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

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

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?

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. В целом мы очень довольны сотрудничеством с Вашим агентством. Благодаря быстрому и качественному подбору сотрудников для нашей компании, мы смогли запустить многие проекты в срок. Спасибо ! Anna Marchenko Director, Materialise За прошедший год наша компания выросла более, чем на 50%. Наш рост во многом состоялся благодаря сотрудничеству с «Венбест Рекуртинг». Мы довольны результатами нашей совместной работы и планируем в дальнейшем расширять свой бизнес с помощью компании, ставшей нам надежным партнером Julia Kluchnik HR Manager, FireJuice

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 > 20% How much does it cost?

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, whttp://ww.shrm.org $$$Separation Cost Replacement Cost Training Cost Lost productivity and business cost

Cost of Turnover Hard Cost $24 Exit Interviews ( 2h x $12) $14 Administrative time ( 2h x $7) $ $5000 In –house recruiting ( Cost per hire) $ $4300 Recruitment Agency (18-25%) $21 Pre-employment admin expenses ( 3h x$7) $31 Entrance interview ( 1 x $7), ( 1 x 2 interviewers x 12) $12 Hiring decision meeting ( 30 min x 2 supervisors x $12) Separation CostVacancy /Replacement costTraining $54 General orientation ( 8h x $7) $960 Job orientation ( 80h x $12) $20- $500 Trainings, literature, etc.

Cost of Turnover Soft Cost $1200 Lost productivity of departing employee (50-70%) (2 months x $1200 x 50%) $595 Cost of performance differential while new employee gets up to speed ( 85 hours x $7) ? Lost productivity of other employees, supervisors 10% ($1200 x 5 colleagues x 10%) 1,5x Cost of overtime/additional temporary help x Wages saved due to the vacancy ? Cost of lost moral /additional employee departure related to the departure ? Cost of lost customers, sales, profit due to the departure) Cost of Turnover Soft Cost Lost productivity and Lost Business Costs

So… $ $8416 On average the company loses from 4 to 8 monthly wages cased by employee's leave

Reason to leave N = 150 Period: 01/ /2007

In details

May it be a step back? - Yes! Sure!

Where do employees go?

The question is.. Employees migration – companys or market problem?

China facts Low tech industry -50% turnover 62% of employees tenure with employer

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

Recruiter – a threat or a partner?

Thank you!

VENBEST Recruiting Peremohy Avenue 90/1, Kyiv-03062,Ukraine Tel/fax: