3 Ways to Boost Employee Retention in the IT Industry

The information technology (IT) industry is vital to the global economy, powering innovation and driving progress across sectors. However, like many industries, the IT industry has a problem with high turnover.

Why is this a problem, and what can IT companies do to improve employee retention?

Let’s look into it.

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RELATED: IT Skills Gap: What It Means and How To Respond

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What is the Attrition Rate in IT?

An employee attrition rate is the rate at which employees leave an organization, typically expressed as a percentage. As we’ve previously explained, attrition rates and retention rates both reflect the health of your workforce, but they track different data.

LinkedIn routinely shares attrition rate data across industries. “Information technology” is a broad term, so the industries tracked are more specific, but they still tell a story about attrition.

• In 2018, the computer software industry had the highest industry turnover rate at 13.2%
• In 2022, professional services (including IT consulting) had the highest industry turnover rate at 13.4%
• Also in 2022, tech and media had a 12.9% turnover rate

Research indicates that the attrition rate in tech isn’t getting any better. A 2023 PwC survey found that while 64% of tech employees were satisfied with their job, 32% of tech workers were also likely to change jobs within the next 12 months.

But why does this matter?

The Impact of Attrition in the Tech Industry

High turnover rates cost money—and not just from the lost productivity when you’re short-staffed. There are also the hiring costs of recruiting and onboarding, plus the continued productivity dip as new hires get up to speed.

Losing experienced talent also means losing institutional knowledge, which can hinder innovation and disrupt team dynamics.

What can be done to improve employee retention in IT?

3 Ideas to Develop and Retain Employees in IT

While a company can take many approaches to improve employee retention, these ideas are targeted specifically at retaining IT workers.

Invest in Career Development

Employees want to stay with companies that offer opportunities for growth and development. Career development may include access to:

• Technical training programs
• Workshops on soft skills development
• Resources for continuous learning outside of formal structures
• Mentorship programs
• Upskilling

Upskilling is a dynamic way to build a loyal, highly skilled workforce and bolster competitiveness. There are many ways to provide upskilling opportunities for staff, including regular in-house training sessions, tuition sponsorship programs, or subscriptions to online courses and certifications. Upskilling initiatives ensure that employees remain at the cutting edge of their field, equipped with the latest knowledge and tools to excel in their roles.

Offer Flexible Work Options

Many tech workers have become accustomed to hybrid or even fully remote work schedules. Even if you need employees to return to the office, there are ways to offer flexibility for your IT staff.

• Offer flex hours
• Encourage self-management
• Create versatile workspaces
• Implement employee feedback

That last one is important. Find out what matters most to your employees. Do your best to accommodate those priorities.

Implement DEIB in the Workplace

Attrition in tech is already a problem in general, but it’s a bigger problem for certain demographics. For example, one study found that 50 percent of women who take a tech role drop it by the age of 35, compared to about 20 percent in other types of jobs.

But the problem isn’t just high rates of attrition in IT. The bigger problem is why certain groups of people quit their IT jobs. The Kapor Center did a study in 2017 to find out why people left technical roles.

They found that unfairness or mistreatment within the work environment was the most frequently cited reason for leaving.

However, the Kapor Center also found that implementation of diversity, equity, inclusion, and belonging (DEIB) initiatives decreased unfairness in the workplace and increased retention of IT employees. Here are some common DEIB initiatives:

• Hire a DEIB Director
• Set specific DEIB goals
• Offer DEIB training
• Establish employee resource groups (ERGs)

Learn more about how to implement a DEIB strategy for your business.

Retain a Skilled IT Workforce with Insight Global

As IT continues to evolve rapidly, the strength of your team is your greatest asset. At Insight Global, not only are we a leading IT staffing agency, but we also set the industry standard with our retention rates.

We find IT candidates who excel in their roles and connect with your workplace culture. We continue to engage with these workers throughout the length of their contract, providing an unparalleled level of consultant care.

Are you ready to learn how Insight Global is changing the staffing industry? Fill out the form below, and a hiring partner will reach out shortly.