Antal Kazakhstan Replacing International Staff with Local Staff: Questions & Answers Natalia Kurkchi | Country Manager Antal Kazakhstan t: /96 e:

Who needs expats?

Expiates Pros & Cons. What survey participants say?  Pros  Connections with business community globally  International experience  Transparent business methodologies  Knowledge of business specifics on a global level  High loyalty to employers  Experience of teamwork  Sees the bigger picture  Ability to implement best practices of multinational companies  Hardworking  Understanding of business processes  Ability to make quick decisions  Cons  Lack of knowledge of the local market  Lack of connections in local business community  Bad Russian  Poor understanding of local mentality  Lack of communication with local employees  Less proactive  Expensive  Stereotypical view  No responsibility for results  Long period of adapting

Replacing  How to make the process of replacing expats with locals smooth and not hurtful for the businesses and economy?

Education: Western VS Local Approach  There should be a constant sharing of information, skills and experiences internationally.  There should be significant investments brought to the local professional education, which would make it easier for local professionals adopt to the international companies’ standards.

On-Job Training  Day-to-day training and education of the local staff by the international top-management is essential.

Exchange of staff internationally  Implementation of international secondment programs is a very efficient way to develop staff.

Promotions of the local personnel  Give opportunities to the local staff to equally participate in the top- level roles.

Promotions of the local personnel  What is the level of foreign (non-CIS) employees in your company? Specialist ManagerDirector 89% 48% 17% The majority of respondents (44%) consider that there should be less than 5% of foreign employees working in company operating in Russia and CIS

Promotions of the local personnel  Do foreign employees in your company receive higher salaries than local employees at the similar level? YesDon’t knowNo 10%12%77%

Issues  There is an obvious lack of highly-qualified professionals on the local market.  The majority of our international clients have to lower their expectations when they are trying to find the appropriate staff on the local market.

Conclusions  The idea of developing the local staff as opposed to just bringing more expatriates is good. However, the implementation of it should be very careful and smooth.

Thank you!  Natalia Kurkchi  Country Manager, Antal Kazakhstan t: /96 e: