In the world today, employee retention in IT outsourcing companies has become an uphill task. Developers want better job security while companies are scared of recruiting and retaining unskilled developer. They want a skilled and dedicated developer.

However, a lot has been said about Ukraine and how this country has managed to make an edgeways in the employee retention rate. In Ukraine, different IT companies adopted several ways of increasing employee retention rate. As a matter of fact, employees are willing to team up with IT companies in Ukraine.

Here we elucidate different ways by which employee retention rate has become extremely large in Ukraine and what other IT companies in the world should do to improve employee retention rate.


Since recruitment is the first process in employee retention, it is highly important to adhere to some basic recruitment principles such as experience, technical skills and cultural match. HR leader should begin recruiting base on the principles mentioned.

However, it is easier to hire skilled software engineer in Ukraine than any other region of the world. Thus, your HR leader should devise an effective way to hire the right developers.


Most HR leaders in the world today lack proper sense of management. By this, they failed to motivate their employer.  A good manager is the one that will have an inkling about his worker’s area of strength. For instance, you should know their coding ability, communication skills, and ethics.  This will really help expand your employee retention rate.

However, the Ukrainian outsourcing IT companies have managed to work on both the full alignment of the extended team and on-site one. Therefore, you can improve your company retention rate through proper management.


This is arguably the most important way to improving employee retention rate. The Ukrainian IT companies adopted various way to achieve this. These include:

Individual Development Plans (IDP): This method was designed to ensure employee learning and development. This is achieved through professional mentoring and the advent of internal universities to groom skills. Thus, most Ukrainian IT companies train their employee in some basic English course and other courses like IU/UX design, QA, software testing, business and so on.

Performance Appraisal: This is the process whereby employee gains better insight into their strength. On the other hand, it is also the process of generating formal feedback on actual work results. It is usually conducted once or twice per annum by HR specialist or employee. The process actually culminated into dismissal, salary review, promotion, and rotation.

Career Planning: This is mostly initiated by HR specialist to develop and dispense an effective individual development plan (IDP).

Compensation Management: This implies salary review which is meted base on a good performance, promotion and extra work responsibility.


A good culture of entrepreneurship must be nurtured in other to pave way for creativity, new innovation, and encouragement. This will encourage your employee to gladly stay.


This involves both clients and outsourcing vendor. Ukrainian IT companies have over time promote proper partnership with their developers by investing in their education. Also, clients have remunerated the good deed by working very hard to ensure the companies remain at the top among equals.

In conclusion, Ukrainian IT outsourcing companies through efficient strategies such as good entrepreneurship culture, lasting partnership with customers, good management, career advancement opportunities and so on have managed to keep the employee retention rate skyrocketed.