Women are being laid off more often than men: AIN.UA poll on how the crisis affects the salaries of IT specialists

The editorial staff of AIN.UA conducted a large poll among Ukrainians on how the quarantine and the coronavirus crisis changed their salaries. During the research, we managed to find out which companies have cut the salaries of their employees. The result of the poll is presented below.

The research. In total, 2,512 people participated in the poll. They answered the close-ended questions asked by AIN.UA concerning changes in salaries.

Changes in the fixed salary

  • According to 56.1% of respondents, the coronavirus crisis did not affect the fixed salary or remuneration of employees.
  • 9.4% of employees have a quarter reduction in fixed salaries, while 9.3% completely lost their income.
  • 8.4% of respondents began to earn by 50% less, and 3.2% of the respondents managed to retain only one-fourth of their previous salary. 
  • 4.7% of respondents faced with a slight pay cut (10%). There are also cases of income reduction by 5% and less.
  • Some employees were put on unpaid leave for an unknown period. However, a small percentage of respondents stated about such cases.
  • There are a few cases of an increase in salary and income. In particular, this is due to a reduction in the number of working companies and competition.
  • Delays in payments are quite common.

Some companies have used alternative methods. There are cases when companies have set new tasks to employees, have tied the salary to a dollar rate, or paid just percent from sales. Employees claim that this is the way to cut wages.

As the quarantine has been extended, the financial situation of businesses is getting worse. While in the first month of the quarantine, companies cut employees’ salaries, now they make decisions on staff cuts and layoffs.

How did the variable pay change?

The variable pay includes bonuses, benefits packages, and other additional payments. The poll also showed what happened to the planned pay rises and how companies supported their employees.

  • 58.6% of respondents did not feel the impact of the crisis. The number of additional payments to salaries remained unchanged.
  • For 17.5% of respondents, the total income became lower as the employer cut or canceled the reward program.
  • 13% of respondents will receive less than the promised pay rise, and some were denied the previously planned raise. Companies are also cutting benefits packages.

Some companies have paid a one-time bonus or reduced the load, as support. There are cases where part of the benefits package has started to be paid out with cash.

Outsourcing and product companies: who was more affected by the crisis

In total, about 1% of the Ukrainian IT market answered the questions. The impact of the coronavirus crisis on salaries was described by employees of product companies (43.1%), outsourcing and outstaffing companies (15.7%). The research showed that the crisis affected the developers less, as according to 71.9% of respondents. It is noteworthy that layoffs in product companies have more affected women.

The quarantine had the worst effect on designers. Almost 40% of respondents polled about layoffs and cut salaries in half. Women were more affected – in 30% of cases, employers cut their employees, while the number of men amounts only 12%. The same trend is observed in sales.