Staff Shortages are Worse Than Blackouts: How is Ukrainian Business Coping With One of its Biggest Crises?

    By Viktor Andrukhiv, Co-founder of Fibermix and Savex Minerals 

    “There are no people”— this is how almost every dialogue between Ukrainian entrepreneurs begins these days. According to a study by the recruitment agency Talando, 74% of Ukrainian companies are facing a staffing crisis. The reasons are obvious: the war, which has led to the mobilization and emigration of a significant portion of the population abroad. Forecasts suggest that the crisis is only going to worsen.

    Even before the full-scale invasion, some companies were already experiencing a shortage of specialists, especially in niche and innovative fields. We faced this issue ourselves because our production is highly specialized, and there are very few professionals who know how to operate the necessary equipment. That’s why we had already started relying less on finding experienced specialists and more on training our own staff. However, now the lack of even a few skilled production operators is affecting the entire company.

    From my interviews with various companies, it’s clear that staff shortages are putting businesses at risk of closure. The most critical shortages are in blue-collar and middle management positions. So how are entrepreneurs coping with this crisis?

    Retaining their team

    Over the two and a half years of war, business owners have tried all the classic methods to retain and motivate their teams, such as raising salaries and offering bonuses. For instance, we’ve revised our salaries twice this year.

    It’s crucial to stay attuned to your employees’ needs so they aren’t tempted to leave for higher-paying jobs elsewhere. Finding and training a new specialist is always more expensive than retaining and motivating your existing team.

    One effective solution is implementing an internal training system that allows employees to acquire new skills and adapt to the evolving needs of the business. Bringing in trainers, organizing training courses, and setting up mentoring programs can help retain qualified staff while also enhancing their skill levels.

    Investing in young talent

    According to Gradus Research, 47% of young people pursue additional training at least once a year. This demonstrates their openness and eagerness to learn. Young people are often easier to retrain for specific roles, and they tend to pick up new skills quickly.

    For this reason, many companies are collaborating with educational institutions, delivering presentations, and organizing open days or master classes at their facilities. They aim to be the first to attract promising young specialists, with a particular focus on vocational schools, where highly specialized professionals can be found.

    Production automation

    Our production line used to require 7–8 people, but now only three operators are needed. While it’s neither possible nor necessary to automate every process, targeted automation can significantly benefit a business.

    Technological upgrades demand substantial financial investment, which may be a challenge for some. However, for many, automation serves as an effective stopgap measure in the face of workforce shortages.

    Women in ‘male-dominated’ jobs

    Although traditional gender roles are increasingly outdated, certain professions remain predominantly male due to the physical demands of the work. For instance, some equipment can be challenging for women to operate.

    As the labor crisis deepens, women are gradually stepping into roles in industries such as manufacturing, logistics, and transport. Companies play a key role in supporting this shift by adjusting equipment, designing work shifts around women’s capabilities, and fostering a comfortable, inclusive environment. Motivation and encouragement are essential.

    For the first time, a woman is now leading our production operations. I anticipate that in the near future, women will play an even greater role in shaping the company.

    Strengthening corporate culture

    Today’s employees value alignment with their company’s mission and values. Building a strong corporate culture that promotes open communication, transparency in decision-making, and mutual support helps not only attract new employees but also retain them during challenging times.

    Waiting for Ukrainians to return home

    Demographers estimate that around 6.2 million Ukrainian refugees are currently in Europe. Of these, 25% plan to stay abroad, while up to 40% wish to return home.

    The Ukrainian people are a tremendous asset that could rejuvenate the labor market. However, ongoing shelling and uncertainty make it difficult to predict the future or encourage migrants to return. It’s vital for the state to maintain a connection with Ukrainians who have temporarily left, exploring ways to engage them and provide motivation for their return.

    Staff shortages are a significant challenge for Ukraine’s economy, especially in wartime. Yet for some businesses, the crisis presents opportunities for growth and innovation. Young people and women are emerging as key drivers of the labor market, and businesses must adapt to harness this potential effectively.

    Ukrainian entrepreneurs are focusing on creating environments where their teams can realize their potential and feel valued. After all, people remain the most important asset in any business.

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