their salaries in accordance to the realities of the local labor market. For projects’ realization the majority of international organization’s representatives in Kyrgyzstan have been brought. Bythe results of the Compensations and Benefits Research El Group team presents a comparative analysis of compensations’ conditions of two sectors: business and international development organizations. While a business activity is focused on the generation and extraction of profit, international development organizations are social in their nature and aim to use the funds entrusted to them by a mandate. Their main goal is the achievement of public goods as well as social, charitable, cultural, educational, political, and scientific purposes in various social spheres. Correspondingly, the compensation systems of two distinct spheres will be different as well as their goals. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 17. Ratio of wages’ components Chart №1 shows us an evident difference between the base salaries. International development organizations sector’s base salaries is the larger half (76%) of wages compared to the business sector, while the bonus part takes only 7%. This is hardly surprising. This tendency is related to the fact that the system of motivation for international organizations is not focused on the increase in the level of wages due to the increase of company’s profitability, whereas in the business sector bonus part takes up most of the salary. This fact is pronounced in sales department’s employees, where 30% of the workers’ revenue depends on the achievement of sales objectives. Comparison of wage components’ ratio of international organizations and business sectors and the business sector’s sales direction Annual Base Salary Annual Bonuses and Incentive Payouts Social Package International non-profit sector Bussines sector Bussines sector, sales E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 18. The social package of international organizations is focused on the long-term prospects Alternative pension system within an organization The social package of international organizations is focused on the long-term prospects with a view to employees’“orientation”on continuing loyalty. In con- nection with what, the sufficient resources for motivation are marked in the compensation policy; payments on social packages make us 17% of the wage shares. Alternative pension insurance is very well developed within the international sector. It has its own PAF, where a certain amount of money is transferred monthly; one part is reassigned at the expense of an employee’s salary, the other one is invested by an organization. As can be seen in the chart №2, an organization’s contribute is higher than the same of an employee.Accordingly, it is beneficial for employees to “stash” and work as long as possible, since the cumulative amount is paid in case of “exit out of an organization”: dismissal or retirement.There is a number of international organizations which do not pay a share of contribution from on organization if an employee leaves before the age of retirement. This type of social benefits is virtually absent in the busi- ness sector: only 2% of companies noted the availability of alternative pension plan. Alternative pension plan Contribution E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 19. Another important type of social package is health insurance and/or the costs of medical care. 89% of international organizations provide and successfully practice this type of social package, while among the business sector this number equals to 12. In 45% international organizations surveyed, health insurance is administrated by the internal policies of an organization; in this case an employee must provide all the supporting documents on the costs of treatment,and a company compensates some of the costs,on average 75—80% of the total. The rest of the respondents appeals to the insurance companies that fully take the responsibility of administration, payments, and employees’ maintenance on medical issues. More often the salaries of international organizations are set in foreign currencies — 75% of respondents. In commercial organizations 84% of the companies set their wages in the national currency (som). health insurance and/or the costs of medical care Payments and conversion politics Currency of salaries determined in international organizations and business sectors E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 20. Iftherewardsysteminthebusinesscompaniesisdesignedtoensurethat employeeshaveshowntheireffectivenessandefficiency,ininternational organizations system is designed for stability and longevity. Wage level in international development organizations is higher than in the business sector Total Cash Compensation (Gross SOM). — 10th percentile; — Median; — 90th percentile E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 21. A famous proverb says: “The knowledge is force”. We do not just make sure that the knowledge of foreign languages gives more opportunities in the labor mar- ket. It’s not a secret that one of the main requirements in international organi- zation recruitment — being fluent in a foreign language. Given the complexity of high quality professionals with an excellent knowledge of foreign languages vacancies’ closure, international projects and organiza- tions offer the most competitive conditions compared to the business sector. And we shouldn’t forget that HRM systems of these organizations rely on nearly 100 years of experience in the sphere of effective human resource manage- ment. The integration of international experience along with the best HR-de- velopments of the local market can significantly affect the development of the labor market in Kyrgyzstan as a whole. G I V E N T H E C O M P L E X I T Y O F H I G H Q U A L I T Y P R O F E S S I O N A L S W I T H A N E X C E L L E N T K N O W L E D G E O F F O R E I G N L A N G U A G E S V A C A N C I E S ’ C L O S U R E , I N T E R N A T I O N A L P R O J E C T S A N D O R G A N I Z A T I O N S O F F E R T H E M O S T C O M P E T I T I V E C O N D I T I O N S C O M P A R E D T O T H E B U S I N E S S S E C T O R E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 22. C U L T U R E , B U S I N E S S A N D E X P A T R I A T I O N P A R T I . W H I C H Q U A L I T I E S D E T E R M I N E T H E S U C C E S S O F A N E X P A T The international development of business brings more and more people to interact with different cultures, to work with expatriates or to move themselves and to work in foreign countries. C h r i s t i a n C r u y p l a n d t E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 23. How to make business and how to workwith members of other cultures became a critical topic with the development of a multipolar world, where no country or region could claim a supremacy and where mutual understanding appeared to be the way to sustainable business relations. Cultural differences in business environment The first scientific developments on this topic were led by Pr. Geert Hofstede. Pr. Geert Hofstede is a Dutch social psychologist who did a pioneering study of cultures across modern nations. His research played a major role in developing a systematic framework for assessing and differentiating cultures. Geert Hofstede’s study has been widely used as a starting point for cross-cultural studies. The robustness of Geert Hofstede’s model is acknowledged beyond the academic world. Geert Hofstede initially identified 4 dimensions that differentiate cultures. This means that for these dimensions,the members of one culture can perceive situations or can behave differently than the members of another culture. The 4 initial dimensions that differentiate cultures identified by Hofstede 1P O W E R D I S T A N C E 2I N D I V I D U A L I S M V S . C O L L E C T I V I S M 3M A S C U L I N I T Y V S . F E M I N I N I T Y 4U N C E R T A I N T Y A V O I D A N C E E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 24. Power distance The power distance refers to the degree of inequality that exists in a society, in other words, the extent to which less powerful members expect and accept unequal power distribution. People from a culture with high power distance perceive the disparately allocated power and richness as a given,while people from a culture with a low power distance perceive disparity as an injustice. In these countries, equality and equal opportunities are highly appreciated. Individualism vs. Collectivism This dimension refers to the degree to which a society assures and supports group performance and interpersonal relationships. In highly individualistic cultures, the “I” is important and responsibilities are mostly considered at in- dividual level only. In highly collectivist cultures, people consider themselves first as members of a “we” (extended family, tribe, clan, etc.) and expect their group will protect them in exchange of their loyalty. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 25. Masculinity vs. Femininity The gender terminology of this dimension is very controversial.This dimension shows to what extent people prefer a harder (assertive,moneyand achievement oriented) versus a softer (caring for others and for quality of life) dimension in work-related cultures. In masculine cultures, challenging work, assertiveness, advancement,control,power,high earnings,and individual recognition are the aim. In feminine cultures working interdependently with cooperative people is important. Uncertainty Avoidance This dimension shows to what extend a culture feels threatened by uncertainty and ambiguityin terms of behavior,future events,unknown situations and rules or procedures. In cultures with weak uncertainty avoidance, people can take each day as it comes, avoid creating a sense of structure through rules and are more willing to take risks.In culture with strong uncertainty avoidance,people have an emotional need for job security and written rules or regulations.They experience higher anxiety and stress due to the uncertainty inherent in life. After Hofstede, many authors further developed the understanding of differences between cultures. Fons Trompenaars, Edward Hall, and Richard Lewis brought significant contributions in this domain. These comparisons between cultures help to understand better how members of other cultures behave,and how they expect others to behave.Beyond simple business etiquette, the knowledge of cultural profiles strengthens the ability to adjust to a diversity of cultures. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 26. Working with other cultures, working abroad The practical contribution of cultures comparisons to international careers is limited by the fact that it does not address the question «what is needed to succeed in expatriation».The approach compares cultures but says nothing on how an individual will adapt to another culture or to expatriation in general. Many theories have been written on success factors in expatriation but they lack a solid scientific ground. The question is critical, as failed expatriations have a huge business and human cost. If we consider only the financial aspect, the cost of a failed expat contract is about three times the employee’s annual package. Without a solid pre-expatriation assessment and preparation, 40% of expatriations fail. In 2001, the company NetExpat launched a major research on this topic and assessed characteristics of thousands of expatriates worldwide. As a result of this research, a new scientifically-validated tool had been created. Its main goal is to help employers, future expats and their families anticipate potential issues linked to the challenges of expatriation. The tool assesses a subject’s «expatriability» to a specific location. An interesting point is also to identify some «root» personal traits that characterize successful expats, independently of their destination. A research on this topic based on the method of contrasting T H E P