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How Can Russia Harness Human Capital for its Competitive Advantage

How Can Russia Harness Human Capital for its Competitive Advantage

KEY CONCLUSIONS

Digitalization intensifies competition

“The world of digital platforms <…> drastically diminishes the numbers of places on the winners’ podium. In other words, in terms of markets there used to be a lot of winners, now it’s evident there’s enough room for two or three, maybe four in various areas <…> The rules are quite sim-ple: the winner takes it all,” Dmitry Peskov, Director, Young Professionals Department, Agency for Strategic Initiatives to Promote New Projects (Agency for Strategic Initiatives).  

“We’re all facing the information flow that grows bigger and bigger day after day. It’s evident, that as time goes by we know less about more. On the other hand, we live in the time when all events and processes of the real world are reflected in the digital world, one way or another. In this regard any organization <…> becomes a digital platform and these platforms end up com-peting against one another,” Dmitry Korobkov, Chairman of the Board of Directors, ADV. 

Russia has a strong hold on fundamental science and the digital field

"Over the past 15 years, our compatriots have received 5 Nobel Prizes in Physics and 6 prizes in Mathematics, and this shows our standing in these fundamental sciences <...> Our programmers continue to be in great demand in the Silicon Valley and in the world in general <...> If we look at several industries, animation for instance: Masha and the Bear is amazingly popular. It has 2.5 billion views on YouTube, it’s of the most popular cartoons on Netflix, and this is without a doubt a phenomenal success for the Russian animation <...> Another field is cybersports," Yaroslav Glazunov, General Director of Spencer Stewart International LLC.

Young people value self-fulfillment and justice

"There was a research carried out focused primarily on the motivation of modern youth <...> What has come to light was: everyone with no exception, in addition to the needs that in my opinion have always been there, which is work and housing <...> two very sim-ple points took the lead: self-fulfillment and justice," Alexander Bugaev, Head of Federal Agency for Youth Affairs (Rosmolodezh)

The development of entrepreneurial skills happens in the family

"The first three years which we often underestimate, is precisely the time when a person becomes an entrepreneur or doesn’t. Therefore, I think it is our responsibility as parents to raise our future entrepreneurs," Dmitry Korobkov said.

PROBLEMS

Imperfection of the education system, young professionals’ lack of practical skills 

"Today it is extremely difficult to find a person or raise one for that matter, who will be an engineer and will dig into these specific tasks. And who’s responsibility is it to give this engineer a certain skill set or a craft that they will to sell to their employers? <...> This is a defect of the state system, obviously. Where has the textbook education gone? Who will program into their brains that engineering is everything and everything is built on it? <...> Where are these values? They are gone." — Dmitriy Marinichev, General Director of Radi-usGroup.

"There is a fundamental difference between the Russian market for these majors and the European one. In the European market, I can take these people away from my neigh-bours. There is a community, business environment in which these skills are formed. <...> In Russia, each time we have to specifically look for people with practical skills, almost all the way across the country. What we need to do to create this class of people is not just to have an education system, but we also an environment in which these people will get their practical skills," Mikhail Levchuk, Managing Director of Argus Security

"In my opinion, very little is said about the blue collars, about the team leaders <...> The class of people who knows how to work with their own hands and are able to organize the work of 3-5 people around them, has vanished. This strata of people who take pride in their profession has all but vanished," Mikhail Levchuk.

Lack of professional growth system and human capital development

"We always try to look at the so-called indicator of employment. Yes, it's wonderful that a person has a job, but we need to see where they work and why. <...> We take the upper crust of the nation and throw them into companies that are obviously won’t take them an-ywhere <…> it's a terrible indicator that should not be looked at," Robert Urazov, General Director of Agency for the Development of Professional Communities and Skilled Workers (WorldSkills Russia)

"Russia's human capital today is not a competitive advantage, but a competitive disad-vantage. There is just not enough of us, and as we talked about this today we’re not very good. <...> Business <...> is the territory that is most suitable for attracting, developing and retaining talent, because in addition to institutes <...> there are requirements, that are called freedom or the environment, as we mentioned today," George Abdushelishvili, Chairman of the Board of Directors, Leadership Vector


SOLUTIONS

Learn how to efficiently use available resources

"We must learn to efficiently use the resources we have at hand. What I mean is: today <…> we are discussing the question of how to increase the competitiveness of a student, a young person. We talk about it from the point of view of how we position them before an employer, how we link mentoring practices with applicants, with seniors students <...> from the point of view, you know, of a single crystal clear market or a system of communi-cations." — Natalia Pochinok, Rector, Russian State Social University

Create conditions for self-fulfillment, including volunteer programmes

"In our country this year was declared the year of volunteers and it's not just words. If we look at volunteers in the world, it's usually people of the older generation <…> In our country, as a rule, it is the young people in an overwhelming majority: 80% of volunteer movements is made up of are young people. This is also, if you like, the development of human capital, only from another point of view: a social one," Alexander Bugaev.

"They work with us or with me in particular because they are interested, because they are comfortable, because they see like-minded people and most importantly, we give them the opportunity to make something happen what they cannot make happen without us. The most important thing for these people is to be heard, to know somebody believes in what they’re saying and let them be fulfilled on a personal level," Dmitry Marnichev.

Education to target the economy of the future

"You need to be prepared not for the current economy, but for the economy that you want to create. This is a painful turning point but we must realize that human capital is a unit of inherent value," Robert Urazov.

For more information visit the official website of the Roscongress Foundation Information And Analytical System.


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