In 2014, compensation trends for IT pros are reflecting a clear and ongoing pattern that’s been in place since the height of the economic slowdown in 2009. At the peak of the recession, frightened employees were willing to accept any job offer that would keep them off the market, and once they landed a position, they felt lucky to be working and only considered leaving in the face of powerful negative incentives.
With each year since 2009, the economy and the job market have slowly crept back to a place of stability and growth, and tech hiring managers have seen a corresponding rise in the confidence of talented employees. In 2009, only 28 percent of employer survey respondents cited retention as a primary strategic concern. This number has risen steadily since that time, and in 2013, 59 percent of respondents cited retention as their most serious issue.
So what can tech employers do to leverage this trend and make sure their compensation models are keeping up with employee needs? Here are a few considerations to keep in mind.
1. Wake up. Even if your employees appear grateful for their jobs and seem to be working hard for your approval, you’ll need to give them a reason to stay if a better offer comes along. Because sooner or later, it will.
2. Money is serious and important. Even if you think your employees should invest in their futures by giving this company their undivided time and attention, and even if you’re sure there’s value and meaning to your organization that goes beyond mere money, you need to pay your employees what they’re worth.
3. You don’t decide the value of talent and labor: the market does. When your employees ask for a raise or a higher initial offer, you can present them with a long list of reasons why you can’t comply. But there’s only one reason they need, and they can find easily find that reason on salary research websites like glassdoor.com. Stay competitive with the market if you want access to the most valuable employees.
4. Review your perks and non-monetary forms of compensation. Tech employees are showing a rising interest in flex time and remote working opportunities. You may be able to save on salary costs if you can allow your employees maximum opportunity to work from home. And in fact, this move has a double benefit, since studies suggest that remote employees actually work harder and generate more productivity that those who are bound to an office.
For more information on how to generate loyalty and reduce turnover by providing the compensation your employees are looking for, reach out to the MA staffing experts at Techneeds.