The Role and Salary of COOs at Ukrainian IT Companies

Twitter
Linkedin
Facebook
Telegram

In reality, the responsibilities of the COO are determined by the number of ‘holes’ and and ‘fires’ at their company

Salary review IT Professions Management COO Top manager


The Role and Salary of COOs at Ukrainian IT Companies

In reality, the responsibilities of the COO are determined by the number of ‘holes’ and and ‘fires’ at their company.


In an ideal world, there is a CEO who formulates strategy and works on business growth and development, and a COO who implements the strategy by building work processes and controlling them. While the CEO is focused on the external world, the COO is focused on the internal world of the company.


The world of IT is young and immature, which explains the vagueness of roles and responsibilities within the field, as well as the chaotic distribution of wages.


Let me remind you that we published a review of C-level executives’ salaries earlier. Here we are digging deeper into details and looking at certain positions from the survey.


This article is based on data from 23 COOs working at Ukrainian IT companies. 70% of the companies were established in Ukraine, 9% in EU countries and 17% in the USA.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 1. Countries of origin of IT companies
44% of respondents work in IT companies with 21 to 80 employees, 26% in those with 81 to 200 employees and 17% in those with less than 20 employees.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 2. Number of employees in IT companies

The Role and Salary of COOs at Ukrainian IT Companies


Fig. 3. Percentage of participants from outsourcing, outstaffing and product companies
Now, a few words about the role of COOs at Ukrainian IT businesses. They are tasked with turning strategy into operational plans for their company’s divisions and monitoring target achievement indicators. In addition, they are in charge of delegating the resources needed for smooth day-to-day operations related to people, money, office equipment and supplies, etc. They also oversee the legitimacy of the company’s actions and legal defence. I’ve even met COOs whose responsibilities extended to the marketing and sales departments, as well as product team management.


Usually the responsibilities of COOs depend on the size and maturity of the company, (In small startups everyone does everything. ), and the staff’s competencies. The most responsible employee normally takes on the most duties. Yet ‘putting out fires’ is one of the responsibilities of COOs at all IT companies.


Based on our survey, we can conclude that the salary range is determined by the range of responsibilities of COOs.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 4. General salary range
Next, we will show how salary range depends on experience, company size, number of employees, etc. Again, the items with less than 5 responses were excluded, as they cannot be valid in decision making. For instance, if only 4 COOs said that their experience as top-manager was limited to 3 years, we excluded those responses as not being representative, and took into consideration only those with 5 or more matching responses.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 5. Salary range + bonus on the basis of experience in top-management
The numbers indicate that 10 years of experience in top management usually results in a significant pay raise. The majority of professionals with this much experience receive $5250 monthly, (according to the market median. )


However, the COO’s job tenure does not significantly influence their salary range, (although we have no data on COOs who have been working in the company for more than 3 years. ) It seems that this job is quite stressful, and not all COOs are able to endure it, unlike CEOs.


By the way, our survey showed that the higher the tenure of CEOs, the higher their income, (on average, $10841 for those with over 10 years of tenure).


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 6. Relation between COO’s salary and job tenure
Likewise, the age of companies does not significantly affect the salary range of COOs.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 7. Relation between COO’s salary and company age
Most COOs are paid a flat salary, without any bonus based on company turnover, which explains the absence of an obvious relationship between salaries and company turnover (see Fig. 14. )


We noticed a $1000 pay rise from the companies with $1 million turnover contrasted with those from $1 million to $3 million. In the first case, the average salary is $2750, while in the latter it is $3760.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 8. Relation between salary and company turnover
Unfortunately, age and gender do still influence salaries on this position.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 9. Relation between salary and age
One can link age with experience, but how can one explain the low salary of female COOs compared to their male counterparts?


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 10. Relation between salary and gender
Having analyzed the data, we found an interesting correlation: The older a man becomes, the more he wants to earn, in stark contrast to women.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 11. Correlation between expected salary, age and gender
Apart from salary range, we were curious to know what motivates and demotivates employees, as well as some data about working conditions.


