Employee turnover is one of the biggest operational challenges facing Russian companies across construction, oil and gas, manufacturing, and logistics. When employees leave frequently, companies lose productivity, spend more money on recruitment, and face project delays that damage their reputation. High turnover also affects team morale because remaining workers must handle extra workload while new employees are being trained.

Reducing employee turnover in Russia requires more than increasing salaries or offering short-term bonuses. Sustainable retention depends on strategic workforce planning, clear communication, structured onboarding, and long-term career development systems. Companies that plan and invest in their people create stable teams that deliver consistent results.

At DBS Group, we help Russian employers design workforce planning strategies that reduce turnover and improve long-term performance. Our experience across multiple industries shows that companies can significantly lower attrition when they combine forecasting, smart hiring processes, and strong engagement programs.

Common Causes of High Turnover in Russia

In order for organisations to lessen employee turnover in Russia, they need to determine what drives employees to leave. Most often, employees aren't leaving for one reason, but instead for numerous interrelated reasons that accumulate over time. When management doesn't find out what these reasons are early on, valued employees leave the company and search elsewhere.

Wage competition

The most powerful factor contributing to employee turnover is competition for wages. In cities with highly developed economies, like Moscow and St. Petersburg, the demand for skilled labour continues to increase. Employers within the construction and industrial sectors of the economy are fiercely competing for the skilled tradespeople (i.e., welders, engineers, programmers, and equipment operators) that meet their employment demands. A small wage increase offered by competitors can be sufficient to entice an employee to look to another company for employment.

Simply put, even though the employer increases wages to attract new employees, it may not cause them to be loyal or committed over the long haul. Many employees who were attracted by wages subsequently discover that the work-related culture, management style, and job expectations do not meet their needs. Therefore, when the employer is focused solely on wages and does not build an engagement system, employee turnover continues to take place, despite the employer incurring higher labour costs.

In industrial regions such as Novosibirsk and remote energy projects in Siberia, wage expectations are also influenced by harsh climate conditions and rotational work schedules. Employees working long shifts in extreme environments expect fair compensation, but they also expect respect, safety, and structured support. If expectations are not clearly communicated during recruitment, dissatisfaction grows quickly and leads to early resignation.

DBS Group advises employers to balance competitive wages with structured integration programs that create stability and trust. Employees are less likely to quit for minor pay discrepancies given elsewhere when they feel appreciated and supported. 

Lack of Engagement

Lack of engagement is another major factor contributing to high turnover in Russian companies. Employees who lack connection with company objectives or their leaders can become less motivated as time passes. Without any kind of feedback or recognition, employees tend to believe their hard work hasn't been valued. 

More recently, employees working in a hierarchical work environment often find communication limited between supervisors and employees. A reluctance to bring up issues in a public forum out of respect tends to cause employees to keep their frustrations to themselves. When employees do not have the opportunity to voice their grievances, any job satisfaction diminishes.

For workers from overseas who have recently moved to Russia, language issues and cultural differences add layers of complexity regarding their level of engagement or connection to the organisation. A lack of formalised onboarding training and a mentoring program can lead to feelings of disconnection from their company, both professionally and socially. This feeling of disconnection carries with it a greater degree of emotional stress and therefore reduces the employee's level of commitment to their employer.

At DBS Group, we help address employee engagement through the development of an employee mentoring program and cultural orientation programme before they arrive in Russia, and continue to assist these employees throughout their transition period. Additionally, we assist organisations in developing structured communication channels that facilitate employee communications concerning work-related issues in a respectful manner, as well as providing timely feedback. Engagement does not occur serendipitously; it is created intentionally through consistent management practices.

Role of Strategic Workforce Planning

Through strategic workforce planning, companies in Russia can reduce high levels of employee turnover by aligning their business objectives with their human resource strategies. Instead of scrambling to fill labour shortages created by unexpected turnover, companies work proactively to anticipate their future workforce needs and develop the necessary plans. By using proactive workforce planning, a company will reduce the number of employees hired during a time of panic, which in turn leads to higher levels of employee retention.

Through workforce planning, companies can also assess employee turnover related to trends and risk exposure while designing solutions based on real, measurable data. Identifying the departments with high levels of employee turnover enables management to address the issues that have contributed to high employee turnover through targeted solutions. Companies can achieve higher performance from their employees by utilising data to develop a plan of action rather than relying on reactive actions.

DBS Group works collaboratively with employers to create customised frameworks for workforce planning to meet the needs of both their industry and their operational structure. Before we recommend any of our employee recruitment or retention strategies, we first analyse seasonal employee demand, the nature of the work performed (i.e., project-based vs. ongoing), as well as the region's labour market conditions. 

By using a structured process for developing an employee recruitment or retention strategy, we can remove all uncertainties and thereby develop a more stable, long-term employee and workforce retention strategy.

