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‘Professional’ and ‘family-friendship’ social ties in hiring practices of Russian employees. Evgeniya Balabanova National Research University – Higher School of Economics, Moscow, Russia SASE 26th Annual Conference July 10-12, 2014, Chicago. - PowerPoint PPT Presentation

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  • Professional and family-friendship social ties in hiring practices of Russian employeesEvgeniya BalabanovaNational Research University Higher School of Economics, Moscow, RussiaSASE 26th Annual Conference July 10-12, 2014, Chicago

  • Using personal contacts in job search and job placement on the Russian labor marketwidespread most important under the conditions of:high-tension labor marketshigh vacancy competitionapplying for prestigious and high-paid positions

  • Hiring by pulling strings: vice or norm?

  • Social networks in job search and placementstrong and weak ties (Granovetter 1973)information and influence networks; informative and placement referrals (Simon, Warner 1992; Peterson et al. 2000; Yakubovich 2005)professional (obtained during ones career), e.g. reputation in relevant professional community referrals from previous workplacesfinding job through professional acquaintances versus off-professional (old-boys networks) friendship and family ties

  • Social networks in job search and placement: differences of approachesStrong vs. weak (Granovetter 1973)Intensity and intersection of social contactsProfessional ties vs. family and friends networksSources of social contacts

  • Specialists and managers in Russian business organizations: drivers and tendencies of development, 2012Center for Research in Social Organization of a Firm, HSE Faculty of Management

  • Sampling: 623 white-collar employees in 17 private-owned companies operating in Russia

    LocationCapital ownershipIndustriesSubsamples namesMoscowRegionsDomesticForeign (US, German)Prestigious (finances, services, IT)Not prestigious (manufacturing)Subsamples size, no. of respondents323300322301382241Total, respondents623623623

  • Using of formal and networking channels of job search, %% of valid answers, N=518

  • Groups most often having network capitalProfessionalmales from: regions; foreign-owned companies; prestigious industries (42% among each)respondents from foreign-owned companies in prestigious industries (41%)supervisors (37%)aged 30-39 (35%)having both professional experience and special education (34%)Family-friendshipaged 19-24 (74%)respondents from domestic companies in prestigious industries (73%)respondents from regions (71%)

  • Professional and family-friendship capital: opposition or complementarity?

    Group no.Professional experience (min. 5 years) + special education (55%)Professional social capital (29%)Family-friendship social capital (62%)% in the sample1122+153++74++215+46++67+238+++12TOTAL100

  • Job and career satisfaction and organizational commitment: comparison of 8 groups

    Group no.Professional experience + special educationProfessional social capitalFamily-friendship social capital12+3++4++5+6++7+8+++

  • Index for professional social capital

    QuestionBinary items included into IndexHow did you get to know about vacation for your current workplace?From colleagues or people I was acquainted with during my previous jobOn your opinion, what were the main reasons for your appointment on the current position?Me and my supervisor worked together on my previous job; he/she knows my professional qualitiesOn your opinion, what were the main reasons for getting your current job? My professional reputation among colleaguesMy supervisors opinion based on his/her knowledge of my professional qualities from our previous professional cooperationWhy did you leave your previous job?Opportunity to work with high-qualified professionals I know from my previous job

  • Index for family-friendship social capital

    QuestionBinary items included into IndexHow did you get to know about vacation for your current workplace?From my friends or relativesDid you have friends or relatives working in this company before you came here?Yes, among subordinatesYes, my immediate supervisor was among themYes, among other line or middle managersYes, among top managersOn your opinion, what were the main reasons for your appointment on the current position?Close relationships with my immediate supervisorReferrals from my friends or relativesMy reputation of insider for this company; Im well in with influential people hereOn your opinion, what were the main reasons for getting your current job? Referrals from my friends or relativesReferrals from some influential personsFriendship or family ties with key personnel in the companyMy supervisors opinion based on his/her knowledge of my loyalty and agreeablenessWhy did you leave your previous job?Opportunity to work with pleasant people Im well in with (friends, relatives)

  • Regression models for employees well-being, standardized -coefficients

    VariablesCareer promotionsFamily material well-beingWages are higher than average in the city for the same jobJob satisfactionOrganizational commitmentCareer satisfactionIIIIIIIIIIIIIIIIIIProfessional qualification (1=having both 5-year work experience and special education),103*,053-,033-,009-,033-,009-,082*-,059,014-,057,022-,017Professional social capital,107**,023,152***,071,121**,059,149***,116**,112*,074,091*,033Family-friendship social capital,080*,076*-,035,029-,031-,005-,006-,034-,030-,006-,021-,031Location (1 = Moscow, 2 = regions),029-,234***-,044-,073-,151***-,092*Capital ownership (1 = domestic, 2 = foreign),044,302***,213***-,050,135**,004Industry 1 = prestigious, 2 = not prestigious)-,027-,152***-,094*-,235***-,169***-,175***Gender (1 = male, 2 = female)-,070,038-,002,001,106**,034Age-,066-,081*-,061-,009,235***,046Position (1 = without subordinates, 2 = having subordinates),376***,216***,087*,131**,127**,303***Adjusted R2,023**,159***,020**,229***,011*,072***,022**,082***,010*,158***,005,125***

  • Conclusions (1)

  • Conclusions (2)old-boys networks is rather a compensatory hiring mechanism that provides only one-time or initial advantages for relatively uncompetitive applicants, e.g.the first position in the career getting a job after a period of unemployment or being out of the labor forcemoving from the bad workplace to a good one using informal relatives or friends contacts to find jobs is rather a last resort for low-resource workers which stay on their jobs because of few alternative choices rather than because of better match quality (Loury 2006)

  • Directions for further researchProfessional reputation and professional social networks: meritocratic or anti-meritocratic factors of development?