Back in 2018, it was clear that the tenure of technology pros was shorter than ever. Even the biggest names in the industry including Apple, Google, and Amazon had their average employee tenure at less than two years. Today, based on the available data, tenure is slightly better at 2.5 to 4.3 years on average for technology employees depending on age and sex, What’s less clear to many companies is why this is happening and, more importantly, how to turn this potential workforce problem into an opportunity.
There’s a reason turnover in tech is the highest out of every single business sector, and it has to do with the new Talent Economy. As the supply chain to the gig economy, the Talent Economy is comprised in large part by tech pros seeking work outside of traditional roles. This is made possible through societal and economic changes making mobile and independent work more prevalent. Residing within a new environment, a tech pro’s perspective of what their career can be and how long they want to stay in a single role has shifted.
IT professionals are empowered like never before, faced with their choice of many different opportunities. With the flexibility the gig economy provides and the potential to be exposed to many skills more quickly, tech pros are increasingly choosing gigs over permanent roles. Even when they do take on a permanent role they move on to their next career stop quickly, as evidenced by Paysa’s research below:
For employers, this clear trend presents an unavoidable conclusion: If popular companies offering the industry’s most coveted perks and benefits have this type of turnover, it means most organizations will trend in a similar direction. After all, in just four years 50% of the U.S. workforce will be freelancers. As a result, organizations must clarify their recruitment, hiring, and talent acquisition strategies moving forward. Alignment from the top down is necessary to refocus efforts across the organization.
Specifically for hiring managers, a more holistic approach to tech initiatives that can leverage a combination of internal, contractor, and distributed development resources is required. One can no longer rely solely on permanent IT roles when “permanent” positions see such short tenure. That mentality often results in unplanned hiring when an employee leaves after 18 months.
It’s critical to not just anticipate that an employee is likely to leave within two years, but to actually alter roles to match the mentality of tech pros in the Talent Economy. For most, that means changing at least some permanent roles into contracting roles in order to lean into the trend of short tenure instead of fighting the inevitable. Doing so can achieve unprecedented hiring success, as it opens the door for tapping multiple expert freelancers for the price of a single employee.
The question of whether the short tenure of tech pros is a problem or opportunity is ultimately up to how you respond to it. While it can be a headache to overhaul hiring and recruiting procedures, adaptation is the only way to find continued hiring success in the new Talent Economy. Tailor your efforts to today’s new workforce landscape and you can reap benefits from this industry trend.
If you’re looking for a hand leveraging the skill set of modern IT workforces, reach out to us today.
