BRAIN DRAIN AND TALENT MANAGEMENT IN KAZAKHSTAN

УТЕЧКА МОЗГОВ И УПРАВЛЕНИЕ ТАЛАНТАМИ В КАЗАХСТАНЕ

Тельман Эльдара

студент, факультет Бизнес школы, Университет имени Сулеймана Демиреля,

РК, г. Алматы

Аширханова Айсулу

студент, факультет Бизнес школы, Университет имени Сулеймана Демиреля,

РК, г. Алматы

Алимбекова Гаухар

научный руководитель, магистр бухгалтерского учета и аудита, старший преподаватель, Университет имени Сулеймана Демиреля,

РК, г. Алматы

ABSTRACT

This research delves into why people, from Kazakhstan migrate and how it affects the economic aspects. The study suggests using strategies to keep workers in the country. By examining existing literature and data researchers have linked the emigration of workers from Kazakhstan to factors like the shift to a market economy, insufficient infrastructure development, low wages, corruption and lack of transparency. The study shows that effective talent management plays a role in reducing workforce migration. Programs like the Bolashak scholarship program offer insights on retaining professionals within the country. Focusing on sectors such, as management activities and improving talent management approaches could help Kazakhstan retain its workforce effectively.

АННОТАЦИЯ

В данном исследовании анализируются причины миграции граждан из Казахстана и ее влияние на социальную и экономическую сферы. Для решения данной проблемы предлагается использование стратегий по удержанию талантливых специалистов. После изучения литературы и данных исследователи выявили связь между оттоком кадров из Казахстана и переходом страны к рыночной экономике, недостаточным развитием инфраструктуры, низким уровнем заработной платы, коррупцией и отсутствием прозрачности. Результаты исследований показывают, что эффективное управление талантами имеет важное значение для снижения оттока кадров. Программы поддержки, такие как стипендиальная программа “Болашак", дают представление о том, как можно задержать профессионалов в стране. Приоритетные сектора, такие как управленческая деятельность, а также совершенствование методов управления талантами могут помочь Казахстану сохранить свою рабочую силу.

Keywords: talent management, Kazakhstan, economy, migration, skilled workforce, talent acquisition, retention, development.

Ключевые слова: управление талантами, Казахстан, экономика, миграция, квалифицированная рабочая сила, привлечение талантов, удержание, развитие.

1. Introduction

Kazakhstan, as a country characterized by an abundance of natural resources and an advantageous geopolitical position, is undergoing an outflow of highly qualified specialists, or a "brain drain". The body of research on this issue, including work from the fields of economics, politics, and management, offers a comprehensive understanding of the causes, consequences and solutions to the problem of brain drain from Kazakhstan.

In today's interconnected world of business, talent management (TM) has become an aspect of operations. It plays a role in attracting, developing, retaining, and leveraging individuals with the skills and abilities to meet both current and future organizational requirements. Talent management holds significance in the context of 'brain drain,' which refers to the movement of skilled individuals from one region or country to another in pursuit of better opportunities. This trend presents a challenge for emerging economies like Kazakhstan, where the outflow of skilled professionals can hinder economic progress and competitiveness.

Research on talent management in Kazakhstan examines employer perspectives, obstacles, and strategic approaches to address shifting talent movement patterns, emphasizing the need for strategies aligned with socio-economic goals. Kazakhstan's efforts like the Bolashak Scholarship program offer insights into preventing brain drain and nurturing talent. By providing avenues for growth competitive rewards and fostering an innovative and inclusive environment organizations can maintain talent and draw in global knowledge. This shift can transform the brain drain into an influx enhancing the country's human capital pool and driving it towards a thriving economy based on knowledge.

This introduction lays the groundwork for delving into strategies for managing talent and their effectiveness in combating brain drain challenges, supported by research and case studies, from Kazakhstan.

2. Literature review

2.1 Understanding the Socio-Economic and Historical Context of Brain Drain in      Kazakhstan

Due to the brain drain, considerable attention is paid to scientific literature in Kazakhstan, because of its significant effects on the socio-economic landscape of the country. The historical context based on the surrounding transition of Kazakhstan from a planned economy to a market economy after independence serves as an important background for understanding the emergence of brain drain. The collapse of the Soviet Union in 1991 was the catalyst for a period of economic and social upheaval, during which many post-Soviet republics, including Kazakhstan, faced problems in infrastructure development and technological progress. In the end, this historical legacy, combined with the lack of active economic reforms, was identified as a key driving force for the emigration of qualified specialists.

