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Employee Turnover in the IT Industry

Written by: Ben Nash

Article Overview: Even as companies institute hiring freezes or are downsizing, they would do well to remember that it is more cost effective in the long run to hold on to employees with key skills.

Employee Turnover in the IT Industry

Even as companies institute hiring freezes or are downsizing, they would do well to remember that it is more cost effective in the long run to hold on to employees with key skills.

When employees leave, organizations have to attend to the high cost of training and development, burnout of existing staff, and decreased quality of products and services due to the shortage of staff. Employee turnover can be a costly problem—particularly for information technology companies.

According to recently published research by Abii, Rose, and Ogula, the U.S. Department of Commerce estimates that the United States will require more than 1.3 million new and highly skilled IT workers to address the projected staff shortage. Their research examined the role of employee satisfaction in the turnover rate of employees in the IT industry and found that the following factors had the most influence on IT employee satisfaction and retention: challenging work, respect, a balanced work life, effective leadership, and a workplace that fosters risk taking.

Related Articles
  The True Cost of Employee Turnover
  Understanding and Calculating the Cost of Turnover
  Turnover, what does it cost?
  Turnover is Not a Problem
  Calculating the Value of Customized Training

Article Tags: burnout, commerce estimates, costly problem, department of commerce, effective leadership, employee satisfaction, employee turnover, freezes, information technology companies, key skills, risk, staff employee, staff shortage, turnover rate, u s department, united states



Related Forum Posts
Post subject: It's Not Personal, just business - I so agree! Actually, the business world as we know it IS in trouble. I heard some stats last week that they expect by the time 2050 that 70% of workers will be freelancers. Employee/Executive Bullying won't be able to stand it when it could be easier for someone to simply contract with the nicer guy (or gal). I, for one, will be choosing the nicer ones!
Re: Twitter releasing real time analytics - Hi Evan, Thanks you for the heads up on that, it will be interesting to see how the analytics works out but Twitter has had to evolve pretty quickly to keep pace with the requirements of the Industry so I suppose it was a natural development. regards, Mal.
2 Forums Updates - Many of you have been writing in suggesting that on my website and in my newsletter we include the link to the actual forum post and not just the name of the post and a link to the Forums home page. Well, after looking into it I'm pleased to announce that this feature is now available. Thank you everyone for the suggestions! We've also added names for members based on how much they post. Level one is Newbie, Level 2 is Intern, Level 3 is Employee and so on... There are 10 levels in total. I'm looking forward to seeing how everyone does! Keep the suggestions coming - they are great!
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Finding AND Keeping Good People - Employee retention or as you mention “Keeping the Good People” is one of the biggest challenges for any growing business. It takes a huge effort from the entrepreneur’s end. I can come up with the following when it comes to KEEPing the good people- 1. Motivation of the employees 2. Recognition of the needs of the employees 3. Activities to make the employees feel valuable towards the organization 4. Make benefits more accessible 5. Offer profit sharing incentives 6. Create clear career paths at the company 7. Consider telecommuting, job sharing and other flexible working arrangements 8. Incentives are essential and they don't have to be huge 9. Have other managers praise an employee's work 10. Be sensitive to the balance between work and private life


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