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.

The post Tech Recruitment During the War One Year On – What’s Changed? appeared first on Recruitment Agencies.

These stats were gathered to get information from each company and identify trends in the market.

Distribution of companies by country

By number of employees:

Separately, I would like to note that of the 25-40 people companies, there were 2 agencies from Russia, while most of the companies were from Ukraine.

On average, companies were composed of 12-20 people; 9 companies indicated this data.

Interestingly – the number of recruiters in companies of 5 and 15 people, respectively, differed only slightly (4-7 people). This allows us to conclude that other employees in the company are sourcers and administrative personnel.

According to their responses, the exception was 2 companies from Ukraine with 17 and 12 employees, with 18 in total and 13 recruiters, respectively.

Some companies have 12 people in total, and only 3 of them are 3 recruiters, 14 people in total, and 6 are recruiters.

I was interested in the question of the number of recruiters, because they are usually the more expensive part in the company, while sourcers can cost
$300-500 (CIS).

Income and turnover

on gains that the company planned to the end of the year to give the following statistics:

Company data by country and size of speed in excess of $ 250 000 per year:

Paid instruments

On paid tools that are used are listed as follows:

Correlation of the number of people with income in some companies

We can see some unusual moments, such as how much you have to pay recruiters and some “margin” in the company of such figures:

However, studying how many systems of motivation and approaches to doing business local agencies have, we can’t exclude that here, too, there may be quite a profit-generating business.

Forecasts for 2021

When we regarded the stages (development, maintaining positions, lack of strategic plans) of the company, the following data was revealed:

We see that a large part is planning to grow. The market only contributes to this both at the end of 2020 and the beginning of 2021. This allows everyone an excellent opportunity to carry out such plans!

Moreover, some of those with an income of $80-100,000 want to maintain their positions, which may indicate that companies are quite comfortable in the format they currently have or are not ready to scale.

What trends happened to companies during the year?

Participation in conferences
on the issue of participation in conferences following answers:

Channel estimation

Average assessment of the utility of the material in the channel = 4.7, which I think is pretty high.
Special thanks to everyone who wrote suggestions, what to improve and what they don’t like.

I would like to note that agencies with high turnover figures had “4” and, most likely, with very experienced managers, from whom, I am sure, worth it would be learning from.

In conclusion,

Thank you to everyone who took part in the survey, especially those who provided truthful information.

One manager even wrote in early January that he filled out a questionnaire with only numbers. When he counted everything, he got +50,000 dollars more because there was a “boom” in December (the updated figure is taken into account here;).

I am sure that such errors can be and, of course, more relevant and objective data could be obtained with a more significant number of participants.

I hope this review will be one of the starting agencies for analytics, and the more data on the market, the more conclusions, and areas for growth each of us will be able to find! And yes, there will be conferences on this topic 🙂 stay tuned!

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