It’s no longer about work-life balance but about life-work integration. Organizations should also focus on how best to engage them, and base their bonus structure on team-based OKRs, objectives & key results, rather than on individual ones.Īccording to both Zeale, CEO of DHI Group, and Brownridge, Deloitte’s digital workplace leader, employers should be aware of the changing employee mindset shift. Though salary is a very important driver for why tech talent quit, Art Zeile, CEO of DHI Group, advises organizations not to solely focus on a compensation-based adjustment approach for retaining them. Subsequently, companies are adjusting their compensation and bumping it up for instance, Amazon declared bumping its base salary from $160000 to $350000. That's why it's important to stay on top of the following macro trends:Īs per Dice’s 2022 tech salary report, the average tech salary has increased to 6.9% and now exceeds six figures ($104,566) showing power has shifted to the hands of the candidate. With the fast pace of change & innovation, all companies are soon to be tech companies or heading in that direction. This is extremely important for Millennial and Gen Z employees that’s why companies with a purpose report 40% higher retention and 30% higher levels of innovation compared to non-mission-driven ones. This means the workforce is placing more emphasis on the company's mission and employee purpose. Additionally, only 15% of employers attributed belief in the company mission to be relevant to resignation, while 62% of employees cited it as relevant.Īccording to tech employees’ team & company culture are nice to have, but not a reason to leave. Most employers 71% believed team& culture affected resignation, while only 24 % of employees reported it as relevant. ICONIC’s survey also noted that when it came to employer and employee sentiment regarding resignation reasons, both agreed across major categories except team & culture, and company mission. Why Tech Employees Leave!Īccording to ICONIC’s most recent future of work report, 83% of tech employees leave due to dissatisfaction with the job role, 78% leave due to dissatisfaction with career growth and professional development, 75% leave due to salary or compensation reasons, while 73% leave due to burnout.Ĭareer growth, professional developmen t, and compensation turned out to be the most important factors when switching or quitting a job. Hence making employee retention a priority can reel up your team’s productivity, improve your company culture, and reduce your expenses in the long run. ![]() In the long run, it would also lead to lower employee morale and a snowball effect where one resignation leads to another. Lower Employee Morale > Lower Productivity > Snowball Effect This might create bottlenecks, as your best employees take on some of the extra work. This can cost you approximately $33,251 apart from the onboarding costs.Īdd to that the time it takes you to bring the new employee up to speed. Apart from revenue lost, you must also factor in the time required to replace your developer.ĭevskiller estimates that you need around a month and a half, 43 days to hire a new software developer. Another study by SHRM also estimated that the cost of replacing an employee averages around 6 to 9 months of their salary. The fact is lack of a retention strategy can cost you big time.Īccording to Work Institute, the cost of employee turnover lies around 33% of an employee’s salary. Given that the average tenure of an employee at Google is 1.1 years, 1.8 at Uber, and 2.1 at Dropbox, you might wonder why you should care about retention if everyone seems to be facing the same issue. In this article, we’re going to address why employee retention matters, why tech employees leave, why they stay, key macro trends worth paying attention to, how to dodge the resignation bullet, & what it takes to thrive not merely survive. The software sector also came in third when it comes to increased quit rates showing higher resignation rates for senior- level employees rather than mid-level ones. According to BLS (Bureau of Labor Statistics) data, voluntary employee attrition rose by 50% at tech companies in the second half of 2021. Though one might think the sector was more immune to COVID & the Great Resignation than others, BLS data shows otherwise. Xpert HR cites an even higher turnover rate of 18.3% for the industry. With the tech industry booming and the competition for tech talent on the rise showing no signs of slowing down, it’s no wonder retention is a huge problem in this industry.Īccording to research from LinkedIn, the tech turnover rate stands at 13.2%, the highest turnover rate of any sector.
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