In a recent report by Jefferson Frank, it was revealed that the primary driving force behind tech workers quitting their current positions and seeking new opportunities is the lack of salary increases in their existing roles.
The report, which delves into the factors influencing tech professionals’ decisions to change jobs, highlights the urgent need for the tech industry to address the issue of stagnant compensation to retain its valuable talent.
Conducted among over 600 tech workers employed by major companies such as Amazon Web Services, Salesforce, Microsoft 365, and Azure, the survey provides valuable insights into the factors causing a churn in the tech workforce.
Salary Increases at the Forefront According to the report, a lack of salary increases was identified as the number one reason for tech professionals quitting their jobs. The need for financial growth and recognition remains a crucial element in employee retention.
Jefferson Frank CEO James Lloyd-Townshend emphasised the importance of fair compensation, noting that it will always be a critical factor in retaining tech talent.
A lack of general career opportunities is a leading factor
Lack of Promotional and Career Opportunities Coming in at a close second was the absence of promotional or general career opportunities. Tech professionals are evidently seeking avenues for personal and professional growth within their organisations, and companies should take note of this aspiration.
Seeking New Challenges and Leadership The desire for new challenges ranked third on the list of reasons for quitting, highlighting the importance of continuous learning and development in retaining tech talent. The lack of effective leadership within organisations was identified as the fourth most significant factor.
Company Culture and Beyond Fifth on the list was a general aversion to the company culture, indicating the importance of fostering a positive work environment. The sixth and seventh reasons for quitting were being underutilised and lacking exposure to the latest products, respectively. Wanting a better work-life balance ranked eighth, emphasising the significance of maintaining a healthy work-life equilibrium. Being underappreciated and overworked rounded out the bottom two reasons in the top ten.
A surge in quitting
Addressing the Tech Skills Gap This report follows other findings that reveal a quarter of tech workers are planning to quit their jobs in the current year. Jefferson Frank believes it is imperative to understand why many tech professionals are leaving, particularly as the skills gap in the industry continues to widen.
The Need for Talent Retention The report highlights the pressing need for the tech sector to source and retain talent to bridge this gap. James Lloyd-Townshend, the CEO of Jefferson Frank, stated, “These new insights are like a retention checklist. I’m not surprised to see a lack of salary increase come out on top – fair compensation will always be critical.”
He further observed that the top reasons for leaving broadly fall into three categories: progression, purpose, and working culture. To hold onto tech talent, companies must reinvigorate these elements.
Recommendations for Employers The report provides recommendations for employers looking to address these issues. It emphasises the need for clear pathways and career tracks for workers, ensuring the business remains at the cutting edge of its field, and maintaining a clear company purpose. Additionally, fostering a workplace culture that takes employee needs seriously and addresses stress and burnout through a company-wide focus on well-being is vital.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at the University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.