Aleksandr Katsuba: Automation as a Solution to Workforce Shortages for Businesses

Workforce shortages are one of the primary challenges currently facing Ukrainian businesses. In the context of war, mass migration, and economic difficulties, many companies are experiencing a severe lack of skilled workers. However, modern technologies, particularly automation, can be an effective solution to this problem, allowing businesses not only to survive but also to grow.

Causes of Workforce Shortages

The workforce shortage in Ukraine is the result of several factors, explains Aleksandr Katsuba. First and foremost, the war has forced millions of Ukrainians to leave their homes and seek safer places to live abroad. According to the UN, over 7 million Ukrainians are refugees in various countries.

Another factor is the demographic crisis and an aging population. The country’s population is shrinking annually, reducing the available labor force. This is especially noticeable in rural areas, where young people often move to cities or go abroad in search of better opportunities.

Automation as a Solution

In the face of labor shortages, more companies are turning to automation as a way to optimize workflows and reduce dependence on the human factor. According to a 2024 McKinsey report, most Ukrainian companies have already implemented or plan to implement automation at the levels of production, logistics, or customer service.

For example, Aleksandr Katsuba notes that Ukrainian supermarkets are actively using self-service checkouts, allowing them to serve more customers with fewer employees. This not only reduces personnel costs but also increases the speed and efficiency of service.

Financial Benefits of Automation

Automation also has significant economic benefits: implementing automated systems can drastically reduce operational costs. Furthermore, automation decreases the likelihood of human errors, which saves additional costs associated with fixing those errors, according to Katsuba.

Boosting Productivity

One of the key advantages of automation is the increase in labor productivity. Automated systems can work continuously and error-free, enabling businesses to increase production volumes without expanding their workforce, adds Aleksandr Katsuba.

A prime example of increased productivity is Ukrainian IT companies that implement automated systems for software testing. This allows them to boost productivity, reduce the time needed to bring products to market, and significantly cut testing costs.

Preserving Jobs and Retraining

It’s important to note that automation does not always lead to job cuts. Often, it results in a shift in job roles, where workers take on more skilled tasks related to managing and maintaining automated systems. According to a survey by the European Business Association, most Ukrainian companies plan not to reduce their workforce but to retrain employees to work with new technologies.

Modernization is particularly evident in Ukraine’s postal services, where automated parcel sorting systems have been introduced to reduce delivery times. This has not led to job cuts; instead, employees are receiving specialized training to manage and service the new equipment, improving their qualifications and salaries, Katsuba adds.

Challenges and Prospects

Despite all the benefits, automation comes with challenges. One of the biggest is the need for significant investment in new technologies and staff training. These are substantial costs that not every business can afford, especially in times of economic instability.

However, in the long run, these investments pay off by increasing efficiency, reducing costs, and enhancing competitiveness. As Ukrainian top manager Aleksandr Katsuba points out, automation is not only a way to solve current problems but also an investment in the company’s future. It offers the opportunity to remain competitive in the global market.

Automation is an essential tool helping Ukrainian businesses overcome workforce shortages, reduce costs, and improve productivity. It enables companies to not only make the most of available resources but also opens up new opportunities for growth and development.

Aleksandr Katsuba, Ukrainian entrepreneur and owner of Alfa Gas, discusses automation as an effective solution to workforce shortages.