- The document summarizes the results of a survey of businesses in Western Ukraine regarding labor market trends. It finds that the labor market has become less favorable for employers compared to previous periods, as indicated by a decline in the Labor Market Index. Mobilization of employees due to the conflict in Eastern Ukraine has affected many companies. There is increased competition for qualified employees as businesses relocate from Eastern Ukraine. Wages have risen across many industries in response to these pressures.

1. EBA Western Ukrainian Office together with Lviv Consulting Group is presenting the results of
the 9th Wave of Western Ukraine Labor Market Index conducted in July 2015. The main aim of the
project is to determine key trends at the labor market in the crucial period in the country, compare
them with the previous wave and monitor the dynamic of changes.
We invited businesses operating in Western Ukraine with foreign investments: from Lviv, Volyn,
Ivano-Frankivsk, Zakarpattiya and Ternopil regions to exclusively participate in the survey. The
participants of the 9th
wave survey were companies from production sphere (about 50 %): automotive,
agriculture, textile and metal processing businesses. The head count of these companies varies from
100 to 500 employees and there are several companies that employ over several thousand people.
During three consecutive quarters we were monitoring how the situation in the East of Ukraine
influences on people related issues. 70% of businesses were affected, as some employees were
mobilized into the army. In comparison to the previous wave it increased by 7%. Mobilization affected
both manufacturing and service companies, in almost all industries: assembly operations, machinery,
agriculture, sales and retail.
The number of companies that generally had not felt the impact of the situation in the East,
decreased from 28% to 20%. These are mostly businesses in hospitality and textile industries. Slightly,
by 4% decreased the number of companies interested in qualified workforce, temporarily displaced
from the East and the Crimea (logistics and distribution companies).
Please indicate current priorities in managing
Human resources in your company
52,63%
5,26%
5,26%
52,63%
52,63%
15,79%
31,58%
78,95%
42,11%
Recruitment and Staffing
Outsoursing of personnel
Head count reduction
Retention of valuable employees
Training
Management development Coaching
Succession planning
Performance management
Reduction of employees related costs

2. Increasing efficiency, retention of the talent and labour costs reduction are still the most
important areas in HR management for majority of the companies. Despite the relatively high and
stable interest in Personnel training (about half of the companies) and in Succession planning (1/3 of
companies) for the last two waves, the number of companies who are interested in leadership
development decreased by half (16%). Participants indicated they were more active in seeking new
employees at the market. A concern to optimize resources didn’t influence companies’ plans
concerning headcount.
Only 5% of companies will reduce staff (Hospitality). Three months ago this figure was 15%, and
6 months ago - 36%. Approximately 33% of companies intend to recruit new staff and/or expand
activities. Representatives of the automotive industry with the number of 500 - 1000 employees, trade,
transport and logistics companies with staff up to 100 people are among them. 60% of companies -
participants will not change the number of employees over the next three months, among them
manufacturing companies in the engineering, textile, metalworking and agriculture sectors with
headcount up to 500 employees, and service companies operating in distribution (up to 100 employees)
and retail (over 1000 employees).
Please indicate what categories
of employees are currently in demand in your company
20%
20%
33,33%
53,33%13,33%
13,33%
60%
20% We do not recruit at
present
Line Managers
Core Business Specialists
Administrative Staff
Fresh graduates without
experience / Students
Workers (skilled labour)
Workers (non skilled
labour)
Senior Management
During two consecutive waves there is a pronounced tendency: employers actively seek new
employees in the market - 80% respondents are involved in external recruitment. Demand for qualified
workers with 3+ years of experience increased twofold. Mechanics, electricians, welders, locksmiths,
cashiers, seamstresses are most desirable target employees. There is also a twofold increase in
demand for line managers (with 3 to 5 years of experience) among production and trade companies.
Employers frequently look for shop/ sales team supervisors, store managers. Administrative staff and
fresh university graduates currently are not popular among employers; on the other hand employers

