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.