No industry is as vulnerable to the winds of change as the tech industry; the recent report from Atomico highlighted just how fragile, and volatile, tech companies are under the pressure of wider market conditions. Given this uncertainty, it is perhaps unsurprising that tech companies are keen to retain the best talent. They operate in a high-pressure industry, which sees an average employee churn rate of 13%, well above that of most other sectors.
However, with 41% of workers considering quitting or changing professions in 2021, the ”Great Resignation” is in full effect, and more employees are now valuing flexibility and happiness in their work more than ever. So, how can tech firms reduce employee turnover?
Why do employees resign?
A recent survey of tech employees found that two-thirds of those who had resigned from a role may not have done so if their employers had created a more positive and respectful work environment. In a different survey by Achievers, 90% of workers said they are more likely to stay at a company that takes and acts on feedback. These findings have one thing in common; a need to empower employees to give feedback and to train employers to listen and act on it.
The role of executive coaching
Executive coaching has a major role to play in creating better communication within tech companies. If employees can confidently communicate and build relationships with their colleagues and managers, they can then share insights to improve their work environment. Employees that have had coaching are also more likely to have a better work-life balance, as well as feel empowered in their roles. It is less about teaching them a skillset, and more about giving them the confidence to unlock their skillset. Employees who received professional coaching exhibited up to 17% increase in productivity levels and better performance at work.
For employers, this translates to a happier and more productive workforce and, ultimately, better retention. Aside from the inconvenience of skilled employees resigning, there is a financial cost too. In one study, when an employee for a technical position leaves, the company is set back by 100% to 150% of that employee’s yearly salary. For C-suite positions, the turnover costs are up to 213%. Coaching becomes even more of a priority for employers in an increasingly youthful workforce; more than 80% of Millennials and GenZers say they would leave a company that doesn’t provide workers with personal development opportunities. A good working culture is the ultimate recruiting tool in a highly competitive industry, and tech leaders need to prioritize employee growth as much as they prioritize company growth.
In a digital-first world, it is important for leaders in tech companies to recognize the significance of offering coaching as a company-wide benefit. By investing in employees, empowering their professional journeys, and showing a willingness to support their personal growth, tech companies can seize the opportunity to greatly reduce employee turnover.