In the last decade, attracting and retaining top talent in the IT industry has been one of the biggest problems for companies worldwide. According to Visier's data, at least one in four people left their jobs in 2020, which is expected to grow even more before the end of 2021.
When we look back on our parents' careers, it was highly uncommon and frowned upon to switch jobs often. Instead, it was common for a person to remain in a company for a decade back then.
That number kept slowly decreasing in the new millennium, but the recent statistics are pretty interesting. Bridge Group's 2021 report shows that tenure today is as low as 1.8 years. Employee retention crisis is an enormous problem for IT companies worldwide since nearly 70% of them report they suffer financially when an employee leaves.
Considering the cost of recruiting, hiring and training a new employee and unwanted overtime work that is collateral in these situations, there is a clear need for better employee retention strategies.
Estimations are that one lost employee costs the company between 6-9 months of an employee's salary until they fill the vacant position.
Why is employee retention necessary for companies?
Every company focuses on its employees and employee loyalty since holding on to your talent becomes an important competitive differentiator. In essence, employee retention is a goal of reducing employee turnover and attracting and retaining top talent. If a company can hold onto its employees, it can have broader effects on its ability to work at a high level.
This is even more important in the IT industry, because of the long term projects. The success of a company depends on its employees' talents and satisfaction. As you can see pictured below, many people across the industry tend to resign during August.
The question now is what an IT company can do to make their employees happy and motivated in this highly competitive industry?
Here are five creative ways to retain employees.
1. Employee Training and Education for IT Companies
In recent years, investing in employee training and education proved to be a brilliant decision for IT companies. When the IT industry first started developing, companies didn't see how employee education was anything other than a way to spend hard-earned money. Today, it is clear that investing in education means investing in the company's long-term success. In addition, educating your employees is the best way to gain employee loyalty and retain top talent.
Studies showed that young people crave professional development and career-boosting training. More than 80% of young IT professionals claim that they would stay in the company if it offers professional development opportunities. Therefore, more and more companies have decided to enrol their employees into advanced IT courses. This way, the employees feel like they are a vital part of the company's success and, in return, the company gets more skilful and motivated workers.
The IT industry is notorious for being the fastest growing industry globally. If employees don't continue learning as their professional career progresses, they will soon experience feelings of inadequacy.
That is why more and more individuals want to enrol into certification programs or courses that will enable them to keep up with the ever-evolving industry. It's not uncommon for employees to approach their CEOs and ask for training opportunities themselves.
If you invest in your employees, you invest in your company's future. IT companies that enrol their workers into courses and training programs are more likely to attract new talent and retain top talent already within their business.
2. Remote and Hybrid Work Options Are Here To Stay
The idea that was once so far from our reach, today is a possibility. If you want to attract employees, you won't always find them under your nose. Sometimes, in order to attract and retain top talent, you have to be open to offering possibilities such as remote and hybrid work.
Due to the global pandemic, in the past 2 years, remote work saved thousands of businesses across the globe.
Although we are hopefully going to leave all of this behind us very soon, employees have already experienced remote work and its benefits. A significant percentage of IT company employees say that they prefer remote work or a combination of remote and office work. More and more companies are giving their employees a choice - choosing when they want to work remotely, and when from the office.
Remote work was worrying for businesses at first because there was a wrong presumption that people wouldn't do their jobs adequately from home.
However, it was actually proved to be a great advantage, since employees are usually more productive when they work remotely. This is a creative way to retain employees and keep them happy, and possibly lower the company's renting expenses. Since so many employees are working remotely, some companies have reduced their renting expenses by double because they needed to rent much less office space.
3. Competitive Compensation and Bonuses
Almost every week there is a new IT firm opening somewhere in the world. The IT industry is the fastest growing industry globally, and this massive growth has some consequences. What this growth means for the IT ecosystem is that salaries are constantly on the rise. As a result, everyone competes, and the best employees often go to the "highest bidder".
It's not only the tech giants that can afford large salaries for their employees anymore. Nowadays, there is a very high compensation standard amongst IT companies. Of course, some can offer more, some can offer less, but you must offer competitive salaries to your workers. The truth is, if you can't keep your employees satisfied with their compensation, they can find 20 other companies that will.
Adding regular bonuses or pay raises is an excellent way to attract and retain top talent. It is usual for employees to start with lower salaries, but make sure to give credit where credit is due. If your employees work hard, they should get rewards accordingly. Many employees leave their jobs because they don't feel like their work is being appreciated and recognized. Every IT company can gain employee loyalty and trust by simply rewarding them when they so deserve.
4. Corporate Culture Is Important for Retaining Top Talent
Not everything is about money, even in a highly profitable IT industry. Based on a survey conducted on 2000 employees, 34% said that the main reason they started looking for new jobs is corporate culture. Everyone knows that building a positive and engaging culture takes money, effort and time. It's quite a long process, but it's definitely worth the effort if you know the benefits it can bring.
Investing in corporate culture and team-building strategies is one of the most creative ways to retain employees. First off, let's consider why the atmosphere in your company is so important. Most IT employees work regular 9-5 jobs, although many exceed that limit. When you work in the IT industry, your job becomes your second life, and your office becomes your second home. Therefore, it is pretty clear that to be successful and satisfied at work, and the company needs to establish a positive culture for its employees.
Team buildings are the go-to way for companies to group employees together and engage them in fun activities. Although this is a good idea overall, there is always more you can do, even daily. For example, some companies offer their employees group tickets to the theatre or the cinema every night of the week. Others provide group training sessions or organize fun events every Friday after work. Another successful method of bringing people closer is having rituals for every employee's birthday. There is so much a company can do to get its employees together, and it can be a crucial factor for retaining talent.
5. Keep your employees engaged and up-to-date
Sometimes a company can tick every box but somehow forget the vital thing - talking to your employees. Can you imagine working hard but never getting any feedback? Can you imagine being worried or dissatisfied but not having the opportunity to speak your mind? Or have some great ideas but feel like nobody wants to hear them?
This scenario happens in IT companies a lot more often than you think. Since there is always a lot of work, IT companies are usually hectic places. If you want to retain your employees, talk to them about work, ask them for their opinion and feedback, and tell them about upcoming projects.
Don't forget to hold regular meetings so that all employees have the chance to say what's on their mind. You can organize meetings according to teams. If the teams are too large, the meetings should be divided into smaller sessions to avoid crowdedness. It's crucial for every employee to feel like they are partners of the company. They want to know what's going on and give ideas, so include them and ask for advice. They will appreciate it greatly.
Investing in your employees is investing in the future
In conclusion, it's important to remember that employees are those who keep the company going. So it is in every company's best interest to attract and retain top talent. After all, by investing in your employees' education and advancement, you invest in your company's growth.
In the end, we encourage you to leave a comment and discuss with us:
Which area companies should invest in to attract and retain top talent?
