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11«coyyomum-jmtmal» 2023 / economic sciences
41
ECONOMIC SCIENCES
UDC: 331.5.024.54
Valentyna Khachatrian
Doctor of economic sciences, full professor, Department Chair of Economics and International Relations Vinnytsia Institute of Trade and Economics of State University of Trade and Economics
ORCID: 0000-0003-0620-3223 Olena Krasnyak Candidate of economic sciences, docent, Associate Professor of the Department of Economics and International Relations Vinnytsia Institute of Trade and Economics of State University of Trade and Economics
ORCID: 0000-0003-1645-1431 Vinnytsia, Ukraine DOI: 10.24412/2520-6990-2023-9168-41-47
FORMATION, FUNCTIONING AND EFFICIENCY OF USING PERSONNEL POTENTIAL OF UKRAINIAN ENTERPRISES IN THE CONDITIONS OF WAR
Abstract.
The article analyzes modern theoretical and methodological approaches to the assessment of personnel potential formation. The main requirements for the mechanism of the functioning of the personnel potential of Ukrainian enterprises in the conditions of war have been studied. Considered a number of factors that led to a change in the structure of the supply of qualified labor in Ukraine. The principles of introducing flexibilization into the management practice of the country's enterprises are revealed. The concept of personnel management is defined, which takes into account new trends in human resources management, using practically non-standard management approaches. The components of the development of personnel potential, which are directly related to the development of the economy in general, taking into account the military actions in Ukraine, are determined. It has been established that the rational formation of personnel, their development and proper management of personnel is a guarantee of increasing the efficiency of enterprises today in the conditions of war and in the postwar period.
Key words: personnel potential, formation, functioning, efficiency, Ukraine, war, post-war period.
Introduction. Uninterrupted provision of the enterprise with various types of resources is one of the most important economic tasks of its strategic development. Effective use of resources affects the competitiveness of the enterprise itself, its at least break-even operation. Therefore, in the modern economy, the study of the efficiency of management of various types of resources is of great importance. One of the most important types of resources is human resources, since the personnel of the enterprise takes a direct part in the production of goods and the provision of services, is engaged in the sale and supply of products, and the management makes important strategic and financial decisions on which the efficiency of the enterprise as a whole depends. In addition, the effectiveness of the company's activity is achieved due to the high level of professionalism of employees, their high work productivity and timely completion of tasks. It is the personnel potential that enables the enterprise to carry out its activities and improve them, is one of the factors that forms the competitiveness of the enterprise, the region, and the country as a whole. The war made its corrections - it increased risks and uncertainties, creating barriers to the free movement of factors of production, including workforce, leading to the destruction of labor market institutions and their effective functioning [1].
The war in Ukraine destroyed industrial and economic activity and affected changes in the structure of the labor market, a decrease in the number of jobs, the loss of relevant specialists in the occupied territories,
which led to their relocation and forced migration to safe regions and other countries. The war exacerbated the imbalance between labor supply and demand. The demand for labor fell as it became dangerous and impossible to work in war zones. In addition, the domestic labor market is shrinking significantly. In Ukraine, there is a significant decline in the labor market - many vacancies are offered without registration, such as parttime jobs, etc. Therefore, in the conditions of the war, the research of this topic is quite relevant and timely, the war continues.
In the works of many foreign and domestic scientists and specialists-practitioners, the theoretical and methodological aspects of the formation and functioning of the company's personnel were studied at a sufficient level, the basic principles of building an effective personnel management system and other directions were analyzed. In particular, it is worth paying attention to the works of such domestic scientists as: P.T. Sa-bluka, M.Y. Malik, L.I. Ulanchuk, D.P. Bogyni, M.G. Akulova, I.L. Petrov, as well as foreign scientists: H. Shein, G. Ford, F. Gilbert and others.
However, despite this, the economic literature does not sufficiently cover the issue of the formation, functioning and management of personnel potential, and in fact no measures are proposed (taking into account new trends in the development of society and technology) that improve the work of enterprises as a whole and taking into account military actions in the country.
The purpose of the work. The purpose of the article is to find ways to increase the effectiveness of the formation and functioning of personnel potential and the development of measures that contribute to a better quality of their management during the war.