R A C T I C A L C O N T R I B U T I O N O F C U L T U R E S C O M P A R I S O N S T O I N T E R N A T I O N A L C A R E E R S I S L I M I T E D B Y T H E F A C T T H A T I T D O E S N O T A D D R E S S T H E Q U E S T I O N “ W H A T I S N E E D E D T O S U C C E E D I N E X P A T R I A T I O N ” E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 27. groups was HR specialists of NetExpat. They have identified a sample of successful expats (people with several expatriations, each lasting 1 year minimum, with systematic successful social and professional integration, and with operational success in their job), and a sample of unsuccessful expats (people showing major difficulties in integrating a newcultural environment,in terms of social and professional integration, and of operational performance). People of both groups were tested with the ExpAdviser©. The comparison between the groups showed significant differences (p<.01) for some factors. Successful expats are able to take risks and balance the risks with reasonable preventive measures. In comparison, unsuccessful expats tend to be risk avoidant. When issues arise, successful expats prefer to address one issue after another rather than trying to solve everything in parallel. The pressure is a positive motivational factor and they can live for a while with unsolved issues. Unsuccessful expats tend to try to address all issues at the same time and show a limited capacity to overpass the short term inconvenience of frustrating situations. Successful expats are self-confident and have energyto achieve mid-long term goals.These characteristics are less present in unsuccessful expats. At work, successful expats give a priority in building good relations with their colleagues, compared to achievingquickbusinessresults;theyareconsideredasgoodteamplayers.Unsuccessfulexpatdemonstrate the opposite pattern. Successful expats prefer to adopt «soft» cooperative attitudes and to avoid conflicts, while unsuccessful expats value competition and do not make much effort to avoid conflicts. S U C C E S S F U L E X P A T S A R E A B L E T O T A K E R I S K S A N D B A L A N C E T H E R I S K S W I T H R E A S O N A B L E P R E V E N T I V E M E A S U R E S Successful expats communicate very explicitly and double check their understanding, when unsuccessfulexpatssimplyassumetheyunderstand and are understood. Successful expats are ready to reconsider their point of view according to experience and feedback while unsuccessful expats tend to stick to their point of view. Successful expats are comfortable in finding connections in apparently unrelated aspects of a situation and in addressing complexity. This characteristic is often missing in unsuccessful expats. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 28. Successful expats Unsuccessful expats Able to take risks; balance the risks with reasonable preventive measures When issues arise, prefer to address one issue after another rather than trying to solve everything in parallel Pressure is a positive motivational factor; can live for a while with unsolved issues Self-confidence and energy to achieve mid- long term goals. At work, give a priority in building good relations with their colleagues, compared to achieving quick business results. Considered as good teamplayers Prefer to adopt “soft” cooperative attitudes and to avoid conflicts Communicate very explicitly and double check their understanding Ready to reconsider their point of view according to experience and feedback Comfortable in finding connections in apparently unrelated aspects of a situation and in addressing complexity Tend to be risk avoidant Tend to try to address all issues at the same time Show a limited capacity to overpass the short term inconvenience of frustrating situations These characteristics are less present At work, give a priority in achieving quick business results compared to building good relations with their colleagues. Not considered as good teamplayers Value competition and do not make efforts to avoid conflicts Assume they understand and are understood Tend to stick to their point of view These characteristics are less present E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 29. Though these patterns are not entirely surprising, they contribute to a precise profiling of people who are likely to succeed in expatriation and clearly identify the development needs of people who are statistically less likely to succeed. A multipolar personal development for a multipolar global market Beyond expatriation, in a world that is more and more interconnected and where working only with people of one’s own culture will become more the exception that the rule, it is likely that developing the traits identified above will be a solid advantage to perform in the global market. What would be a personal development program for global worker? It should combine the following dimensions: Functional aspects: risk management, self-confidence development, resilience and coping skills development Thinking aspects: complexity management, mind flexibility Relational aspects: explicit communication, active listening skills, cooperative attitudes, … and cultural aspects,where a cornerstone is probably to integrate that one’s own culture is not universal.This requires a deep questioning on one’s cultural and personal values to identify what is essential to a feeling of identity and how this is shared — or not — with hosts cultures. Read the second part of the article to learn about Kyrgyz culture through the lens of Hofstede’s model and adaptation features of the expatriates in Kyrgyzstan. