Social Package & Perks Review in the Ukrainian IT Sector in 2023: Research by ITExpert

ITExpert team09.06.2023

The IT recruiting agency ITExpert regularly conduct research on the IT market. We believe that in this way, we help IT companies and candidates across the world to be on the same page, and therefore, to build effective teams faster, make data-driven hiring decisions, and create revolutionary tech products.

In the latest such study conducted in May 2023, we’ve learned:

whether the salaries of IT specialists are regularly reviewed;
how many paid days of vacation and sick leave are provided in companies;
what perks are available;
how the social package changed.

It is important to note that the data was collected with the prospect of a full-scale invasion of Ukraine. It may differ slightly from the realities of companies from other countries. However, the data we’ve highlighted in the article will be especially useful if you are actively recruiting Ukrainian technical experts for your development teams.

How the Social Package and Working Conditions Have Changed

Look at general data on work formats, salary review, career opportunities, as well as changes in vacations and sick leave.

Work formats

With the beginning of a full-scale invasion, IT companies actively transferred their employees to remote locations. Some of them even provided relocation to safer regions or abroad. A few IT companies, for example, the Ukrainian product company Brainstack_, even rented the entire residential buildings in the western regions.

The company’s employees and their families could move there in case of a complete blackout, cold winter, and massive rocket fire. The employer installed Starlink terminals there. Moreover, Brainstack_ employees were provided with MacBooks with M1 chips due to the fact they hold a charge for up to 10 hours.

More than a year has passed since the start of the full-scale war in Ukraine. Some IT companies have returned to the office, while others have left the option to work remotely:

hybrid work is available in 74.3% of companies;

only the remote option is available in 14.7% of companies;

the “only office/coworking” option is available in 2.9% of companies;

the rule “mostly remote, but several days a week/month you must visit the office” applies in 1.5% of companies;

other types of work (for example: if employees are located in those cities where there are offices, companies offer a hybrid, for others — exclusively remote format; in the future, it will be necessary to work from the office several days a week) are noted by 6.6% of respondents.

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Vacation and sick leave

On average, IT companies cover 20 vacation days for their employees, namely:

30.9% of respondents noted less than 20 work days of vacation.

40.4% of IT specialists have 20 work days of vacation.

24 days of vacation are offered to 8.8% of IT professionals.

21–33 work days of vacation are available in companies for 19.1% of respondents.

2.9% of surveyed IT specialists have unlimited vacations.

The company does not offer paid vacations to 0.7% of respondents.

Another option was noted by 5.9% of respondents. For example, some companies provide 18 paid vacation days (+5 additional paid days off after 5 years of service), 2 additional paid sick/vacation days for major life events, a specific accrual system for vacation days/additional sick leave, etc).

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Unlimited sick leave is offered by 14.7% of companies. Up to 10 sick leave days are provided in 25.7% of IT firms. From 11 to 30 paid sick days are provided by 16.9% of employers in IT. There are no sick leaves in 5% of firms.

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Salary review

In the fall of 2022, 67% of employers said their salary hasn’t changed since the start of the full-scale russian invasion. Compensation increased in 16% of companies, while it decreased in 13% of firms.

According to the results of May 2023:

50.7% of IT specialists said that salary revisions and career growth were not suspended in their companies. They can get promoted as they did before;

20.6% of the interviewees shared that it is possible to ask for a salary review, but it will be agreed upon only in individual cases;

16.2% of IT specialists were temporarily deprived of the opportunity to get a salary increase, but this option has already been restored in their companies;

8.1% of the interviewees are currently deprived of the possibility of salary increases. That option in their IT companies has been on hold since the beginning of the full-scale war;

3.7% of IT specialists told about other cases. For example, before the war, their employer’s salary was reviewed every six months. After the full-scale invasion, the salary level was revised after a year. From now on, the salary review will take place only at the request of the employee.

This category also includes tech specialists with the opportunity to get a career promotion, but in the vast majority of cases without raising the level of compensation. Among the respondents are also those whose salary review is available once every six months for those with a salary below $1.000.

0.7% of survey participants said that even before the invasion, they were not offered a salary increase or regular career advancement.

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Unique Perks and Support for IT Teams During the War

During the first months of the full-scale invasion, IT companies took more attention to the safety of their employees, not just to typical motivation tools. Employers compensated (fully or partially) housing abroad, helped with transportation, and also launched communication chats where employees could send messages with any urgent questions: how to evacuate from dangerous regions, where to look for housing, how to get to a certain city, etc.

Nowadays, companies offer:

gifts from the company on birthdays, anniversaries, and other important dates: 61.8% of companies;
internal training: 57.4%;
compensation for external training or professional certifications: 57.4%;
medical insurance: 55.9%;
mentoring programs: 52.9%;
co-working space cost compensation: 41.9%;
compensation for sports: 35.3%;
access to the corporate library: 35.3%;
additional maternity/paternity leave compensated by the company: 33.8%;
regular offline team building: 33.1%;
financial support in case of relocation: 33.1%.

