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

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

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

3 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?

4 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

5 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?

6 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

7 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.

8 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

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

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

11 In details

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

13 Where do employees go?

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

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

17 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

18 Recruiter – a threat or a partner?

19 Thank you!

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