Attrition is one of the grossest problems in today’s cutthroat IT talent marketplace. Unfortunately, many businesses have no one but to blame themselves for high employee turnover rates.
Attrition rates tend to shoot up when the economy is at its peak because IT professionals tend to be more confident in securing a better job, higher pay, or cultural fit. Employee turnover rates have become a constant headache for hiring managers, talent acquisition experts, recruiters, and HR professionals.
Often a high attrition rate costs businesses loads of finances in lost resources, productivity, training, and recruitment. Worst part: high employee turnover rates leads to an increase in the number of dissatisfied employees and remember that disgruntled employees can throw your business off the track completely.
Time to pay heed
Studies continuously have showed that a staggering number of IT organisations are failing to make efforts when it comes to defining expected job timings, bettering infrastructure, etc. Employee retention in the volatile IT talent market is very challenging these days. Whilst some organisations do have programs and policies in place to curb attrition rates, most of the efforts turn out to be uninspiring and dull. So it’s time to pay heed and learn from the mistakes of yesteryear. This is the reason employee retention is more important than ever for HR in 2018.
The ‘X’ factor
Whilst a majority of business managers and HR leaders cited compensation as the key driver for attrition, there are various other aspects to make an employee stay or quit. For instance, employees expect a perfect work-life balance, vacation time, benefits, perks, culture, career development/growth, etc. Unfortunately, there are several loopholes when it comes to IT professionals’ awareness towards the benefits packages and programs which if bridged can improve retention rates significantly.
Though there may be programs and packages in place for addressing the attrition problems, these are not properly communicated to the employees. Communication is a severe problem with most of the IT organisations. HR managers and business leaders may believe that they are putting in all they can to retain the best talents, but unfortunately, all these efforts might not actually be reaching the target employees. Thus, communication is one of the must-have HR management skills in 2018 to mitigate turnover problems.
Remuneration is imperative and businesses ought to ensure that they pay their employees competitively that is in line with the industry and market considering cost of living and to curb job-hopping. A competitive salary is a must and IT hiring professionals must have a thorough understanding of the tech market’s demand and supply for IT skillsets.
Remember that you are not only competing with other IT organizations for talents, but you are also competing with all those organizations that are recruiting for IT skills. Thus, compensation ought to be competitive besides growth opportunities and career development.
IT organizations ought to accept the fact that attrition is real and work accordingly to implement robust programs and policies in place that go beyond compensation. Failing to understand this grim reality may trigger the need to reboot your entire workforce planning strategy.