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Deloitte Ukraine’s Human Capital Challenges in the Energy Sector: Insights from Business and Local Governments in Ukraine

Transformation of Ukrainian energy sector is facing major challenges, including a shortage of staff and a lack of key skills. These are the findings of Deloitte Ukraine’s study that explores the perceptions of business and local government representatives on the future of the energy sector. Olena Boichenko, Consulting Partner at Deloitte Ukraine, presented the study results at the Rebuild Ukraine Construction & Energy Conference held in Warsaw on 13-14 November 2024.

The purpose of the survey is to identify key challenges and opportunities for strengthening the capabilities of businesses and local governments to facilitate the transformation of Ukrainian energy sector. The study focused on human capital as one of the key factors for driving change.

The online survey, which was conducted during the period from 23 October to 8 November 2024, reflects the responses of 171 respondents – representatives of energy sector companies and local governments. The questionnaire was adapted to the specifics of each group of respondents.

We express our gratitude to the All-Ukrainian Association of Amalgamated Territorial Communities, the Decentralization Portal, the American Chamber of Commerce in Ukraine, and other partners for their efforts in distributing the survey.

Key highlights:

  1. Role of the government:
    • Most respondents believe that the government should be the main driver of the energy sector transformation. However, both businesses and local governments recognize their responsibility in this process.
  2. Staff shortage:
    • Shortage of skilled workers due to mobilization and demographic changes is seen as one of the biggest challenges.
    • Low wages are one of the main reasons for staffing shortages in local government offices.
    • Business identifies the mismatch of educational programs with the current needs of the industry as one of the main issues.
  3. Lack of required skills:
    • There is a shortage of professionals with technical knowledge, project management, financial planning, and investment promotion skills.

To overcome the challenges posed by the staff shortages and lack of skills, it is necessary to combine the efforts of businesses, local governments, and the state. The staff shortage may be addressed through a comprehensive approach that includes training the existing workforce, attracting candidates from related industries, and activating less-engaged workforce groups.

The state support should be focused on creating transparent processes that will ensure reservation of workers from mobilization, as well as on implementing the required regulatory changes, creating conditions for investment, and reforming the education system. Local governments identified financial resources as the main support measure they need.

For more information, please contact our specialists.