Results and discussion. In the analytical report "Directions for optimization of state policy in the field of labor potential development of Ukraine" [2, p.3] it is stated that one of the global challenges facing Ukraine today is the establishment of an economy whose development is based on people. The ILO Convention on the Basic Goals and Norms of Social Policy No. 117 declares that any policy must first of all be aimed at achieving the well-being and development of the population (Article 1). Raising the standard of living is considered the main goal of economic development planning (Article 2), the core element of which is ensuring full and productive employment [3].
I.L. Petrova notes that in the process of management, reactions of employees to organizational changes caused by economic transformations are possible [4]. The real asset of the enterprise is human capital, the effective use of which creates sustainable competitive advantages of the organization. New requirements are put forward for the selection, development, evaluation, and remuneration of personnel, which coherently solve the task of creating the competence necessary for the successful implementation of the organizational strategy [19, p.12].
In the conditions of war, the need to increase the number of labor resources used to ensure the normal functioning of the country is increasing. One of such resources is the involvement of able-bodied people in socially useful works [17].
As noted by O.O. Pszyk-Kowalska and O.I. Kow-alsky, in the conditions of martial law, business in Ukraine found itself in a critical situation due to a decrease in production volumes, problems with logistics and supply chains, and limited finances. All these business processes at enterprises are implemented by personnel, the management of which has become especially relevant. Through the prism of strategic, anti-crisis management, there is an urgent need to change the functional model of personnel management at enterprises, which should be based on one's own experience of working with one's employees, limited financial resources and force majeure operating conditions [6].
In our opinion, businesses in the occupied regions have suffered heavy losses due to the destruction or damage of their facilities, or have simply faced suspension of operations and difficulties in selling their products. Undoubtedly, even during a war, enterprises must work as hard as possible, pay taxes, and provide the country with resources for its further defense. Displacement and forced migration have led to changes in labor market structures, supply and national saturation of skilled labor.
The Ukrainian Institute of the Future investigated the current migration problems of Ukraine and developed recommendations for their solution. In the new study "Fight for people: Ukraine lost the battle, but
must win the war", experts noted the consequences of the migration crisis for the Ukrainian economy, analyzed the experience of other countries that faced this problem and revealed how Ukraine can emerge victorious in the struggle for labor resources [18].
Presenting main material. Effective management of the company's personnel potential is a rather complex management process, because each employee, entering into industrial relations, has unique characteristics peculiar only to him. In market conditions, the development of the enterprise in general depends on the efficiency of the use of personnel potential, its abilities, knowledge and skills. For this reason, human resources must be considered as the main element of efficient production, but the war made its corrections.
Business and the labor market in Ukraine experienced several evolutionary stages of its activity in the new conditions of martial law. At the end of February and March 2022, activity on the labor market decreased sharply. Many business structures in the country closed and people lost their jobs en masse. Only some companies were able to move the entire team or part of the staff to safe regions or other countries and continue work [1, p.4].
In the first days of the war, among the main actions that Ukrainian enterprises could introduce to their personnel was the establishment of constant communication, psychological assistance, compliance with social guarantees, payment of salaries, that is, everything that made it possible to support employees and guarantee their employment.
By March 1, 2023, 150 thousand people will remain without work. By article: in the total number of registered unemployed, men made up 43.3 thousand (or 29%), women - 106.7 thousand (or 71%). By age: 23% of the registered unemployed were under the age of 35; 29% - 35-44 years old; 29% - aged 45-55; 19% are over 55 years old. By education: 43% of the registered unemployed have higher education, 36% have vocational and technical education, and 21% have general secondary education. By type of economic activity: 21% of the registered unemployed were previously employed in trade, 16% - in industry, 16% - in agriculture, forestry and fishing, 12% - in the sphere of public administration, defense, mandatory social insurance [5].
According to the Law of Ukraine "On Mandatory State Social Insurance in Case of Unemployment" during martial law, the maximum amount of unemployment benefits cannot exceed the amount of the minimum wage established by law on January 1 of the calendar year. Thus, from January 1, the maximum amount of unemployment benefit is 6.700 hryvnias, the minimum is 1.000 hryvnias [20].
