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Ukraine current

business actions

May 2022
Table of Contents
1 Participants Overview 3

2 Employee Assistance: 5

2.1 Financial Assistance 7

2.2 Relocation Assistance 10

2.3 Rental Assistance 14

2.4 Other Assistance 19

3 Changes to Rewards and Benefits 25

4 Human Resources and Main Challenges 32

2
Participants overview

PARTICIPANTS PROFILE

By Organization size By Ownership type By Revenue (Turnover), UAH

< 50 million
5 001 - 20 000 12%
16% Government > 5 001 million
< 100
6% 25%
21% 51 - 100 million
9%
Local
32%
1 501 – 5 000
17% 101 - 250 million
12%
101 - 500
27%
501 - 1 500 501 - 5 000 million 251 - 500 million
19% Multinational 30%
62% 12%

3
No. of respondents 200
Participants overview
There is a strong representation across all major regions and industries.

PARTICIPANTS PROFILE

By Region(s) in which the Companies operate By Industry (% of sample)

All of Ukraine 47 % FMCG 17 %


Kyiv 86 % IT/Telecom 2%
Kyiv region 64 %
IT/Soft 9%
Vinnytsia region 51 %
Volyn region 48 % Automotive 5%
Dnipropetrovsk region 59 % Agriculture 7%
Zhytomyr region 51 %
Zakarpattya region 49 % Banking 6%
Zaporizhzhya region 51 % Leasing 1%
Ivano-Frankivsk region 52 % Logistics 4%
Kirovograd region 49 %
Media 1%
Lviv region 62 %
Mykolaiv region 52 % Oil & Gas 4%
Odesa region 58 % Legal 0%
Poltava region 55 % Production 15 %
Rivne region 52 %
Retail 11 %
Sumy region 53 %
Ternopil region 51 % Insurance 2%
Kharkiv region 62 % Pharmacy 4%
Kherson region 50 % Other 16 %
Khmelnytskyi region 51 %
Cherkasy region 50 % ▪ Healthcare,
Chernivtsi region 48 % Construction, Education,
Chernihiv region 54 % Mining, Chemical,
Investment, Charitable 4
organization.
Employee Assistance
Employee Assistance
Companies provided different types of assistance to their employees from the beginning of the war

Type of assistance provided to employees

Financial 69%

Assistance in moving within the territory


59%
of Ukraine
Examples of other types of assistance provided:
Assistance in moving outside Ukrainian ▪ Paying salaries in advance / paying salaries in full
59%
borders even when company operations have stopped /
increasing salaries for employees working in “hot
Psychological help with the assistance
of qualified specialists
48% spots”
▪ Provision of medicine / medical support /
No assistance was provided 9% humanitarian aid

Other 5%

6
Financial Assistance
Types of Financial Assistance
Type of financial assistance provided

50% 21% 30%

Fixed Amount Number of Salaries Other

Fixed Amount, UAH Was the amount of payment differentiated


depending on the employee category?
Average 41 283 Examples of other types of financial assistance
Yes; 7% provided:
Median 27 000
▪ Financial aid for employees who’ve lost their houses
as a result of the war / other types of financial aid
Number of Salaries
▪ Early pay-out of the annual bonus / pay-out of
Average 2 salaries in advance / additional bonus payments

Median 2
No; 93%

8
Frequency of Financial Assistance
Frequency of payment of financial assistance

78% 22%

Paid once It will be paid on a regular basis

Frequency and payments


period

Monthly 72.4% Examples of other frequency and payment periods:

0%
▪ Depending on the situation in the country as well as
Quarterly
company’s financial constraints some companies have a fixed
Annually 0% end date of payments (April / May / June)

Other 27.6%

9
Relocation Assistance
Relocation within the territory of Ukraine
Companies provided assistance in relocation within the territory of Ukraine

14% 86%

For employees only For employees and their families

Fixed Amount of
How was the relocation process organized? Did the company compensate relocation costs?
Compensation, UAH

Other; Centralized by Yes; 25% Average 24 166


20% the company;
38% Median 15 000

Maximum Limit of
Independently by Compensation, UAH
employees; 42% No; 75%
Average 44 914

Median 29 250
• Mixed approach. Some companies provided
centralized assistance and supported employees
who were relocating independently.
11
Relocation outside of Ukrainian borders
How was the relocation process organized?

