How to Win the Talent War (continued)
Strengthen Retention Strategies
Turnover is expensive. According to a recent Harvard Business Review article, the fully loaded cost of replacing a worker who leaves (excluding lost productivity) is typically 1.5 to 2.5 times the worker's annual salary. In a tight job market, companies can't afford environments that people don't want to work in.
There are three primary reasons people stay with an employer:
- They like the boss they work for "Retention starts by having thorough training programs for your leaders so they know how to motivate, mentor, lead and train individuals underneath them," says Bair.
- They want to know they can grow Employees want a clear career path that enables them to build a future with the company. Organizations need to create strong career development programs that build in the opportunity for new initiatives and challenges.
- They want to keep learning Employees like to keep their skills up to date. "Investing in new technologies is one of the most underestimated retention tools there is," says Bair. "People will realize their company is trying to stay cutting-edge."
Another way to retain good people is to create an environment that is fun and makes their overall life easier, which can be done for little or no cost. Google is frequently cited as an example of a company that offers free food, transportation, flexible hours and the ability to telecommute -- not to mention a coin-free laundry room in the Mountain View, Calif., office. Having Ping-Pong tables and latte machines at the office can't hurt, either. Even if you can't pay competitive salaries, Soli suggests offering potential employees extra vacation time.
As the IT talent war heats up, companies will need incentives to attract and retain the right people. Don't underestimate the power of painting a positive picture of the functional and business skills the person can gain by working for your organization and how the experience will lead to greater opportunities in the future. Just be sure to turn that rosy picture into reality. Broken promises are the surest way to lose your talent today -- and leave you in the lurch tomorrow.
About the Author
Esther Shein is a freelance writer and editor specializing in technology and business. Her work has appeared in CFO, Smart Enterprise, CIO, and The Boston Globe. She is the former editor-in-chief of Datamation, an online technology magazine.
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