1/17/2024 0 Comments Attrition rate in it sectorThese are the primary reasons why people stay or look for a different job. Instead, executives need to spend time rethinking compensation, the working environment and career paths. They please only a small percentage of their workers and alienate a large percentage. Their priorities are upside down if they listen to a few highly vocal players around social agendas. However, companies seek to force people back into the office in part to build a social environment. The study also found that only 5% of the respondents wanted to work in a more social environment. They also want the quiet and comfort of their own homes, where they feel they can be more productive. They find the commutes to the office onerous. They seek jobs with either remote or hybrid work environments. In the study, I referenced earlier ( why people are leaving their jobs), we found that many people don’t want to work full-time in offices. So it is essential to create a career path that supports that and motivates the engineers to stay.įinally, a step in reducing attrition is to redesign the work environment for post-COVID expectations. That can no longer be the case for IT and engineering talent that needs to remain as part of a persistent team focused on a particular tech stack or platform, as I mentioned above.Ĭompanies are highly dependent on these technologies and need their engineers to stay with a persistent team and nurture and bring other new engineers up to speed in the learning curve for those technologies. Historically, many people got promoted (and received higher wages) by moving into management. The study I just referenced about why people are leaving their jobs found that career paths and promotion opportunities are important reasons to stay or go. This is especially true regarding how companies promote and reward their people for good performance. Next, executives need to rethink their company’s talent models. It revealed that more than half of the engineering respondents were actively looking for a different job, realizing they could get a substantial raise in pay. Simply put – otherwise, the company won’t have the talent it needs.Īt the end of 2021, I blogged about a study we conducted at Everest Group about the Great Resignation and why people are leaving their jobs. The next step for enterprise executives in combatting attrition is to realize they must pay significantly higher wages (substantially above inflation) for their own IT and engineering people as well as pay more for third-party providers that supplement their staffing. So, it is not surprising that people choose to leave. That means people can walk out the door and get a different job with a wage more than 30% higher than their current wage. For IT and engineering skills, we now see market changes of 20-40% in wages. Therefore, they cannot expect to replace their exiting employees with cost-effective contractors.įurthermore, old expectations of wages rising due to inflation are simply going out the window. Along with this fact in their own business, they must recognize that the same situation is happening in the service provider community. The first step for enterprise executives is to recognize that the wage inflation rate for IT and engineering talent far outstrips the demand for talent. If technology is to continue to have a powerful role in companies’ competitive positioning, they must reduce the attrition rate. It significantly diminishes a company’s ability to keep its platforms dynamic so they can compete through them.Ĭompanies cannot afford to lose a quarter of their talent to attrition each year. When people leave, a company loses the vital learnings of the team, which took years to acquire. This is essential today, as companies have a more intimate relationship with their platforms than other technologies they become more dependent on the technology because they use it to compete and grow. The team accumulates knowledge of how the components of the tech stack (or platform) work and how the technology works with the business. Persistent teams’ increased productivity happens because they reduce the learning curve over time. Companies have demonstrated that persistent teams are far more productive and capable in supporting and evolving their technology. These are IT and engineering staff that remain on a team focused on the same tech stack or digital platform over time. This makes it extremely daunting to keep persistent teams.
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