Lina Barysheva of Manpower, a U.S.-based recruitment firm, explains what candidates have best chances of getting hired and keeping jobs.
Manpower, a U.S.-based human resources giant with 4,100 offices across the globe and 2008 revenue of $22 billion, launched its business in Ukraine four years ago, when the domestic recruitment business was booming – buoyed by strong economic growth. In this Kyiv Post interview, Lina Barysheva, the company’s client services manager in Ukraine, said her company’s 15-person office has survived this year’s economic recession, partly by cutting bonuses and perks, as have many big players. But many smaller recruitment agencies and employees have not been so fortunate.
KP: How has the job market been shaken up by this year’s recession?
LB: Since the beginning of the crisis, the job market survived through two waves of layoffs … at companies. The first one took place at the end of last year, when the crisis broke. Companies had to take immediate measures just to survive the situation. The need for personnel recruitment decreased immediately by some 50 percent. The second wave came in spring. After reviewing first quarter results, companies were in restructuring processes and further corrected staff needs. After that, layoffs carried more of a selective character.
KP: Do you agree with estimates that about 30-50 human resources companies were wiped out from the Ukrainian market by the crisis?
LB: Yes, I agree. However, I haven’t heard of leading human resource companies leaving the market. They managed to adjust to the situation better, because they already had a wide range of services and capabilities before the crisis, such as out-staffing and outplacement.
Small firms which specialized only in recruitment were hit hardest and were forced to either leave or freeze their business as prices and demand for human resource services sharply fell. If the recruitment fee that was charged by human resource companies was 20-25 percent of a candidate’s annual salary, now it is less by a third.
KP: What is the situation with personnel recruitment now? Are there any signs that demand for employees is picking up as Ukraine’s economy slowly pulls out of recession?
LB: Currently, we can observe a certain recovery on the labor market. However, we still can’t say that when sustained growth will appear. The business that we are still getting mainly consists of employee substitution due to either dismissal or maternity leave, or recruitment by companies that have just recently entered the Ukrainian market.
It’s rare nowadays to see sizable recruitment activity driven by business expansion. Generally, companies are in no rush to announce sweeping expansion plans.
KP: What professions are still relatively high in demand despite the crisis? And, what requirements has new environment brought for employees seeking a job in these tough times?
LB: Employers are still interested in those specialists who take key positions and drive the business. We still see a bit of demand for sales managers, IT specialists and programmers, qualified engineers and blue-collar employees. Meanwhile, employers seeking to optimizing expenditures by removing inefficient employees can find plenty of qualified personnel at relatively low cost.
Companies often prefer to hire so-called “universal soldiers,” those with skills both in their major and related specialties (such as sales and marketing).
KP: What would be your advice to people who lost their jobs due to the crisis? Is this a perfect time to get a new degree, increase your qualifications?
LB: Having lost a job, it is very essential to preserve emotional strength and set your priority goals. Any crisis is a good time to rethink things and plan your future growth. Though the changes can rarely be easy and predictable, they can be productive and lead to new possibilities.
It makes sense to seek further education, but not for the sake of a future employer, per se. You must first set out your own future plan. It is worthwhile to seek a career change? Certainly yes, if it’s something you want.
KP: What is the situation for recent graduates? What kind of job offers can they expect in such tough times?
LB: Students and graduates with no working experience have appeared in a quite complicated situation. They are being offered lower salaries and conditions. Nevertheless, the need for personnel hasn’t disappeared, and this could be the chance to take advantage of your fresh presence on the market and gain some valuable experience that will pay off in the long run. This could be a short-term project, or temporary job. However, it is a great opportunity to gain experience.
Opportunities and possibilities are out there. The youth, energy, mobility and flexibility of students or recent graduates could provide an edge for them and their employees in such difficult times.
KP: Should an employee even think about asking for a raise during this recession? Or is it not the right time to ask?
LB: For an employee, it is always worthwhile to consider, but only after deep analysis of the situation. If the company pays its salaries in envelopes, while the official salary shown is the bare minimum, then the likely answer to the employee will be: “Not happy? You can go.” This is the answer often heard at companies that are so deep in trouble that they simply can’t afford to pay more, let alone pay salaries and all required taxes.
If, on the other hand, the company pays its salaries officially, but at a hryvnia 5-to-dollar rate, then this company might be in a strong enough position to give a raise or bonus for those that earned it. But still, 90 percent of the companies are not yet in a position to do this, or simply won’t.
KP: When will we once again see an employees’ market in Ukraine, such as the one before the crisis?
LB: The situation will not radically change in the near term for employees, maybe not even within five or more years. And when the market does again become an employee’s market, I don’t think salaries will be growing 20-40 percent per year again, as they did before the crisis.
For now, it’s a clear-cut employers’ market. Employers have a much stronger position during negotiations over salary and benefits. Sometimes it leads to an optimal solution. Sometimes [employers] even abuse their position.