In addition, 5.9% of IT companies offer their employees a 13th salary. 3.7% of firms have a shortened working day on Friday. More than 3% of companies also offer options to their employees.

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How the social package has changed and what new bonuses have been added in companies recently:

Co-working space compensation payments and online team building were added.
It became possible to work completely remotely or from a co-working space.
Some companies have introduced 100% mental health reimbursement.
During blackouts, companies provided an option to purchase a generator upon request: for example, the company could compensate $1.500 for the electric generator or Starlink.
Help with a visa and relocation was added.
Companies were actively setting up temporary offices with electric generators and Starlinks.
Job retention for colleagues who joined the ranks of the Armed Forces was prolonged.
Some companies introduced 50% remuneration compensation for colleagues serving in the Armed Forces, as well as the purchase of equipment for colleagues and close relatives of employees serving in the Armed Forces.
Some companies have paid mental health days (once a month) and volunteer days.

We’ve also highlighted data on how the perks and bonuses in IT product, outsourcing, and outstaffing companies have changed.

Bonuses in IT product companies

What most IT product companies offer now:

gifts for birthdays and other important occasions;
payment for external training or certification programs;
medical insurance;
internal training;
co-working compensation;
internal mentoring programs;
additional maternity/paternity leave;
compensation for laptop or PC costs;
financial support in case of relocation;
additional financial bonuses for achievements at work;
business trips abroad.

At the same time, some of the respondents noted the reduction of the social package and bonuses or noted that some of the perks that were available in their IT firms before aren’t relevant anymore: for example, conferences abroad for men with Ukrainian citizenship.

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Perks in outsourcing and outstaffing companies

We didn’t find a significant difference between product companies and outsourcing or outstaffing firms. IT companies still provide their specialists with:

payments for external training or certification programs;
internal mentoring programs;
gifts for birthdays and other important occasions;
internal training;
medical insurance;
co-working compensation;
regular offline team buildings.

Among the interesting bonuses is the opportunity to spend a certain time on development or additional projects within the company, like it is in Google.

Some of the IT specialists noted that the social package in their companies has not changed, but new perks are “on hold”. Others have suspended medical insurance, in-office massage therapists, and business trips. Speaking clubs, compensation for lunches, and gifts for birthdays or other holidays were also canceled.

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ITExpert Survey: General Data on the Respondents

136 IT companies took part in the survey. There are representatives of:

product companies — 42.6%;

outsourcing and outstaffing companies — 45.6%;

other types of companies — 12.5%.

Most of the respondents (39%) work in companies with approximately 100–1000 employees. 26.5% of survey participants work in companies with 51–100 employees, and 22.1% of respondents work in companies with ⁓50 employees. About 12.5% of survey participants said that their companies have up to 1.000 IT professionals.

What to Do If Your Company’s Budget for Perks is Limited

Last but not least, money is an important factor. However, in the labor market, it is not the main competitive advantage for candidates and current company employees. To attract and motivate staff, as well as to promote the HR brand, companies are constantly expanding the social package. It becomes an integral part of the company’s image in the labor market, as well as a demonstration of care for employees.

For example, at the beginning of the pandemic, many IT companies added additional bonuses to the social package. Thus, the consignment company called thredUP switched to a 4-day work week, while keeping the salary at the pre-quarantine level. The IT company Nvidia allocated €500 to each employee to set up a workplace at home.

The social package minimizes concerns, supports employees, and allows them to concentrate on work better. And real care always pays off.

Stas Shihov

Founder & CEO at ITExpert

“IT specialists pay attention rather to the stability of the company in general. They want to keep their finger on the pulse of what will happen to the business in the next six months, a year, and a few years.

Accordingly, large companies are often considered more attractive places to work than start-ups or small firms, which are more dependent on changes in the global market. Although even large corporations have layoffs — for example, Amazon laid off 18.000, Meta laid off 11.000, and Microsoft laid off 10.000 employees.

As before, the “gold standard” that allows specialists to feel minimal security is important: 20–22 paid vacation days, 7–10 sick leaves, and medical insurance. Other bonuses are rather nice-to-have ones.

In addition, it is crucial to pay attention to the corporate culture and communication within the company. Regularly conduct one-to-ones and monitor the status of employees. This will allow you to keep your finger on the pulse and show that you care about the team.”

The PwC Global Workforce survey shows that transparency can also help build trust among employees and keep them from switching companies. A clear example of radical transparency is Netflix. The company uses a tactic known as “sunshine,” where all decision-making processes are open and employees feel free to share their ideas. That’s how Netflix got an A+ rating for retention. This means that the company has a better employee retention rate than 95% of similar companies.

We hope our research has helped you better understand the realities of the IT industry, and will help you organize effective recruitment processes in your company.