How to stop employee turnover at tech companies

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The findings of The Achievers Workforce Institute’s February 2021 survey are sobering. Fifty-two percent of fully-employed employees said they intend to look for a new job this year, up from 35% in 2020. These numbers are especially concerning for the software technology industry who, according to LinkedIn’s most recent study found the industry has the highest turnover rate of 13.2% rate. This figure can be as high as 21.7% for embedded software engineers.

I worked for two fast-growing technology companies and experienced the negative side of growth first-hand. One day, as I was getting a cup of coffee, I noticed a new face preparing her own cup. Her affixed ID badge indicated she too worked there, so I concluded she had just joined our team.

“Hi, I’m Dave, I work in marketing. You must be new.” I smiled and welcomed our new addition.

With a half-hearted chuckle, she replied, “I’ve been working here for four months.” I could tell this was probably not the first belated welcome conversation she experienced in our quick-growing firm. I never saw her again, which left me to conclude she moved on to a different, more welcoming, nicer company.

Success can be a painful journey for your team members. Companies lose their heart as communication and cohesiveness faulters through rapid growth. Your longest and most loyal employees begin to abandon ship because they feel excluded or no longer heard.

A study by The Society for Human Resource Management (SHRM) reported that on average it costs a company 6 to 9 months of an employee's salary to replace him or her. For an employee making $60,000 per year, that comes out to $30,000 - $45,000 in recruiting and training costs.

I want to give leaders a look behind the scenes at what goes wrong, and how to fix it. The fact that it takes an average of 51 days to fill an IT role in the US, you simply can’t afford to ignore the turnover. While compensation matters, it isn’t the top factor when it comes to retention. Work-life balance and recognition both rate higher than compensation for retaining top talent.

The Nice Method includes three pillars to leaving you with happier and more connected employees, they are Hear Your Team, Avoid The Wrecks, and Life Outside Your Walls.

When you hear your team members actively listening, you avoid the wrecks that cause churn. When you take the time to bring your people together and you consider life outside your walls, you humanize your team which makes them happier and more connected. Happier teams have longer tenures, so you can stop wasting money on recruiting and training.

The U.S. Bureau of Labor Statistics found 4 million people quit their jobs in April 2021 — the biggest spike on record. The Nice Method will help you avoid being a part of similar future statistics.

If you’re a fast-growing tech company and you’re experiencing challenges with employee retention you are probably getting one of the Nice Method three pillars wrong.

Step 1. Hear Your Team 👈

Step 2. Avoid the Wrecks

Step 3. Life Outside Your Walls