Salary is not the primary motivating factor for COOs, ranking on the same level as culture of trust in the company (61. 5%. ) This was also the case with CEOs. Freedom in decision-making, (69. 23%), and professional development, (69. 23%), are the most important motives for these employees.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 12. Motivating factors for COOs
Among the most demotivating factors COOs must deal with are a lack of professional development, incompetent and inefficient management, and restrictions in decision-making.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 13. Demotivating factors for COOs
Salary is in third place on the scale of demotivating factors. Meanwhile, 42. 31% of respondents do not receive bonuses and do not have concrete KPIs.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 14. KPI-based bonuses
43% of СООs work only in their office, while 57% can work remotely at times.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 15. Work models
No surprise that 74% of COOs are registered as individual entrepreneurs. After all, we are talking about IT.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 16. Types of employment
The same percentage of the respondents have their salaries pegged to the US dollar.


The Role and Salary of COOs at Ukrainian IT Companies


Fig. 17. Pegging of salary to a currency
Hopefully this information will prove useful to the reader while making business decisions. In our next overview, we are going to share information about the role and salary rate of HRD in IT.


Stay tuned!


* Many thanks to Vitaliy Luzhentsov for professional help in data processing.


The Role and Salary of COOs at Ukrainian IT Companies


About the author: Ekaterina Osadchuk, CEO at Indigo Tech Recruiters , economist, professional psychologist, HRD and director for organizational development, with over 10 years of experience

Info
Author: INDIGO Tech Recruiters
2276 Views
Category C-level
14.05.2019

Common articles

Why you do not need an outstanding CEO, CTO, CFO and other CxO
You need good and competent management to make your company grow and develop. But, you don’t have to entice Satya Nadella from Microsoft. When you hire a CEO, CTO or a ma..
“Our managers spend around 30% of their time searching for talent”: an interview with Maxim Shtepa, CEO of SocialTech
From the experience of Indigo , one of the keys to effective recruitment is the dialogue between parties. That is why we have decided to publish a series of interviews ..
Why does your business need a recruiter?
This article may be of use to owners and directors familiar with Ukrainian IT realities who want to to improve their recruiting and also to those foreign companies who ar..
Overview of the salary for C-level in the Ukrainian IT market in 2019
CEO Ekaterina Osadchuk and the Indigo Tech Recruiters team conducted the second annual review of C-level salaries in IT. We share the results
Ageism in IT and how to deal with it
The author: Anya Stetsenko is an IT-recruiter, entrepreneur, and simply a happy woman. She has been managing Indigo recruitment agency since 2007 and has been bringing ne..
COMPANY IS ALWAYS MADE BY TALENTED PEOPLE. DIALOG WITH LESYA ARNOLD
We dreamt for a long time to have an interview with Lesya
WHY DO US COMPANIES OPEN OFFICES IN UKRAINE
More and more of the world’s best known companies are choosing to open R&D centers in Ukraine. Household names such as — EPAM, Luxoft, Ciklum, Intetics, TEAM Internationa..
Iownit: “We keep our communication transparent, and require this from everyone in our company”
If you haven’t heard of iownit yet (which would be surprising), allow us to fix this right away. lownit Capital and Markets, Inc
Thrifty Recruiting: Soul or Flesh?
About the author: Katya Osadchuk. CEO of Indigo. Economist, professional psychologist, and a savvy HR with over 10 years of experience, 6 of them as HR Director. She know..
Does HR Help a Company Earn Money or Just Spends It?
Katya Osadchuk— CEO, IndigoIT recruiting agency, economist, professional psychologist, and HR with over 10 years of experience, 6 of them as HR Director. This article is ..
Overview of C-Level Salaries on Ukrainian IT market
Lately we’ve filled 30 C-level vacancies in IT companies and discovered that neither candidates nor employers feel confident when it comes to numbers
How to hire the best Web Developers? We know, and we are ready to share our experience.
Finding a black cat in a dark room is hard…Especially if there is no cat!
7 trends in the IT labor market with statistics (which you will surely object)
It is a thankless duty to formulate trends, as one risks to play Captain Obvious or to receive “Don’t make something out of nothing, in fact, the opposite is true” as fee..
HOW TO CREATE A DREAM-TEAM 6 RECOMMENDATIONS FOR hiring the best technical team
Closing technical position may resemble a debilitating marathon. Or sprint, when the maximum energy is laid out for a minimum of time. And when you need to hire the whole..
Good CEO VS Bad CEO. One mistake that could cost your business.
Ekaterina Osadchuk — CEO at Indigo Tech Recruiters, economist, professional psychologist, HRD and business development director with more than ten years of experience