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Why Does the Tech Industry Have Low Retention Rates?

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Many people say they dream of working for the big tech companies, such as Google and Amazon. But is working for tech companies all it cracks up to be? Tech companies are famous for their perks, which are even featured in the 2013 movie, “The Internship” that highlights Google’s employee benefits. Some of their best perks include free gourmet food and snacks, bringing dogs to work, free rides to and from work, death benefits, fitness classes and gyms and more. So who wouldn’t want to work for a tech company that offers these amazing benefits? Answer: high tech turnover rates.

While it could be that the tech industry is high stress, most people know this before embarking into the tech industry. Tech employees have highly marketable skills, and Millennials do not define employer loyalty. While employees may be drawn to the benefits that big companies offer, if they get bored or receive a better employment offer, don’t be surprised if they jump ship.

Even if you’re a small tech company, you can benefit from taking notice from larger conglomerates. Some studies show that the average employee is only at their tech job for five years, which contributes to high tech turnover rates. This means that your company will spend a lot of money rehiring and retraining new employees.

Instead of tech companies accepting job-hopping as the norm, companies should delve into why they have high tech turnover rates. A couple of tips to determine why new employees are applying is to have an online job application that asks applicants why they are seeking new employment. Additionally, human resources professionals can conduct exit interviews to obtain insight into specifics about why employees are leaving.

This information can be combined, and an employee retention plan can be put into place. This will help decrease future hiring costs and boost company morale, helping to retain current employees.

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