Improve Talent Retention And Save Big Bucks
Every time an employee leaves your company it creates costs that might be much more expensive than you think. It is estimated that turning over a single mid-level IT professional can cost an organization upwards of $150,000. The hiring and recruiting costs make up approximately 33% of these expenses. This includes advertising a position, background checks, and interviews. What about the remaining two-thirds? Training expenses and loss of productivity during training account for close to 40% of turnover costs. The remaining 27% is attributed to intangibles such as loss of organizational knowledge and resulting client turnover.
According to LinkedIn the turnover for IT professionals is higher than in other industries. This is particularly true for high-demand talent. Java Developers and Mobile Developers have turnover rates that exceed 20% nationally. While turnover is inevitable, it is easy to see that incrementally reducing your rate can save you big bucks. These five strategies can help you reduce turnover in your team.
Hire the Right People
Retention begins during recruiting. Screeners should look for indications that a candidate will stick around for the long term. For example, it may be wise to filter out applicants who jump from job to job during the initial review stage.
Provide Clear Career Development Paths
Opportunity breeds ambition. If you provide your employees with clear career development paths including ongoing education and advancement opportunities, you will benefit from their ambition. If you don’t provide these opportunities to your staff, rest assured someone else will.
Offer Customized Benefit Packages
As much as possible you should tailor your benefit plans to individuals. Managing this will require a high level of sophistication from your management team as they will be required to have a deep understanding of your team as individuals. This investment will pay off through improved morale, greater job satisfaction, and ultimately higher retention rates.
Develop Managers to Become Leaders
It has been said that employees don’t quit their jobs, they quit their managers. It’s no longer enough that a manager is proficient in the nuts and bolts of their departments. Provide your management team with motivational skills, conflict resolution training, and effective communication skills to move them from being managers to becoming leaders.
Instill a Culture of Pride
People who work for companies they are proud of tend to stick around. Create a culture of pride through your charitable and community initiatives. Rather than simply writing checks, look for opportunities to engage your team through volunteer opportunities in the local community. Hands-on local involvement provides your staff members with a sense of accomplishment and pride in both themselves and the company.
Danielle Foppe is a Recruitment Manager at Business Centric Technology. If you are interested in learning more about how to get the best IT talent in the Dallas metroplex, contact Danielle specializes in recruiting IT talent in Dallas, Ft. Worth and North Texas. If you are looking for a rewarding career contact us today.