87% of Businesses Are Calling Upon Ukraine’s Government to Continue Bold Reform Agenda

The American Chamber of Commerce in Ukraine, together with AmCham member company Deloitte Ukraine, conducted the COVID-19 Ukraine Business Impact Survey: 6 Months of Lockdown. It’s the third survey by AmCham Ukraine and Deloitte Ukraine during the COVID-19 pandemic aimed at assessing how 6-month quarantine affected businesses in Ukraine.

100 representatives out of 94 AmCham Ukraine member companies took part in the survey, conducted in the second half of September 2020. Almost half of the survey respondents are CEOs (49%). The majority of the respondents (86%) are representatives of the C-suite.

TOP-3 strategic actions business expect most from Ukraine’s Government are to continue bold reform agenda (87%); continue cooperation with IMF to ensure macroeconomic stability (63%); create economic stimulus/incentives to maintain employment and spur investment (50%).

50% of respondents indicate that companies’ revenue has decreased due to the pandemic and its consequences. 77% of respondents indicate that the number of employees in their companies has not changed. More than half of the respondents (61%) indicate that they have not changed salaries.

More than half of the respondents (51%) note that their companies did not decrease investments over the last 6 months. At the same time, more than a third of respondents (35%) reduced investments.

More than three-quarters of the respondents indicate that remote work has become a part of their employees’ working life. Herewith, 7% of respondents indicated that almost all, and 17% - that all employees in their companies work remotely. 32% of respondents note that their companies where employees work from home do not have a clear plan on returning their employees to workplaces.

24% of the respondents indicate that their employees work more hours per day during quarantine as compared to the pre-quarantine period; 58% indicate no changes in the working time.

The most significant challenges in the human capital area over the last six months are emotional burnout of employees, difficulties in team communication, and uneven distribution of work within or between teams. 

54% of respondents indicate that their organizations continue to support the society in protecting against COVID-19. The most common ways of support are protection means (57%) and financial support (41%).

Almost half of the respondents (47%) think their clients will feel safe to take part in companies’ events offline not earlier than in 2021. 

Olena Boichenko, Director of Human Capital Advisory Services in Deloitte Ukraine, has commented on the survey results:

“The six-month quarantine has significantly affected business. In our survey, half of the respondents said that the income of their companies has decreased compared to last year’s figures. The vast majority of businesses managed not only to survive this period but also to keep all their staff employed and salaries at the same level. At the same time, remote working has smoothly merged into the working life of the companies of the vast majority of those surveyed. The new format of work has adversely impacted the mental health of people and the quality of interaction within teams, thus turning emotional burnout, difficulties in team communication, and uneven distribution of work between teams into the biggest challenges in the area of human capital. Almost a third of respondents said that their companies have no clear plan of how to safely return their employees to the workplace. In view of the above, businesses should focus on their talent strategies and pay particular attention to planning new forms of working, employee mental health and well-being programs, and leadership support as their priority focus areas”.

Andy Hunder, President of the American Chamber of Commerce in Ukraine, said:

“We are proud of our member companies, that despite the economic crisis caused by the COVID-19 pandemic, continue to help Ukrainian society and protect employment. 87% of businesses are calling upon Ukraine’s Government to continue the bold reform agenda. It’s a powerful signal. Our members also emphasize the need to continue cooperation with the IMF to ensure the country’s macroeconomic stability. We will continue making the voice of business heard at the highest level, putting every single effort to support companies during these unprecedented times”.