The survey found that recruitment and retention of valuable employees was a top priority for most businesses. 93% of respondents were actively hiring, with continued strong demand for qualified specialists. The labor market was found to be neutral or unstable for employers, as it was becoming more difficult to find qualified candidates despite attractive salaries and costs. The Labor Market Index increased slightly to 2.98 from February 2016, indicating a neutral labor market.

1. EBA Western Ukrainian Office together with Lviv Consulting Group keep monitoring the labor market
of Western Ukraine and are happy to share with you results of the 11th
Wave, Western Ukraine Labour Index,
conducted in June 2016. The survey’s objective was to identify major trends and dynamics of the labour
market and to compare them with the previous wave’s indices.
Businesses based in Western Ukraine, mostly with foreign investments, were invited to participate in
the survey. The majority of the participants (70%) are companies active in production (automotive,
construction, machine building, electronics, agriculture, wood working, textile and food processing) with
average headcount 500 to 1000 employees. 25% of them employ several thousand employees. Among the
survey participants are businesses providing services in banking, retail, sales and distribution, transport,
logistic and IT with headcount up to 100 employees and 500 through 1000 employees.
Please indicate current priorities in managing
human resources in your company
3,85%
65,38%
7,69%
61,54%
26,90%
42,31%
30,77%
30,71%
46,15%
23,08%
34,62%
Outsoursing of personnel
Recruitment and Staffing
Head count reduction
Retention of valuable
employees
Retention of employees-
potential labour migrants
Training
Management development
Coaching
Succession planning
Performance management
Personnel Assessment
Reduction of employee
related costs
Recruitment of new employees and retention of valuable employees, as well as performance
management are top priorities in managing human resources for majority of the businesses. More
participants compete for potential employees in the market with employers from outside of Ukraine; this is
today an issue for large production companies in machine building, automotive, food processing industries
and in agriculture. 20% less companies are ready to invest in employees training and development. More
companies do performance evaluation related to employee achievements, especially in service companies.
For two concurrent waves we have observed a persistent tendency among businesses to increase
headcount – 65% of respondents plan to hire. These are construction and distribution firms, retailers,
partially IT firms, as well as production companies in various industries with existing headcount above 500
employees. 30% of businesses plan to keep the headcount unchanged during the next three months,
among them: agricultural businesses, food processing and wood working firms, banks and logistic
companies. Only one respondent plans to reduce headcount.

2. Please indicate what categories
of employees are currently in demand in your company
7,69%
57,69%
11,54%
42,31%7,69%
23,08%
73,08%
We do not recruit at present
Core Business Specialists
Line Managers
Workers (non skilled labour)
Administrative Staff
Fresh graduates without experience / Students
Workers (skilled labour)
93% of respondents reported to actively hire new employees from the open market. This is a strong
tendency we have observed during 12 months. There is a continuous, persistent demand for qualified
specialists. Service companies are most frequently looking for IT scientists, analysts, accountants, logistic and
B2B sales specialists. Production companies seek for engineers, agronomists and financiers. Demand for
skilled and semi-skilled labor increased threefold, e.g. mechanical technicians, electricians, welders, millers,
locksmiths, machine fitters, waiters, call center operators, receptionists and sales agents. Employers’ interest
in fresh graduates kept growing during the past three waves. 25% of respondents are ready to employ young
people without experience in production, retail and hospitality. Administrative specialists are less interesting
for employers both in production and service companies. Thus, there are few job opportunities for lawyers,
administrative staff, etc. A small number of companies have been seeking candidates for top management
positions during the past 12 months and the number went down from 14% to 4%. Only a few companies in
the automotive and construction industries are ready to hire for top managerial positions.

3. Average salary ranges (before taxes) in production and service companies, UAH
Diagrams present information on average salary ranges for five groups of employees; % indicates a relative
number of companies paying salaries in a specific range.
Non-skilled /semi-skilled labour
operators, seamstresses
7%
40%
26%
20%
33%
11%
22%
22%
2100-3000
3200-4000
4200-5000
5100-6000
Production Services companies
Skilled labor
mechanics, locksmiths / call centre operators, clerks, cashiers, senior sales agents
7%
40%
40%
40%
7%
11%
33%
44%
11%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
2100-3000
3200-4000
4200-5000
5100-6000
6100-7000
7100-9000
Production Services companies

4. Administrative and office personnel
accountants, analysts, administrators, lawyers, office managers
6%
27%
27%
53%
40%
40%
33%
22%
11%
44%
11%
11%
22%
11%
0% 10% 20% 30% 40% 50% 60%
4200-5000
5100-6000
6100-7000
7100-9000
9100-10000
11000-15000
16000-21000
21000 and more
Production Services companies
Specialists
engineers, logistic, consultants, HR, agronomists/
logistics, consultants, HR, sales managers
7%
40%
40%
40%
7%
11%
33%
44%
11%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
2100-3000
3200-4000
4200-5000
5100-6000
6100-7000
7100-9000
Production Services companies

5. Mid level managers, heads of departments
6%
13%
20%
33%
27%
27%
11%
33%
55%
44%
22%
22%
0% 10% 20% 30% 40% 50% 60%
4200-5000
5100-6000
6100-7000
7100-9000
9100-10000
11000-15000
Production Services companies
In comparison with the 10th
wave pay levels of non-skilled and skilled labor increased by 20%-35%;
administrative clerks and middle level managers in production and service companies now enjoy a higher pay
(by 18-20%). There is a substantial increase by 18-40% in average pay levels of specialists both in production
and service companies. Data on pay levels of top managers and IT professionals is not sufficient to make
conclusions.
For three concurrent waves none of respondents indicated reduction of pay levels. Since beginning of
2016 62% of companies have increased pay by 7%-15%. Among them at least 25% plan to review pay levels
one more time during the year. Majority of production companies will increase wages of skilled workers by
6%-12% and salaries of specialists by 15%-20%; service companies will add on average 10%-15% more to
existing wages. During the next three months 25% more companies will review salary levels for the first time
this year. On average pay increase by 10%-15% will take place in banking, retail, automotive and electronic
industries; only machine building companies plan a larger, 20%-35% increase in pay. Around 20% of companies
active in food processing, construction, IT, sales and logistic spheres have not reviewed pay this year and do
not plan to do it in the next three months.

6. Please indicate what benefits your company offers to employees,
in addition to those required by the law
46,15%
57,69%
92,31%
26,92%
0,00%
30,77%
15,38%
30,77%
11,54%
0,00%
Meals
Subsidized transportation
Mobile phone connection
Medical insurance
Pension plan
Additional vacations
Sport and recreation facilities
Flexible working hours
Interest-free loans
We do not offer additional benefits
During the past 12 months none of survey participants deprived their employees of additional
benefits. Subsidized mobile phone connection for majority of employees in the company is still the most
popular benefit. Among production companies there are 15% more businesses providing transportation and
subsidized meals. Flexible working hours are offered to employees of service companies; production
companies instead provide additional days-off. The structure of compensation package in the service company
has not changed since the previous wave. It includes subsidized meals, medical insurance and free sport and
recreation facilities.

7. How would you estimate the current labor market?
Labour Market Index in June 2016 was 2,98.
The index is defined as an average indicator of the individual categories. Individual indicators were
defined as follows: e.g. “Labor law”: 1*4% + 2*28% + 3*52% + 4*12% + 5*4% = 2.8.
Labour market Index in June 2016 went up by 0.11 since February 2016 and is at the level of 2,98.
The labor market is unstable or neutral for employers. The survey participants believe market salaries and
employee related costs are still very attractive for businesses, though it becomes more difficult for employers
to find and hire qualified candidates in the market.
Labour Market Index Dynamics
2,88
2,58
3,01 3,03 3,02 3,07 3,05
3,46
2,78 2,87 2,98
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
IV.2012VII.2012XI.2012III.2013IX.2013IV.2014IX.2014III.2015VII.2015II.2016VI.2016
Average Labour Market (LM)
1 – LM is definitely unfavorable for employers
2 – LM is rather unfavorable for employers
3 – LM is neutral
4 – LM is rather favorable for employers
5 – LM is definitely favorable for employers
1 – definitely
unfavorable for
employers
average
Availability of
qualified
candidates
Competition
for talent
Market
salaries
Employees
related
costs
Availability of
professional
HR services
Labor
law
5 – definitely favorable
for employers
4 – rather favorable
for employers
3 – neutral
for employers
2 – rather unfavorable
for employers
5,6
%
4.2
%
31%
31%
52%
28%
12%
35%
11.5%
35%
2,.67
2,88
3,4
3,1
4%
31%
3,0
2,8
38%
31%
19%
12%
23%
16.
7%
23%
51%
4%
23%
15%
62%
23%
4%
4%
4%
4%
4%
4%
4%