Dice Report: Tech Turnover Stays Strong

dr_img_openingturnover_1116When the economy is good, professionals are more inclined to leave their current positions in search of better jobs. For employers, that behavior creates more opportunities to land top talent interested in higher salaries and perks—but it also makes it harder to retain top performers. Rising attrition can deeply affect a tech firm’s bottom line, adding to the costs of hiring and training new team members.

According to Dice’s analysis of the latest turnover data from the U.S. Bureau of Labor Statistics (BLS), voluntary quits in the Professional and Business services category have averaged 560,250 per month for the first eight months of 2016, the timeframe for which we have finalized data. That’s a substantial increase over the same period in 2015, when voluntary quits averaged 507,875 per month.

Dice’s recent analysis of its own data suggested that tech professionals are more than happy to migrate across state lines, or even move from one end of the country to the other, in order to find a job that matches their needs and desires. Many of these migration patterns are regional, such as between Washington, DC and the neighboring states of Virginia and Maryland.

The high rate of voluntary quits, combined with tech pros’ willingness to move far away to land new opportunities, opens up fresh opportunities for employers with the budget for top talent. Companies in some of the nation’s up-and-coming tech hubs—places like Raleigh, NC, and Salt Lake City, UT—can use this trend to their advantage, appealing to tech pros who want a cheaper cost of living or superior work-life balance.

As for companies that want to keep their talent in place, a strong retention strategy is a must-have. Internal surveys and other measures can determine the priorities of employees, but it’s up to managers to ensure that the right mix of incentives are put in place to ensure that teams remain productive (and profitable).

Image Credit: Dice

Comments

4 Responses to “Dice Report: Tech Turnover Stays Strong”

December 01, 2016 at 6:40 am, Mechlovic said:

Workers are changing jobs because most jobs are contracts now. Companies want less employees and more contractors. That mentality leads to no loyalty and job security. And Democrats and republicans wonder why trump won. I have a decent salary but no benefits. The very groups that talk about free markets then demand we increase foreign workers. If there was a true shortage of tech workers wouldn’t salaries and perks be greater? I make less now than 10 years ago.

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December 01, 2016 at 9:46 am, Tuskey said:

I totally agree! Many of these tech companies are throwing away great talent for foreign and very fresh college kids with no expierience and paying them just above minimum wage.This article says people are quiting is bs, they are leaving because their contract is up and HAVE TO MOVE ON. Also I think people leaving states or across the country or region has more to do with tech companies having “no hire” agreements with other tech companies in the region. This makes it impossible for a person to find a great or even good position in their area.

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December 01, 2016 at 2:26 pm, John Doe said:

Amen.

Another aspect is they limit their talent pool with unreasonable experience expectations instead of presenting a willingness to recruit those with fresh IT degrees.

That talent often finds great difficulty in finding reasonable entry level positions, and as bills still have to be paid, and with their freshly minted skills languishing, will eventually abandon the field in frustration for other opportunities.

No corporate loyalty breeds no worker loyalty. One would think they would learn after years of treating workers as disposable commodities.

Shut off the H1B spigot and force the corporate learning curve. They want to do business here, they can hire from here.

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December 30, 2016 at 6:01 pm, Arthur said:

I am 51, an electrical engineer with over 20 years of experience. I changed from one permanent position with benefits to another with benefits in 2016. I get calls every week. I am planning to get my MSEE degree (my company pays for a big part of it – I am planning an online program). My school for my BSEE is an insignificant midwestern university, and I am on the west coast. I am constantly learning new skills.

I know it’s rough out there, and yes, I admit being older makes it harder. You truly need to network. Don’t give up. Take a good, hard look at yourself. You won’t find a job by sitting behind the computer. You have to get out and meet people. I don’t know if things are better or worse than in ages past. My dad is a retired EE – I am enjoying my work more than he enjoyed his, and I have gotten to live in more interesting places.

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