Israeli high-tech companies employing workers in Ukraine are in a major crisis

Israeli high-tech companies employing workers in Ukraine are in a major crisis. It is estimated that Israeli high-tech companies employ about 15,000 workers in the country, the vast majority of whom are developers. Ukrainian developers have become in demand due to being skilled workers seeking lower wages than is customary in Israel, as well as due to the fact that the flight distance is short and the time zone is the same.
Even before the Russian invasion, start-ups began offering their workers in Ukraine packages of assistance or assistance in moving to another country. For example, Weeks, which owns a large development center in Ukraine where about 1,000 workers are employed, offered its workers in the country to move with their families to Turkey or Poland.

It seems, however, that despite the offers of many companies, not all employees wanted to leave. Some may have done so because they did not believe the invasion would indeed come, and some for nationalist motives.
Optimov, which employs about 20 people across Ukraine, most of them in development positions, says that although they offered everyone assistance in leaving, only eight workers were helped to evacuate to other European countries.
The Israeli start-up company Watchpool, which analyzes and reveals user experiences in popular apps and websites, has also formulated an assistance program for the transfer of Ukrainian workers to Hungary. But at the moment, Ukrainian workers are not interested in this and prefer not to leave the country, and the company is following developments.
One of the challenges that many companies are facing is the scenario of the collapse of the banks or the financial systems in the country, which will make it difficult for employees to pay. Such a scenario will also make it difficult for employees to make sure that the money paid to them will indeed remain in their possession, and will not disappear in the event that the banks collapse.
"Ten days ago, at the request of the workers due to their fear of the banks collapsing, we brought all the workers in Ukraine their salaries and paid them in advance for a few months so that they could have access to cash and not be dependent on the banking system," said Amir Orad. The company employs about 150 people in Ukraine.
Verbit, which employs several dozen workers in the country, also took a similar step. "Yesterday, when things got hotter, we informed the workers in Ukraine that we are advancing the payment of wages in February," says Ruthi Ben-Asher Lavie, the company's vice president of human resources.
According to her, the company is simultaneously looking for possible replacements for the banks, so that they can continue to pay their salaries in the future even if the banks do not operate.
One possible solution is the solution of the Israeli startup DJwise, which has been operating in the worlds of international currency transfers for several years. The company has built a cheap and extremely fast technological system designed for the business market, which knows how to bypass traditional banking systems around the world.
Adam Reuter, chairman of the company, explains how the system works: “In the usual way. In order to transfer a salary from an Israeli bank to a developer in Ukraine, the money went through a chain of transfers from an Israeli bank to an Austrian bank, and then to a Lithuanian bank that transferred it to a Ukrainian bank. We transfer directly to the destination country with the help of supervised financial entities that specialize in currency transfers, entities known as 'liquidity providers'. "
"We know how to open an alternative bank account in his name in a bank of a foreign country. Instead of a process that takes weeks, we make sure within a few days that he has the money in a new account," Reuter explains.
Companies in Ukraine have to deal with a decline in the labor force. Even companies that have relocated workers or given workers assistance in finding an alternative place of residence still have to deal with declining productivity.
"Some of the workers stayed in Kiev, and some were called up to the army and are going to fight. We informed them that of course we will continue to pay them, but as a result we have to divide their work among other development teams and re-prioritize tasks," says Ben Asher Lavie.
Even Science has to deal with a shortage of workers. "We have prepared safe locations for the transfer of workers who are interested in it in Romania. Until 24 hours ago, none of them expressed interest, and apparently now some of the workers will move," says Orad.
According to him, he asked the employees to prioritize their personal lives first, which requires the company to change priorities in the development processes. "It will not materially affect our capabilities, but it does require a change of internal priorities. We have developers in Israel and California and some of the tasks will be transferred to them."