The task of developing human capital should be a priority at the state level. However, Ukrainian businesses currently have no hopes for government assistance in this matter. Accordingly, business must decide the issue of investment in human capital independently for sustainable development.

In order to invest in personnel and to make these investments effective, every owner and top manager of any business today should ask themselves the following questions:

  • What specifically to direct their efforts and resources on?
  • How to find the "right" and talented people in the team?
  • How to keep them and not lose?
  • Whom and how to develop?
  • How to "say goodbye" to an employee so as not to damage your reputation (brand) as an employer?
  • How to achieve the maximum return on investment in personnel?

All these and many other questions should be answered by the personnel management system. The key word here is the SYSTEM, which provides for the presence of a business strategy, personnel management policy, corporate culture, personnel management processes and specialists who are responsible for the development, implementation, improvement of strategy, policy, culture, and processes for an effective, productive business.

Having analyzed the work of hundreds of dairy farms in Ukraine, Kateryna Dudka, an performance consultant at the Center of AMP, identified 10 key components that form an effective personnel management system. They include a clear formulation of business values, formation of a "portrait" of an employee, talent attraction, staff motivation, effective staff retention programs, ensuring compliance with labor legislation, etc.

At the same time, one of the elements of an effective personnel management system is the development of the employer's brand.

The brand of a business as an employer in the labor market begins to exist as soon as the business hires employees. Whether the company wants it or not, its image as an employer is formed among existing personnel and on the external labor market.

The development of the employer's brand is a comprehensive and important task against the backdrop of the personnel shortage in Ukraine**. In order for the "right" people to join the business and stay for a long time (while being loyal and engaged, i.e. productive and efficient), the brand of the business as an employer must be managed. And this task should be constantly worked on, using advanced methods and approaches.

Read more about the personnel management system in our next publications or in the magazine "Milk and farm” (#6 (79), December 2023). A printed and electronic version of the publication is available.

**For reference: the UN predicts that the population of Ukraine will be less than 29 million by 2050, and the working population aged 20-64 will be only about 17 million.

According to the Ukrainian Institute of the Future, 37.6 million people lived in Ukraine at the beginning of 2022, and 29 million people at the beginning of May 2023. The economically inactive population (pensioners and children under 15) was 17 million, the economically active population was 12 million, of which 9.1-9.5 million were employed, and 2.5-2.9 million were unemployed.

There are other forecasts in open sources and publications, but everyone says that the situation on the labor market in Ukraine in terms of the number of working population will only worsen.

Advisory Center of AMP

Photo: stockseller_UKR/iStock/Getty Images Plus

More about the work of the Advisory Center read on our Facebook page.

Read also: