Are you worried about the great resignation in tech? This is a problem that is affecting businesses all over the world. But don’t worry, there are things that you can do to prevent it from happening in your organization. In this blog post, we will discuss the great employee resignation and look at some tips on how to avoid it.
First of all, let’s first understand what exactly is the Great Resignation –
The tech industry benefits from an abundance of fresh talent supply annually. However, more than 4 million people in the US alone quit their jobs in 2021- a record number, and this mass exodus isn’t unique to America. One survey found that 41% (or 11 out 15) global workers were considering their exit during 2021 according to Microsoft’s data – which means it could very well continue in 2022 as well. In another study, 39 out of 50 countries surveyed saw higher rates of employee resignations.
So what’s the reason for this Great Resignation?
Well, there isn’t any single particular factor but research shows that it is largely due to “workplace frustration“. This can have a lot of different sources and meanings, but in most cases, it mostly includes workplace culture and environment and being overworked. It could also be due to low compensation or because of negative relationships with co-workers and/or management. And let’s not forget about job dissatisfaction! LinkedIn published a study where they found out that 79% of millennials confessed to being unhappy at their jobs.
What do the statistics say?
A 2021 study by Bankrate showed that 52% of employers noticed a greater number of employee resignations within six months of joining. Moreover, 89% were concerned with how this would impact their business and 28% claimed that they had already lost some clients due to this problem.
When asked which generation is most likely to quit their jobs, more than half (55%) of the respondents said Generation Y or millennials. And if you thought that’s bad enough, more than one-third (35%) believe that employee retention will be even worse in 2022!
How the Great Resignation affected the tech industry
The Great Resignation significantly impacted the tech industry, reshaping how companies approach talent management and acquisition. Tech professionals, enjoying a market flush with opportunities, have become more selective about their employment choices. The reasons for this shift are multifaceted:
- Seeking Better Work-Life Balance: Many tech professionals have started prioritizing roles that offer flexibility, remote work options, and a better balance between personal life and work.
- Demand for Higher Compensation: With the tech industry booming, skilled professionals are aware of their market value and are seeking higher compensation and benefits.
- Career Advancement Opportunities: Tech professionals are looking for roles that offer clear pathways for career advancement and skill development.
- Cultural Fit and Values: There is an increasing emphasis on finding companies whose values align with their own, especially regarding innovation, diversity, and corporate responsibility.
- Impact of Pandemic: The COVID-19 pandemic has prompted many to reassess their career goals and seek jobs that provide more security and satisfaction.
This shift requires tech companies to reevaluate their talent acquisition strategies, focusing more on employee engagement, retention programs, and creating an attractive company culture to combat the high turnover rates.
Here is how you can avoid the Great Resignation at your company
Put an emphasis on employee well being
To combat the high rates of burnout-fueled employee resignations at your company, giving workers time off and expecting them to take it when they need it isn’t enough. Travel options remain limited so people may feel there’s no excuse for using their vacation days while others might believe that the work culture encourages always being present (despite new findings of how this can affect health).
Employees need the time to focus on their mental and emotional well-being. Many workers face a lack of fulfillment regardless of whether they are paid fairly or have tasks to perform. Organizations that provide employees with opportunities to be creative, build social connections at work, or do work on passion projects within the organization will see happier workers who are more committed.
Recommended read: 7 Employee Engagement Strategies For WFH Tech Teams
Hybrid and flexible work options
While many employees prefer being in the office, a lot of them work remotely as a result of personal commitments and circumstances. While remote working allows employees to be productive even when they’re not in the office, some people prefer interacting with their co-workers in person.
The past 16 months are proof that remote (or at least hybrid) working is the future! A recent survey shows 39% of the workers would consider quitting if employers weren’t flexible about remote positions. Among millennials (aged 18–34) this figure sits higher still at 49%. The trend towards virtual teams paired up nicely via technology means less time spent commuting each day which also helps improve company productivity overall.
Retaining talent in roles that can’t be performed from afar is becoming increasingly difficult. Some companies are looking for new amenities to offer their employees, hoping this will help create a sense of balance and preserve stability within the workplace.
