IT specialists earned more in 2012. Market Research.

BIONIC University team has analyzed different media sources in order to identify future salary trends in IT industry in Ukraine.
The analysis showed that the average monthly salary rate in IT industry in Ukraine ranged from $2,000 to $5,000 in 2011-2012. (Table 1)
 

Table 1. Average Monthly Salary Rate in IT industry based on mass media analysis

As you can see from Table 1, there is a considerable spread between average salary figures depending on the source of information:

• According to the surveys conducted by specialized websites (dou.ua, payscale.com, and HumanLab recruiting agency), the average salary of IT specialists ranges between $2,002 and $2,670. However, to get an unbiased picture, it makes sense to look through the comments to salary research figures from average market participants.

• According to expert opinion in IT industry expressed in interviews and articles, an average salary level in IT industry is between $3,000 and $5,000. (Source: http://forbes.ua/opinions/1345661-chto-meshaet-ukrainskim-programmistam-povtorit-uspeh-cukerberga, http://www.epravda.com.ua/rus/columns/2012/08/22/332606/)

Having analysed the sources, it proves reasonable to assume that the real average salary level would be between $2,400 and $2,800.

The average salary rate in IT industry has been steadily growing since 2010. Comparing the average salary rate in IT industry in December 2012 with the salary rate during the same period in 2011, we see the increase of around 22% (Source: http://dou.ua/lenta/articles/salary-report-dec-2012/).

In 2011, salary expectations of Ukrainian IT specialists went up by 15-20%. (Source: http://www.luxoft-personnel.ru/press/news/3370/).

Comparing salary figures in other industry sectors in Ukraine, the salary increase in IT industry shows that IT specialists were singled out the strongest purchasing power group in Ukraine.

IT industry outlook and average salary growth forecast

Lately IT industry in Ukraine has shown record growth rates: in 2010 it grew by 43%, in 2011 – by 30% and in 2012 by 13.5%. (Source: http://ain.ua/2012/07/16/90928). A long-term forecast is that Ukrainian IT market will grow by 85% in the following 6 years showing the average annual growth rate of 14%.

A shortage of skilled IT specialists in Ukraine will remain serious due to high domestic and foreign demand. The fact that in 2012 there were 10,000 IT job offers or 20% of all job offers on Ukrainian labour market proves that domestic demand is rather high. 50% of job offers have not been filled due to the lack of candidates or lack of necessary knowledge and skills of the candidates. Foreign demand is high because Ukrainian IT specialists are highly valued and have good reputation abroad.

Assuming that IT industry growth and IT specialist demand will stay at the same level, it is possible to predict that in the nearest future the average salary rate will grow by 15-20%, as a result the average salary rate of the IT specialists in 2014 will range from $2,700 to $4,200.

In case such prediction comes true, the well-being of IT specialists will approach the level of their Western counterparts.

In addition to the above-mentioned, let us give you some information on nonmaterial advantages that Ukrainian IT companies offer to IT specialists:

According to the study conducted by HeadHunter company (Kyiv) http://ubr.ua/labor-market/ukrainian-labor-market/rabotodateli-v-ukraine-privlekaut-programmistov-nematerialnymi-bonusami-issledovanie-202923, the employers in IT industry generously offer “nonmaterial bonuses” which feature almost in all job ads.

Most frequently offered bonuses:

• Freelance or flexible working hours: practically all employers believe that it is important for software developers and QA-specialists to work when they have inspiration rather than during fixed working hours. This is why the overwhelming majority of job ads offer flexible schedule and an option to work from home.

• It is also widely believed that that high-quality office space and advantageous location help to attract the candidates. Nearly every IT job ad mentions comfortable (modern, cozy, hi-tech) office in the center of the city or in close proximity the metro stations. Oftentimes the employees are also offered free parking.

• Free English course is also a popular motivation factor for employees of IT companies.

• Individual career path plan is a rare type of bonuses, which only large IT companies are able to offer. Such companies have a devoted employee within the HR department who is responsible solely for career plans and professional development programs of the employees.

• Interesting dynamic projects" and "career development" are the wordings that recruiting companies use most often to attract software developers. Practically all job offers mention fully-paid vacation and sick leave. Additionally, some companies extend vacation period from 24 calendar days to 28 calendar days.

• There are some types of bonuses that are less widely offered, but are rather popular among employers and are very attractive for employees according to HR specialists. These may include medical insurance, company doctor, corporate events, sports events (paintball, free football stadium access, in-house tennis tables, mini-billiards table, and some training equipment in office), free or partially paid sports club access. IT company employees may be offered a trip to the Crimea or Carpathians, or New Year celebration in Bukovel.

• Those who do not like active lifestyle are offered unlimited coffee, tea, sweets and cookies in the dining area in the office. Quite often IT companies might offer full or partial compensation for lunches.

• A special advantage that one can find only in IT job offers is a horizontal company structure, absence of complex hierarchy relations (minimum number of managers) and democratic management approach. IT companies promise “wise” or at least “adequate and with a good sense of humor” managers. Future colleagues are described as “well-educated, strong and professional team”. Most probably these features attract IT specialists the most.

• Apart from that, companies willing to offer outstanding bonuses and to attract the best of the best will offer such unusual motivation and bonuses as discount programs and loan privileges or opportunities to develop own projects during working hours (for example 10% of working hours), car insurance, life insurance, financial bonuses for special occasions (wedding, birth), etc.

Respectfully Yours,
BIONIC University Team

Last edit: 12.02.13