The level of unemployment in Ukraine, during the war, for the period January-February 2022-2023, is shown in Table 1.
A number of factors led to a change in the structure of the supply of qualified labor in Ukraine:
- increased mortality of people of working age;
- increase in the number of migrants abroad;
Table 1
Unemployment rate in Ukraine, in war conditions, January-February 2022-2023, thousands of people
INDEXES 2022 year (January February) thousands of people 2023 year (January February) thousands of people 2023 to 2022 (January February) thousands of people
% + /-thousand people
Total received services 442,1 288,4 65,2 -153,7
They had the status of unemployed 402,9 240,8 59,8 -162,1
In total, they got a job 49,4 29,1 58,9 -20,3
of them, employed unemployed 40,0 21,4 53,5 -18,6
Participated in public works and other works of a temporary nature 8,5 1,2 14,1 -7,7
Underwent professional training 17,2 5,6 32,6 -11,6
of them, in the CPTO 10,4 3,3 31,7 -7,1
The number of persons covered by career guidance services 394,5 193,8 49,1 -200,7
of them, unemployed 331,9 153,7 46,3 -178,2
They received unemployment benefits 362,5 132,9 36,7 -229,6
The number of employers who cooperated with employment centers 42,2 24,1 57,1 -18,1
Number of vacancies 116,8 64,1 54,9 -52,7
Source: calculated [5]
- an increase in the number of employees with disabilities, and the level of their work capacity and the list of jobs they can perform differs from the pre-war period;
- increasing the supply of women in the labor market, including due to the postponement of marriage and childbearing due to war (the presence of a breadwinner in the Armed Forces or the loss of one has led to the fact that women have to take on more responsibilities to provide for the basic necessities of life for their families);
- an increase in child labor indicators due to the spread of poverty and the loss of opportunities for education, especially higher education, is also expected [1].
Relocation and forced migration have led to a change in the structure of the labor market, as well as the structure of offers and the saturation of specialists across regions. In the region's most affected by Russia's military aggression, the number of jobs has decreased and competition has increased. The relocation of enterprises to safe regions of Ukraine, the internal and external migration of qualified personnel caused the number of job offers in the western regions to be almost three times lower than in January due to an increase in the
number of job seekers [14].
In our opinion, the main factor that provoked the latest wave of migration was, of course, the large-scale military attack of the Russian Federation, the destruction of settlements, enterprises, infrastructure inflicted on Ukraine and the devastating impact of the war on the Ukrainian economy.
During the war, in January-February 2023, there were significant changes in the labor market, employers informed the employment centers about the planned mass layoffs of 20.2 thousand workers (in January-February 2022 - 16.1 thousand), but the availability of vacant positions remained 64,000. There is still an imbalance of supply and demand in the labor market. As of March 1, 2023, nine unemployed people apply for one vacant job. On average, in Ukraine for 2022, six unemployed people applied for one vacant job (2021 - 5 people). In 2021, the average registered number of employed people was 15.6 million, of which 7.4 million were women and 8.2 million were men [5]. For clarity, we will show the number of applicants for 1 vacancy for the period 2021-2023 (Fig. 1).
NUMBER OF APPLICANTS FOR 1 VACANCY
Fig. 1. Number of applicants for 1 vacancy, persons [5]
Half of the Ukrainians who had a job before the war are now unemployed. This is evidenced by the survey data conducted by the Rating Sociological Group on March 19, 2023. At the same time, according to a survey by the Rating group, as a result of hostilities in the country, on average, 53% of the able-bodied population remained unemployed (in the east of Ukraine, this figure reaches 74%), 22% continue to work in the usual mode, and 21% switched to remote work or work part-time and only 2% were able to find a new job [15].
Director of the Institute of Demography and Social Research named after M.V. Ptuhy, academician of the National Academy of Sciences of Ukraine Ella Li-banova emphasized that there are many hopes for the Marshall Plan for Ukraine, its role in shaping the conditions of post-war life. The successful implementation of the plan primarily means the creation of new jobs. Moreover, they will be created mainly under the control of Western partners, who will not allow paying an indecent salary for the relevant work [16]. That is, the Marshall Plan from international partners will help stop the migration process, protect labor resources and stabilize the Ukrainian labor market.
