Impact of Job-Related Factors on Employee Loyalty in a Hybrid Setup: Comparison of Russian and Chinese employees in Russian Consulting
|
STATEMENT OF SUBSTANTIVE CHARACTER OF BACHELOR THESIS 2
Introduction 4
1.1. Role of loyalty in overall company’s successful development 8
1.2. Job-related factors influencing loyalty formation 11
1.3. Modern trends in usage of hybrid working practices 18
1.4. Similarities and differences in Russian and Chinese work cultures 21
1.5. Implementation of hybrid work modes in Russian consulting 23
1.6. Applicability of hybrid work modes among Chinese consultants 25
1.7. Theoretical background summary 27
1.8. Research hypotheses 28
Part 2. Research methodology 38
2.1. Data collection 38
2.2. Sample description 39
Part 3. Research results and implications 42
3.1. Descriptive overview 42
3.2. Statistical analysis 46
3.2.1. Overview charts and correlation analysis 46
3.2.2. Job-related factors centred regression analysis 48
3.2.3. Work mode as moderator centred regression analysis 53
3.3. Discussion of the findings 63
3.4. Theoretical implications 64
3.5. Practical implications 65
3.5.1. Implications (job-related factors centred) 65
3.5.2. Implications (work mode as moderator centred) 66
3.6. Research limitations 70
Conclusion 72
List of references 75
Appendices 87
Appendix 1. Measures 87
Appendix 2. Survey questions 90
Introduction 4
1.1. Role of loyalty in overall company’s successful development 8
1.2. Job-related factors influencing loyalty formation 11
1.3. Modern trends in usage of hybrid working practices 18
1.4. Similarities and differences in Russian and Chinese work cultures 21
1.5. Implementation of hybrid work modes in Russian consulting 23
1.6. Applicability of hybrid work modes among Chinese consultants 25
1.7. Theoretical background summary 27
1.8. Research hypotheses 28
Part 2. Research methodology 38
2.1. Data collection 38
2.2. Sample description 39
Part 3. Research results and implications 42
3.1. Descriptive overview 42
3.2. Statistical analysis 46
3.2.1. Overview charts and correlation analysis 46
3.2.2. Job-related factors centred regression analysis 48
3.2.3. Work mode as moderator centred regression analysis 53
3.3. Discussion of the findings 63
3.4. Theoretical implications 64
3.5. Practical implications 65
3.5.1. Implications (job-related factors centred) 65
3.5.2. Implications (work mode as moderator centred) 66
3.6. Research limitations 70
Conclusion 72
List of references 75
Appendices 87
Appendix 1. Measures 87
Appendix 2. Survey questions 90
In today’s business world, leading companies are focusing more on meeting employee needs and introducing new work practices. With the rise of digitalisation, the way we work is changing, and flexibility in schedules has become increasingly important. The issue of high turnover rates in Russian consulting firms presents a significant challenge for both employers and employees. Despite the industry’s dynamic nature and promising career prospects, turnover rates within Russian consulting firms remain notably elevated, causing concerns regarding employee loyalty formation.
High turnover rates in Russian consulting businesses are caused by a number of factors. The demanding workload and high client expectations that are usually connected with consulting contracts are important considerations. Consultants frequently deal with demanding schedules and high-stress circumstances that add negativity to their work perception. Additionally, with no clear paths for skill development and professional advancement, employees feel like their careers are in decline and look for other possibilities. Predominance of hierarchical and rigid organisational structures can add on top of that due to possible lack of communication efficiency.
The rising trend towards hybrid working conditions, compounded by factors such as the COVID-19 pandemic, further complicates the problem. Finding a balance between new working conditions and the need to work together and interact with clients creates problems for consulting firms, which potentially affects employee satisfaction and retention. Traditionally, companies have preferred employees to work on site, but the COVID-19 pandemic has led to significant changes. Many organisations have begun to implement hybrid work practices.
The impact of hybrid work goes beyond just the present moment. It is nevertheless helping companies develop intangible assets like human capital, especially in growing markets like Russia. Although this idea may seem only hypothetical, in practice hybrid work can be considered as a necessary transformation for organisations (Milenko Radonic et al., 2021)1 2. In the modern business environment, approximately 63% of fast-growing enterprises have successfully implemented hybrid work practices into their operational frameworks (Intuition, 2023)2. The salience of consulting firms in this discourse is paramount. This sector’s agile and knowledge-driven nature requires constant adaptation (Conforto and Amaral, 2016)3 4 5. According to a McKinsey survey (McKinsey, 2021)4, a staggering nine out of ten consulting organisations plan to implement a hybrid work model. The survey, which was spread among 100 executives, showed that the COVID-19 pandemic contributed to improving customer productivity. This positive result prompted managers to switch to a flexible work-life balance system, in which employees are expected to be in the office from one to four days a week. In the Russian context, data from WeWork and Workplace Intelligence indicate that 79% of Russian employers either plan to introduce or have already implemented hybrid work models (Ryzhkina Yulia and Baskakova Irina, 2022)5. Nevertheless, the efficacy of recently embedded hybrid models in aligning with the ecosystems of consulting companies and fostering increased employee loyalty remains an open subject for discussion.
In recent years, there has been a marked increase in the desire of Chinese employees to work in the Russian consulting industry. Chinese experts looking to gain expertise are finding Russian consulting businesses to be increasingly appealing targets as China continues to invest in overseas markets and extend its worldwide presence. Due to the nation’s economic expansion and the increasing demand for knowledge in fields like cross-border investments and market entry strategies, Russia has seen an upward trend in the demand for consulting services. What can be highlighted is that cultural exchange plays an important role in motivating Chinese employees to work in the Russian consulting industry. Cultural similarities between China and Russia, combined with the shared history and heritage of both countries, create a smooth condition for long-term cooperation. More importantly, advantages of professional development and career growth attracts Chinese employees to the Russian consulting sector. When working in a foreign country, people get the opportunity to expand their skills horizon and broaden their professional networks.
