The Cost Of Employee Turnover Rates
Technology’s influence in managerial, financial, and operational practices becomes more evident day by day. The impact of losing top Information Technology (IT) talent can easily translate into an added cost ranging from 50% to 150% of that person’s annual salary. Human resources have the uphill task of reducing their employee turnover rates for in-demand professionals covering programming, analysis, tech-support, technicians, admins, and project management roles.
Let’s take a closer look at some of the reasons increasing your employee turnover rates, and the different alternatives to retain your top talent.
Why Your IT Employee Turnover Rates are Off The Chart
- Most IT employees are self-aware of the importance of their work and how it impacts the organization’s bottom line. Although a fair salary is certainly important, these employees are in high demand and typically don’t lack job opportunities. Note that the right salary will not be enough to retain top talent if employees can’t nurture their true passion for technology and work with pleasure.
- Carrying such responsibility in the company can also affect employee turnover rates. Evaluating how high-stress levels are impacting productivity and efficiency is a good practice when crafting the right work-life balance strategy for your employees.
- The tech industry’s rapid innovation is another element to be considered. IT employees will be discouraged if the right training and certifications are not offered since it raises concerns about IT outsourcing and offshoring. These include education in programming languages and tools, network and cloud technologies, and servers to name a few.
- Lack of knowledge and responsibility: note that training should be accompanied with an environment that allows room for growth and opportunities to move up the chain of command. Without the latter, there is a risk of increasing their turnover rates.
- Training beyond IT: numerous professionals in this field lack communication skills to express the right ideas, such as: English, project management skills, leadership and communication skills, and both creativity and systematic insights.
The 8 Strategies You Need To Reduce Employee Turnover Rates
The Rise of Corporate Giving
Companies nowadays are also looking into the future and following a philanthropic approach. The incoming millennial workforce is placing a strong emphasis on corporate giving like never before. Companies need to take the right approach to leverage team building through volunteering opportunities and charitable donations to showcase to their audience. This approach will assist cause marketing strategies, attract millennial talent, and reduce employee turnover rates.
Companies like Google, Facebook, and Microsoft are well known for their job perks, and their investments to improve work-life balance and job satisfaction. Discover the right KPI needed to measure employee turnover costs and level-up to the very best today.
-  Dixon, Sherry Ann. "Retention of Information Technology Employees." Walden University ScholarWorks. N.p., Dec. 2016. Web.