37
EL GROUP CONSULTING DIGEST JUNE’14 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

Digest El Group, June 2014

  • Upload
    elgroup

  • View
    288

  • Download
    1

Embed Size (px)

DESCRIPTION

Dear colleagues! We introduce you to an updated issue of El Group Consulting company's Digest. We tried to cover all the most important and interesting topics that take place in HR-market. Digest of El Group is published once a month. If you have some interesting ideas concerning our Digest, feel free to share your thoughts with us and become one of the authors. Best regards, El Group Consulting team. Keep the track of the company news in social media: www.facebook.com/elgroupltd http://www.linkedin.com/company/el-group-consulting https://vk.com/elgroupconsulting twitter.com/elgroup_ltd and our website: http://el-group.com/

Citation preview

Page 1: Digest El Group, June 2014

E L G R O U P C O N S U L T I N G

D I G E S TJ U N E ’ 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

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

C u l t u r e , b u s i n e s sa n d e x p a t r i a t i o n

O b j e c t i v e sa n d r u l e s o f t h e i r s e t t i n g

Page 2: Digest El Group, June 2014

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

Page 3: Digest El Group, June 2014

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

Page 4: Digest El Group, June 2014

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 timeParther/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

Page 5: Digest El Group, June 2014

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 L Y 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

Page 6: Digest El Group, June 2014

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 companies in sectors such as finance, 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

Page 7: Digest El Group, June 2014

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

Page 8: Digest El Group, June 2014

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

Page 9: Digest El Group, June 2014

“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 L Y

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

Page 10: Digest El Group, June 2014

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.

1 033 000 Amount of citizens of Tajikistan workingin Russian Federation.

525 000 Amount of citizens of Kyrgyzstan workingin 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

Page 11: Digest El Group, June 2014

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

Page 12: Digest El Group, June 2014

T H E L O N GA 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

Page 13: Digest El Group, June 2014

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

Page 14: Digest El Group, June 2014

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 L Y 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

Page 15: Digest El Group, June 2014

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 KF O R E I G NL A N G U A G E SW O R K I N G C O N D I T I O N SI N T H E I N T E R N A T I O N A LD 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

Page 16: Digest El Group, June 2014

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.

By the 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

Page 17: Digest El Group, June 2014

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

Page 18: Digest El Group, June 2014

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 planContribution

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

Page 19: Digest El Group, June 2014

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

Page 20: Digest El Group, June 2014

If the reward system in the business companies is designed to ensure that employees have shown their effectiveness and efficiency, in international 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

Page 21: Digest El Group, June 2014

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

Page 22: Digest El Group, June 2014

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 NP 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

Page 23: Digest El Group, June 2014

How to make business and how to work with 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

Page 24: Digest El Group, June 2014

Power distanceThe 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

Page 25: Digest El Group, June 2014

Masculinity vs. FemininityThe gender terminology of this dimension is very controversial. This dimension shows to what extent people prefer a harder (assertive, money and 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 AvoidanceThis dimension shows to what extend a culture feels threatened by uncertainty and ambiguity in 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

Page 26: Digest El Group, June 2014

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

Page 27: Digest El Group, June 2014

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 new cultural 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 energy to 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 achieving quick business results; they are considered as good team players. Unsuccessful expat demonstrate 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 unsuccessful expats simply assume they understand 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

Page 28: Digest El Group, June 2014

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

Page 29: Digest El Group, June 2014

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

Page 30: Digest El Group, June 2014

O B J E C T I V E SA 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

Page 31: Digest El Group, June 2014

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

Page 32: Digest El Group, June 2014

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

Page 33: Digest El Group, June 2014

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 probability of 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

Page 34: Digest El Group, June 2014

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

Page 35: Digest El Group, June 2014

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

Page 36: Digest El Group, June 2014

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