IT Directors need to do more to retain key staff as competition for top skills intensifies

- 25% of IT workers now contractors
- 10 tips on how to retain key IT staff

IT Directors need to do more to retain key IT staff as the competition for top candidates intensifies and increasing numbers of permanent IT staff make the leap into contracting, says ReThink Recruitment, the leading IT staffing company.

According to ReThink Recruitment, staff retention is becoming a major issue for employers because with unemployment among IT workers at just 2.7% (5.2% nationally) organisations are once again aggressively poaching key staff from competitors.[1]

To combat this, organisations now need to consider reintroducing some of the perks and benefits enjoyed by IT staff six years ago before the downturn struck.

Jon Butterfield, Managing Director, ReThink Recruitment, comments: ìA lot of employers have become complacent about staff retention in their IT departments and are now paying the price as mission critical projects lose key staff.î

ìThe IT job market is becoming increasingly candidate-driven and there is a definite movement of skills into the freelance market. About 25% of all IT workers are now contractors, compared to around 20% a year ago, and the trend is continuing in that direction.î

He adds: ìOne third of offers for permanent IT staff are now being bought-back and 90% of counter offers are for significantly more money. We had one candidate who went from earning 60,000 to 120,000 at the same organisation in just one year as a result of the number of offers he received.î

ReThink Recruitment says that IT Directors need to be creative about how they reward and motivate IT staff because while remuneration is still probably the single most important factor, containing IT budgets is still a priority for many organisations.

Top 10 tips for retaining key IT staff

1. Competitive remuneration ñ As the market becomes more candidate-led, organisations need to benchmark pay against competitors far more frequently. This has been neglected of late, but organisations need to step this up, says ReThink Recruitment, and consider reintroducing share options, time-serve bonuses etc which were phased out during the downturn.

2. Sense of responsibility ñ One of the greatest challenges organisations face is bringing meaning to employeesí work. In IT departments this can be partly addressed by rotating staff so that they use a wider range of skills and gain a sense of overall responsibility for a project.

3. Variety of project work ñ Secondments are a good way of ensuring IT staff experience a variety of project work, which can help keep them motivated.

4. Flexible working/remote working ñ According to ReThink Recruitment, work-life balance issues are of growing importance to IT staff because of the long-hours often required to meet project deadlines and the time/cost associated with commuting.

5. Fast track programme for high achievers ñ ìThe best performing staff are the most likely to leave, so itís important that organisations recognise high achievers and keep them motivated by fast-tracking them within the organisation,î says Jon Butterfield.

6. Training/skills development programmes ñ Keeping skills up-to-date is vital for IT staff and training programmes are a good way for organisations to demonstrate their long-term commitment to personal development.

7. Recognition programmes ñ Rewards do not have to be monetary, but they are an important element in building the ëemployer brandí, thereby strengthening staff loyalty.

8. Take on junior people and train them up ñ This often leads to a stronger sense of loyalty among the employees and therefore higher retention rates.

9. Social activities ñ Allows staff to bond and feel part of a team, and can improve employer/employee relations.

10. Recreation facilities ñ Sometimes viewed as gimmicks, but recreation facilities which make the working environment a fun place to be can have a positive effect on staff morale.