The need has become so urgent because workers who spend all day commuting every week may find themselves with little free time when they arrive at home after work – unless there’s another meeting or conference call during what would traditionally qualify as “free” hours.
Recommended read: 4 Things The Pandemic Taught Us About Diverse Tech Teams
Reward loyalty
To attract the best workers, employers should offer competitive compensation packages. You have to pay people enough so they don’t think about money when deciding if working for your company is worth it. Try giving out one-time bonuses as well as student loan repayment assistance and work-from-home options. Employees love to feel appreciated by their bosses, so take the time to show appreciation via bonuses, promotions, or even just a simple email.
Focus on the big picture
While there are endless reasons why people choose to resign, lack of opportunities for growth or advancement is a major one. Make sure you regularly discuss career paths with employees and help them grow within your company. You also need to have a smooth and memorable onboarding process so the new hires feel like they’re part of something great from day one! No matter how many perks you offer, if they don’t feel welcome and a part of the team, your company will almost always have to deal with a high resignation rate.
Recommended read: 7 Ways To Reduce Burnout In Your Tech Teams
Provide opportunities for growth
Employers should create retention strategies to keep top talent around by pretending their best employees just handed in resignations and asking themselves what they could do that would change the person’s mind. Forward-thinking organizations have been doing interviews like this since last month—with each employee advising on where things can be improved or future opportunities offered up.
Care for your employees as well as their families
To retain their employees, employers should make provisions for the physical as well as mental well-being of the employees and their dependents. This can include but is not limited to, medical insurance, discounts on gym memberships, access to a network of mental health resources, maternity and paternity leaves, etc. They can also help parents of small children by providing child care assistance programs or paid time off (PTO).
Be sure to review your company’s policies
Hiring and onboarding processes can make or break your business. It is not only important to go over all of the policies and processes related to hiring and onboarding but also to follow through with them without exception.
You also need to create an environment where these talented individuals feel comfortable speaking up about issues in the workplace. Finally, once the employees are hired, employers need to ensure they have ongoing training programs so that employees can learn and upskill throughout their time at your company.
Recommended read: A Note On Our New Leave Policies
Analyze the blind spots within your system
Look at metrics such as compensation, time spent between promotions (i.e., number of years), location(s) of the company, function/size pay increases over one’s career path, etc. to identify problems that might be causing your employees to quit.
When trying new ideas or programs keep an open mind and remember that there will always come those within our organizations who aren’t happy no matter where they work!
Retain your top talent with HackerEarth
Here is how you can keep your top talent using HackerEarth:
Continuous assessments
- Skill Evaluation: HackerEarth enables managers to continuously keep assessing employee skills and team members’ skill development. This helps employers address potential problem areas with the help of specific metrics.
- Learning and Development: Keeping employees up to date with the latest technologies and trends is a must. HackerEarth’s learning and development assessment tool helps employers stay ahead of the curve and improve the overall productivity of their workforce.
- Employee Engagement: Employee participation is key to overall organizational success. HackerEarth’s gamification tools help employers engage their talent with real-time feedback, on-the-go assessments as well as Hackathons – reducing overall employee resignations.
- Competency Mapping: Competency mapping is the foundation for any successful organization. HackerEarth’s unique competency mapping tool helps employers in identifying, developing, and retaining talent by optimizing every hiring decision that gives great ROI.
HackerEarth is a platform that connects organizations with skilled developers and helps them participate in major hackathons. This is done by providing access to qualified talent without the need for any bandwidth or environmental drain, as well as hosting challenges specifically designed for a virtual space!
HackerEarth virtual hackathons:
When it comes to assessing employee skills by running a successful hackathon, there is no better place than HackerEarth. HackerEarth has the experience and knowledge needed for all phases of conducting these events at scale across different industries.
- HackerEarth is the only curated hiring company that guarantees you’ll get all of your engagement needs without any bandwidth drain.
- With the HackerEarth platform, you can manage your virtual hackathons or hiring challenges from anywhere in the world and even at scale.
- Working with HackerEarth means working in one of the largest communities for qualified developers.
The great employee resignation in technology is a growing problem that has been affecting businesses all over the world. Luckily, there are things you can do to prevent it from happening in your business. Follow the steps above to stop the Great Resignation from affecting your organization.
