The article actualizes a problem of personnel support relevance of the Russian economy resulted from the innovative process transformation of the socio- economic system. A key role of a new personnel formation in achieving competitive world economies deciding professional problems creatively in the terms of environment uncertainty is emphasized. Thesis on the leading role of business as the main customer of highly qualified personnel is being proved for deciding their own economic tasks for economy development of the country firmly embarked on the way of innovative transformation. In authors’ opinion this should be a new social orientation of business to solve considerable socio-economic problems. National labor market analysis on business and personnel attractiveness possibility as well as arrangement of terms for their effective activities and development is carried out. Low level of national labor market attractiveness for talented workers is substantiated, statistics is being presented and possible reasons of highly qualified personnel “drain” from Russia are indicated. A problem of personnel demand in the country that should satisfy real economy requirements at the stage of its innovative transformation is accentuated. Conceptual approaches to human capital management as a key factor of economic success are suggested, realization of which is assigned to business not only as a customer of highly competent personnel, but as an active process participant of their professional training for innovative economy demand.
Keywords: Social responsibility of businessinnovative economypersonnel
Research of world technological countries employees labour content shows that practically every forth employee works in the category “knowledge” – it consolidates people who are capable to work in the situation of uncertainty, to decide complex analytical tasks with elements of improvisation and creation. This category workers share in the terms of establishment and development of knowledge economy is considered as a key indicator of country competitiveness in the global area and there are prognoses of increase its importance in the era of economy digitization. It should be noticed that there is only 17% of this workers category in Russia.
In the terms of market economy requiring new approaches to personnel training, combining subject-oriented learning and intellectual development the system of education has been temporarily failed and unmotivated to the fundamental revision of learning theory and practice. Imposition of conservative educational system with preserved employment balance in the country without any demand of economy for “knowledge” category personnel, passivity of professional societies to the dialogues with educational establishments, deficit of man’s constant self-development values and aiming at increase his competence created barriers to establish society and economy on the knowledge base in Russia. To change cardinally a prevalent situation elaboration of a measure system is required that should be directed to the personnel decision-making for innovative economy involving socially-oriented companies for its implementation recognizing human resources as a key factor of its economic success.
In spite of the fact that discussion agenda of the economic forums very often includes problems of personnel professional training adequacy which should meet modern global challenges requirements often addressed directly to business-society a whole number of questions are very actual, among them there are the following:
Why is critical mass of knowledge demand absent in Russia?
How can role of socially responsible business in personnel training be activated capable to generate innovative technologies and apply them in deciding professional tasks?
What kind of environment should be to stimulate development and self-realization of a man?
Purpose of the Study
The aim of research is to reveal a role of the business in securing innovative economy by personnel of a new formation as a unique bearer of new knowledge and new competence. It’s therefore important to analyse Russian labour market attractiveness level for high quality personnel and revealing reasons of “brain drain” from Russia. To provide possibilities of country economy innovative development conceptual approaches elaboration of human capital management on the basis of social partnership of the state, business and education is required.
Inductive-deductive methods, comparative analysis methods, abstraction and formalization were used when conducting researches. Authors’ findings were based on the interpretation of research data conducted by Russian and foreign scientists. Statistical analysis was carried out on the basis of data of international consulting company – The Boston Consulting Group (The Boston Consulting Group, 2017).
It’s impossible to maintain with certainty today that in the nearest perspective Russia will be able to catch up with labor market development level of the states proclaimed knowledge imperative – it provokes threat to its global competitiveness in the innovative economy (Idrisov, Knyaginin, Kudrin, & Rozhkova, 2018). As preventive measures for development of such a situation one should consider elimination of at least 3 key determinants – the absence: of critical mass of demand for knowledge economy; the environment which is necessary for human development and self-realization of human.
Business also should share the responsibility for becoming a true knowledge society and for training personnel with professional competence in demand in the present and nearest future, for creating a favorable personal development environment with the educational sphere; thereby business should be socially-oriented to decision making up-to-date society’s problems, to put the national economy on its path of innovative development, and Russia on the world-wide level of technologically developed countries (Li, Hou, & Wu, 2017).
