The IT industry environment nowadays is highly dynamic, and the variant of such behavior can also be seen in the workforce. Where there is the element of change, unstable behavior is probable high staff turnover is the key indicator of the situation. IT Staff Retention is, thus, what every organization looks for.
So, What is Staff Retention?
The phenomenon of fostering and creating a positive work environment to retain productive and talented IT staff is known as staff retention.
“Retention" is not only about exciting tasks and progressive technologies usage but also about the business sphere, corporate brand, and what is incredibly important - the Style of Management and People Orientation!
Let’s have a glance at some facts from recent studies:
The average staff turnover costs the employer from 16% to 213% of that particular employee’s salary to replace them with a new candidate onboard;
On average, 8 employees in 10 would have a cent percent probability of seeking a new job after they have a terrible day in the office;
Studies also revealed that 81% of job seekers had mentioned the “feeling of dissatisfaction” as the primary root cause of looking for a new job elsewhere;
More than half of surveyed respondents said that they feel underpaid;
70% of respondents (staff members) would be willing to leave their current job for another organization that’s ready to invest in the learning and development of the employee;
“Employee development” is crucial in managing the organization’s turnover rate.
Why is IT Staff Retention Important?
High employee turnover is never good for any organization. There are numerous direct losses, like costs and decreased revenue, but some indirect costs can also be seen as productivity losses. It’s because when employees leave an organization, they take their knowledge, skills, and experience with them, and it causes the organizational needs to suffer. Even if you hire a new replacement for the company, it still takes a lot of time and training to equip the new employee with the needed skills and expertise.
Employee Development is another major cause of switching to a new organization as the employees are proactive to excel, become experts in their field, and are willing to gain knowledge and experience to advance their careers and work. That’s why employees start to feel that their growth and exposure to learning and new opportunities have become stagnant. They start looking for better options to captivate their career development.
Reasons for High Staff Turnover
Well, we’ve already discussed two major reasons why organizations have high employee turnover, but there are several more reasons for the same, as discussed below.
- No Recognition At All
Every employee seeks recognition for the dedication he pays to work. Of course, it sounds senseless when after working with complete dedication, employees get no recognition, and this makes them find a better company where their efforts are appreciated, therefore leading to frequent staff turnover.
- Unhealthy Work Environment
The work environment is always the first thing that holds a priority place for every employee. So, when the work environment becomes toxic due to specific reasons like partiality, office politics, etc., the employee takes no time to switch the company.
- Unsound Relationship with Manager or Superiors
Relationships matter most when working in an organization, and managerial relations matter the most. Unsound relations with the manager endanger an employee’s long-term sustainability. Hence it becomes another reason for staff turnover.
- Rigid Work Timings
Considering the current work environment and prevailing work culture, the working mechanism has become quite flexible. Employees no longer prefer rigid work schedules, as now they are rated based on their productivity and not just the number of hours they give.
- Dissatisfaction with Payscale
Payscale is one of the strongest factors that make an employee stay or leave the organization. Employees who feel dissatisfied with the pay scale are more likely to switch to better opportunities.
- No Perks and Benefits
Most companies offer numerous perks, including monetary and non-monetary benefits for their valuable employees, to keep them happy and satisfied. Employees don’t tend to stay in companies for long where no benefits are provided to the staff other than salary.
- Poor Learning and No Development Opportunities
Today, everyone wants to learn, grow and develop their career opportunities. When organizations don’t offer training and development programs to their employees, it makes them feel undervalued, and thus they start looking for better alternatives.
Benefits of IT Staff Retention
The staff retention rate is the barometer of how well companies keep their workforce. Companies having low staff turnover rates tend to have a more stable organizational structure and long-term relationships with employees. Let’s have a look at some of the most prominent benefits of IT staff retention.
- Hiring Becomes Cost-Effective
Hiring is considered one of the most expensive affairs for every organization. Thus, getting a new team on board seems costly. Therefore, the company should try to keep the existing staff happy and motivated so that there is a low employee turnover rate, which will tend to decrease the hiring costs.
- Highly Skilled Workforce
When the organization is ready to invest in its existing workforce for their development and skill training, it not only adds to the employee’s value, but it also adds to the company’s value at the same time. Therefore, the employees who get development opportunities at the same company will stay loyal to the organization.
- Improved Revenue Graph
When the organization has low employee turnover, it will add to the company’s productivity and revenue, thereby improving the graph with a continuous upward trend.
- Customer’s Trust in the Brand
A happy workforce always gives its 100% and when the workforce entertains the customers to the fullest, it creates a sense of trustworthiness among the customer base, thereby inducing a sound customer journey. Organizations with high staff turnover often face fluctuations in their performance, which hampers the company's growth due to unhappy customers, that’s why employee retention plays a vital role in winning the customers’ trust.
- Spirit of Teamwork
Employees with years of bond with the same organization become an asset to the company and collectively show their teamwork in every task they perform. After all, the real power of every organization is its human resources.
How is IT Outsourcing Helpful in Employee Retention?
Employees are proactively engaged in working and excelling in their overall development, and thus they prefer flexibility in everything. Be it the work timings or location of work, they seek comfort, and therefore, the need for such a work culture gave rise to remote work, which we often refer to as outsourcing.
IT outsourcing is one of the most preferred patterns that almost every organization has adopted, and of course, it’s because the workforce prefers flexibility.
Global Teams, after analyzing the market trends in depth and with years of experience & expertise in managing human resources, provides a hiring solution that fulfills your hiring needs and offers you a competitive advantage. The experts believe that remote work culture proves to be more productive and cost-effective, and that’s why we make the process more streamlined and accessible.
Flexible work culture;
Refined team structure;
Cost-effective hiring process;
Active client support;
Customized services as per client’s preference;
Experts are always ready to go the extra mile.
Get started today. Don’t worry anymore about getting the right team on board. Our experts understand your needs well.