Kyiv, 13 March 2013 – Ernst & Young presents the results of its Survey of Expatriate Employees and thanks the Kyiv Post for its support with gathering data for the project. The Survey, assembled by Ernst & Young’s Human Capital Group, provides information on expatriate employees’ professional background, dealings with the government and general impressions of life in Ukraine.

Characteristics of participants

More than 225 foreigners living and working in Ukraine participated in the Survey. Most of them (48%) are from the EU countries while 34% are from the USA. Citizens of CIS countries, Australia, India, Iran, Serbia and other countries also took part. Survey participants represent more than 15 different industries, with 10% working in banking, 10% in education and 12% in the professional services sphere.

Nearly half of the respondents are business owners, top and middle managers (more precisely, 4% are business owners and 26% are CEOs). Near 40% of the surveyed are of the professional level personnel. The main reasons the participants cited for their coming to Ukraine are as follows: they’re here on a long-term business trip (38%), they’re conducting business (20%) and they’re here for personal reasons (31%). A half live in Ukraine with their families (58%) while the family members of 4% come to Ukraine periodically.

It is of interest that 76% of respondents specified that they speak Ukrainian or Russian, and some even speak both. More than half of respondents indicated a “higher than medium” level of language proficiency.

General impression of life in Ukraine

58% of respondents are generally satisfied with living and working in Ukraine. Among the most negative aspects of life in Ukraine foreigners cite corruption (38%) and bureaucracy (14%). In addition, rudeness was cited quite often (30% of responses). So too was a lack of respect among people in public places and on public transport.

Meanwhile, 61% of foreign citizens - participants questioned noted the sociability, kindness and hospitality of Ukrainians, and 19% spoke of Ukrainians’ motivation and capacity for hard work. Among the factors expatriates admired the most were strong family values, honesty among their business partners and interesting cooperation with talented young managers.

Most of the foreigners (54%) would recommend that their acquaintances visit Ukraine for tourism purposes. The most popular tourist destination in Ukraine is Lviv (65%). Foreigners are also interested in Odesa (38%), Kyiv (35%) and Crimea (19%), in particular Yalta (14%).

Business climate in Ukraine

It is noteworthy that 64% of respondents speak of a negative business climate in Ukraine. Among the main problems they specify are corruption (75%), the taxation procedure (49%), custody and trading regulations (45%) and political instability (43%).

While working in Ukraine many foreigners have had to deal with various government agencies. Only 12% of all the respondents came away from such contact with positive impressions. Many foreigners mention the high level of bureaucracy and corruption in government institutions as well as the unprofessionalism of those institutions’ officers. Expatriate employees have often faced corruption in custody, tax and registration institutions, as well as in court.

Lengths of stays in Ukraine and plans for the future

The majority of foreigners questioned have been working and living in Ukraine for one to three years (32%). Some have been here for between three and five years (20%). Nearly a third of the respondents have been living in our country more than five years. About 34% of foreign citizens plan to stay in Ukraine for more than five years and 32% plan to stay for between one and three years.

Foreigners return to their home countries for personal reasons or because of the negative aspects of living in Ukraine (27% of the cases for each reason). In 23% of cases they leave Ukraine because of limited career development opportunities. Among other reasons respondents specify a bad business climate, government instability and corruption and the educational needs of their children. Some participants in the Survey specified that they see no reason to return to their home countries.