...
High turnover rates in Russian consulting businesses are caused by a number of factors. The demanding workload and high client expectations that are usually connected with consulting contracts are important considerations. Consultants frequently deal with demanding schedules and high-stress circumstances that add negativity to their work perception. Additionally, with no clear paths for skill development and professional advancement, employees feel like their careers are in decline and look for other possibilities. Predominance of hierarchical and rigid organisational structures can add on top of that due to possible lack of communication efficiency.
The rising trend towards hybrid working conditions, compounded by factors such as the COVID-19 pandemic, further complicates the problem. Finding a balance between new working conditions and the need to work together and interact with clients creates problems for consulting firms, which potentially affects employee satisfaction and retention. Traditionally, companies have preferred employees to work on site, but the COVID-19 pandemic has led to significant changes. Many organisations have begun to implement hybrid work practices.
The impact of hybrid work goes beyond just the present moment. It is nevertheless helping companies develop intangible assets like human capital, especially in growing markets like Russia. Although this idea may seem only hypothetical, in practice hybrid work can be considered as a necessary transformation for organisations (Milenko Radonic et al., 2021)1 2. In the modern business environment, approximately 63% of fast-growing enterprises have successfully implemented hybrid work practices into their operational frameworks (Intuition, 2023)2. The salience of consulting firms in this discourse is paramount. This sector’s agile and knowledge-driven nature requires constant adaptation (Conforto and Amaral, 2016)3 4 5. According to a McKinsey survey (McKinsey, 2021)4, a staggering nine out of ten consulting organisations plan to implement a hybrid work model. The survey, which was spread among 100 executives, showed that the COVID-19 pandemic contributed to improving customer productivity. This positive result prompted managers to switch to a flexible work-life balance system, in which employees are expected to be in the office from one to four days a week. In the Russian context, data from WeWork and Workplace Intelligence indicate that 79% of Russian employers either plan to introduce or have already implemented hybrid work models (Ryzhkina Yulia and Baskakova Irina, 2022)5. Nevertheless, the efficacy of recently embedded hybrid models in aligning with the ecosystems of consulting companies and fostering increased employee loyalty remains an open subject for discussion.
In recent years, there has been a marked increase in the desire of Chinese employees to work in the Russian consulting industry. Chinese experts looking to gain expertise are finding Russian consulting businesses to be increasingly appealing targets as China continues to invest in overseas markets and extend its worldwide presence. Due to the nation’s economic expansion and the increasing demand for knowledge in fields like cross-border investments and market entry strategies, Russia has seen an upward trend in the demand for consulting services. What can be highlighted is that cultural exchange plays an important role in motivating Chinese employees to work in the Russian consulting industry. Cultural similarities between China and Russia, combined with the shared history and heritage of both countries, create a smooth condition for long-term cooperation. More importantly, advantages of professional development and career growth attracts Chinese employees to the Russian consulting sector. When working in a foreign country, people get the opportunity to expand their skills horizon and broaden their professional networks.
...
The study’s primary aim was at determining how job-related factors impact employee loyalty in hybrid setups. In order to accomplish them, a number of tasks were proposed, including an analysis of the body of existing literature, the formulation of research hypotheses, the gathering of relevant data, the execution of an econometric study (with moderation analysis of how hybrid work mode functions to alter the extent to which job-related factors influence employee loyalty formation), and, based on the findings (with generated insights about differences in attitudes of Russians and Chinese), recommendations for successful employee treatment and the adoption of hybrid work practices in cross-cultural environment of consulting companies were made. As a result of the work, several regression models were built to confirm the hypotheses put forward earlier. Some of them were not fully or partially confirmed. However, the confirmed hypotheses became the basis for further recommendation opportunities to Russian consulting companies in leveraging employee loyalty through influence of described job-related factors and benefit of using hybrid work mode in comparison to onsite and remote ones. Therefore, it was recommended that identifying the company’s values and taking into account employees’ desire to work in hybrid environments be the main goals of the internal corporate analysis. It is important to properly implement different incentive techniques based on the nationality aspect. Businesses should not adopt the flexible work schedules outlined here and hope that their profitable function will become apparent quickly, as these adjustments require planning and time. Organisations can only benefit from the favourable development of a scenario where employees’ requirements are met and the hybridisation of work does not go against their expectations if it is achieved through employee-centred and well-balanced approaches. Research results clearly show that Russian consulting companies need to deal with issues of regulating conditions of implementing hybrid work modes, taking into account the peculiarities of the perception of working conditions by Chinese and Russians, in order to benefit from optimising work in a cross-cultural environment. In the paper possible solutions to dealing with diversified workforce were outlined. However, in the end it is up to companies themselves to decide what suitable strategies can be further adjusted and implemented so that risks of inadequate employee treatment are mitigated and best possible scenarios for employee retention are set.
The study is interesting not only because it offers advice to Russian consulting firms but also because it examines employee attitudes differently by using a moderating approach to analyse loyalty development, an area that has not been previously explored. Regarding potential future research directions, it would be beneficial to examine a larger sample of employees and carry out this analysis with the additional use of interviews (mixed format) in order to get more thorough and precise results.
The study is interesting not only because it offers advice to Russian consulting firms but also because it examines employee attitudes differently by using a moderating approach to analyse loyalty development, an area that has not been previously explored. Regarding potential future research directions, it would be beneficial to examine a larger sample of employees and carry out this analysis with the additional use of interviews (mixed format) in order to get more thorough and precise results.
