It is not surprising that Russia, a country that is notorious for its unpredictability, has no definitive system for receiving promotions and pay raises. Do employers just give them when they feel like it? Or do they just ignore the issue altogether, counting on employees having little recourse if they are unhappy? Increasingly, Russian companies in developed sectors of the economy are opting for a Western-style system of regular salary reviews. But still, the question of how to approach a boss for a raise remains somewhat subjective.

What impresses employers and what displeases them when they receive a request for a raise? Do they prefer it when employees wait for their bosses to offer it to them? What are the potential pitfalls of dealing with the topic of salary rises from the point of view of both the employer and the employee? The Leader seeks to find the answer.

Should you wait until your boss voluntarily rewards your hard work with a salary increase, or have the assertiveness to ask for a pay raise yourself?

Although finding and keeping skilled personnel can be a real challenge in Russia, and pay raises are essential for keeping workers happy, employers are inclined to try to extract the maximum from an employee at a minimum cost. And from the point of view of the employee, those with good jobs are hesitant to ask for a pay raise if it jeopardizes their current position.

Russia’s economic health naturally plays an important role in determining salary policies. “Before [the crisis in] 1998, our staff received above-average salaries for Russia,” said Pavel Busygin, vice president of Probizness Bank. “But following the crisis we had to cut salaries and keep them down. In time, our staff began to negotiate with other companies, and four of our people left,” he said. “That’s when we started to rethink our salary policy.”

Oleg Doyna, head of Moscow-based office of EGAR Technology, an American software-development company, said that salaries at the company are determined at the time of hiring.

The software development industry typically has a market price for an employee, he said. “When deciding on an initial salary, we look at an individual’s professional skills and personal qualities and then decide whether we are prepared to pay that sort of money.”

He said EGAR reviews salaries twice a year and usually decides to increase pay for two basic reasons.

“The first is when a person acquires the experience to perform a more valuable job for the company. This is basically a promotion,” Doyna said. “The second comes from the salary review, which we do at least every six months.”

Indeed, even in instances where companies have no set salary-review periods or strict criteria for pay raises, pay increases are still possible.

Alexei, an advertising designer for a large Russian manufacturing company, said he began by doing his job as efficiently as possible to impress the company’s management.

After a few months he decided to push himself harder, do more complicated work and do it more skillfully, which he believed warranted an increase in salary. “But I didn’t demand a raise,” he said, “I simply brought my new ideas to fruition, applied them successfully and then left it for my managers to appreciate.” In the end, he got a long-awaited pay raise without asking for it directly.

Some are not as successful. Yekaterina, a personal assistant who also asked that her surname not be mentioned, was earning $300 a month when she decided to ask for a raise. Although she worked extra hours at the office and increased her efficiency, her employer never seemed to notice her efforts, she said.

When, after three months, she asked her employer for more money, he refused, saying her position did not warrant an increase. However, her boss also told her she was right to approach him, because, as he said “you never get anything unless you ask.”

Busygin said that one problem companies face is blackmail from employees wanting increased salaries. “In our bank we don’t accept any sort of blackmail, such as employees threatening to leave,” he said, “No one is irreplaceable.”

Busygin said some of the bad ways to approach a boss include:

·    Threatening to leave your job if your salary is not increased;

·    Telling your employer that you got an offer from another company;

·    Demanding a pay raise, rather negotiating one.

But Doyna of EGAR said that if an employee confronted him with a request for a pay raise after being offered more money from another company, he would react calmly and consider it.

“If we can find a person on the market with similar skills for the same or less money, we would let the employee go.”

But Busygin said sometimes it is easier to boost an employee’s salary rather than train a new employee, which can often end up costing more.

Doyna agreed, saying the longer a person works for a company the more valuable he or she becomes.

“Even if we ignore how much [inside knowledge and experience] we lose when someone leaves, we lose at least a month or two just looking for a replacement,” he said. “So the best approach is to keep our staff happy.”

“A good way is to demonstrate your loyalty toward the company and display your desire to do something better for the organization — in the context of saying you would like to be supported financially,” Doyna said.

Alexei, the Internet advertising designer, said he has always avoided directly asking his managers for a pay raise.

“I always try to find a way to draw their attention to the subject in a subtle way,” he said. “But I make sure they are aware of the issue. “At the same time you can’t just come to your boss and say ‘I want more money’ without any basis. You need to have prepared the ground before expecting a pay raise.”