In a rapidly evolving tech industry, high turnover rates are a common challenge, with figures as high as 18.3% in some IT sectors. Reasons for leaving often include limited career growth opportunities, poor work-life balance, burnout, and overall job dissatisfaction. However, Mykola Tymkiv, CEO of Gismart, believes there are strategies that can counter this trend and help retain employees for three years and beyond.
Industry benchmarks show low average tenures in tech companies, with turnover costs often amounting to 33% of an employee’s annual salary. Dissatisfaction with compensation and lack of career advancement are key factors contributing to employee turnover. Tymkiv emphasizes the importance of measuring employee satisfaction and loyalty through metrics such as the employee net promoter score (eNPS), with some tech companies showing exceptional engagement scores above 50.
Gismart serves as an example of successful employee retention in the tech industry, with a low turnover rate and an average employee tenure of three years. Tymkiv attributes this success to building a supportive culture that prioritizes employee growth and well-being. Remote-first strategies, commitment to employee development, offering a comprehensive benefits package, promoting work-life balance, and aligning with employees’ values are key components of Gismart’s retention strategy.
Tymkiv advocates for a holistic and employee-centric approach to retention in the tech industry, emphasizing the importance of creating an engaging and supportive work environment. By prioritizing a remote-first policy, employee growth and development, fair reward systems, work-life balance, and alignment with values, tech companies can successfully retain employees for the long term. This approach not only benefits employees but is crucial for companies looking to thrive in the competitive tech market.
As tech companies continue to face retention challenges, addressing these issues is essential for the industry’s growth and stability. Tymkiv encourages more companies to adopt a holistic approach to retention, focusing on creating supportive environments that encourage long-term commitment from employees. By integrating these strategies, tech companies can create engaging workplaces that foster employee loyalty and contribute to overall success in the competitive tech market.
