4 Employee Retention Tips for Tech Companies
Employee skill gaps continue to worsen in the ever-growing sector of software development. According to the 2020 CIO Survey conducted by Harvey Nash and KPMG, 65 percent of the 4200 IT leaders polled reported having difficulty finding qualified candidates. This figure was 59 percent in 2019. As more companies rely on technology and the number of remote workers grows, the disparity is anticipated to widen.
Closing talent gaps is critical to the success of a technology company. If you fall behind, you’ll be overtaken by the tough rivalry, and it’ll be difficult to catch up. External hiring is frequently used by managers to fill in gaps left by their current staff. Recruiting new employees, on the other hand, is costly and time-consuming. Investing in your current developers and internally training for missing skills is a better alternative. Once that’s done, you’ll be able to employ recruiting or outsourcing more successfully.
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Reduce turnover
Voluntary turnover costs US firms $1 trillion every year, according to Gallup. In 2021, around 25% of professionals will have left their positions, with the cost of replacing them ranging from half to two times their annual pay. Aside from the money, you’re also losing that person’s experience, loyalty, and soft skills, as well as the morale of their team.
It’s all too easy to get caught up in the hiring process and overlook your own internal brilliance. Workers want to be able to learn new things and develop their skills. 77% of 32,500 people polled believe they are ready to upskill, and 80 percent believe they can adapt to new technology. If their current job does not give the necessary resources, they will most likely seek employment elsewhere. Both the organization and its people benefit from upskilling.
Implement upskilling
Asking your employees what they want is a terrific place to start. Use surveys, questionnaires, and discussions to talk about the skills you’re looking for and who might be interested in learning them. Upskilling opportunities that are tailored to the needs of the company will boost employee happiness and loyalty while also assisting the company in obtaining the skills it requires.
Examine the software development area in general, in addition to internal research. Find out what technologies are on the horizon or might be beneficial to include in your staff. To keep an edge on your competition, be proactive and train personnel on new abilities as soon as possible.
The next step is to figure out what kind of training your developers will need. A decent choice is to use an online learning system. Individuals can usually complete these programs at their own pace because they are adaptable. Mentoring, in-person lectures and seminars, and scholarships or tuition assistance for workers to attend outside learning are among more choices.
Implement multiple types of training for different sorts of learners whenever possible. Allow time and support so that your employees don’t have to choose between their day-to-day jobs and their professional development. Encourage upskilling but don’t make it a requirement.
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Practice smarter hiring
You can make smarter hiring decisions after confirming that you’re maximizing the talent you already have. Take another look at your hiring methods if you’re still having problems locating new staff with the right qualifications. Software development jobs are frequently advertised with unreasonably high requirements for job seekers. You can probably lessen the qualifications for candidates and train them on the job if you have an upskilling plan in place.
Consider collaborating with a nearshore software development business if you’re still experiencing gaps or need some extra help while your employees learn new skills. It provides access to a bigger talent pool and allows you to outsource some jobs at a lesser cost, similar to offshore. Nearshoring, on the other hand, offers the advantage of being closer to your firm geographically. There will be less of a time lag, more flexibility, and greater efficiency as a result of this.
Close the skills gap
The greatest method to boost employee retention and close any skill gaps your organization has is to focus on upskilling them. You can reconsider your hiring processes and bring in new engineers more carefully after you have a robust program in place. Finally, consider nearshoring to fill in any remaining gaps or to allow your employees to finish more training. In a field where top talent is scarce, having a strong workforce that keeps up with the latest technologies is critical to maintaining a competitive edge.
