Turnover at tech companies is extremely high. In ten top tech companies such as Facebook, Google, Airbnb or Uber, the average employee turnover is between 1-2 years. High turnover is costly, time-consuming and affects company productivity.
Why staffturnover in Tech companies is so high?
The high rates of turnover in Techare a result of many factors such as:
- Increased demand coupled with a supply shortage in software engineering and sales roles,
- Employees can command higher salaries by job-hopping,
- Tech company culture problem. According to a study from the Kapor Center for Social Impact, nearly 40% of 'tech leavers' did so after experiencing unfairness and mistreatment related to their gender or racial/ethnic identity.
Here's what your company can do to retain your employees better:
1. Show them you value them
Make sure you acknowledge their contributions, and overall value to the team and the organisation. Establish how each employee on your team likes to be recognised. While some employees might prefer a personal thank-you note after a successful, long-term project, others might enjoy being nominated for an industry award or another form of public recognition for a job well done.
2. Devise a long-term career growth plan
Many workers want to advance their careers and feel challenged. Your employees will be less likely in looking somewhere else if they know they can accomplish everything they want within your company. A well thought out plan offering career development or training in the areas they're most interested in does just that. Giving your staff the opportunities to develop and expand their knowledge, skills and experience can be a big contributor to employee retention.
3. Be proactive
Try to not wait for the tech talent in your group to ask for more money. Make sure that their salary is in line with others in the industry (check out Cpl's Salary Guide). Even if it is, maybe consider boosting it or offering an unexpected bonus for exemplary work. Ask for their thoughts, input or leadership on an interesting project to keep them engaged.
4. Build a strong company culture
Your company culture defines the way in which employees in your organisation interact with one another and how the team interacts with the outside world, like your partners and suppliers.
It's the formula that guides the team, as well as inspires and motivates employees. Company culture plays a significant role in attracting and attaining great Tech talent, as well as creating a fun, happy and exciting work environment.
Companies without a strong company culture often see high turnover rates.
5. Listen to them
By creating an environment where open feedback is welcome and expected, your employees will tell you everything you need to know about their job satisfaction. If they know they have a voice, they won't take their frustrations elsewhere.
6. Track and measure employee engagement
It is critical to understand why employee engagement is key to retaining your talent and gaining real value from it. By measuring it you can improve your companies turnover rate. Employee engagement is usually tracked and measured through surveys, focus groups, one-on-one meetings or other tech tools.
By following these 6 steps you can help boost your retention rate.