Employee attrition is a serious issue in IT and software development. Rising salaries and increasing demand are giving experienced and qualified IT workers more options to choose from, so companies are forced to explore non-traditional ways to overcome this challenge.
In 2018, the turnover rate in the tech industry was 13.2%, which was higher than any other industry. Even tech giants Facebook and Google had an average employee tenure of just 2.02 years and 1.1 years, respectively, showing that nobody is immune to the impact of attrition.
With the high cost of training and loss of productivity, companies are trying to find better ways to retain their valuable employees and limit the disruption associated with attrition. Nearshore software development outsourcing, in particular, has become an attractive and viable option for US-based companies struggling to find and retain high-quality talent locally.
Nearshore providers are meeting this surge of interest head-on, developing and maintaining robust programs that directly address the challenge of attrition and giving companies in the United States a reliable solution to their problem.
According to Gallup's State of the Global Workplace report, companies with engaged employees are more productive, achieve higher sales, and are more profitable.
At PSL, our goal, as a purpose-driven nearshore software development company, is to create a culture of continuous learning and development, so we are driven to help our employees find meaning through what they do, both on a professional and personal level. This approach also benefits our outsourcing clients that are looking for a more stable talent pool.
We wholeheartedly agree with the idea that employee engagement is a critical component in preventing attrition. We've seen positive results by giving employees numerous opportunities to grow and develop new skills, as well as creating an employee-centric culture that strengthens retention and overall engagement.
Here we highlight some of the things that have worked best for us in terms of engaging employees in their own development.
It's easy for employees to feel forgotten in the daily grind, which can lead to a steady decline in performance and indifference.
Business Solver found that 31% of workers believe employers only care about profits and don't care as much about employees, while a study by EdAssist and Bright Horizons found that only 26% of millennials feel their employers are invested in their professional development.
To help combat these perceptions, companies may choose to implement an individual development plan. This powerful tool helps employees map out their skills, set goals, and determine tasks they need to perform to achieve them.
Above all, employees need to feel like they are learning and growing at work, otherwise their attention turns to the next job opportunity. In the competitive industry of software outsourcing, there is a higher risk of this happening, as the skills possessed by IT professionals are in high demand. By focusing on employees individually, augmenting their existing skills, and helping them work towards their future career ambitions, nearshore software development companies can drastically lower the risk of attrition—if they are constantly becoming better at what they do, what reason do they have to leave?