5 Causes of Employee Turnover at IT Companies and How to Avoid
Having a high employee attrition rate, which is the rate at which employees leave a business, can affect the bottom line of businesses of all sizes. But even more interesting is how the IT industry is affected by this problem. According to a recent PayScale’s Employee Turnover Report, the employee turnover rate among Fortune 500 companies in the IT industry is the highest among all industries surveyed!
The negative effects this has on your business can be particularly detrimental due to the limited resources and time you may have available to find that qualified replacement, as well as lost productivity, and extra money spent in the process. Generally, employees who are satisfied with their jobs will not give them up, therefore, high turnover is usually indicative of a problem within the organization. That’s not to say that every employee who leaves your company is unsatisfied, but if you have major turnover, you should try to isolate the problems that are causing the turnover, and implement steps to stop the bleeding.
Five of the most common reasons employees seek a new position elsewhere
- The employee’s skill-sets do not match the position they were hired for. Employees who are placed in a job that is too difficult for them, or whose skills are more advanced than the skills the position demands, may become discouraged and quit.
- Employee(s) feeling under/unappreciated. They generally believe they’re working hard and doing a good job, and a little acknowledgement every now and then would be expected.
- Unequal or below-par wage structures.This can cause great dissatisfaction and can drive some employees to quit.
- Lack of opportunity for advancement or growth within the organization. Once they have reached a certain level, they get the feeling that they have plateaued, and can see no room for future growth. Now they will seek new avenues to further their career.
- Inadequate training or substandard supervision and guidance. They need guidance and direction to learn and advance within an organization. Without it, they feel like an unimportant and insignificant employee who is not worth the boss’ time.
With that being said, you now need to take corrective action to keep the talent on your team! If a businesses want to ensure their employees remain with the organization, they must identify the positive aspects of their business that will make employees want to stay, and keep emphasizing those points.
Five tips to stave off the attrition cycle and get your IT employees to stay
- Give them more desirable benefits
- Offer them pleasant and engaging work environments
- Provide a career path, and let them know there is an opportunity for growth/advancement in the company
- Pay them their worth, or even above scale for those critically important employees
- Reassure them and don’t let them panic; let them know they have job security!
To help minimize the attrition risk, give employees those special perks that they’ll perceive as overly generous; like flexible working hours or above-average pay and benefits that may convince them to stay in a job that they would otherwise leave. This will make their position more important, rewarding and fulfilling!
If you’re interested in finding a highly skilled IT Professional who will match your company’s culture, while also minimizing future employee attrition, speak with one of our IT staffing consultants at CultureFit. CultureFit is a full service Technology Staffing and recruitment firm for corporate cultures that value organizational fit, employee satisfaction, and an extremely high level of technical IT skills.