{"id":2523,"date":"2023-05-15T16:05:00","date_gmt":"2023-05-15T15:05:00","guid":{"rendered":"https:\/\/rethinkq.adp.com\/?p=2523"},"modified":"2024-09-03T11:56:27","modified_gmt":"2024-09-03T10:56:27","slug":"business-continuity-plan-ukraine","status":"publish","type":"post","link":"https:\/\/rethinkq.adp.com\/business-continuity-plan-ukraine\/","title":{"rendered":"Putting business continuity plans to the test in Ukraine"},"content":{"rendered":"\n<header class=\"entry-header bg-adp-tan block--article-header alignfull block--article-header\" >\n\n  \n\n<figure class=\"wp-block-image size-full entry--image\"><a href=\"https:\/\/unsplash.com\/photos\/iMhFpP0laGw\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"2400\" height=\"1590\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash.jpg\" alt=\"\" class=\"wp-image-2524\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash.jpg 2400w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-300x199.jpg 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-1024x678.jpg 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-768x509.jpg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-1536x1018.jpg 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-2048x1357.jpg 2048w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/05\/viktor-talashuk-iMhFpP0laGw-unsplash-1600x1060.jpg 1600w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/a><figcaption class=\"wp-element-caption\">Photo by Viktor Talashuk on Unsplash<br><\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group entry--title-wrapper\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><div class=\"entry--social-share\">\n  <ul>\n    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/rethinkq.adp.com\/business-continuity-plan-ukraine\/&#038;t=Putting business continuity plans to the test in Ukraine\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/facebook.svg\" alt=\"Facebook logo - click to share this article on Facebook\"><\/a><\/li>\n    <li><a href=\"http:\/\/twitter.com\/share?text=Putting business continuity plans to the test in Ukraine&#038;url=https:\/\/rethinkq.adp.com\/business-continuity-plan-ukraine\/\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/twitter.svg\" alt=\"Twitter logo - click to share this article on Twitter\"><\/a><\/li>\n    <li><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Frethinkq.adp.com%2Fbusiness-continuity-plan-ukraine%2F\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/linkedin.svg\" alt=\"LinkedIn logo - click to share this article on Facebook\"><\/a><\/li>\n  <\/ul>\n<\/div>\n\n            <a class=\"entry--tag tag-style\" href=\"https:\/\/rethinkq.adp.com\/time-for-universal-basic-income\/\">Features<\/a>\n\n        \n  <h1 class=\"entry-title\">Putting business continuity plans to the test in Ukraine<\/h1>\n\n\n<p class=\"is-style-summary-style\">A Ukrainian business service provider offers a masterclass in ensuring payroll continuity in a crisis.<\/p>\n<\/div><\/div>\n\n\n  <div class=\"entry--meta content-width\">\n    \n  \n  <p>15 May 2023  <span class=\"desktop-only\">\u2014<\/span> <a href=\"https:\/\/rethinkq.adp.com\/issue-8-risk\/\">Issue 8: Risk<\/a> \n  <\/div><!-- .entry-meta -->\n\n<\/header><!-- .entry-header -->\n\t<div class=\"entry-content content-width\">\n\n\n\n<p>In Ukraine, everything changed the morning of 24 February 2022. As the invasion became a reality, hundreds of thousands of people began to flee.<\/p>\n\n\n\n<p>But one of Ukraine\u2019s largest payroll providers, EBS, was prepared. A local ADP partner since 2009, the company knew payroll continuity would be crucial to <a href=\"https:\/\/rethinkq.adp.com\/from-ukraine-with-love\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ukrainians trying to relocate<\/a> or otherwise navigate the crisis.&nbsp;<\/p>\n\n\n\n<p>\u201cIn the first hours of the invasion, we realized that running payroll was part of our social responsibility,\u201d says Marina Makarenko, Partner and Payroll Outsourcing Practice Leader at EBS. \u201cSeeing people behind payroll figures is what keeps you engaged and focused even under air raids.\u201d&nbsp;<\/p>\n\n\n\n<p>As the battle for control of Ukraine\u2019s capital, Kyiv, continued throughout the late winter and spring, the knowledge that many Ukranians lived month-to-month with limited savings \u2014 making them particularly reliant on their paychecks \u2014 gave the EBS team motivation and purpose in a difficult situation, Makarenko adds. Getting people paid was crucial to both individuals\u2019 survival and the Ukrainian economy as a whole.