The war's impact on the trends of Ukrainian labor market in 2023

As a global company that communicates with HR and L&D experts worldwide, international colleagues often ask us about the work of HR and L&D during wartime and business in general. So, AcademyOcean has surveyed 160 Ukrainian HR and L&D to show how they deal during the war.

At first glance, the only thing the Ukrainian business has been doing for a year is trying to survive. At the same time, the survey results showed the opposite.

Ukrainian firms opened new offices, created new products, and hired more people during the war. They started investing in cybersecurity and employee well-being. Moreover, women started leading firms in the most challenging times for their companies. Back on February 24, all this seemed fantastic.

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We thank
to our informational partners!​

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Methodology

160 Companies with the main office in Kyiv.

36% - HR Director; 64% - other HR profession.

48.7% of surveyed companies have 51-500 employees, 24.1% - 500-2000 employees, and 22.2% - 1-50 employees.

Countries' where Ukrainian businesses are expanding

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Relocation of employees abroad to enhance cooperation with new markets

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Recruitment of employees abroad

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Business during blackouts​

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Effect of power outages on task deadlines

A team needs more time to complete task

A team closes the tasks by the set deadlines

At the beginning, the team needed more time, but now they complete tasks as before the war

Effect of power outages on task deadlines

Companies where employees continue to work

Companies where employees stop working

Employees work 50/50

Employees go to the office with sustained electricity

Companies provide coworking for employees

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Companies handle power outrages

Have fully equipped offices, or their workers are fully autonomous to work from home

Ask employees to work from co-working

Fully or partially cover co-working spaces

Other 15.6%

The changing role of women during the war

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New markets entries

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Companies' enhancement toward global cooperation

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Ways companies plan to retain talent inside the country

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Companies report their employees work abroad and return to Ukraine

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New markets entries

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96.2% of companies agree that the war affected the mental state of employeesс

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94.9% of companies agree that the mental state of employees affects the company's results

Companies noticed a deterioration in mental health among employees in age groups

39.9% - noticed a deterioration in mental health among employees in the 27-41 age group;
20.3% - noticed a deterioration in mental health among employees aged 20-26;
13.9% - noticed a deterioration in mental health among employees aged 42-57;
4.4% - noticed a deterioration in mental health among employees aged 58-65;
39.2% - did not notice the deterioration of mental health among employees of a specific age group.

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Companies noticed a deterioration in productivity among age groups

36.7% - noticed a deterioration in productivity among employees aged 27-41 after the start of a full-scale invasion;
22.8% - noticed a deterioration in productivity among employees aged 20-26;
15.2% - noticed a deterioration in productivity among workers aged 42-57;
5.1% - noticed a deterioration in productivity among workers aged 58-65.

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What does Ukraine need to do now, without waiting for victory, to retain talent and develop the labor market?​

"Now it seems critically important to support employers and those businesses that remain, as well as the investment climate so that companies do not leave Ukraine. And new ones are not afraid to do business here. It helps the development of international partnerships and the resolution of issues with the tax residency of those who have left (I mean that citizens under temporary protection remain tax residents of Ukraine, which will significantly increase the likelihood of their further cooperation with Ukrainian companies and return after victory)."

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Galina Marchuk, YouScan

"To work on the promotion of the company's HR brand. Talk about the company's social responsibility and guarantees for employees, regardless of the situation in the country. To highlight the successes and achievements of the company during the war period by promoting this information in the company's social media and professional platforms."

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Alyona Duraeva, Mamalat

"Ukrainians should become flexible; those who have not yet implemented software for automating business processes, managing teams and projects-need to implement it as soon as possible. The organization of the work of remote teams must be well-configured. Entering new markets or expanding influence in other countries is also necessary for further functioning. Our efforts will support the country's economy now and will give a colossal impetus to development in the future."

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Svetlana Galian, Worksection

"Be flexible in creating working conditions, support employees in creating a remote workplace, personalize the approach, make decisions quickly in conditions of rapid changes."

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Tatyana Hrytsenko, Growupsale

How do HR processes in Ukraine differ from HR processes abroad?

"In Ukraine, there are fewer formalities, as the processes are sufficiently flexible, HR’s are open to innovation and experimentation, and they respond sensitively to changes in the business and social environment. In general, they look at it from several points of view - the effectiveness of the team, the potential of newcomers and the forecast of their future development in the company, psychological support, as support is one of the efficiency factors."

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Natalia Kolesnik, Aweb

"Thanks to international cooperation and access to information, as well as flexibility and openness to innovation, we quickly adopt the best of the world experience. So now we have a lot in common, but there are still differences. Among our disadvantages, Ukrainian personnel legislation and record keeping still lag far behind the needs of modern business. So we are very much looking forward to further improvements here. Also, we still have many problems regarding gender roles, ageism, and non-inclusiveness that we want to overcome. And from the advantages, HR in Ukraine feels much less legal and judicial pressure, which allows us to shift our focus from policies and instructions to people and process efficiency. And we are always ready for calls and prompt responses. Therefore, many of our processes take place much faster, such as hiring, training, or promotion."

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Galina Marchuk, YouScan
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