Analyzing the degree of Russian labor market attractiveness for talented workers - unique bearers of the universal competence of the XXIst century – it should be noticed that in spite of the low level of unemployment in Russia (5,5% in the country and no more than 2% in Moscow and Saint-Petersburg), domestic labor market continuous to be unattractive for talents (The Boston Consulting Group, 2017). This is confirmed by the information of the annual global talent competitiveness rating (GTCI), in accordance with which Russia’s position compared to the previous year hasn’t changed – the 56 th position out of 118 countries-participants of the rating; and on the criterion of “Attractiveness” the country could take the 81st position, and creating opportunities for talents was practically at the end of the list taking the 107 th position (PWC, 2018). It’s necessary to understand with such deplorable results what has been rated and what positions require corrective measures by the state to eliminate the reasons for rating such poor positions of Russia in GTCI 2017 rating (Lanvin & Evans, 2016).
In accordance with the criterion “Attractiveness” – the ability to attract business, people and openness to social diversity – the reasons of Russia’s poor position can be considered foreign direct investment outflow, minimized foreign investments within the country, the decline of foreign students interest to study in Russia, as well as the deplorable results of a sociological survey on tolerance to migrants and the effectiveness of the social ladder.
The assessment of criterion “Creation of opportunities” - the ability to provide terms for the prosperity of business and people - brought Russia to the 81st position out of 118. Such a result is based on the assessment of the effectiveness of public administration, interaction between the state and business, political stability, ease of doing business.
The criterion of “Growth” supposes assessment of the country ability to develop talents, prepare them for participation in the economy. This group is critically lagging behind the category of “Access to growth opportunity”, rating of 106 out of 118. The assessment is based on the analysis of the intensity of the virtual social and professional network use as well as freedom of speech in the country.
The position on the category of “Lifelong Learning” is the 64th out of 118. The overall rating of the country is pulls down and there is low labor productivity (the 82nd position out of 118), which is based on the statistics analysis on GDP per employee. These indicators provoke and escalate “brain drain” from the country. In spite of the fact that the balance of international migration remains positive for Russia from 1990s (more arrivals than departures), authoritative sources confirm that first of all the most talented representatives of the category “knowledge” are leaving Russia and less qualified specialists are moving to the country. Mainly they are from the post – Soviet countries. This fact disturbs not only in term of patriotism because of the prestige decrees of work at our homeland, but from the point of view of the “drain competence” which is especially necessary during the period of intellectualization of the economy (Figure
Source: authors based on data of (The Boston Consulting Group, 2017).
Official statistics of Rosstat taking into consideration only those who left, who was discharged from their places of residence in Russia seems to be underestimated compared to real migration flow by 3-4 times. Herewith the emigration flow is on average characterized by a high educational and professional level and young age composition (Borscheva, 2016). The number of emigrants with higher education left Russia is growing with every coming year. (Figure
Source: authors based on data of Vorobyeva & Grebenyuk, (2016).
The main reasons of “brain drain” from Russia are: low level of salaries; poorly maintained facilities and equipment, obsolete device base, absence of decent conditions for research realization; low academic status; academic recognition abroad and achieved material well-being of scientists left the country; bureaucratic system in the country.
It’s absolutely obvious that Russia won’t be able to be competitive in the world economy without competitive talents-workers belonging to the category of “knowledge” (Sekerin & Gorokhova, 2016). Large-scale and profound coverage of technological and macro-economic trends in all branches of the economy and society as a whole presents new characteristics of personnel competitiveness which are no longer limited only by “solid” skills – the development of universal competence, constant improvement of knowledge, increase of intellectual potential , development of creative abilities are required. Thus, increase of global competitiveness of Russia is determined by the possibility of consolidated participation of all stakeholders – the state, the educational system, professional communities of employers – in the training of highly qualified personnel, in attracting and retaining unique bearers of key competence (Khoroshavina, Sharkova, Vasilyeva, Borisova, & Sokolov, 2018).
To create the value of knowledge in a society it’s necessary to work out and implement the concept of human capital development. A systematic approach to the elaboration of this concept supposes not only aspects of education different forms of personnel training – a special attention should be paid to deciding the problem of stimulating the demand for talents, unique bearers of new knowledge and new competence as well as creation of an appropriate environment that provides opportunities for human development (Shevchik & Musaev, 2016). Thus, the concept can be represented by consisting of 3 systems covering a set of actions for the development of human opportunities.
First of all it’s necessary to name a system of measures directed to stimulation mass demand for personnel of the category “knowledge”.
