Today, most sectors are underdeveloped and there are troubles with the authorities and laws, which are not adapted to today's society and needs.
Despite a lot of trouble, there are still more opportunities. There exists a large population, who are demanding new services and products, and Ukraine has a good geographical and strategic location. Substantial natural resources are also available in the country.
Ukraine offers good infrastructure that works. electricity, postal services, banking, telephony, broadband, security and public transport are excellent.
More than 20 million of the population work, a population that is well trained and arrive on time for work. On the other hand, the language skills are not great, particularly among men.
What are then the personnel costs in the capital Kiev, where wages are the most expensive?
Below are some examples that are based on net earnings per month.
- Sellers with knowledge in English from 1500 USD
- Finance Manager from 2500 USD
- Chief Accountant with knowledge in English from 1500 USD
- Secretary / assistant with English knowledge from 500 USD
- Logistics / Import / customer service from 1000 USD
Employees without English language skills earn about 30 percent less and outside Kiev wage costs decrease significantly, it can be half as much.
The working age population is mobile and flexible, and constantly look for opportunities to get better benefits. If you want the employees to stay, address the following criteria:
- Pay wages on time, it provides security and safety
- Focus the salary in USD
- Incentive salaries are appreciated
- Offer private health insurance
- Offer a company car and if possible, extra holiday is seen as high status
- Offices should be the central location and close to public transport, which is highly ranked
- Offer language training and prioritize English
There are high payroll taxes, 36.5 percent, but the income tax is low,15 percent and a flat tax rate apply. 24 vacation days and overtime compensation is mandatory, but only applies in the manufacturing industry.
The retirement in Ukraine is beneficial. For men, the age is 55 years for women 50 years.
Clara also gives us tips on what style of leadership works in Ukraine. Clarity is appreciated and orderliness is something that the employees expect. In addition, you should have a high presence, control and commitment.
Avoid large wage differences at the office; Ukrainians keep track of other people earnings. Be sure that your morals and values are understood and followed, and have an understanding that your employees may run into difficulties that exist in the Ukrainian business community.
Cecilia Helland