In a Tight Labor Market, These Top Tech and IT Talent Retention Tips Matter Even More

By Randi Weitzman, Branch Director, Technology, Robert Half

If you have noticeable skills gaps in your tech and IT organization, and you are concerned they could undermine your ability to complete critical projects, know that you are far from alone. Through research conducted for our e-book, Building Future-Forward Tech Teams, Robert Half learned that:

65% of technology leaders at companies of all sizes see a skills gap within their departments

62% are feeling the impact of that skills gap more so now than a year ago

55% expect staffing constraints to put their priority projects for 2024 at risk

As for the latter finding, time is quickly running out for tech leaders and their teams to achieve their top priorities for this year. Those initiatives relate to IT systems and information security, AI and machine learning, the cloud, technology modernization, and software engineering and development, according to research for our e-book.

Many tech and IT organizations are focused on helping the business meet goals in several or all of these areas at once.

Most tech leaders stepping up retention efforts to retain their best people

Hiring talent is, of course, one way for employers to address tech and IT skills gaps — if they can find candidates for the roles they need to staff. While nearly all technology managers (97%) surveyed for Robert Half’s Demand for Skilled Talent report said they are hiring for new or vacated roles, 90% said they are having difficulty locating candidates with the requisite skills.

The supply of tech and IT professionals in the labor market has been low for years. All types of businesses, from tech startups to major enterprises in non-tech industries, are competing hard to recruit top candidates. It’s no surprise, then, that 92% of the nearly 700 tech leaders we surveyed for Building Future-Forward Tech Teams said that holding on to talent is one of their greatest concerns for 2024.

Nearly all of these leaders reported that they’re taking preventive measures to enhance their ability to retain in-demand professionals. Based on their responses, here are five tech and IT talent retention tips that can help you keep your best people — and your priorities on track.

1. Enhance professional development offerings

Many tech and IT professionals will decide to work for an employer specifically because they can see, or have been offered, opportunities for innovation and growth. Continuous learning and development options, especially in emerging areas like AI, can help you meet that expectation and demonstrate your commitment to helping employees build long-term careers at your company.

Supporting team members’ efforts to pursue in-demand IT certifications or advanced degrees can also to keep them engaged and feeling valued. Implementing a mentorship program can be beneficial, too. Your employees can learn from their colleagues and, perhaps, become inspired to explore new avenues in your IT organization that can help to address skills gaps.

Learn more about why developing tech talent is a business imperative.

2. Increase recognition efforts

Regular recognition of achievements, big and small, can be a powerful retention tool. When people feel supported, connected to their colleagues, and confident that their contributions are valued and make a difference, they are likely to have a more positive outlook about their work. And if you have tech and IT staff working remotely, your recognition efforts can help build a cohesive and high-performing team.

Formal awards, a shoutout in a companywide meeting, or simple gestures like a thank-you note can all make a positive impact. Recognition should also be personalized. Some of your staff members may prefer public recognition, while others might value a private conversation — or appreciate a day off. So, consider providing various options that can appeal to the individual preferences of your employees.

See Robert Half’s tips for making employee recognition meaningful.

3. Raise compensation during the annual review process

Compensation is a crucial factor in retention. Most tech and IT professionals know the value of their skills and experience, and they expect to be compensated accordingly. They also want to be rewarded for their contributions, and provided with an incentive to keep delivering their best work.

The annual performance review process has been a traditional venue for employers to offer raises to staff who have earned a boost in pay. According to research for our e-book, Building Future-Forward Tech Teams, almost all technology leaders (96%) said they’re increasing compensation for team members during this process as a retention strategy.

If budget constraints keep you from increasing staff salaries as much as you’d like, consider other options, such as enhancing perks and benefits. “Dry promotions,” role changes or lateral moves can also be tools to bridge compensation gaps, at least in the near term.

Regularly discuss career goals with your team members and create individualized development plans to help them reach their objectives.

Need to benchmark your tech and IT salaries? See Robert Half’s latest Salary Guide.

4. Offer retention bonuses

Retention bonuses are designed to reward employees for staying with the organization for a specified period. These financial incentives can help ease the difference between an employee’s current compensation and the higher salaries or benefits that competitors might offer.

By providing a retention bonus, you can demonstrate your appreciation for an employee’s contributions and recognize their value to your department. This gesture, in turn, can enhance job satisfaction and loyalty. Retention bonuses can be structured to coincide with key project milestones or critical business periods, which can help increase your ability to retain essential talent when they’re needed most.

5. Allow employees to work flexible hours

Flexible work options, including hybrid and remote work arrangements, can be highly attractive to tech and IT workers who want to achieve and maintain a better work-life balance. Burnout is a significant risk in the tech industry, where long hours and high stress levels are common. (Robert Half’s workplace research shows one-third of professionals, in general, are experiencing high levels of burnout today.)

In addition to offering flexible work options, encourage your team members to take breaks when needed and use their vacation time — and set a good example by doing the same.

You can also help your staff meet their work-life balance goals by setting reasonable expectations for performance and confirming that workloads are manageable. If you anticipate that certain priorities and deadlines will stretch your team beyond their limits, move swiftly to bring in reinforcements.

Don’t overlook the power of fostering a positive workplace culture

Retaining your tech and IT team in a tight labor market requires a multifaceted approach that goes beyond offering competitive compensation. By creating a supportive and rewarding work environment, you can build a team that is highly skilled, innovative and future-fit, as well as committed to the success of your company and its technology priorities. The key is to continually invest in your employees, recognize their contributions, and provide them with the opportunities and tools they need to thrive.

A positive and inclusive workplace culture is also a must if you want to succeed at retaining your best people. Many tech and IT professionals seek to work for employers known for promoting collaboration, creativity and respect. Encourage open communication and create a space that helps your employees feel heard and fosters a sense of belonging for everyone.

As you race to complete your tech priorities before 2024 comes to a close, take this time to amplify your employee retention efforts. Robert Half’s workplace research shows that fewer workers are planning to change jobs in the second half of 2024, compared with findings from a similar survey one year ago.

So, if you’re confident that your tech and IT team members are satisfied and happy at work, don’t take those feelings for granted — use the strategies above to build on them!

Follow Randi Weitzman on LinkedIn.

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