People as the main capital: Oleksandr Varavka on overcoming the personnel shortage and the strategy of sustainability

Just a few years ago, manufacturers were primarily concerned with raw materials, energy resources, and logistics. Today, however, people are increasingly becoming the key challenge.

A severe labor shortage, accompanied by overall social exhaustion, is forcing businesses to seek answers to critical questions: where to find qualified specialists and how to retain them.

These pressing topics were discussed at the “Bread Industry 2026” conference during the panel discussion “Labor Shortage and Employee Mental Health: Unconventional Solutions in Manufacturing.”

Among the participants was Oleksandr Varavka, Chairman of the Board of ALVIVA GROUP.

Today, ALVIVA GROUP unites 21 companies, employs more than 6,000 people, and operates critical infrastructure enterprises. Therefore, the group faces the same challenges as the industry as a whole. Oleksandr Varavka spoke about how to overcome them and where to find motivation and inspiration.

Labor shortage: what is more difficult today — finding a specialist or retaining one?

At the moment, it is equally difficult both to attract new employees and to retain professionals. However, if we look at the issue through the lens of the individual’s role within a team — because a company is, above all, a community of like-minded people — the question should be framed differently: “Why do we need this person, and why should they stay with us?”

If the company’s internal processes are healthy and well-structured, we invite specialists for clearly defined conditions. When an employee’s role aligns both with their expectations and the company’s goals, people feel they are in the right place and are less likely to leave.

Therefore, when processes are organized correctly and expectations on both sides align, loyalty is formed.

In my opinion, the key to success is absolute honesty with yourself, candidates, and employees at every stage of interaction.

Why are young people avoiding manufacturing professions, and is there a risk that companies will soon have no one left to work?

Regarding the reluctance of young people to enter the manufacturing sector, it is important to understand that labor shortages do not emerge overnight. If a company suddenly realizes there is no one left to work, it is a sign that management failed to track market trends in time.

In my view, the greatest threat to the industry today is workforce aging: at some enterprises, the average employee age has already reached 60 years. An effective solution is maximum digitalization of work processes. Visibility and technology allow employees to see immediate results from their actions, gain satisfaction from their work, and make manufacturing professions more attractive to younger generations.

Do companies today calculate the “economics of burnout”? What simple solutions help people stay resilient? Should a manager also be a psychologist?

Yes, the topic of mental health has finally stopped being abstract — it now directly affects productivity, safety, and staff turnover.

From my observations, last winter team fatigue was especially noticeable due to overall exhaustion and uncertainty. During such periods, teams urgently need a resilient leader. If a manager becomes demoralized, the work of the entire team starts to slow down.

A leader must remain a model of resilience, while management teams themselves also need proper support in order to have the resources to guide others forward.

Which decisions deliver the best results in today’s environment?

Over the past 50 months, businesses have learned to be prepared for any scenario. Every year, the pace of change accelerates, which is why we always keep Plans A, B, and C ready.

However, no strategy can be implemented if the team is unaware of it or was not involved in its development. Therefore, the best solution is one that allows for multiple development scenarios and unites the team. Confidence in the future is built precisely on coordinated collective action.

What do employees value most today: money, stability, or respectful treatment?

Today, people are not simply looking for a job — they are looking for quality of life while working. There is no single answer or universal recipe for success; it is always multifaceted. When a person feels part of a team of like-minded people, sees real results from their work, and receives feedback from the company and management, they find the motivation to move forward.

What inspires you every day as a leader?

“When you do what you love, you don’t get tired. I sincerely love what I do…”

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