The Great Resignation – a fancy name for when, in early 2021, employees across the UK and the world packed up and left their jobs in droves.
At the time, the nation attributed this exodus to pandemic-related uncertainty. Flash forward to 2023, and it has become apparent that people’s priorities have transformed. COVID-19 work restrictions created a growing demand for a healthier work-life balance. This shift in attitudes has raised many questions for leaders about why employee retention is vital for businesses, especially those in the tech industry.
The benefits of successful retention are plentiful for businesses wanting to avoid sky-high team churn. Technology companies, in particular, sell their services because they have a skilled and knowledgeable workforce.
When high-performing people stay at a company, this streamlines commercials, fosters a positive company culture, strengthens employee loyalty and builds a strong reputation.
In this blog, we explore the benefits of reducing employee turnover for technology businesses and why the fast-track solution could lie in partnering with a third-party agency.
Why employee retention is important
Rising costs and economic uncertainty
In a nutshell, employee retention refers to a company’s ability to retain its existing workforce based on how many workers leave the business voluntarily. Or involuntarily, in some circumstances.
We’ve never encountered a business that strives for high staff turnover. In most (if not all) industries, employee retention and low staff turnover are primary goals for HR, recruitment and the wider senior leadership team.
High staff turnover impacts more than headcount, morale and productivity. The costs quickly add up. For example:
- Recruitment and onboarding costs for a replacement
- Training costs to get the new employee up to speed
- Lower productivity until the new employee is settled
- Heavier workloads on other employees while you find a replacement
- Lost opportunities by stalled growth
The impactful costs triggered by an employee resigning are a critical reason your business should aim for strong employee retention. According to a recent report, it can cost an employer six to nine months of an employee’s salary to find their replacement. On average, in the UK, a Senior Marketing salary is around £70,000, meaning replacing one can cost your business over £52,000.
That’s a hefty cost, not to mention the time and effort that goes into onboarding new staff into highly trained positions.
Company culture is not just a buzzy catchphrase. It heavily influences employee experience.
It is often the “Why?” behind whether someone decides to stay or leave a business. After all, it can be hard to develop a sense of belonging when a company has a high staff turnover. No one else is sticking around; why should you?
Offering personal and professional development opportunities and genuinely empathetic support is critical to building a healthy company culture. If people feel like they’re growing at a company, they’re more likely to stick around and contribute to their (and the company’s) success.
A study from LinkedIn supports this, stating that providing these development opportunities can improve employee engagement and reduce turnover by 53%.
At Bamboo, we’ve fostered a strong, supportive company culture. It includes:
- A true purpose of healthy work/life balance
- Training, development and support for growth
- Enhanced policies for maternity, paternity and other life stages
- Flexible and remote working to foster good mental health and productivity
- Acceptance and diversity
- Accountability, balance and trust
- Care in everything we do
Retaining employees is not a challenge unique to the technology industry, but the demand for highly skilled talent is extremely competitive. A recent study placed tech turnover (13.2%) as the highest compared to any other industry (10.5% average).
Companies are constantly trying to innovate and gain an edge over the competition, and losing key staff to other companies can put your business on the back foot. In the rapidly evolving landscape of technology, maintaining employees with strong continuity enables them to focus on the now, unhindered by the learning curves that can hold back new team members.
Keeping turnover figures low for technology businesses isn’t limited to technically skilled employees either. Finding the right people with a strong understanding of your business’s technical offering is essential to drive the company forward at all levels, from sales to marketing and everywhere in between.
Are third-party partners the solution?
How can adding external talent help with such an internal challenge?
Third party partners can include outsourcing a global team or an agency. Expanding your existing workforce with a trusted partner can help alleviate pressure on your internal team in a pinch.
This business model is far quicker than trying to recruit someone new during a global labour and skill shortage. It’s generally much more cost-effective, too. Options for third-party solutions are limitless and can unlock valuable time for internal teams. With increased productivity comes more significant growth, leading to higher job satisfaction.
The formula for employee retention is clear: satisfied employees want to stay in work environments they’re satisfied in.
Marketing holds the key to employee retention
Let’s get granular. Partnering with a digital marketing agency (cough, cough) can have unforeseen benefits that could influence staff retention.
At the top level, introducing an agency can bring fresh ideas to your tech business’s marketing. Typically, the most significant upside to bringing in a new recruit is adding a new voice with a unique perspective. With an agency, this involves getting a whole team of external brains that can rejuvenate your operation for far less cost than a new hire.
In addition to alleviating the weight on marketing leaders at a company, a powerhouse partner can focus on staff engagement. Initiatives focusing on employee recognition and team achievements can make employees feel valued and increase employee retention.
The challenge of those initiatives is that they require foundational work that time-poor marketers often don’t have resources for. Allowing an agency to do the heavy lifting on these types of campaigns can go a long way.
Bamboo PR is here to help
We’ve covered many reasons why employee retention is important for technology companies, but the consequences of a high turnover can’t be stressed enough.
What if a bunch of marketing executives jumped ship because their growth has stunted? Then the marketing lead might go because they’re overloaded with no support. It might sound a bit doom-and-gloom, but failure to retain employees can trigger a dramatic snowball effect.
In tech, people are power, so hold on to the good ones. That’s where Bamboo comes in.
Remember the support needed for that overloaded marketing lead? The fresh voices and heavy lifting? We’re the answer.
Bamboo PR is a B2B marketing agency that has been unlocking the potential of businesses for over 21 years, and if we understand two things above all else… It’s people, and it’s technology.
Why go through the hassle of recruiting one person when you can have a full team of marketing power rangers? Get in touch to find out how we can alleviate pressure on your internal teams.