Tech industry which has a high growth versus a high stress ratio. That means that tech industry has great potential when it comes to success and growth, but these things can only be achieved when the leaders in a tech company can overcome the challenges pertaining to high employee turnover and low employee retention as compared to other industries.
As compared to any other industry, the tech industry has the highest employee turnover of 13.2%. For instance, Google boasts off the highest employee retention time, which is just 2.2 years whereas at Amazon, on an average the employees last for only 1 year before switching to another tech company.
The labor market which is directly related to the tech industry is quite competitive and according to a report conducted by Glassdoor in 2018 around 32% of the highest paying jobs are related to the technological industry such as jobs requiring a Java developer, a software developer, UX designer, solutions architect and other similar jobs.
Even while 32% of these highest paying jobs are tech related, the tech companies are still facing some serious attribution rates. Then there was another survey conducted by LinkedIn where it was noted that around 100,000 employees at various IT companies were leaving those top-rated companies for reasons such as poor leadership, unhappy work environment and culture.
The downside of attribution is that it greatly effects not only the bottom line of the company but also a company’s productivity, employee morale and production and organizational culture. Not only this but the tech professionals have a bargaining chip in their hands and hence they have quite a large bargaining power and hence have a high demand for their services.