Overview of Attrition rates, Vacations and Sick leaves in the Ukrainian IT industry

Recently, the Ukrainian developers in outsourcing have undergone changes associated with the global crisis caused by the coronavirus pandemic and the implementation of a new legislative framework. Moreover, there is a shift from hourly project-oriented work to the concept of team collaboration. For the IT industry specialists, the culture of individual relationships is also not new, and its byproducts are static and creative. For example, you will never see turnover rates of 40% to 50%, like in some outsourcing destinations. They are about 5-10% because of favorable working conditions. For residents, several peculiarities of the Ukrainians mentality, their attitude to rest and work is also a profitable investment.

Why is Ukrainian IT not afraid of high attrition rates?

A recent Microsoft study found that 41% of workers are considering layoffs. In Ukraine, fatigue from digital overload, awareness of time spent commuting, a change in outlook triggered the transition to a flexible hybrid workplace with re-designing physical spaces. It is not customary to change jobs so often: long-term remote development teams are interested in preserving intellectual capital. The mentality of Ukrainians also provides for more personal interactions with the team, and hence the increased involvement, productivity, creativity, and psychological safety allow constant innovations. The reason attrition rates are so low is a legacy of the former Soviet Union: the society behind the Iron Curtain has adapted and become more stable for many years. 12-14% of all released IT specialists are people who left because they like changing their jobs frequently, 18-20% can be bad experts and team players. For clients from the USA and Europe, this means a long-term perspective of cooperation with Ukrainian workers.

Interestingly, the country has recently undergone dramatic changes: President Volodymyr Zelenskyy signed a bill on implementing Diia City. The particular legal regime is designed to preserve the IT industry’s competitiveness, ensure market stability in the context of regulatory policy, and build even greater flexibility in work formats.

Workation and features of rest in Ukraine

The Covid-19 pandemic has accelerated the adoption of remote work as the default model. As many people can work now from anywhere, task execution has changed. It has primarily begun to include elements of leisure allowed to establish a balance between personal life and work and cause some damage to the corporate culture. This phenomenon is called workation - an abbreviated combination of the two terms "work" and "vacation." Let us examine this in more detail.

Advantages

  • Workation allows supporting an employee during peak periods of workload. The company, in turn, benefits from maximum productivity.
  • A working vacation can allow working with renewed focus and zeal.
  • Moving to a new location and interacting with strangers stimulates moving out of the comfort zone, which improves interaction with the employer, colleagues, and clients.

Disadvantages

  • Combining work with leisure can lead to unnecessary anxiety associated with meeting deadlines and responsibilities.
  • There may be an imbalance between your professional and personal life, which has become the main criterion for the senselessness of implementing workation approaches.
  • The emergence of a new item of expenditure, access to a reliable Internet connection, rental housing, and coworking spaces often reach impressive sums. Accordingly, if the employer does not plan to increase the budget for salary expenses, there is a likelihood that some disinterested employees will leave.

Intellectual capital is worth as much, if not more, than money capital. Accordingly, the modern employer needs to maintain their employees' motivation and innovative thinking with paid holidays, the average duration of up to 4 weeks. Employees over 55, guardians, or persons with disabilities are entitled to an additional three days off.

Some key resources can genuinely be considered indispensable at times, despite any naive wish that never is the case. Therefore, many employers often practice dividing this time into two parts.

In the event of the death of a close family member or other personal circumstances, employees are entitled to 7 days of exemption from work.

What every employer needs to know about sick leaves?

Workers who cannot work due to illness are entitled to compensation for the entire period of absence. Certificate of temporary unfitness for work is guaranteed upon submission of doctor's finding. The employer usually pays for the first five days of vacation, and the State Temporary Disability Fund offsets the remaining time. The allowance ranges between 50% - 100% of an average salary and depends on the length of the employment insurance record:

  • 60% for five years or less;
  • 80% for eight years;
  • 100% for more than eight years.

For residents of the country, it is worth considering the workaholism of Ukrainians - very often, they practice working while being sick. Of course, this threatens the possibility of getting sick to other team members and affecting their performance. But when it comes to hybrid or remote workflow, such sacrifices from key workers are sometimes helpful. In this case, the employer is obliged to pay (double) compensation for the time spent.

In Ukraine, there are also special categories of employees entitled to receive 100% of their average salary, regardless of seniority (e.g., war veterans, people affected by the consequences of the accident at the Chernobyl nuclear power plant). For pregnant women, maternity leave is provided for 70 days and 56 - from the date of birth. Until the child reaches the age of three, the employer pays part of the compensation with the job preservation.

Conclusions

The business culture of Ukrainians includes three essential aspects: attrition, vacations, sick leaves. They are very different from those in Central Asia and the Far East. Read about why the realities of corporate culture exclude high turnover rates, how remote work affected the rest of employees, and what conditions the Certificate of temporary unfitness provides for in this article.

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