Centralized by the company 46%

31%
Independently by employees 35%
65,9%

% of organizations
Other 19% compensated the relocation
costs outside of Ukraine

• Mixed approach. Some companies provided centralized 15,4% Fixed Amount of Maximum Limit of
assistance and supported employees who were 7,7%UAH
Compensation, Compensation, UAH
relocating independently.
Average 115 036 Average 111 550
• Employees were allowed to use their company cars to
evacuate Median 25 000 Median 22 750

12
Percentage of relocated employees
Relocation

Within the country Outside the country

74%
84%

Average 32% Percent of the overall Average 18%


headcount of company 13
Median 30% employees Median 15%
Rental Assistance
Rental Assistance within
Ukraine
Help in finding housing 69%

Rent payment assistance 58%

66% Payment for realtor services 17%

Relocation bonus 8%

% of organizations provided rental Other 5%


assistance for employees, who
were forced to leave their homes
and relocate within Ukraine
Examples of other types assistance among the surveyed
companies:

▪ Accommodation in rented hotels

▪ Resettlement in the company's own housing and hotels

▪ Reimbursement of rent / hotel 15


Amount of rental assistance provided within
Ukraine
Rent payment Maximum limit, Fixed amount,
assistance UAH UAH
Average 31 107 68 188
P25 15 375 5000
Median 24 125 17 500
P75 43 125 22 750

Relocation bonus Amount, UAH


Average 23 642
Median 24 875

16
No. of respondents 22
Rental Assistance outside of
Ukraine
Help in finding housing 71%

Rent payment assistance 51%

85% Payment for realtor services 15%

Other 12%

Relocation bonus 8%
% of organizations provided rental
assistance for employees, who
were forced to evacuate outside of Examples of other type of rental assistance among the surveyed companies:
Ukraine ▪ Accommodation in hotels rented by the company

▪ Colleagues from neighboring countries provided housing for employees and


their families

▪ Colleagues from different countries helped to pay for rent or made their homes
17
available (there were no fixed amounts or limits)
Amount of rental assistance provided outside of
Ukraine
Rent payment Maximum limit, Fixed amount,
assistance UAH UAH
Average 53 267 69 806
P25 20 875 5 455
Median 30 000 15 000
P75 60 000 56 250

Relocation bonus Amount, UAH


Average 32 100
Median 32 150
18
No. of respondents 23
Other Assistance
Additional assistance provided to
employees who have relocated within
Ukraine
Information assisstance
97,1% 97%

IT support 44% Examples of other types additional assistance among


the surveyed companies:

▪ Psychological support
Legal assisstance 28% ▪ Organizational assistance
44,1%
▪ Transport/Driver / use of corporate car / fuel expense
coverage due to relocation/evacuation / fuel cards
Food aid 26%
▪ Unlimited mobile package to eligible employees
28,4% 26,5%
▪ Medical support, medical expenses coverage

Other 8%

20
Additional assistance provided to
% of organizations that have kept employees who have relocated
the jobs open for employees who
have relocated outside of Ukraine if outside of Ukraine
they want to come back
Information support 96%

Legal assistance 53%

91% IT support 44%

Food aid 33%

Other 22%
How long the workplace will be
saved for (in months) Examples of the other types of assistance ▪ Unlimited mobile package to eligible
among the surveyed companies: employees
AVG 9 ▪ Help from colleagues from other countries - ▪ Medical aid & medicine
clothes, necessities, etc. ▪ Organizational assistance
MED 9 ▪ Insurance ▪ Opened a children's hub near the office
▪ Language training, guidance ▪ Ticket payment
▪ Transportation from the border ▪ Help with finding a school and kindergarten 21
Employment of relocated employees
Percentage of companies that provide employment to relocated employees

Within the country Outside the country

Other, Other,
18% 19.0%

Yes,
Yes, 58%
56.0%
No, No,
24% 25.0%

Examples of the other types of employment for employees among


the surveyed companies:
Examples of the other types of employment for employees among
the surveyed companies: ▪ Policy is in the process of being developed

▪ Employees continue to perform their duties remotely where it is ▪ Depends on the function and country of residence 22
possible
▪ Employees continue to perform their duties remotely where it is
possible and can apply for vacant positions abroad
Type of employment provided
What type of employment is offered to relocated employees?