The economic factors of brain drain are also amenable to extensive scientific research. The World Bank's 2020 report highlights the challenges associated with limited investment in infrastructure and the dominance of export-oriented industries.

The Freedom in the World reports highlight the problems associated with corruption, lack of transparency and restrictions on civil liberties. Distrust of government institutions and dissatisfaction with political stability have contributed to the emigration of qualified professionals in search of better opportunities abroad. Kristina Zhalnina's research in her work "International Educational Migration: Case of Kazakhstan" reveals the changing trends in youth migration and educational opportunities. To mitigate the effects of brain drain, it is necessary to eliminate differences in educational programs and expand internal opportunities for skill development.

2.1 Previous research on talent management and brain drain in Kazakhstan

Previous research on talent management and brain drain in Kazakhstan. Bokayev's (2020) research on the Bolashak Scholarship program reveals that, while the initiative has effectively trained specialists abroad, returnees frequently express dissatisfaction with local wages, contributing to migration trends, particularly among recent graduates. Khoreva and Kostanek (2019) highlight the issues faced by employers in Russia and Kazakhstan, such as fierce rivalry for talent and insufficient supply.  Kadyrbekova (2017) argues that implementing talent management practices in Kazakhstan's public service sector can attract skilled professionals and reduce the need for them to seek opportunities abroad. Hongal and Kinange (2020) highlight the importance of effective talent management methods in increasing employee engagement and improving organizational performance. Zhanpeisova (2020) explores the political ramifications of brain drain, emphasizing the exodus of educated youth and its implications for the future of the country. However, she also suggests that organizations can stop talent outflow by offering opportunities for career advancement and recognition of employee contributions.

Overall, studies indicate the significance of talent management, in addressing the issue of brain drain in Kazakhstan.

3. Discussion

Brain drain, as defined by Wikipedia is when a large number of specialists, scientists and skilled workers leave a country or region due, to political, economic or religious factors. The nations facing brain drain encounter cultural and at times political impacts. On the side the countries that draw in these migrants benefit from valuable intellectual assets. Effective talent management is essential, for fostering career growth retaining staff and achieving objectives in businesses.

3.1 Key Factors Influencing Brain Drain in Kazakhstan

The Bureau of National Statistics stated that 24 thousand people left Kazakhstan in 2022. In 2021, their number was 32 thousand. This is most often an able-bodied (in 70% of cases) urban resident (in 80% of cases). In particular, from Almaty, Karaganda or Kostanay, who leave for Russia (80% of them). At the same time, according to the source, the number of foreigners who arrived from higher education has more than halved over the past 10 years [6].

After the collapse of the Soviet Union in 1991, many post-Soviet republics, including Kazakhstan, began the process of transition from planned to market economies. The transition was accompanied by a number of changes and challenges, which significantly impacted the economies and societies of these countries. That led to the beginning of mass emigration of qualified specialists [9, p. 25].

As the World Bank document of 2020 states, over the five years between 2015 and 2019 there was a small contribution of investments in Kazakhstan. Export and consumption always prevailed in the country more than investment. In Kazakhstan, lack of transparency in government processes causes dissatisfaction and mistrust among citizens. According to the report of “Freedom in the World” in 2023, the government and legislature offer little transparency on their decision-making processes, budgetary matters, and other operations. That’s why the report admitted the country as not free, evaluating political rights as 5 of 40 and civil liberties as 18 of 60 [3, p. 91].

According to the article “International Educational Migration: the example of Kazakhstan”, the volume of youth immigration exceeded the volume of emigration, and the migration balance had a positive value. However, since 2014, migration flows have begun to change direction, and the volume of emigration has already exceeded the volume of youth immigration, which has led to a negative balance. Youth, as the most mobile group, reacts to the economic state of the country, and as soon as the economic crisis begins to manifest itself, the intensity of youth emigration immediately increases [15, p. 11].

To eliminate the problem of brain drain, Kazakhstan is increasing the number of grants and funding programs for research projects. This helps to attract foreign specialists and investors. Furthermore, to retain workers in the labor market in Kazakhstan companies have to think about developing talent management in the market.