The introduction of martial law, active hostilities change the usual order of things. Procedures that were logical and worked under normal circumstances cannot now be followed fully or at all. Therefore, the organization of labor relations has undergone some changes.
Systematic changes to the labor legislation of Ukraine were introduced by the Law of Ukraine "On the Organization of Labor Relations in the Conditions of Martial Law" dated March 15, 2022 [10]. The function of personnel regulation under martial law should be correlated with state regulation, in particular through the Law of Ukraine "On the Organization of Labor Relations under Martial Law". In our opinion, during martial law, this law restricts some constitutional rights and civil liberties.
On July 1, 2022, the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Optimizing Labor Relations" was adopted, which changed certain provisions of the aforementioned Law, as well as provisions of the Labor Code of Ukraine [11]. This Law will create conditions for the restoration of the normal operation of enterprises and institutions in wartime, in particular, it will ensure the appropriate flexibility of labor relations that employers need in modern realities, as well as overcome outdated legislative gaps and current conflicts in labor legislation.
On September 26, 2022, amendments were also adopted to the Law of Ukraine "On Employment of the Population", No. 2622-IX regarding the reform of the employment service, social insurance in case of unemployment, and the payment of unemployment insurance compensation for employed among the unemployed, which entered into force on October 29, 2022 [12]. Functional changes and additions - to replace the ineffective mechanism of employment quotas, namely to introduce compensation to employers of a part of the costs of labor wages or EMS for the employment of certain categories of registered unemployed, in particular, young people; to promote the employment of the long-term unemployed by providing compensation to employers for the costs of the EU; introduce the provision of financial assistance for starting entrepreneurial activities; to change approaches to: the conditions, duration and amounts of unemployment benefits, in particular, to strengthen insurance principles (the longer the insurance period, the higher the amount of unemployment benefits) and to relax the sanctions against the unemployed for leaving their last place of work at their own will without valid reasons; financing of public works and abolition of temporary works, as those that do not contribute to motivation to work; selection of a suitable job for the unemployed (taking into account, in particular, transport availability, the amount of wages depending on the duration of unemployment).
When every minute is worth a life, states have to make tough decisions in favor of public interests, namely defense. Therefore, ensuring social rights during war is not an easy task. War is the worst evil for establishing high labor standards. The issue of possible deviation from obligations during wars is "programmed" in the system of international labor regulation. The International Labor Organization (ILO), which emerged from the flames of the First World War, provides for the temporary suspension of labor guarantees for workers in connection with war or other extraordinary circumstances [13].
As a result of the globalization of the world labor market, the development of information and communication technologies, national labor markets have their own characteristics, which must be taken into account when choosing ways that increase the efficiency of the use of human resources.
The only tripartite organization of the UN since 1919, the ILO brings together the governments, employers and workers of 187 member states, whose main activity is to set labor standards, develop policies and develop programs that promote decent work for all women and men. The new ILO plan to support Ukraine's labor and employment sector is aimed at meeting humanitarian needs, as well as reconstruction needs after a year of war, which has resulted in huge economic and job losses and threatens millions of people with poverty [7].
At the same time, it should be noted that the real situation may not be as destructive as predicted by the International Labor Organization. The ILO methodology for calculating the unemployment rate has been tested on the "official" labor market. However, a significant share of the shadow segment [5] was always observed in Ukraine, which significantly corrected the statistics. Yes, the level of unemployment, according to the ILO methodology, is many times higher than the level of unemployment recorded by official statistics.
In this regard, it is worth paying attention to such a modern concept of personnel management, which takes into account new trends in human resources management, using almost non-standard management approaches. In Western literature, it is called the concept of flexicurity or the theory of flexicurity (from the English "flexicurity" - flexible response to social shocks) [8]. It is based on three main principles:
1. The labor market is "liberal", that is, hiring and firing employees is quite easy, which implies the adaptability of the enterprise to changes in the work schedule
in accordance with the new conditions in which the enterprises found themselves, taking into account modern technologies. Thus, it makes it easier for employers to lay off workers during recessions and allows them to hire new workers during economic upswings.
