Why Retention Rates Are Critical To Beating the Talent Shortage In Technology
It’s no secret that the tech industry is one of the world’s most skills-scarce sectors on the planet. The demand for talented professionals means that the sector is facing a shortage that is careering towards being a critical issue.
Despite doom and gloom around the world when it comes to economic growth, digital adaption is one area where businesses are refusing to slow down. As the take-up of new innovations increases and more and more companies move away from traditional methods, tech workers are one of the few groups of employees who hold genuine power in the job market.
While that means it’s essential to stay ahead of the curve when it comes to recruitment, there are plenty of other challenges facing businesses that are battling to have the world’s best tech talent within their walls. One of those is retention rates.
For example, the industry suffers from the worst turnover rate of any other profession; and it’s no use being stuck in a cycle of constantly trying to attract new workers, when making better efforts to retain them will help to arrest that slide.
Focusing on why people are leaving, and making genuine efforts to address those reasons, should be a key focus for anyone struggling in the fight for tech talent. Not only that, a happy and loyal workforce is an attractive proposition to potential new recruits.
Working on improving your retention rates is a holistic solution to your staffing problem. And while a positive culture that employees want to be part of is essential, the benefits you offer will also play a part in keeping hold of the best people.
Do your homework
Every year we survey a section of tech workers to get their opinions on the ecosystem they work within, which provides a fascinating insight into what professionals receive, and what they expect from their employers.
Most organizations have realized that there’s a limit to the remuneration they can offer, and it’s not always the deciding factor for the modern worker anyway. The Millennials and Generation Zers will be paying just as much attention to the benefits and perks on offer, as well as your wider CSR efforts.
For instance, allowing home-working can provide an employee with a greater work-life balance, meaning their day-to-day life is less stressful, with far fewer commutes sat in traffic or in packed trains, or an ability to fit their work around commitments.
Similarly, if someone has childcare responsibilities, being flexible with your approach to hours may result in cost savings to an employee that a pay rise simply won’t match. As well as the impact that this has on retention, many professionals now expect flexible working as standard, with so many companies adopting it. That’s why doing your homework and checking what your peers are offering is essential in this regard.
In short – pay attention to your retention rates!
Ultimately, the fight for tech talent is so fierce that cutting your turnover rate dramatically is somewhere close to impossible. When employees are in such demand, they hold all the cards, meaning there’s only so much you can do. Even giants such as Amazon and Google struggle in the fight to keep hold of their staff, reporting average tenures for staff of just a year.
However, that’s not to say you shouldn’t be doing something to fight it. Even a small reduction will ultimately lead to saving on hiring costs, as well as the benefits, such as increased productivity, that a happy and settled workforce bring to your organization.