1. Formation, first of all, public sector of economy by employers a competitive proposal for the creation of adequate terms of work for professionals of category “knowledge”:
Optimization, ecologization, automation and digitization of the main business processes (Betelin, 2018);
Transformation of corporate culture with a vector of increasing flexibility, transparency of goals, and acceptance of criteria for evaluation of its work by the personnel;
Attraction of the critical mass of “agents of change” in the segment – middle and senior managers with competence of the category “knowledge” having successful experience in the implementation of the tasks in the commercial sector (Hermann, Pentek, & Otto, 2016).
2. Reduction of the ineffective “social employment”:
Joint elaboration of an accessible and understandable mechanism by the state regulator and employers to optimize a number of employees;
Optimization of inefficient personnel units to target values carrying out the principles of social responsibility;
Bringing the salary rate of category “knowledge” employees to competitive values.
3. Elaboration of the national system of retraining redundant personnel on the basis of consolidated participation of professional community (key employers representatives), educational establishments with the distribution of responsibilities in an establishing system (Cheglakova, Bataeva, & Melitonyan, 2018).
4. Formation of favorable terms for domestic business including development of social entrepreneurship, stimulating creation of innovative small and medium-sized business on the basis of comprehensive support at all levels of authority (Morozyuk, Sharkova, Merkulina, & Vasilyeva, 2017).
The following system of measures should be aimed at the formation of educational system in partnership with business outpacing of graduates proposals corresponding to their professional training of “knowledge” category.
Increasing the flexibility of an educational system, its adjustment to the demands of the real economy, forecasting the main tendencies of global changes and quick preparation of adequate responses.
2. Promotion of educational organizations deeper cooperation with employers as customers, including by expanding the spectrum of joint educational programs and introducing practices of dual education (Novikova, 2016).
3. Transformation of educational process from subject-oriented to personally-oriented one with a focus of the formation of popular personal, super-subject and meta-subject competence, both by the learners and labor market.
4. Formation of educational sphere attractiveness for inflow of talents into it, including through:
Real salary increases in education;
Transformation of educational organizations culture towards more flexibility by perception to “outer” ideas and advanced personnel;
Approaches change to pedagogical personnel preparing and qualification increase taking into consideration development of aimed competence.
Finally, it’s necessary to create an environment favorable for development of “knowledge” category personnel and attract talents.
1. Promoting the concept of “life-long learning” and popularization of the self-development value in the society.
2. Establishment of integrative interactions of all levels of education and the real sector of economy through:
- extension of the period of professionalization, starting from the level of secondary school (not excluded earlier periods), with the purpose of practical acquaintance of students with the demanded professions of reality and the future;
- formation of a positive image of national talents – "leaders of the future", who will be able not only to adapt to changes quickly, but also to bring companies and society as a whole on the trajectory of sustainable development (Bataeva, Cheglakova, & Melitonyan, 2018).
3. Promotion at the national level and company-level values professional development with a wide repertoire of popular competence, popularization of cognitive management technology, promotion of role models of the personnel in the category of "knowledge" and deserving payment of their labor.
The implementation of these measures is able to bring Russia not only on the global average, but also on outstripping growth rates, ensuring its entry into the group of advanced countries of the knowledge economy.
The study showed that the effectiveness of the Russian economy transformation into an innovative model is largely determined by the quality of training of modern personnel capable of: solving non-standard tasks in the face of change with the maximum use of their intellectual potential; assimilating updated knowledge with high speed; personal and professional development and lifelong learning. The training of such talents requires the educational system to be flexible and outstripping responsive to national and global challenges. Since the main customer of such specialists is the employer, who understands the content of the young specialist's competence and foresees their changes in the near and distant future, he must be actively participated in the educational process for the design and implementation of educational programs. Besides, the professional community, with state support, should make the necessary efforts to create highly professional jobs in domestic companies that are distinctive features of a technological, intellectual, creative economy – the economy of knowledge – in order to retain and enable talented personnel to implement their potential for the prosperity of modern Russia.
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09 March 2020
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Izmailova*, M. A., Veselovsky, M. Y., & Shalnova, O. A. (2020). Social Responsibility In The Branch Of Personnel Support Of Innovative Economy. In S. I. Ashmarina, & V. V. Mantulenko (Eds.), Global Challenges and Prospects of the Modern Economic Development, vol 79. European Proceedings of Social and Behavioural Sciences (pp. 64-71). European Publisher. https://doi.org/10.15405/epsbs.2020.03.9