Retention and Engagement of Tech Talent in 2022

Mike Campbell, VP - ETO, Clayton

We are all seeing it. The battle for talent has reached new heights. Seems like every week another (what we regarded as) critical resource has resigned with a story of greener pastures that we can’t compete with. I contend this trend will continue, but it doesnot have to for you.  Below is an explanation of why this has happened and ways for you to successfully fight back. 

First, what changed? Heads up! The game changed, and you need to change with it. As an IT leader, you need to recognize the new realities and evolve accordingly or the solid team you’ve built will find a leader who does provide what people want. You might already be on the downslope and not realize it!

How did this shift occur? The old status quo felt like you had more control, and you’d never seen retention rates start to trend downward like this! 

The world changed in the spring of 2020.  We switched everyone overnight to work-from-home (WFH) for COVID and that stint changed how tech talent felt about their roles in organizations. WFH has a strong pull for people – it helps achieve work/life balance. “I can work from anywhere and be effective!”, they realized. Not only did employees notice this, but employers did also. Iterations of WFH switched from being an outlier to a norm and in some cases a demand.  The shift was on. 

That new norm resulted in IT leaders being more willing than ever to hire people located anywhere. This created an interesting dynamic. Big city companies (higher salary standards) are now willing to hire tech talent from your city.  They have adept recruiters using LinkedIn, working your people over with promises of more money and the freedom to not show up at an office.  Feels kind of attractive to your people and creates problems for you. Two problems actually— Upward pressure on salary expense and peoples’ new desire to WFH.The balance of power subtlety shifted.“Make changes or I’m gone for greener pastures because I’m getting calls”, is the new employee mindset.

There’s a final point to make.  Before all this happened, tech talent was thin.  The above has exacerbated the complication of hiring qualified people.Making competition for talent fiercer.

The shift to “I can work from anywhere and be effective” has been generally accepted.

“As an IT leader, you need to recognize the new realities and evolve accordingly or the solid team you’ve built will find a leader who does provide what people want.”

What now? What can you do about it?“My shop is a great place to work, right?”, you may ask. “We have a recognition program, Taco Tuesday, and beers after work every other Friday!”, you argue.  Face it: the old way of engaging people is insufficient for this new reality.  You need to upscale your retention of Kung Fu and engage on a whole new level.  I might suggest that if you haven’t considered this till now… you’re behind and your overall leadership strategy might be suspect.Regardless, understanding what keeps people with companies is not a mystery.  Here is a by no means exhaustive list of components I happen to value. 

• People want to be heard and their opinion genuinely valued. Provide avenues for bidirectional conversations. Use feedback tools, Content filled Town Halls. Innovate in ways to seek feedback (Stop, Start, Continue, and Skip meetings?) Ensure your IT managers are actively leading, facilitating, engaging, and communicating.
•They want excellent, transparent, frequent communication. My current CIO is very adept at this. It makes a difference in how people feel.
• Develop programs that provide multiple types of recognition regularly, such as behavior awards, and spot bonus opportunities. Create ways employees can easily recognize each other.  I would point out that this has to be perceived as genuine in intent.
• People want a common cause they can feel good about. I work for Clayton Homes. Common goal? To make the dream of homeownership possible for more families. This is something we can all get behind.
• Allow space to innovate and establish a culture of improvement. Open the playing field here.
• But maybe highest on the list, provide people with work/life balance. Optimize your labor model to allow people time.  This will earn loyalty from people.  Other strategies Including flex hours, hybrid WFH schedules, and setting expectations about when we work and when we do not help them not be tied to their inbox every waking moment!
• While yes, people are leaving, help them find their way back!  Boomerangs are a rising percentage of hires. Make it ok to come back and market to it. Create an Alumni email distro reminding people of why your shop is awesome and the current opportunities. Build an Alumni page on LinkedIn and market on it. 
• I will add a couple more.  Be nice, show gratitude, and be a good boss that people respect and enjoy being around. It’s harder for people to leave a workplace they genuinely like being in.

Three other things that help you understand how you are trending are-

• Improve your exit interview process.  Ask better questions to elicit intel on how you’re progressing.
• Track your retention metrics so you can see trends. Tie managers’ bonuses to achieving specific targets.
• Do ‘stay, interviews. You’ll learn some things about how your people are feeling and what they value. This will help shape your thinking and your programs.
• Do salary benchmarking and tell your people your intent to remain competitive in the market. If you’re on the low end – consider bumps to get your people better positioned in the market. 

Finally, who’s your best friend? Your TechHR person, that’s who. You need a dynamo to shift into 5th gear and make all this happen with pace.Find an HR Professional who can light the candle. Your success depends on it.