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Using of Foreign Labor Force at the Russian Labor Market through Outstaffing: Factors of Choice by Employers

Student: Bargan Kristina

Supervisor: Elena Varshavskaya

Faculty: Graduate School of Business

Educational Programme: Human Resource Management (Master)

Final Grade: 9

Year of Graduation: 2017

In the thesis problems of the labor migration are analyzed. Also thesis describes the practices and peculiarities of using foreign labor in Russia, reasons for attracting foreign citizens to work in Russia and factors of employers' choice of the outstaffing mechanism for migrants. Thus, the aim of the master's thesis is to characterize organizations that use outstaffing and determine the factors that are associated with outstaffing application to foreign labor. The subject of the thesis is outstaffing as the practice of using foreign labor in the Russian labor market. The object of the thesis are employers who use outstaffing as a mechanism for using foreign labor. During the research semi-structured interviews were used as the main method for collecting empirical data. As an additional analysis was selected the analysis of the company data and documentation related to settlements with outstaffing services. Based on the analysis of interviews with employers and business leaders, it was possible to show that the main factor of using foreign labor through the outstaffing mechanism was not economic benefit. The main factor was a reduction in the risks associated with possible violation of labor and migration legislation. This thesis also points out that a low prices is not the dominant reason for using a foreign labor today. Now the main reasons are: lack of Russian labour force, high local staff turnover, seasonality of work and quality of work of migrants. The obtained results, in our opinion, could be interest not only to researchers but also to Russian employers. Who can use foreign labor force through an outstaffing mechanism to optimize work and reduce risks.

Full text (added May 22, 2017)

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