It is an undeniable fact that tech companies are among those struggling to retain their top talents. The high competitiveness in the rapidly growing software industry has seen a turnover of talent in the sector soar to unprecedented levels.
A vast majority of software developers in the tech space cite different reasons for leaving including feeling utterly unhappy, undervalued, or understimulated. So, why should you let your top developer slip away when you have the power to remedy that.
In the wake of remote work, competition for tech talent will continue to grow fiercer. Only the tech companies swift to implement effective retention policies will survive this new wave of competition.
What is the role of remote tech talent in ensuring business continuity?
Employee retention has just entered the checklist of a company’s competitive edge. The longer a company can hold on to its top talent, the longer it can continue to operate at maximum efficiency with minimal business disruptions tied to employee turnover.
This is especially important in tech companies because they operate in extremely tight hiring markets. As more and more IT roles sprout in the marketplace, the talent gap continues to widen. Talent shortage, therefore, means that a company is better off safeguarding the employees already in hand than risk losing them only to go through the trouble of securing their replacements.
Hiring new tech talent is becoming increasingly harder due to the talent shortage that creates competition. Such a necessity has made firms like the nearshore company reinvent remote software development solutions to bridge the talent gap and ensure business continuity at all times.
Having a reliable tech team working for you remotely is a life-changing idea that most companies are embracing. It is not only cheaper, low risk, and convenient but also offers ongoing business support whenever you need it.
With remote software development, you can scale your in-house IT team faster by accessing the right talent any time a software project pops up. You no longer have to stall your project or incur hefty costs advertising for and recruiting a new employee for the job.
Why is the implementation of retention policies important in the tech business?
Employee retention is crucial to stay ahead of the competition for tech talent. If you can keep your house intact, you will have more time to focus on the things that really matter in the business.
Essentially, the ability to retain top talent benefits your business in several ways.
· Better productivity
High employee turnover hinders productivity because of the time involved in onboarding a new worker. That means before the new employee gets up to speed with your expectations and matches the productivity level of their predecessor, you may have to deal with instances of compromised output quality.
You may also decide to heap additional tasks on the remaining employees causing them to underperform as well. On the other hand, low-turnover companies tend to have more engaged workers with higher productivity.
· Reduced costs
The cost of bringing a new worker on board comprises the cost of recruitment, training, workplace integration, as well as salaries and benefits. That’s a huge investment given the time taken to break even after the hiring process. In fact, it can take up to more than six months for a company to start reaping from the new hire.
That said, the worst that can happen is if the new employee leaves prematurely. All your recruitment costs suddenly sink. This also affects your overall productivity, team morale, and cohesiveness which all come with serious financial implications.
· Nurturing existing talent
Minimizing talent turnover helps a company better channel its resources. The money that would go to recruiting and training a new hire is invested in training and developing an existing employee to hone their performance and productivity.
Increased productivity essentially comes with a higher return on investment within a shorter time.
· Stronger team spirit
A company with solid retention policies enjoys greater engagement and connectedness among its employees. This automatically boosts staff morale that in turn encourages retention. Such a positive chain reaction cannot be broken and helps employees focus their energy and oneness in producing quality output.
· More value to customers
The longer an employee stays at a company the more skills and knowledge they acquire. This helps them engage clients better because of the extent of relationships they have built with both customers and coworkers. Therefore, an employee’s lifespan in an organization translates to their value addition in the supply chain.
· Additional competitive edge
A retention policy that nurtures highly experienced employees is a great asset to the company. Such employees are more satisfied and skilled enough to improve the customer experience. Satisfied customers usually convert to loyal customers, a fact that easily sets you apart from the competition.
Failure to systematically manage retention may force you to manage turnover, which is a lot costlier. It also significantly affects your company’s performance and may ultimately prove difficult to manage. So, act now.