20:59 25.04.2024

Almost three-quarters of employers feel shortage of staff, plan to increase wages in 2024 – EBA survey

3 min read
Almost three-quarters of employers feel shortage of staff, plan to increase wages in 2024 – EBA survey

Some 72% of surveyed companies plan to increase wages in 2024, almost the same number of companies (74%) experience a shortage of personnel, these are the results of a study of the Ukrainian labor market from the European Business Association (EBA).

According to published data, 39% intend to increase salaries by 11-15%, and 28% by 6-10%, while plans to increase them by 16-20% were reported by 13%, and above 21% - 2%.

It is also clarified that the personnel shortage has increased significantly since the autumn survey, when 55% of respondents complained about it, while today only 7% of respondents do not feel it at all, while 17% feel it partially.

As part of the survey, some 79% of respondents reported an increase in salaries in 2023, some 46% an increase in functionality and the hiring of new employees, some 36% an increase in budgets for development, training and staff maintenance.

In addition, some 27% reported an increase in bonuses and bonus payments, while 10% of respondents reported staff reductions.

As for 2024, study participants noted that companies plan to increase wages (72% of respondents), increase budgets for training and development (39%), increase the number of employees (35%), as well as enter other markets and searching for new partners (32%).

Some 54% of study participants noted that their companies have the opportunity to work remotely, but not for all categories of employees. Some 28% of respondents indicated that remote work is possible for all workers, and only 17% reported the impossibility of working remotely.

"Accordingly, there is a gradual trend in the return of workers to offices. For comparison, in January 2023, only 4% of companies did not have the opportunity to work remotely," the EBA said.

The association also added that 52% of respondents have employees abroad, but their share does not exceed 5% of the company's total staff, while 19% of respondents have 6-10% of their employees abroad.

It is noted that for 32% of respondents, all company employees now live and work in Ukraine, which is higher than in previous periods. At the same time, some companies use temporary contract formats abroad, upon completion of which employees can return to Ukraine.

Among the countries where the largest number of company employees live were Poland, Germany, the Czech Republic, Romania, Great Britain, Spain, Israel, the Netherlands, Slovenia, Austria, Norway, Belgium, the United States, Switzerland, Canada, Latvia, Italy, and Luxembourg.

It is noted 41% of respondents do not plan to return workers to the office in the near future, 12% noted that the company plans to return all workers to the office in the near future, and 20% of respondents reported that the company does not plan to return all categories of workers.

Some 67% of study participants intend to open vacancies in companies, while 48% of respondents do not plan to change the number of employees in 2024, 26% will increase their staff by ≥5%.

Also, 7% said the number of employees will increase by 6-10% and 5% of respondents wrote that their companies plan to reduce the number of employees.

The survey involved 109 HR specialists (49% department heads, 24% middle managers, 26% top management, 3% junior staff), it lasted from February to April 2024 and covered the period August 2023 to April 2024.

More than 60% of participants in this study will represent international business. Some 50% of companies are representatives of large businesses, some 43% of medium-sized businesses and 7% of small businesses.