You might have seen it in the headlines, too: that the U.S is experiencing a shortage of tech talent. But even those firms that attract and recruit skilled IT talents are experiencing a more profound problem – a high turnover rate.
Yes, there is a high turnover rate across all industries, but the tech sector is more affected. According to the Bureau of Labor Statistics, over 47 million Americans have voluntarily quit their jobs in 2021. And of these, the IT industry experienced the highest turnover rate of 13.2%, which is the industry’s all-time high. So, what’s causing this high turnover rate, and how can it be handled?
This post will discuss IT turnovers, including what’s causing them and the solution to this global problem.
Let’s dig in!
What’s causing the great resignation in the tech industry?
Turnover is a problem facing most tech businesses, no matter the size. Although Google is hyped for its comprehensive benefits packages, the average length of its employees is just 1.1 years. Apple workers stay for about two years, while Amazon’s tech employees stay for only one year.
So, why does the tech sector struggle to retain staff?
- Lack of growth
With most IT roles paying almost double the cross-industry average in the United States, you may be surprised that salaries are a key reason tech professionals leave their position. Salaries in the tech industry are undeniably decent, with many firms hiking their salaries to win over the limited tech practitioners.
However, most firms ignore their tech employees’ growth. Like workers in other industries, tech employees want to know that they have the potential to grow in their role. They want the assurance that their employer values them and has long-term plans for them.
- Intense competition
A growing talent shortage, low unemployment, and idling salaries have created a culture of intense competition amongst IT employers. Employees don’t even have to actively search for open tech jobs to be tempted to leave your business and join an adversary.
There are always open doors for skilled tech workers, making it easy for employees to leave their positions. And these employers are willing to offer very lucrative employment packages to lure employees into their business.
- Company culture
Company culture is increasingly becoming an essential aspect of any business. Companies want employees that match their values, and practitioners want to work for firms with a purpose and a healthy, happy environment.
Employers must create an employee-friendly space to attract and retain the best talents. Tech workers have too many options to put up with poor treatment, a toxic environment, or inadequate ideas in their workplace.
For instance, a recent research study shows that almost half of the women in tech experience burnout and consider changing employers.
Outsource IT helps with IT staff turnover
Suppose you offer your employees a competitive salary, have a positive company culture, and offer growth opportunities to your employees. Does this mean you won’t have a turnover? Unfortunately not.
So, what’s the best solution to the IT staff turnover?
First, you must acknowledge that you can’t address all turnovers because of a tech talent shortage, and employees will always seek greener pastures. Then you can find a solution that prioritizes your firm, such that:
- There will be continuity of operation even when IT staff quit
- Your company gets instant technical skills for all its IT needs
- Ensure that your employees focus on tasks they’re well trained for, growing your business
And the only solution that seems to meet all these business requirements is Managed Service Provider (MSP). It involves outsourcing your IT services from a third party to cut costs.
Here is how outsourcing IT services can help you manage IT staff turnover:
- Experience leverage
Outsourced IT service providers handle similar problems daily, making them well-positioned to solve various IT problems. On the other hand, internal IT teams may find some IT problems new and challenging.
- Better workload management
High turnover rates mean that the remaining members will have an increased workload. This makes it hard for internal teams to address daily tasks like server monitoring, user support, network monitoring, etc. Simply put, IT staff turnover overwhelms the remaining tech workers.
On the other hand, outsourcing your IT services frees up time for your in-house team, making it possible to attend to core tasks like cloud migration, data center management, etc. And should some of your internal IT members leave their position, the MSP can take up their role, allowing for business continuity.
- Saves cost
Outsourcing IT services saves on the cost of IT solutions. In fact, about 45% of businesses say that outsourcing IT services saves them money. And this is the main reason most companies prefer to outsource their IT services.
On the other hand, hiring new staff to solve IT worker turnover isn’t easy. It takes time and money to research new talent, recruit them, and train them. Also, you may be forced to up your salary to match those of a competitor.
- Reduced risk
Outsourcing IT services can help you avoid the risks of technology downtime or cybersecurity incidents. The right provider will go the extra mile to back up their systems to ensure security and continuity of business operations.
Picture this: you entrust your systems to an IT staff, giving them total authority to run and control your business tech-wise. The employee then quits and fails to provide you with access to your own systems. This means that your business can’t run normally. Outsourced IT services eliminate all these risks.
- Promotes innovation
Entrusting your IT services to an MSP provides access to a wider range of technical skills. This allows your business to stay on top of emerging technology and stay relevant in the dynamic environment.
The bottom line
There has been a mass exodus of workers from the job market, with the IT sector affected the most. A lack of scope for career growth and flat salaries are two of the main factors leading to employee turnover in the tech industry. Outsourcing your IT services is key to solving the high turnover rate.
Managed Services Group is the managed service provider to collaborate with when outsourcing your IT services. Get in touch with MSG right away to learn how you can start outsourcing technology for your company today.