Time flies. It’s early February, almost a year since the full-scale invasion started. The recruitment domain went through some significant challenges during the year, and it is crucial to comprehend what happened and how it will affect the future.
Let’s look at how things have changed in the Ukrainian tech recruitment domain during this period.
The Hiring Process Slowed Down Considerably
Early in the invasion, most Ukrainian tech companies had fallen out of their workflows for 3 to 7 weeks. Hiring was a non-issue during this time because the main goal was to survive and keep the team intact.
The recruitment process gradually resumed starting in mid-April and during May 2022 and got into the groove by early June.
However, it was apparent that the summer upswing in recruitment activity was to cover critical hiring needs while the companies braced for impact when the rough times kicked in.
Because of that, the recruitment activity started to slow during September, losing momentum in October and November when the energy grid attacks began.
As of early 2023, companies somewhat resumed recruitment, but it is a more calculated activity aimed at high-profile specialists.
Recruitment Agencies Change Focus
The COVID-19 pandemic already gave recruitment agencies a fair share of challenges with the immense growth of talent demand. And then 2022 turned things on their head. Recruitment agencies were forced to adapt due to uncontrollable external circumstances that disrupted the market.
The renewed demand for relocation made consulting and assisting with relocation activities a prominent option for recruitment agencies. Agencies with experience working in foreign markets got an advantage over Ukraine-based agencies.
In addition, Ukrainian recruitment agencies switched focus from the Ukrainian market to European Union and United States markets.
Ukraine-oriented agencies also got a reality check due to the Ukrainian tech segment’s massive disruption during Q2. Due to financial troubles, some agencies switched to the pay-on-result model. Recruiters with low English language skills were among those who got laid off in 2022.
Entry-level Training Course Rise in Popularity
Entry-level IT training courses have been gradually rising in popularity since the mid-2010s. By 2020 the number of switchers from other domains steadily grew because of the widespread impression that the tech segment pays better than different economy segments.
This situation, combined with growing talent demand from Ukrainian and foreign tech companies, diversified and fueled the competition among various tech-oriented training courses. As a result, the Ukrainian labor market got a steady supply of entry-level talent for multiple positions.
2022 saw many people lose their job and be forced to relocate. Many people turned to IT training courses to try new career paths.
However, the situation is different from 2021, as now there are not as many employment options for entry-level talent as the talent demand had significantly dropped during 2022.
New Dimensions of Work-from-home and Work-from-office
Rocket strike alarms became a new normal in 2022. Ukrainian tech specialists gradually adapted their lifestyles and workflows around the constant threat of rocket or drone attacks. During Q2-Q3 2022, most companies switched to full remote work mode trying to reconfigure company workflows accordingly.
Then in October 2022, energy grid drone attacks started. This development puts another wrinkle in the story.
The constant blackouts in major cities became a major disruptor for any form of work. Having an energy generator became a necessity. The sudden demand rise caused a supply shortage which complicated things further.
During October and November, companies started to equip their offices with generators and basic supplies. In addition to coffee shops and Unbreakable Stations, the offices became a handy clutch to maintain a consistent workflow during disruption.
Company Reputation Became a Critical Point
One of the things we’ve noticed while working with candidates in Ukraine and the EU is that they all became much more sensitive toward the company’s reputation and public image.
In the case of Ukrainian candidates, it is related to the fact that not all companies stopped working in the russian market and condemned russian aggression. It is a natural development of the growing maturing of Ukrainian tech talent.
During the COVID-19 pandemic, many candidates started to pay attention to how companies handle themselves under extraordinary circumstances. That became one of the decisive factors in accepting or declining a job offer.
In the case of foreign candidates, the situation is more multi-layered. Candidates from European Union are more sensitive to the company’s employer’s brand and how it correlates with the actual state of things.
For example, candidates are unwilling to consider offers from companies with a track record of employee mistreatment. Companies with little to no online presence and reviews also cause suspicion among candidates as they are more interested in working for credible employers.
Ukrainian Tech Segment is Bound for a Major Shake-up During 2023
After making it through the rough 2022, it is fair to say that the Ukrainian IT segment is bound for a significant transformation during 2023. The fact is that things have changed, and businesses need to adapt to survive and resume growth.
The global recession is a significant disruptor for the tech segment. It is a major problem for the outsourcing segment as the demand for outsourcing decreases for the time being.
With people spendings, there are fewer opportunities to launch new products and compete in the stacked markets.
In addition, the current global economic climate makes investors cautious regarding their long-term investments. This change further complicates things for product companies and startups, forcing them to plan more thoroughly.
All this results in a drastic scale reduction for the recruitment market. As a result, recruitment services are not enough to keep recruitment agencies afloat.
The proper solution is to diversify the business model with additional services – consulting, and market research are the best options, as recruitment agencies can leverage their networking to gain deep market insights.