&nbsp;<\/p>\n\n\n\n<p>In the early days of the invasion, there was a clear difference between businesses that had planned and those that hadn\u2019t, Makarenko says. The ones that had business continuity plans in place made decisions much more quickly \u2014 decisions that weren\u2019t guided by fear or panic \u2014 whereas others are still struggling more than a year later.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hope for the best, prepare for the worst<\/h2>\n\n\n\n<p>Business continuity plans (BCPs) outline how a business will keep operating even in the case of unplanned or severe service disruptions.&nbsp;<\/p>\n\n\n\n<p>As tensions escalated in early 2022, many companies \u2014 particularly tech companies and multinationals \u2014 reviewed and updated existing BCPs, even as they <a href=\"https:\/\/www.nytimes.com\/2022\/02\/18\/business\/multinationals-in-ukraine-are-ready-for-a-conflict-but-staying-put.html\" target=\"_blank\" rel=\"noreferrer noopener\">hoped<\/a> that a ground invasion would remain a remote possibility. Cyber attacks against businesses seemed more imminent, as government websites, state-owned banks and national infrastructure were hit by hackers.<\/p>\n\n\n\n<p>According to one consulting firm, most organizations the firm worked with either didn\u2019t have plans in place or had plans that had to be scrapped because they addressed the wrong scenarios. Historically, most BCPs have planned for natural disasters, terrorism, infrastructure fall out and fraud. In Ukraine,  some global business services leaders said they moved their BCPs from the drawer to the trash can. <\/p>\n\n\n\n<p>But other companies, such as EBS, which serves more than 250 clients, had developed more comprehensive BCPs following the Crimean crisis in 2014.&nbsp;<\/p>\n\n\n\n<p>As part of its plan, EBS prepared contingency plans for each client, which the company uploaded to the client portal, and worked with third parties such as banks and technical support offices to develop and agree to the business continuity plan. The company also set up additional cloud storage outside Ukraine, eventually creating a second active mirror data center that was a full replica of the server in Kyiv, and communicated the plan to staff.&nbsp;<\/p>\n\n\n\n<p>\u201cWe ran all different scenarios to know how to support our people and clients if anything happened,\u201d Makarenko says.<\/p>\n\n\n\n<p>EBS left it up to individual employees to decide whether to stay in Kyiv or relocate to safer areas in Western Ukraine or abroad. About 80% of employees left the capital, and EBS activated flexible work policies that it had developed in response to the Covid-19 pandemic. Later, the company installed Starlink satellite internet to ensure they stayed connected and payroll processing could continue.<\/p>\n\n\n\n<p>The plan needed to constantly evolve, Makarenko says. BCPs are a \u201cliving continuum\u201d that exist in response to a constantly changing environment. \u201cHaving one plan isn\u2019t actually enough and having the plan just on paper is not enough,\u201d she says. \u201cIt has to be a real acting plan that has to be constantly updated depending on the change in circumstances.\u201d&nbsp;<\/p>\n\n\n\n<p>BCPs are typically designed by a staff team led by the company\u2019s risk manager, according to consultants. In the case of armed conflict, the head of a location drives the execution. The situation in Ukraine demonstrated that it can be impossible to predict what disruptions will arise, making it important to  &#8220;friend-shore,\u2019\u201d or relocate supply chains to countries where the risk of political chaos and disruption is low. For example, many companies are now relying more heavily on products and services located within the E.U.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Putting the plan to work&nbsp;<\/h2>\n\n\n\n<p>Business continuity plans such as EBS\u2019s have proven crucial to weathering the economic impact of geo-political conflict. Ukraine\u2019s economy <a href=\"https:\/\/www.reuters.com\/markets\/europe\/ukraines-economy-stabilizes-after-shock-war-2023-02-27\/\" target=\"_blank\" rel=\"noreferrer noopener\">shrank<\/a> by one-third last year, and the Kyiv School of Economics estimates the country had sustained $138 billion in damage to infrastructure as of December. An August 2022 <a href=\"https:\/\/mezha.media\/en\/2022\/08\/30\/work-ua-research-the-war-affected-the-salaries-of-75-of-ukrainians\/\" target=\"_blank\" rel=\"noreferrer noopener\">survey<\/a> of 20,000 workers in Ukraine found 30% had had their roles downsized or been laid off. Many companies that were previously looking to set up operations in Ukraine have put their plans on hold for now.&nbsp;<\/p>\n\n\n\n<p>The situation, however, appears to be stabilizing. In the same survey, 33% of employees reported they had returned to work after their companies initially suspended operations. The economic ministry is forecasting 3.2% growth in GDP this year, Reuters reports.