The technology industry is expanding year on year. In 2020 it is estimated to be worth 5.2 trillion globally, consisting of more than 50 million technology professionals with a growth projection of 3.7%.
It is, however, facing a serious problem in high staff turnover rates. According to a recent LinkedIn Survey, the technology industry is ranked as having the highest industry turnover with a rate of 13.2%, costing those who operate in the sector a huge amount in both time and resources.
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Reasons for the high turnover rate in the technology industry include – 1) a talent shortage and surge of high paying jobs giving tech talent a market advantage to negotiate bigger pay packets, 2) a lack of opportunity for advancement and professional development, and 3) toxic work environments.
What can be done to improve staff retention in tech?
Offering competitive remuneration can directly impact staff retention. Tech employers need to make sure talent is receiving competitive pay to discourage them from moving to competitors for a salary increase. It is important to research market rates and make sure as an employer you are offering packages that attract and retain talent.
Investing in learning and development opportunities is a must! To retain talent, it is important to provide ongoing learning and development opportunities and create an environment that advances employees within the business. As the tech landscape evolves and develops it is more important now than ever to make this a top priority.
Company culture is paramount. It is important to drive diversity and inclusion within the workplace. Tech workers have a lot of options and will not want to advance themselves in a company that tolerates a discriminatory work environment.
Aligning your benefits with the needs of the talent you are hiring is key. A lot of workers are looking for flexible work schemes and work-life balance as well as an innovative environment. The tech industry is well known for its quirky workspaces so making it appealing to the talent is a great way to keep people happy at work.
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If you are an employer operating in the tech industry, it is important to look at using a combination of the above options, as well as identifying employee pain points and areas for improvement when tackling staff retention.
Using competitive salaries is a strong technique for retaining staff but not enough on its own for some employees to remain loyal towards their employer.
Employers must look closely at learning, development and training and where they can best invest and support employees’ long-term needs. It is equally important to consider how the work environment is perceived and evaluate how benefits such as flexible working can be implemented with the goal of creating a positive and productive environment that keeps employees happy and engaged long term.
Liz Waddams’ focus is on recruiting Asia's top talent in User Experience, User Research, CX, Service Design, Project Management, Program Management, Product Management, Data and Technology space across a broad range of different sectors including Financial Services, Retail & Luxury, Fintech and Technology and Insurtech.
Contact Liz Waddams - lwaddams@space-exec.com today to find out how she can help you build your technology and design team.