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 30. O B J E C T I V E S A N D R U L E S O F T H E I R S E T T I N G D O E S I T W O R K ? I D O N O T K N O W Y E T … Since I found myself interested in professional and personal development and began to study the issues of the goals’ effective setting and achievement, I became assailed by doubts: whether I really have the ability of defining my objectives. J a m i l y a I m a n k u l o v a . P a r t h e r / E l G r o u p F o u n d e r E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 31. The time of the first independent steps in my career path was the first time I faced the need to set conscious and significant goals. Frankly speaking, until recently I was certain of my ability to define the objectives and make them possible to achieve. Moreover,there is a group of people around me who did and still do believe that I have achieved a considerable success in this matter although,as I understand it now, a lot was given on a whim. Recently, the goal setting and achievement became my new obsession. At this time I get acquainted with the writing of Brian Tracy, the author of numerous books on personal development, professional, personal, financial, and even social success, known to many as “Mr. Success”. I found it interesting the way he defines the success itself and his description of the goals’ setting and achievement tools. A lot of material looks not even very easy to read or heard too many times, but not that thoughtful. Nevertheless, according to the author and specialist who spent last 20 years of his professional life on the issues of defining the objectives, I think there is something I still have to learn and understand. That is the reason why the desire to follow his advices even increases each passing day: I am a quit curious person. So, I decided to use the pages provided to me by the June issue of El Group Digest in order to start the discussion of the “Achieving Maximum” by Brian Tracy. I would like to start with Tracy’s explanation “goals determination rules”. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 32. Here is a list of the most important fundamental rules for defining the objectives by Brian Tracy: The objectives should be in harmony with each other There can be no objectives of the same significance and importance. For example, you have an important goal which is to create a successful business and a half-day of free time to dedicate to yourself, your hobby (e.g. doing yoga or playing golf). Certainly, unless yoga (or golf) is not the area you are building your business in. That is, the goals should be mutually supportive and reinforcing. As for me, I used to believe that for a person who is hungry for life and curious enough, everything is possible. When something would go wrong, I thought that I hadn’t worked hard enough despite the early wake-ups and long hours of work. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 33. The goals should be challenging yet achievable When it comes to the degree of goals being achievable, it is at least 50% to begin with. This rule is strongly correlated to the level of your motivation. That is,the probabilityof achieving of the goals you’ve set should be tangible yet quite complicated at the same time. E.g. losing a weight and getting yourself into shape. It is real to lose 3 kg a month but still kind of tricky if you are used to eating without limiting yourself and don’t do any sports. At the same time it is almost impossible to get rid of 10 extra kg in a month without damaging your body and health. It seemed to me so easy to achieve an aim if wanting hard enough. But now I understand why on my way to achieving the unrealistically overestimated goals I was getting my motivation disappeared instead of success and enjoyment of the process itself. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 34. The targets desirable should be both quantitative and qualitative In my honest opinion, for an individual striving for the harmonious development, the achievement of quantitative goals only leads to a narrow perception and the failure of personal values. There are many examples where successful people while being on their path to financial and professional success had been developing their quality components and eventually achieved greater success than those that considered their personal (read: spiritual, emotional, and mental) development as the work which is not worth their attention. In my opinion, this rule should be fundamental, and the first one to be listed. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 35. The objectives should be both short- and long-term As in any other business, we need to deal with both long-term (5-10 years) and short-term goal setting. The author considers 90 days to be an ideal period for short-term goals related to business, career, and personal life and up to 3 years for the long-term ones. According to various studies conducted in the area of goal setting, these terms are the most suitable ones to maintain a sufficient motivation in achieving one’s targets. Brian Tracy recommends to divide the long-term aims into the objectives that are achievable in the context of 90 days, divide those into months, and, in turn, to divide those months into weeks and days. What is the secret? The author believes that it helps us to feel ourselves heroes every day while achieving small goals that lead us to the main and important ones. E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 36. I would like to add from myself that to properly identify the goals, we still need to understand our life and a certain global orientation which is the understanding of «Who am I and what do I want to achieve? What to devote myself to and what I want/can do?» Here is when the things get complicated. To answer the question if the rules described above really do work, I confess — I do not know yet. We need to understand,analyze and consciously apply them to our goal-setting process,and decide whether the rules for identifying the goals by Brian Tracy are important and effective enough. See you in our July issue, Parther/El Group Founder, Jamilya Imankulova. W E S T I L L N E E D T O U N D E R S T A N D O U R L I F E A N D A C E R T A I N G L O B A L O R I E N T A T I O N E L G R O U P C O N S U L T I N G D I G E S T J U N E 2 0 1 4
  • 37. T W I T T E R F A C E B O O K L I N K E D I N