Forecasting Labor Needs

In order for organisations in Russia to effectively develop workforce strategies, it is essential to have accurate predictions of future labour requirements. Many construction, energy, and infrastructure companies often experience varying amounts of labour required to support their work, depending on their respective contract schedules. When labour requirements are not accurately predicted, companies may over-hire or not have enough workers, resulting in unexpected workforce shortages.

When labour requirements are accurately predicted, organisations also have the ability to grow internal talent for future leadership roles. When organisations promote internally, rather than hire external candidates for supervisory positions, they are able to use experienced workers who already understand and demonstrate the organisation's values and culture. In addition, when organisations develop and promote their internal and loyal employees to leadership positions, they retain employees in those same positions and reduce the risk of turnover.

Optimising Hiring Processes

Optimising the hiring process is a crucial factor in decreasing employee turnover rate, as a mismatch between their expectations and the realities of their job plays a large role in their decision to resign from their job early after starting it. 

Additionally, candidates must be provided with clear and honest information regarding working hours, shift schedules, accommodation conditions, and safety standards. When the expectations set during the hiring process do not match up with the actual conditions of their new job, candidates quickly lose any sense of trust.

A well-structured recruitment process allows employers to evaluate candidates not only on technical skills but also on their cultural fit and level of adaptability within the organisation. Employees are less likely to leave the organisation once they have an understanding of the demands of the job and the culture of the workplace prior to joining.

As part of our commitment to ensuring employees are adequately prepared to work in real-world settings, DBS Group utilises comprehensive screening interviews, trade assessments, and orientation sessions before candidates start working. Honesty in the hiring process, in our opinion, helps shield the company and employee from costly employee attrition. 

Employers should focus on communicating clearly and efficiently with potential employees during the recruitment process in order to guard against losing strong candidates. If an organisation takes too long or responds to candidate inquiries in an unclear manner, qualified candidates may choose to accept an offer from another organisation that is able to provide them with an offer in a timely manner.

An efficient hiring system also demonstrates professionalism and improves the overall perception of the employer in a highly competitive job market.

Retention Strategies That Work

Retention strategies must focus on long-term employee satisfaction rather than short-term financial incentives. Companies that successfully reduce employee turnover in Russia invest in engagement, recognition, and career growth planning. These elements create emotional commitment and strengthen workplace loyalty.

Employee Engagement Initiatives

Employee engagement programs help workers to develop a sense of connection between themselves and the goals of their organisation and to feel appreciated. Routine performance feedback meetings allow employees to understand what is expected of them and where they are progressing. Team morale can increase when regularly recognised employees receive public recognition for their accomplishments.

Experiences created through activities such as dining together, attending training workshops, and recognising accomplishments build positive relationships with co-workers. Positive relationships between co-workers can lead to less conflict and greater collaboration. Employees are far less likely to leave for minor salary differences when they enjoy working with their co-workers.

For international employees, engagement includes assistance with settlement services and integration into the local community. Help in finding housing, using banking services, and utilising local transportation can reduce the stress associated with settling into a new location during the first few months after relocation. DBS Group provides structured support systems to help with the isolation and emotional instability that result from not having adequate support.

Establishing formal methods to provide an employee with a way to share suggestions or concerns respectfully can provide valuable information to management regarding employee satisfaction and performance. Management should develop an early-intervention system, such as anonymous surveys and scheduled meetings, to identify and address problems before they become major issues. Protecting stability on teams through early intervention and trust will help establish and maintain strong relationships between employees and management.

Why Strategic Workforce Planning Is Essential for Long-Term Stability

Due to changes in the regional economy, movement patterns of workers, and the different business cycles of industries, organisations in Russia are experiencing high levels of competition for labour from outside the country. A company that exclusively recruits from the external labour market would see higher employee turnover rates as well as higher hiring and onboarding expenses. 

In order to reduce employee turnover within Russia, organisations must have a balanced workforce plan that includes competitive salaries, formal onboarding processes, employee engagement programs, and career development opportunities. With all four components working together, organisations will be able to maintain a workforce that will continue to provide high levels of production and/or performance, regardless of economic conditions. 

DBS Group provides a comprehensive suite of workforce management tools to assist employers in reducing employee turnover and increasing their business's operational efficiency.  Through Ms. Ruby Mazumdar's extensive 15 years of experience in recruitment industry who is a Regional Director at DBS Group provides comprehensive support to eliminate these risks. 

Using our systematic workforce planning process, we provide organisations with the ability to accurately forecast their future labour needs, manage a simplified recruitment process, and implement recruitment techniques that have measurable results. If your organisation is ready to reduce employee turnover in Russia through strategic workforce planning, our team is prepared to guide you. 

Contact us today through clientservices@dbsgroup.ru to create a steady workforce that promotes sustained performance and long-term growth