Don’t Take IT Employee Loyalty for Granted
According the latest numbers from the U.S. Bureau of Labor Statistics (BLS), IT workers have been an increasingly loyal bunch. Average time in a job has risen nearly 30% since 2010, up to the current 7.7-year stint. The national median for all occupations is only 4.6 years, so you could say that IT workers are 67% more loyal than average.
These kinds of numbers make IT hiring managers do a happy dance. After all, the cost of replacing a high-level tech employee can reach 200% of their annual salary, depending upon their skills and the company’s investment in training. But don’t reach for those dancing shoes just yet. Unfortunately for tech firms, the numbers say that the current trend of employee stability is likely a result of the poor economy. A recent Kelly Services survey of over 10,000 IT workers found that 65% are planning to search for a new job this year, a 5% increase from 2009 – and the improving job market means that more new positions are out there for those who chose to look.
So what can IT organizations do to avoid costly turnover and keep top employees? The first step to developing an effective retention plan is knowing what your employees really want. “You’ve got to offer more than salary to entice and retain people,” says Matt Chasen of Austin-based shipping company uShip. With a turnover rate that’s half the national average (1.5% versus 3%), Chasen knows what he’s talking about. Some of his organization’s key strategies include strong lines of communication between employees and management, mentoring and promoting from within, and offering perks such as an on-site chef who prepares lunches. Other firms are taking part in the growing trend of “stay interviews”, which, as the name suggests, are conducted with current employees in an effort to reveal the reasons behind their loyalty.
The Kelly Services survey revealed other attributes that can boost your retention rates. Overall, IT professionals are seeking companies viewed as “innovative”, with a “strong market presence”. A Gallup poll on employee loyalty puts yet another spin on things -the idea that employees are loyal to people rather than companies. “If you’re looking for a silver bullet, it is the quality of the relationship between an employee and his or her manager that determines the overall level of employee engagement,” says James Harter, Chief Scientist of Workplace Management for Gallup.
The bottom line, however, is that some employees feel that their only choice is to move on. In the Kelly Services survey, 55% of the respondents believed that changing employers was the key to their career growth and development. So while IT hiring managers should definitely focus on retention, they also need to develop strategies for handling employee turnover – and Triumph Services can help with both. Contact us today to learn more about the wide range of services we offer, and the 15 years of experience that keep our clients coming back for more.
