Evgeny Kolbin, current CEO of Cloud.ru, in October 2021 discussed with company’s top team the strategy for the next three years – aimed at turning Cloud.ru into a unicorn start-up company. This goal may seem to thrill any ambitious manager. However, in private conversation he shared his concern that the company would not be able to attain this goal because there were some problems with the company team, which was supposed to quickly create new products and sell them to customers. “I pay them over the market level. They really have high salaries. We have an office in the centre of Moscow. They receive tasks to be envied by any IT specialist, but there is still something missing. They don’t show extraordinary results, they don’t burn with their work, on the contrary, they burn out and leave.”
* A unicorn company is a private company that is not yet 10 years old and is valued at one billion dollars or more, and is owned at least ¾ by its founders
Cloud.ru
At that time Cloud.ru company was only 2,5 years old. It appeared at the Russian IT market in January 2019 and at the moment of the conversation above was hardly known at the market. At the company’s site one could read that Cloud.ru was a provider of cloud and AI technologies that created personalized solutions and provided expert support in their customers businesses digital development.
A unique advantage assisting the company to attain its goal was building of a supercomputer Christofari with graphic accelerators Tesla V100 and performance of 6,67 petaflops, which was included in top 30 of the most powerful supercomputers in the world. Along with this supercomputer, they created a full cycle machine education platform with the access to the supercomputer (the only public supercomputer in Russia at that time). The platform for ML-development won in the category of “ Computer learning. Platform of the year”».
In 2020 Cloud.ru was included in 5 largest Russian IaaS-providers, having a market share of 6.2 % , showing the highest growth among the rating participants with income rise of 1356% - from 228mln to 3320mln rubles. These are results worth of appraisal.
A unique advantage assisting the company to attain its goal was building of a supercomputer Christofari with graphic accelerators Tesla V100 and performance of 6,67 petaflops, which was included in top 30 of the most powerful supercomputers in the world. Along with this supercomputer, they created a full cycle machine education platform with the access to the supercomputer (the only public supercomputer in Russia at that time). The platform for ML-development won in the category of “ Computer learning. Platform of the year”».
In 2020 Cloud.ru was included in 5 largest Russian IaaS-providers, having a market share of 6.2 % , showing the highest growth among the rating participants with income rise of 1356% - from 228mln to 3320mln rubles. These are results worth of appraisal.
In order to sustain high growth speed, to create new products and attract customers, providing them with the best service on the market and high reliability, the company team has to be united, oriented at common goal, and to burn with this target. However, at that time the employer’s brand wasn’t formed, awareness, attractiveness and employees’ loyalty were low, and the staff turnover was very high.
This could not but alarm Evgeny, because absence of a powerful employer brand and of employees’ loyalty to the company could result in company’s inability to employ the best specialists on the market ant to retain existing ones, and thus failing to create a strong team, capable of reaching the goals established for the company by Evgeny.
This could not but alarm Evgeny, because absence of a powerful employer brand and of employees’ loyalty to the company could result in company’s inability to employ the best specialists on the market ant to retain existing ones, and thus failing to create a strong team, capable of reaching the goals established for the company by Evgeny.
IT sphere labour market vacancies dynamics
Based upon HH.RU data
In the beginning of 2021, more than 250.000 employment vacancies were published by employers at the hh.ru career website. Labour market experts noted the re-establishment of IT-specialists demand after COVID-2019 pandemic. The number of employment vacancies rose by 39% compared to the similar period in 2020. 38% was the growth dynamics shown by IT labour market in 2021 as compared to 2020.
On the one hand, in 2021 IT employers became more active, whereas applicants showed decrease of their activity. In the beginning of 2021 applicants published 186.000 of profiles. Most of the profiles were connected with programming and development (28% of total number of profiles), with IT projects management (20%), technical engineering support and system administering. The fewest number of profiles were connected with IT start-ups employment, games, websites and CRM-systems development (2%).
On the one hand, in 2021 IT employers became more active, whereas applicants showed decrease of their activity. In the beginning of 2021 applicants published 186.000 of profiles. Most of the profiles were connected with programming and development (28% of total number of profiles), with IT projects management (20%), technical engineering support and system administering. The fewest number of profiles were connected with IT start-ups employment, games, websites and CRM-systems development (2%).
IT starts with people
Salary expectation growth among IT-specialists in Russia, 2020-2022
Based upon HH.RU data
IT area labour market was characterized with high competition on employers’ part: one applicant on average corresponded to two employment vacancies. High competition among IT-companies for employers led to salary expectation growth among IT-specialists.
Evgeny understood that to form a strong and ambitious team, which could bring the company to market leadership, Cloud.ru needed a strong employer’s brand, that can attract the best manpower in IT.
Research shows that employees’ involvement as the highest degree of company loyalty influences on customers satisfaction increase (+10%), operational effectiveness (17,5%), shareholders’ capital profit (+22-24%) and directly on workforce productivity (+18-21%).
Evgeny understood that to form a strong and ambitious team, which could bring the company to market leadership, Cloud.ru needed a strong employer’s brand, that can attract the best manpower in IT.
Research shows that employees’ involvement as the highest degree of company loyalty influences on customers satisfaction increase (+10%), operational effectiveness (17,5%), shareholders’ capital profit (+22-24%) and directly on workforce productivity (+18-21%).
* Aon Hewitt research, Gallup International, Hay Group, 2020
Rapid growth and ambitious goals told Evgeny Kolbin that it was important for the employees to be eager themselves to move the company forward, to be loyal and involved. For this purpose, Cloud.ru had to become the best employer.
Strong and cohesive corporate culture where employees feel responsible for their work and deep connection with their company goals is becoming the cornerstone of successful interaction with the customers.
Loyal employees gladly do their job the best possible way, share ideas and implement innovations, thus guaranteeing the business success. These professionals also help the business to retain the best employees.
Companies are becoming more and more aware of interconnection between employees’ loyalty, corporate culture and business success. Almost two thirds of business leaders of the world’s most respectful companies attribute at least 30% of their company market value to the corporate culture, and one third of those attribute at least 50%*.
Strong and cohesive corporate culture where employees feel responsible for their work and deep connection with their company goals is becoming the cornerstone of successful interaction with the customers.
Loyal employees gladly do their job the best possible way, share ideas and implement innovations, thus guaranteeing the business success. These professionals also help the business to retain the best employees.
Companies are becoming more and more aware of interconnection between employees’ loyalty, corporate culture and business success. Almost two thirds of business leaders of the world’s most respectful companies attribute at least 30% of their company market value to the corporate culture, and one third of those attribute at least 50%*.
* Kornferry research, 2023
What choices did Cloud.ru have to make? How could they build a dream company for an employee so that they would come to work with pleasure every day, and the most important of all, would make their customers happy? How could they perceive that their company was doing everything right and was attaining results in the process?
The employer’s brand creation has been going on for 1,5 years (at the represented moment; the work with the brand is going on – author’s note) and has led to remarkable results. The main measurement instrument, defining the success of the changes, was pointed out as employees’ readiness to recommend Cloud.ru to their friends and acquaintances as an employer company, or Employee Net Promoter Score (eNPS). The measurement growth within 1,5 years made up from 44,5 to 75.
The employer’s brand creation has been going on for 1,5 years (at the represented moment; the work with the brand is going on – author’s note) and has led to remarkable results. The main measurement instrument, defining the success of the changes, was pointed out as employees’ readiness to recommend Cloud.ru to their friends and acquaintances as an employer company, or Employee Net Promoter Score (eNPS). The measurement growth within 1,5 years made up from 44,5 to 75.
Which road to company loyalty to choose?
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