3.2 Evolution of Talent Management Trends and Obstacles

According to Khoreva and Kostanek (2019), the general approach to talent management in Russia and Kazakhstan is aimed at selecting a group of potential employees to gain growth opportunities. This method, based on competition for talent and limited resources, creates problems because it can scare away employees who are not selected for development. The authors propose a talent management strategy that provides opportunities for development to all employees, fostering a culture of continuous learning and improvement [7, p. 416]. To find out the impact of organizational effectiveness of talent management, Hongal and Kinange (2020) show in a study that organizations with specific talent management procedures exhibit higher levels of employee engagement and productivity [8].

Kazakhstan's focus on investing in the capacity to combat brain drain goes beyond education. This comprehensive approach aims to provide individuals with the opportunity to stay in the country while revitalizing sectors such as public administration to retain qualified young professionals within the country. Zhanpeisova and her team are studying the problem of a tendency for highly educated youth to leave the country. Their research highlights the need for policy measures to address these issues in order to reduce brain drain [12]. Kazakhstan is focusing on boosting its competitiveness through a range of strategies. Key initiatives include offering tax benefits to encourage investment and attract skilled professionals. These incentives feature a waiver of income tax and exemptions on land and property taxes for qualifying investment projects [10]. Additionally, the government has simplified visa procedures allowing visa entry for citizens of countries and is in talks with entities like the European Union to further streamline visa processes making it easier for skilled workers and investors to move around (EU & Kazakhstan 2024) [10]. Promoting entrepreneurship is also an aspect of Kazakhstan's approach as seen in programs like the "Business Road Map 2020" initiative. This program provides support to medium-sized enterprises (SMEs) and entrepreneurs through funding, training, and mentorship to foster business growth within the country [10]. Furthermore, the Women Entrepreneurship Development Center has empowered 7,000 women by equipping them with the skills and networks to start or expand their businesses (United Nations Development Program 2022) [13].

In terms of talent development and education Kazakhstan has dedicated resources to revamping its education system and promoting ongoing learning opportunities. The educational investments have shown results, such as a 99.103% adjusted enrollment rate for education in 2017 indicating widespread access to basic education and almost equal enrollment rates for both genders [14]. Collaborative projects between institutions and industries like the Industry Advisory Board play a role in ensuring that the skills developed align with industry requirements thus boosting Kazakhstan's economic resilience and global competitiveness [14].

To enhance talent management and keep skilled workers, policymakers in Kazakhstan should think about establishing career trajectories for professionals coming back and encouraging partnerships between schools and companies to match talent growth with market demands [12]. Backing programs that boost entrepreneurship and creativity can also aid in retaining individuals [12]. In general, a comprehensive approach is crucial, integrating regulations, educational improvements, and financial rewards to build a talent management structure that draws in, retains, and supports local talents [12].

Conclusion

In our examination of the brain drain issue, in Kazakhstan, we have carefully studied the factors contributing to the emigration of skilled workers and its impact on the country's social and economic framework. The shift from the Kazakhstan system to a market-oriented one has faced challenges such as insufficient investment in infrastructure, unfavorable salary structures, widespread political corruption, and a lack of government transparency. Our study has highlighted that initiatives and practicies go beyond retaining talent; they play a role in developing sectors like public service and demonstrate a comprehensive effort to address the brain drain and strengthen the domestic workforce. Kazakhstan must refine and improve its talent management strategies. Key actions include creating career paths for professionals coming back to Kazakhstan fostering collaboration between institutions and businesses to align talent development with market needs and encouraging local entrepreneurship and innovation as attractive alternatives to opportunities overseas.

By combining changes in policies, advancements in education, and strategic economic incentives we expect to establish a talent management environment. This inclusive framework aims to attract, retain, and support talent ultimately driving Kazakhstan's growth and enhancing its reputation globally. Upon reflecting on the insights from our research, despite the challenges, Kazakhstan is brightened by the opportunities for innovative approaches and crucial policy adjustments. When developing this analysis we aimed to present our findings in a way that not only showcases the depth of our exploration but also captures our genuine care and positive outlook for Kazakhstan's future. As scholars immersed in this conversation, our narrative blends research, with an optimistic view of the immense potential that Kazakhstan offers for progressive advancements.

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