The main reasons why IT Specialists change their work.

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The main reasons why IT Specialists change their
work. Statistical Report
Tatyana Fedotova VENBEST RECRUITING
Kyiv 2007
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Company Profile

• Specialized IT Recruitment Agency
• A branch of Venbest Group of Companies
• Was created in 2005
• Has performed more than 200 successful hires.

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Base of research

• 150 candidates of 7 major specialties Java,
  .Net, C,Web (PHP, CSS/HTML, Art, Flash),
  Testing/QA, IT Support Administration, Project
  Managers /Team Leaders.
• who were submitted to our partners during the
  last 10 month answered questions
• Reason of leaving current employer?
• What are you expecting in the next job?

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Clients profile
Sonopia have had considerable success building a
great team in Ukraine. Venbest have been one of
our key partners in sourcing the very best
software engineering and business talent.

Roger Nolan Vice President Engineering,
Sonopia.
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Materialise
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????????? Julia Kluchnik HR Manager, FireJuice
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Merry-go-around

• People in IT industry change job every 2 years
• Junior specialists switch job every year
• 70 of employees stay in the status of passive
  work search
• Average industry turnover rate gt 20
• How much does it cost?

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Cost of Turnover

• Employee salary/hourly rate 1200/7
• Supervisors salary/ hourly rate 2000/12
• Methodology U.S. Department of Labor, Paros
  Group, Inc whttp//ww.shrm.org, 2006.

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Cost of TurnoverHard Cost
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Cost of TurnoverSoft Cost
Cost of TurnoverSoft Cost
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So

• 4989 - 8416
• On average the company loses
• from 4 to 8 monthly wages cased by employee's
  leave

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Reason to leave
N 150 Period 01/2007-10/2007
Reasons to leave  
1 No career and professional growth 35, 30
2 Interest in a new project 18,18
3 Relocation to Kiev 15,12
4 Bad working conditions 7, 31
5 Low salary level 7,17
6 Bad management 6, 33
7 Interest in a fulltime work 6,27
8 Salary delays 5, 48
9 Interest in new technologies 3, 30
10 End of project (low V of work) 2, 68
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In details
Questions Developers Developers Developers Developers Tester/ QA Admin Support PM / Team Leads average
Questions Java .Net C Web Tester/ QA Admin Support PM / Team Leads average
Reasons to leave              
No career and prof. growth 31,5 20,0 25,0 40,6 50,0 46,7 33,3 35, 30
Interest in a new project 3,7 26,7 6,3 15,6 0,0 33,3 41,7 18,18
Relocation to Kiev 5,6 0,0 12,5 7,8 4,2 0,0 8,3 15,12
Bad working conditions 13,0 26,7 0,0 4,7 0,0 0,0 0,0 7, 31
Low salary level 5,6 6,7 25,0 7,8 29,2 6,7 25,0 7,17
Bad management 14,8 0,0 0,0 1,6 4,2 6,7 16,7 6, 33
Interest in a fulltime work 0,0 0,0 0,0 18,8 0,0 0,0 0,0 6,27
Salary delays 0,0 13,3 0,0 3,1 0,0 6,7 0,0 5, 48
Interest in new technologies 7,4 0,0 3,3 0,0 12,5 0,0 0,0 3, 30
End of project (low V of work) 18,5 6,7 0,0 0,0 0,0 0,0 25,0 2, 68
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May it be a step back?
Reason to decline job offer  
1 Decided to stay 33,3
2 Was contacted too lately 19,0
3 Wasn't interested in the projects/technologies 19,0
4 Was offered low salary 14,3
5 Personal match with another employer 14,3
6 Didnt like the company 9,5
7 Decided to stay working on free-lance 4,8

• - Yes! Sure!

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Where do employees go?
What are you expecting in a new working place ?  
1 Professional development 37,53
2 Managerial position 31,27
3 Salary growth (stable salary payments, regular reviews, bonus system) 21,69
4 Interesting project 20,70
5 Professional team management 8,80
6 New technologies 4,79
7 Long Term Employment(moving from free-lance) 2,29
8 Business Trips 1,71
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Where do employees go?
Question Developers Developers Developers Developers Tester/ QA Admin Support PM / Team Leads average
Question Java .Net C Web Tester/ QA Admin Support PM / Team Leads average
What are you expecting in the next place of work?
Professional development 27,8 21,0 18,8 31,0 25,0 95,0 39,1 37,53
Managerial position 24,1 26,3 25,0 31,0 12,5 86,0 0,0 31,27
Salary growth (stable salary payments, regular reviews, bonus system) 22,2 21,0 50,0 14,3 29,2 0,0 15,1 21,69
Interesting project 0,0 10,5 43,8 47,6 8,3 0,0 34,7 20,70
Prof. team management 1,9 10,5 18,8 4,8 8,3 0,0 17,3 8,80
New technologies 11,1 10,5 0,0 11,9 0,0 0,0 0,0 4,79
Long Term Employment 5,6 0,0 0,0 9,5 0,0 0,0 0,9 2,29
Business Trips 3,7 0,0 0,0 0,0 8,3 0,0 0,0 1,71
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The question is..

• Employees migration companys or market
  problem?

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China facts
Low tech industry -50 turnover 62 of employees
tenure with employer lt1 year 28 1-2 years

•  
• Low tech industry - 50 turnover
• 62 of employees tenure with employer lt1 year
• 28 of employers leave their job in 1-2 years

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What helps here?

• Know the inside
• Exit interviews
• Satisfaction Surveys
• Assessment Center
• Talents management

• Know the outside
• Market salary reports
• Inflation level
• Know your competitors

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• Recruiter a threat
• or a partner?

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• Thank you!

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VENBEST Recruiting Peremohy Avenue 90/1,
Kyiv-03062,Ukraine Tel/fax [phone]
14 http//www.venbesthire.com.ua e-mail
tatyana_at_VenbestHire.com.ua