Israeli firms trying to keep up with worker shortages, missed deadlines

Business as usual is rare right now inside the firms that power Israel’s $520 billion economy, as leaders try to keep operations going while offering support to workers. Some offices have lost significant portions of their workforce to the army reserves.

Even working side-by-side is a challenge at many firms, given that schools have been closed and some employees prefer to remain home. Some business leaders told Bloomberg News that they were providing workers with access to safe rooms and child care, while reassigning projects and managing other operational hurdles. 

In Gaza, the business community has all but come to a halt, as half the population contends with evacuation orders.

 

Itai Ben-Zaken, co-founder and chief executive officer of Honeycomb Insurance in Tel Aviv, has allowed his 35 employees to work from home since the fighting began, similar to moves announced by bigger employers in the region, like Morgan Stanley and Goldman Sachs. For those who do come into the office, there’s a large safe room. 

“It became more and more clear that people were struggling,” David Hanrahan, Flare’s US-based chief people officer, said of the days after October 7. “Some had two or three funerals on the same day. It was pretty intense.”

For some, the losses and war have offered a new sense of purpose. Tel Aviv-based Monday.com, whose work management software is used by Coca-Cola and other big global employers, created an online portal for impacted employees to ask for assistance, and has received about 130 requests so far, ranging from relocation to dog walking. The company has also provided resilience training for its senior leaders and, like other firms, has donated food and supplies to those in need. Some factories have had to reduce production, at least temporarily. 

Some businesses, like Amit Logistics, are hoping for government support. The company, which handles goods coming in and out of Israel, has had its operations significantly disrupted by halted international flights and increased shipping fees.

“The war has hurt us badly,” said CEO Liat Hadar Sharvit.