For anyone employing technology professionals, staff turnover is a painful yet inevitable part of doing business.
A certain level of employee attrition is normal, healthy and expected for organisations. (Imagine if nobody ever quit your team!) However, a higher-than-average attrition rate often correlates with higher IT recruitment costs, as well as sluggish productivity. It’s a pattern we’ve observed in all types of hiring markets, and the current environment is no exception.
Knowing how to keep employees from leaving – that is, your best people – is an important business strategy and a highly consequential one at that. Having a strong employee value proposition (EVP) enables your organisation to achieve that coveted balance between attracting new talent and holding on to quality existing talent. EVP for tech employers isn’t just a corporate buzzword – it’s the key to having an engaged workforce.
The Current State of Employee Retention
Over half of the employed population has worked in their current job for less than five years – indicative of a trend towards more frequent job changes. Meanwhile, 38% of Australian employers say they find it difficult to recruit.
From these data points, we can infer that people will certainly not stay put if they’re not happy, even if economic conditions are causing employees to be more cautious about changing jobs.
This is particularly true for skilled professionals, such as your software engineers, analysts and project managers, who have the most capital in terms of knowledge and experience. So, from an IT recruitment perspective, an effective EVP for tech employers not only adapts to current job market dynamics but also help you build more committed teams for the future.
Factors Affecting Employee Retention
Research by Gartner found less than one-quarter (24.3%) of Australian employees consider themselves to be ‘highly’ engaged at work, whilst 73.9% say they are only ‘somewhat’ engaged. Digging further, Gartner identified key factors driving employee retention to understand what makes people feel engaged at work and what makes them quit:
Compensation/salary
Unsurprisingly, an employee’s pay packet influences their decision to stay in their job or apply for a new role. Interestingly, it’s not the top consideration according to Gartner’s findings, but it’s still in the top three! To prevent discontent about pay, ensure you are offering competitive base pay as an absolute minimum (we can help you with benchmarking). If not in place already, do consider perks like performance-based bonuses, enhanced superannuation contributions, and offering discounts or lifestyle benefits to your employees.
Work-life balance
Work-life balance ranks as a key driver of both employee attraction and attrition, up there in the top three in Gartner’s survey. Keep a close eye on workloads and how resources are allocated to manage them. Offering flexible work schedules, options for remote work and paid leave for personal matters are also ways to show your organisation is serious about work-life balance. Consider how your organisation embeds work-life balance into its culture, rather than treating it as a perk.
Leadership
The truism that “people quit managers, not jobs” still applies, echoed in Gartner’s finding that manager quality is the top factor driving employee attrition. For organisations, it’s sensible to invest in leadership development programs to help managers hone their people-leading skills, equipping them to support their teams and keep them engaged. Trust and transparency are two keywords for managers to live by.
Career Advancement
A common motive for job seekers to look for other opportunities is the feeling of being stuck without opportunities to advance. PWC research has shown that ‘better training’ is one of the top three desires of workers. Look for ways to provide professional development and training, promotion opportunities and mentorship programs.
How to Build a Strong EVP
With these factors of employee attraction and attrition in mind, how do you go about developing a compelling employee value proposition? Here are the key steps:
- Assess: Begin by understanding your current EVP – including how it’s communicated both internally and externally. How are you addressing the key factors that affect employee satisfaction, such as work-life balance, remuneration, and leadership? What are your organisation’s stated values and policies that relate to employees?
- Evaluate: The next step is to compare your perceived EVP against the actual perceptions of your employees. Give employees regular opportunities to share candid feedback in one-on-ones and Aim to learn what your employees value in their roles and how their experiences align with how leaders perceive the organisation’s EVP. Feedback is key for uncovering discrepancies between what leaders see and what employees are experiencing. Gathering exit survey data can be particularly helpful in understanding turnover and retention trends. According to an Australian HR Institute report, 83% of organisations use employee exit interviews for this purpose.
- Plan & Adapt: Armed with the knowledge of the gaps between your assessed EVP and your employees’ evaluations, it’s important to adjust your EVP to respond effectively. Consider how changing aspects of your EVP can make your organisation more appealing to your current employees and future talent.
Final Thoughts
There is no final word on how to keep employees from leaving when you don’t want them to. However, it is possible to take a holistic approach in building a workplace where your teams feel adequately rewarded and engaged – and more likely to stay for longer!
Remember that an EVP should never be static – this process is one of continual refinement and responsive to regular feedback and job market trends. Regularly reviewing your EVP to reflect changing workforce needs will mean you stay ahead of the curve and ultimately lead to stable, long-term business success.
Get More EVP Advice from a Leading IT Recruitment Agency
When it comes to refining your EVP, partnering with an experienced IT recruitment agency will give you essential guidance on how to make it resonate with potential candidates.
At Exclaim IT, we know what it takes to attract top talent to your organisation and keep your best people. We will take the time to understand the nuances of your EVP and execute a recruitment strategy aligned with your values and vision. Ready to find your next great hire? Reach out to us today.
