The Ukrainian labor market faced a serious crisis due to a large-scale outflow of labor. Employers are looking for innovative solutions to attract and retain staff, among which the concept of "pay on demand" is gaining popularity.
Personnel crisis in Ukraine
Scales of the problem
As a result of the full-scale invasion, Ukraine lost more than 5.5 million working population. This includes 3.2 million who have gone abroad, 1.3 million in the occupied territories and approximately 1 million mobilized. In percentage terms, these losses exceed Germany's losses since World War II.
Trends in the labor market
After a sharp drop in the number of vacancies in 2022, there has been a gradual increase since 2023. However, the number of responses per vacancy continues to decrease due to the reduction in the number of available workers. According to forecasts of the Ministry of Economy, the shortage of specialists will grow from 482 thousand in 2024 to 4.5 million by 2033.
Challenges for employers
A survey by the European Business Association revealed the key challenges faced by employers:
- Lack of qualified personnel and their outflow abroad
- Difficulties associated with mobilization and reluctance to find official employment
- Growing demand for remote work, professional burnout
- Internal migration and regional disparities in the labor market
Search for solutions
The HR community is considering various options for solving the personnel shortage:
- Recruitment of labor migrants , which may be accompanied by cultural and language barriers.
- Use of internal resources , including employment of older workers, retraining of women for "male" professions, integration of people with disabilities and minors.
Financial aspects
The majority of employers (72%) plan to increase salaries in 2024. This is important considering that 54% of Ukrainians have no savings and live paycheck to paycheck. At the same time, the recovery of the microcredit market is observed, which indicates the financial difficulties of the population.
Innovative approach: salary on demand
The concept of Earned Wage Access (EWA) or "salary on demand" is gaining popularity in the world ". This allows employees to receive part of their earned wages before the official pay day. This approach helps avoid expensive loans and reduces financial stress.
A VISA study found that 95% of employees are interested in employers that offer EWA. Companies that have implemented this system report a 35% reduction in employee turnover and a 49% increase in productivity.
Prospects for Ukraine
In Ukraine, the EWA concept is still little known, but the first services offering such service On-demand pay is expected to become the new standard of pay, helping employers attract and retain staff in the face of acute staffing shortages.
Glossary
- FlexiPay: HRtech startup developing innovative payroll solutions.
- Earned Wage Access (EWA): A system that allows employees to receive their earned wages before the official pay day.
- VISA: An international payment system that has done research on EWA.
- European Business Association: An organization conducting surveys among employers in Ukraine.
- Opendatabot: Service for monitoring registration data of Ukrainian companies.
Link
- Report of the Ministry of Economy of Ukraine
- Survey of the European Business Association
- Opendatabot data on microloans
- VISA research on EWA
- Dailypay data on EWA
- Tapcheck information about EWA
Questions answered
How has the situation on the labor market in Ukraine changed since the beginning of the full-scale invasion?
What are the main problems of employers in the Ukrainian labor market?
What solutions are being considered to solve the personnel shortage in Ukraine?
What is Earned Wage Access and how can it help Ukrainian employers?
What does the situation look like with the introduction of salary on demand in Ukraine?
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The article examines the problem of labor shortages in Ukraine after the start of a full-scale invasion and offers innovative technological solutions for employers to overcome this crisis.
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