Tackling turnover in tech

In today's competitive tech industry, attracting and retaining top technical talent is a significant challenge for organizations. While competitive compensation is essential, it's increasingly evident that retaining technical professionals requires a more holistic approach that goes beyond salary.

The demand for tech talent continues to rise. In the United States, the tech workforce is projected to grow twice as fast as the overall U.S. workforce over the next decade. Specifically, according to CompTIA, the replacement rate for tech occupations during the 2024–2034 period is expected to average about 6% annually, equating to approximately 350,000 workers each year. 

Beyond monetary compensation

While offering competitive salaries is crucial, organizations must recognize that compensation alone is not sufficient to retain top technical talent. A comprehensive retention strategy should encompass several key elements.

Career development opportunities

Technical professionals value continuous learning and growth. Providing clear career advancement paths, opportunities for skill development, and access to the latest technologies can enhance job satisfaction and loyalty.  Investing in training and development not only equips employees with new skills but also demonstrates the organization's commitment to their professional growth.  According to 2024 Mercer’s Inside Employees’ Minds (IEM) survey, 70% of employees believe their employer or manager provides information on skills needed to advance their career.  This type of individual employee engagement can mean the difference between an employee deciding to stay and an employee considering other opportunities.         

Work-life balance and flexibility

Flexibility has emerged as a critical differentiator and work arrangements have become a significant factor in employee satisfaction. With 81% of salaried employees who have flexible arrangements feeling “satisfied” at work, according  to the IEM survey, offering options such as remote work, flexible hours, and hybrid work models can improve work-life balance, leading to increased retention. A survey highlighted that flexible work schedules and remote work options remain highly popular among employees and that companies should maintain or even expand such offerings to stay competitive. 

Health and well-being support

According to Comptia’s State of the Tech Workforce 2024, Supporting the mental and physical well-being of employees is essential. Implementing wellness programs, providing access to mental health resources, and fostering a supportive work environment can reduce burnout and enhance employee engagement. Investing in employees' well-being can be an advantage in recruitment and retention. 

Recognition and fair pay

Employees need to feel that their contributions are recognized and rewarded fairly. Transparent compensation structures and recognition programs can build trust and motivate employees to stay with the organization. According to Mercer data, only 55% of employees globally believe they are paid fairly for what they do, indicating a need for greater transparency and communication around compensation. 

Inclusive and purpose-driven culture

Fostering an inclusive culture where employees feel valued and connected to the organization's mission can enhance engagement and loyalty. Employees increasingly say that environmental, social, and governance (ESG) issues are important to them and want their employer to support these through actions. Aligning organizational values with those of employees can strengthen their commitment to the company. 

In closing

While competitive compensation remains a foundational element in attracting technical talent, retaining these professionals requires a multifaceted approach. By investing in career development, promoting work-life balance, supporting well-being, ensuring fair compensation, and cultivating an inclusive culture, organizations can create an environment where technical talent thrives and remains committed for the long term. 

Are you looking for data and insights to support your total rewards strategy and employee value proposition?  Mercer’s got your back.  Contact us at surveys@mercer.com or 855-286-5302.

About the Authors

Crystyl Swanson has over 20 years of experience serving clients across a wide range of industries and leadership roles. She holds her Master’s in Business Administration and a number of facilitator certifications: DISC Personality, Emotional Intelligence, and Hartman Value Profile. She is also an ICF Certified Associate Coach. Serving Mercer as the Commercial Strategist for the Technology Industry, she brings a new perspective and a wealth of knowledge and experience in the ever-evolving talent landscape.