Guest comment: To Russia for love?

With the likes of Lehman announcing major new hires in Russia, Adam Walker, managing director of real estate-focused Cobalt Recruitment, says real estate professionals and bankers lured by high Russian pay packages may find themselves whipping clients in hot tubs with birch twigs.

The Russian real estate market is fascinating. As investors seek to increase their exposure to the enormous opportunities in the country, it's expanding at an almost alarming rate. Simultaneously, efforts are being made to improve the sophistication and professionalism of the sector.

This has enabled a number of the leading global property consultancies to grow considerable offices, with staff north of 200 people. The typical make-up of these offices is 90% Russian nationals and 10% ex-pats, including British, US and European real estate experts.

The rationale behind this recruitment strategy is simple: secure experienced ex-pat talent, which can in turn hire and train less experienced locals. It's a strategy that's sound in principle, but which falters when one considers the severely limited pool of professional talent willing to relocate to the region. After all, Russia is not widely known for its haute cuisine, balmy climate or smooth flowing roads.

As a result, those most prepared to take the plunge are typically males aged under 30 years old. They are usually unattached, often have robust livers, and recognise the many alternative charms life in Moscow has to offer!

Given the limited number of real estate professionals falling into this category, inflated demand is generating hugely inflated remuneration. We've seen packages over $200k (plus additional incentives such as chauffeured Ladas) for individuals with as little as three years' experience, underlining how rare and desirable these candidates are.

Vodka, fire and flogging

Once a new employee is on board, employers must invest considerable time and energy into the individual's integration, offering Russian language courses and ensuring that he becomes firmly involved in the social aspects of life in Moscow. As well as the requisite obligation to imbibe copious amounts of vodka, this has been known to include whipping leading dignitaries and potential clients with birch twigs at the local banya (baths).

Despite initial concerns, the overriding sentiment by those who have risen to the challenge is one of positivity. The thrill of working in one of the world's fastest growing real estate markets, coupled with a varied and highly enjoyable social life, encourages them to remain in Russia for the longer term.

One of my abiding memories of my last visit to Moscow is the instruction issued to guests of our hotel in the case of fire. Alongside a picture of the hotel perilously aflame and detailed guidelines in Cyrillic script for the Russian patrons of the establishment was a single line in English, which advised: "Don't panic and never give up hope." It's a maxim professionals embarking on a new life in Russia might do well to bear in mind.