&nbsp;<\/p>\n\n\n\n<p>Many of the companies facing the biggest hurdles operate in energy-intensive fields such as steel manufacturing, which don\u2019t lend themselves to straightforward solutions such as backup generators \u2014 a common feature of Ukrainian BCPs.&nbsp;<\/p>\n\n\n\n<p>BCPs are not a one-size-fits-all solution. As a starting point, companies should understand the specific threats they face and rank those threats based on their likelihood and potential impact on operations, according to ADP\u2019s risk analysts. It doesn\u2019t take a full-blown invasion to devastate business networks; a simple power outage can have serious consequences.&nbsp;<\/p>\n\n\n\n<p>Each plan should include a list of key contacts for employees, with a designated person (and back-up) assigned to oversee the BCP. Businesses should know in advance how they will communicate with staff, suppliers and customers if systems go down, and should have a way to contact IT service providers in the case of systems failure. They should also have backups of all critical files and know in advance what their insurance policies cover. Today, policies exist specifically for business interruptions and cyber attacks.&nbsp;<\/p>\n\n\n\n<p>Companies also need a clear plan for paying employees, who often face added costs stemming from disasters. Whether those costs are small, like the price of bottled water, or large,&nbsp;like rebuilding or relocating: helping employees recover is key to organizational success. Paycards and direct deposits are often a good way to ensure employees can access their pay, since banks typically have strong contingency plans for operating in disaster situations.&nbsp;<\/p>\n\n\n\n<p>In Ukraine, EBS\u2019s payroll continuity efforts paid off. \u201cToday we\u2019re proud to say we didn\u2019t have a single processing failure,\u201d Makarenko says. \u201cWhat\u2019s even more important is that the confidentiality and integrity of our clients\u2019 data has been preserved.\u201d<\/p>\n\n\n\n<p>And in the face of crisis, the company has another reason to be hopeful: It has onboarded six new clients since January.<\/p>\n\n\n\n<p>Watch EBS share their story at the ADP ReThink 2023 event:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Payroll around the world - Ukraine\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/mpGND0s5IY0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n<div class=\"block--recommended-content alignwide is-style-bg-adp-tan\"><div class=\"block-recommended-content__inner\">\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/from-ukraine-with-love\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2022\/10\/2J20BJG-web-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">From Ukraine, with love\u00a0<\/span>\n          <p>In an uncertain time, Poland \u2014\u00a0and its labor market \u2014 is welcoming Ukrainian refugees with open arms.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/debate-payroll-certifications\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/08\/2J5WA2J-1-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">How important are payroll certifications?<\/span>\n          <p>Two experts debate whether payroll certifications are necessary or whether on-the-job training is equally effective.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/generative-ai-and-trust\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2023\/12\/iStock-926200960-1-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">AI and trust<\/span>\n          <p>As generative artificial intelligence enters the workplace, companies need to consider the risks and the benefits.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n<\/div><\/div>\n\n\n<section class=\"wp-block-group alignfull section--sign-up has-background\" style=\"background-color:#7967ae\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center is-style-default has-white-color has-text-color has-large-font-size\"><a href=\"\/sign-up\/\">Sign up<\/a> to keep up to date with ReThink Q.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>A Ukrainian business service provider offers a masterclass in ensuring payroll continuity in a crisis. <\/p>\n","protected":false},"author":1,"featured_media":2524,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[116],"tags":[323,44,196,91],"coauthors":[39],"class_list":["post-2523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-business-continuity-planning","tag-payroll","tag-russia","tag-ukraine","issue-issue-8-risk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - 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