2. The state acts as a guarantor of payments of social and other types of assistance, which means the existence of a complex system of daily rather high and on a long-term basis monetary and social payments in case of job loss, illness or disability. In modern conditions, such a system ensures social security of employees, their higher employment in the labor market and a sufficiently low level of unemployment. Hence, it helps regulate labor supply and demand over the wartime labor market.
3. Preservation of the labor market in a stable state through the existence of a system of collective agreements, which will contribute to the social security of employees, since it is believed that organizations better manage the situation and know the state of affairs in the labor market and therefore more effectively resolve industrial disputes at any time and for any -what state of affairs.
Borrowing the basic principles of the theory of flexibilization and implementing into domestic management practice the above-mentioned ways of increasing the efficiency of the use of personnel resources (Fig. 2) leads to the development of the following measures that contribute to the effective management of the enterprise:
1. As a result of the globalization of society, the company's use of flexible working hours for certain categories of employees, providing employees with safe working conditions during the war, working in conditions of necessary self-isolation and largely preventing many negative consequences of emergency and special situations. The introduction of flexible regulation should meet the interests of both employers and employees and ensure labor productivity, motivation and realization of the creative potential of employees.
2. The development of computer technologies causes the company to create remote workplaces (with the help of the Internet) and to provide work under the conditions of part-time and temporary employment. Remote work (remote work) during the war is very convenient, because the fulfillment of assigned tasks or the fulfillment of one's duties can be carried out independently at any time and in any place with the use of information and communication technologies.
Modern trends in the development of the world labor market
- globalization of society
- development of new technologies
- crisis phenomena in the economy
- strengthening of migration processes
Input information
__I _
Principles of fleiicurity
- liberality in admission/dismissal
- the state as a guarantee of payments of social and other types of assistance
- system of social partnership
Source information
Activities
- flexible working hours for certain categories of employees
- creation of remote jobs under conditions of part-time or temperan' employment
- transition to global social standards and development of the social partnership system
Fig. 2. Introduction of flexibilization principles into enterprise management practice
3. Transition to global social standards with the aim of providing a more comprehensive package of social guarantees and compensations that take into account all the realities of modern social development. Based on world experience, Ukrainian society can answer the difficult question of how market relations interact with social development, taking into account the realities of today. It is necessary to improve our domestic social legislation; this became possible thanks to the determination of the position and role of international social standards in the law of social security.
4. Development of an effectively functioning system of social partnership taking into account the trends of national legislation and the development of the global labor market. Therefore, in order for social partnership to become an effective mechanism in the conditions of war and the post-war period, it is necessary to create a single social space with a common system of social protection, common social standards and general acceptance of social law. Today, the declared principles of social partnership are not as important as the mechanisms and forms of their implementation.
Thus, on the basis of the above material, we state that enterprises need to create a holistic system of formation, functioning and efficiency of the use of the enterprise's personnel potential, aimed at the optimal efficiency of its activity and based on the principles of integrity and stability.
In the management of the personnel potential of the enterprise, all modern trends in the development of society must be taken into account, since personnel management is a set of one-time actions, and an ongoing process aimed at the maximum realization of the organization's goals, that is, the efficiency of the enterprise directly depends on a well-developed personnel management system. The processes taking place in the
labor market under the influence of globalization have led to a change in the content of social and labor relations. In view of this, the creation of an effective system of regulation of labor relations is possible under the condition of the formation of uniform tasks and the spread of general principles, which also include the principles of flexibilization.
Conclusion. Based on the above, it can be concluded that the development of personnel potential is directly related to the development of the economy in general, taking into account the military actions in the country. Rational formation of personnel, their development and proper management of personnel is a guarantee of increasing the efficiency of the enterprise during the war and the post-war period.
Resettlement and mass migration from war zones to western regions and abroad have created shortages in key areas of the labor market, especially in active war zones. Thus, the study of personnel portals shows that there are now significantly more unemployed specialists on the labor market than before.
Addressing the problem of returning workers, wartime job shortages, and post-war reconstruction must become a cross-cutting social policy program, which a difficult task is given the socio-political situation.
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