3. seek ways to minimize personnel related costs. There is a modest tendency to hire more top managers
- an increase from 11% до 20% participants compared to the previous wave.
Average salary ranges (before taxes) in different industries:
Average salary ranges
(before taxes), UAH
Manufacturing:
Metal Working*
Light industry*
Automotive**
Machine building**
Agriculture**
Non-skilled /semi-skilled labour
(operators, seamstresses etc.)
2530-2960*
2060-2400**
Skilled labor
(mechanics, locksmiths, etc.)
3750-4150*
3450-3840**
Administrative and office personnel
(accountants, analysts,
administrators, lawyers, etc)
7000-9000*
5520-6400**
Specialists (engineers, logistic,
consultants, HR, agronomists)
5850-7000*
7700-8900**
Mid level managers (heads of
departments)
6000-7500*
11800-13000**
Top managers 15000+
Services:
Retail***
FMCG***
Distribution***
Hospitality****
Semi-skilled workers with high school
certificate
(cleaners, sales agents)
2670-3130***
2000-2150****
Qualified workers
(call centre operators, clerks, cashiers,
senior sales agents)
4500-4980***
2200-2480****
Administrative and office personnel
(accountants, analysts,
administrators, lawyers, office
managers)
6300-7500***
5000-5580****
Specialists ( logistics, consultants, HR,
sales managers)
7760-10200***
5500-6100****
Mid level managers (heads of
departments)
9075-9700***
5800-6300****
Toр managers 15000+

4. Compared to the previous wave, average pay levels of semi-skilled workers increased by 5%-
20%, skilled workers are paid 10-30% more. Some companies did selective salary increase for key
performers to retain the best talent, thus, specialists and middle managers in manufacturing
companies enjoy a 10% - 35% and even up to 40% increase in pay. Top management salaries of
manufacturing and service companies, indicated in the table, are minimum salaries, often linked to
currency exchange rate. Average increase of top management pay is 20%.
Despite the complicated situation in the economy of Ukraine, none of respondents plan to
decrease pay levels; 13% of respondents, mostly the retail and hospitality businesses has not reviewed
pay levels and do not plan to do it at present.
A little less than 40 % of respondents had already increased pay levels by 25%-30%, a few
companies made a minimal 5% to 7% of base salaries while a variable pay increased up to 30%. 22% of
those companies that have reviewed the pay structure will do additional pay increase by 10%-15%
(assembly businesses), by 20%-35% (textile businesses) during the next 3 months. In general 66% of
respondents plan to increase pay levels In 2015. Half of them (metal working, agriculture and retail)
will increase pay by 10% -15% on average, others (logistics, transport, automotive and machine
building companies) – by 20%-35%.
Please indicate what benefits your company offers to employees,
in addition to those required by the law
46,70%
60%
86,67%
26,67%
40%
13,33%
26,67%
20,00%
6,67%
Meals
Subsidized transportation
Mobile phone connection
Medical insurance
Additional vacations
Sport and recreation facilities
Flexible working hours
Free loans
We don’t provide any benefits
The number of companies that do not at all provide incentives is at the minimum level. Mobile
phone connection is the most affordable incentive provided both by production and service companies.
The compensation package by production companies that includes subsidized transportation and
meals, additional paid vacations, medical insurance and flexible working hours, is now supplemented by
recreation and sports options.

5. In general structure of the compensation package by service companies has not changed: mobile
phone connection, flexible working hour, additional paid vacations. In addition 20% of respondents,
mostly trade companies, provide interest free loans to their employees.
Labor Market Index in July 2015 is 2, 78
The index is defined as average indicator of the individual categories. Individual indicators
were defined as follows: e.g. “Market salaries”: 1*11.1% + 2*16.7% + 3*44.4% + 4*22.2% + 5*5.6% =
2.95
Labor Market Index in July, 2015 has sharply declined by 0,68 point compared to March, 2015
and today equals to 2,78. The market is not favorable for employers for the following reasons: shortage
of qualified manpower; increasing competition for talents, caused by companies relocating businesses
from Eastern and Southern regions to Western Ukraine; increased personnel related costs related
(military tax, increased payroll payments, hiring of contingent workforce to replace mobilized
employers).
How would you estimate the current labor market?

6. Labour Market Index Dynamics
2,88
2,58
3,01 3,03 3,02 3,07 3,05
3,46
2,78
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
IV.2012 VII.2012 XI.2012 III.2013 IX.2013 IV.2014 IX.2014 III.2015 VII.2015
Average Labour Market
1 – Labor market is definitely unfavorable for employers
2 – Labor market is rather unfavorable for employers
3 – Labor market is neutral
4 – Labor market is rather favorable for employers
5 – Labor market is definitely favorab