In the last decade, heavy demand for technology has caused a boom in tech company start-ups worldwide. With many of the largest firms in the world starting as tech companies, many entrepreneurs want to get a piece of the action.
If you've been successfully growing your business, you may be at the stage where you're beginning to hire employees to manage daily operations. This is an exhilarating stage for a business owner and is usually a sign of a business that's on the rise.
The hiring process can be expensive. There is less time spent operating and will most likely result in a decrease in revenue. However, if you've ever gone through the process of employing someone before, you'll know how costly it can be.
If you're hiring someone, it would be great if they stayed for a while! High employee retention rates can really make a difference to your overall costs and profits.
Read on to learn more about employee retention in the tech sector and how experts believe firms can improve the percentage of employees staying for a period of time.
The Great Resignation
The Great Resignation has been coined to describe record numbers of people quitting their jobs at the end of the COVID-19 pandemic.
There are many reasons for this influx of resignees in the past few months. As you've probably guessed, the lockdown has greatly influenced employee retention rates.
Many employees were simply burnt out due to demanding hours and tasks when working from home.
There are also other influences, such as a shift of focus on mental health and flexible working for employees. Many people realized lengthy, grueling hours at work were not more important than family time experienced during lockdowns.
How Has This Affected Employee Retention Rates in the Tech Industry?
The Great Resignation has seen its most considerable effect on the leisure, retail, and hospitality sectors. So it's not looking to be a strong trend in the tech industries.
However, studies show that the demographic making up most of the employees leaving their jobs are 16-24-year-olds.
The tech industry has not been spared completely, though. Companies that have not adapted to post-pandemic trends have experienced a hit in their retention rates.
Employees are now cherishing social hours and activities more than ever before. There's a higher demand in employees for more flexibility and improvements in their work/life balance. Companies that aren't offering non-financial incentives to positions find it harder to keep workers.
Different firms have experienced different changes in their employee retention rates. Trends show that the companies that suffered most from the Great Resignation lacked changes from their pre-pandemic working environments.
How Do Experts Think Tech Companies Should Adapt?
The nature of tech companies means they are in a much better position than other industries. For example, it would be pretty challenging for a waiter to work from home!
Most tech companies can operate in a way that means employees don't have to come on-site every day. Therefore, they can quite easily cater to needs of higher flexibility for workers. Setting up systems where employees can work from home on some days of the week will give employees their desired flexibility without heavy reductions in hours.
Marc Churchouse is an expert in the tech sector and the founder of Mercator IT Solutions. He believes that companies need to provide more than just remote working because "workers need to feel valued and looked after."
There are several ways to go about it, but employees should feel supported and comfortable at work. Firms can offer access to gym membership and team social events to try and help workers feel looked after while they're employed.
Firms must also address a focus on mental health. Companies must adequately train managers in looking after the mental wellbeing of staff. This is something that companies may neglect in demanding remote working environments.
Many employees claim their tasks were more demanding during the pandemics. Many firms assumed that employees could complete more tasks due to a lack of long commutes and home comforts.
This led to many workers feeling isolated and overworked due to the extra hours over lockdown.
As cliche as it sounds, firms and managers must try and put themselves in their employee's shoes. Employees will be more likely to leave if they don't feel engaged with their tasks or supported by their company.
This is why firms must be asking if their projects are engaging, and their staff will feel they are gaining something meaningful from working with you.
For Submit A Guest Post Technology Category blogging check the link.