Within the country Outside the country

Temporary
contract, 1%
Temporary
contract, 30%

Permanent
contract , Permanent
89% contract ,
70%

23
Companies where employees left the
workplace without the employers' consent
% of the overall count of
company's employees
Yes; 20%
Average 12%

Median 2%

No; 80%
Examples of how companies have dealt with these absences
among the surveyed companies:

▪ No decision has been made

▪ Companies will investigate this once martial law ends

▪ No salary is paid during employee’s absence

▪ On a case-by-case basis

24
Changes to Rewards
and Benefits
How salaries have been paid since
February 24th, 2022
Paid, but with a % of decrease in salaries
decreased salary, 23%
Average 32%

Median 30%

Number of salaries paid in


advance

Average 1,6

Salary is paid in the Median 1


full amount in
advance, 20%

Salary is paid in Employees were


the full amount sent on unpaid
and on time, leave, 2%
63%
26
Salary increases in the period from May
2021 to April 2022
January 17%
February 7%
March 12%
April 15% Salaries
increased by, %
May 6%
June 5% Average 11%
July 7%
Median 10%
August 2%
September 5%
October 12%
November 2%
December 7%
*Salary increases have not been
17%
made
27
Salary Review Plans

How surveyed companies are planning When surveyed companies are


to review salaries in the period from planning to review salaries
May 2022 to April 2023
In more In 2-3 months
Planning to than 9 29%
increase months Planned salary
29% 19% increases, %

Average 11%

Planning to Median 10%


decrease
1%
In 6-9 months
No decision has In 3-6 months
25%
been made 27%
70%

28
Pay Policy which will be used for
employees relocated outside of Ukraine

Ukrainian market (same as before) 75%

Percentage of
Hybrid Form 11% salary reduction, %

Average 32%

Median 30%
Based on relocation market 9%

Salary Reductions 4%

29
Payout of bonuses for the results of 2021

Have bonuses been paid out?


Decision has not been
made yet; 10% When are you planning to
review your decision?

No; 12% In 2-3 months 21%

Yes,
partially; In 3-6 months 53%
3%

In 6-9 months 26%

Yes, full
amount; 75%

30
Changes in the benefits package for
employees

18%
No changes

8%
The benefits package has
been increased

The benefits package has


74% been reduced

31
Human Resources and
Main Challenges
Changes in headcount

Reduced headcount
14%

Increased headcount
3%

No changes
83%

33
Reductions in headcount

Percentage of decreased employee headcount

18%
Core Functions, individual contributors
19%

20%
Support Functions, individual contributors
21%

19%
Core Functions, management
17%

20%
Support Functions, management
23%

Median Average
34
Factors that influenced headcount
reduction ▪ Decrease in the volume of work
or business activity
Other, 22%
▪ Aspects of seasonal influences
Mass relocation of
employees within /
outside Ukraine, 11%

Significant decrease of
financial indicators, 63%
Management
decision, 19%

Impossibility to run Partial or complete closure


activities due to the war of the business, 48%
(military operation), 48%

35
Future headcount reductions
% of the organizations that plan future Factors that may influence the decision
headcount decreases to further decrease headcount

Yes 14% Impossibility to run activities due to


79%
the war (military operation)

No 3% Partial or complete closure of the


58%
business (company)

Significant reduction of financial


58%
indicators

Management decision 46%

Mass relocation of employees within


10%
/ outside Ukraine

Other 4%
Decision has not
been made yet 83%

36
Hiring employees
Employees were hired for:

Previously open vacancies 69%

40% In place of employees who joined the


Armed Forces of Ukraine or Territorial
Defense
49%

New vacancies 41%

In place of relocated employees 26%

% of organizations that continued


hiring new employees since the Other 6%
beginning of the war

37
Main challenges that organizations are
currently faced with
▪ Providing safety for
employees
68%
▪ State quota for export

40%

29%
25% 25% 25%

12%

Logistics have Lack of orders Damaged or Lack of raw No payments Other Lack of workers
become destroyed materials for completed
complicated facilities / orders
offices /
branches

38
Provision of charitable assistance
% of the organizations that provide charitable assistance
to the army and relocated people other than employees

To relocated people 45% 55% To the army

39
Special labor regulations during the war
Special labor regulations that have been implemented by % of the organizations
Paid annual leave 43%

Working hours and rest time new rules 35%


Termination of the employment contract at the employee's
33%
initiative
Organization of personnel records management / archive 32%

Remuneration 32%

Job transfer contractual terms 31%

Suspension of the employment contract 28%

Employment contract terms 25%

Relaxation of working conditions rules 17%

Suspension of certain provisions of the collective agreement 17%


Termination of the employment contract at the employer's
15%
initiative
Night shifts 12%

Activity of trade unions 8% 40

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