One of the biggest stories in digital transformation right now? Attracting and retaining IT talent.
According to Gartner, the labor market has tightened in the last two years. They report that:
- 60% of HR leaders are “significantly concerned” about employee turnover.
- 62% of candidates have explored a career change in the last year.
- Nearly three-quarters of candidates who receive a job offer have at least one other offer on the table.
Amid stories from the ‘Great Resignation,’ workers in all industries are pushing for higher compensation, better benefits, and increased flexibility — and IT talent is no exception. In fact, Gartner’s Global Labor Market Survey found that compensation is the top driver for IT talent attraction and retention. According to a recent Gartner IT Compensation Increase Poll, 50% of organizations reported increasing the salaries of key employees after they received a separate job offer — all in a bid to retain this talent.
How can organizations effectively attract talent and, most importantly, retain these employees? Gartner has outlined three ways.
Make monitoring and raising pay competitiveness a priority
As Gartner explains, “In order to pinpoint where additional funding will be necessary to address pay gaps in the short term, work with your HR team to identify IT roles and skills areas facing higher attrition risk and recruitment challenges due to noncompetitive compensation.”
Limited resources? Prioritize roles in high-risk areas, they explain.
Build flexibility into IT compensation through variable pay programs
“One way to minimize locking in compensation adjustments as long-term fixed costs,” explains Lily Mok, Gartner VP Analyst, “is to use variable pay components that can be adjusted or removed as talent needs and market conditions evolve.”
Examples of these include skills-based premium pay, a signing bonus (lump sum or split up), and retention bonuses (eg. during a major period of transition).
Make sure managers can have successful pay-related conversations
According to Gartner, there are three important elements needed to make sure these conversations are effective.
First, never forget empathy — especially since finances are a very personal topic and can be a sensitive issue.
Second, make sure the compensation package’s value is clearly outlined and understood. This includes pay, bonuses, benefits, etc.
Finally, be transparent about the organization’s pay structure, and how pay rates are set. After all, there are many sites out there (eg. Glassdoor) that features self-reported public pay data.
