About IT without ties: Enhancement, retention and turnover in companies from the CIS and USA

Most employees believe that the management will notice, evaluate and increase the salary. This is a big misconception. No manager in his right mind will increase the expenditure side, thereby reducing the income side. Business is created for the sake of maximizing the profits of the founders themselves, and not for the sake of improving the quality of life of hired employees. Otherwise, it’s not possible to earn money on Porsche Panamera ... If you met a company where periodic staff evaluation takes place and the company itself initiates promotions, this is the credit of the HR department and they managed to “sell” the management this need. For example, over the past decade, in IT there was a rapid growth in rates and that the employee did not run away, he was promoted. Since then, rates have grown to their maximum, the market has stabilized slightly. How to get a promotion? When will the employee be held? How to minimize the effects of routine? Everything below.

There is nothing sacred in getting a raise, and the answer is obvious and simple, only few people want to recognize it ... We must show our value. Work harder and harder? Not. Need to solve business problems. There may be different scenarios. You can come up with the analysis, they say, such a process is inefficient, this system is not fast enough, costs can be reduced there, and here you can make a product with a little blood. This is definitely better than doing nothing or whining about how bad things are. This approach has a drawback: what the employee considers important may not be so for the manager. In case of refusal, the employee demotivates and may become depressed.

The surest option is to talk with the manager and find out what tasks the manager is facing, how you can help him, what are the financial and time constraints. Then you should carefully analyze the data and go to the re-meeting with suggestions for solving problems. Remember the value? The value is to offer the most effective solution, think through every detail, be ready to take on the implementation and solve the problem of the business. If there is no solution, then it is better to communicate this directly, rather than try to think of anything. If you have already taken, then be sure to bring to the end, and then a second chance may not fall out.
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In addition to promotions, the second important aspect is employee retention.

Are you aware of which Fortune 500 IT companies have the shortest average employee hours? Answer: Amazon, Google, Visa and Apple. Rated payscale average employee working in these companies for less than two years. The rate of Amazon and Google are 1.0 and 1.1 years, respectively. At the same time, the satisfaction level of these companies is quite high: 70% + of the employees are satisfied with the work.

In high tech, turnover is one of the highest on the market. On average, the employee stays in the company for 3.6 years. In large companies are delayed by 30% longer. In big cities, they often change jobs. The older the employee, the less inclined he is to change jobs and more loyal to the company. Generation Y, they are millenials, linger on average 2 years. There is even the term “job hopper” for people who frequently change jobs. Millennials, and now the Z-generation, are actively looking for their place in the sun, and until they have brought children and family, they tend to change companies often and look for their dream company. But frequent change can play a cruel joke, because recruiters are closely studying previous experience and frequent change of jobs is a bell for the company.

But it's flowers. Generation Y is replaced by generation Z, i.e. people born after 1995. They just graduate from universities and colleges and begin to look for work. It will be even harder to work with. Partly for this reason, technology companies are adapting now. Not just so much attention is paid to cultural codes and processes for the adaptation of specialists? Not just talk about culture and toxicity.

In the largest technology companies, the average age of an employee is reduced.

However, for any manager, employee care is a pain. It does not matter whether this happens at the initiative of the employee, or whether it is the desire to find the ideal candidate.

Firstly, a business loses a piece of knowledge and experience. The higher the position of the former employee, the more valuable he was. It is extremely difficult to find and replace architects, timlids or C-level, there are not many such people. Secondly, the productivity of the team is reduced, and this will affect either the quality or the speed. Very often, a manager tries to maintain development speed at the same level and attracts other team members to overtime. Particularly irresponsible leaders are loading the most malleable people to their complete burnout.

The last negative factor is the waste of money on the search for a replacement and on training.

Center of American Progress conducted a study and found out how much it costs to replace an employee: for low-paid positions, the replacement cost can be from 5 to 15% of the annual rate, for the middle class 20-30%. Replacing executives can pull at 1.5-2 annual rates. Stackoverflow for the Valley and IT gives figures in 6-9 monthly salaries.

What can be concluded?

1. Most adequate companies think about search costs and weigh all the factors before making decisions about parting. If the company still does not do this, then it is worth thinking and starting to count.
2. The larger the company, the more you can save while accelerating the integration of new employees, because the availability of quality guidelines, documentation onboarding and adaptation to the processes and features of product development will save a large share of the budget.

In the USA, they have long been puzzled by the problem of high-flowing millennials, the huge search costs and the careful approach to onboarding, thereby optimizing the costs of training and integration. In the CIS countries, few still think about it. There is work to do.

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The material is prepared on the basis of publications in my telegram channel-blog About IT without ties . More truth, reflection and channel posts!

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