Top 4 Four Retention Drivers for Tech Talent in 2023

What drives your employees to strive and thrive each day? 

Once upon a time, the bang was in the buck. 

But what’s the magical retention carrot these days?

Sometimes it really isn’t simple. But our Candidate Motivators Report has some insights. Each year we survey our candidates to find out what employees want. 

And yes, it’s true: money talks. But after the pandemic, the volume has significantly been turned down!   

Employee retention strategies are no longer just about competitive compensation or generous employee benefits (although they certainly don’t hurt!).  

Curious? 

Check out the four trends re-shaping how we retain talent in 2023.

#1 Recognition 

What is employee recognition, and why does it matter?

Recognition is a simple yet effective way of acknowledging employees and letting them know their time and contributions are seen and appreciated.  

It’s important that everyone feels valued at work.

A 2022 survey by Gallup & Workhuman found that employees are 56% less likely to look for new employment when they feel recognised for their efforts.

Yet 81% of leaders say recognition isn’t a major priority for their company.

Get ahead of the game, and re-think recognition. 

Saying “Thank you” can make the workplace more engaging and human-centred and is a top retention driver for 2023.  

Real-world example: Google. 

Google is committed to keeping employees happy and motivated, and giving thanks is a big part of its company culture. 

They have several recognition programs, such as: 

• ‘Thanks’ program, where employees can give a shout-out to other staff for a job well done. 
• Peer-Bonus nomination system, to nominate peers for cash benefits. 
• “Wall of Happy” where employees can place notes to thank and motivate their co-workers.  

With inbuilt recognition systems like these, is it any surprise Google is consistently voted one of the best companies to work for? 

#2 Good Management 

There’s that old saying, “employees don’t leave jobs. They leave managers”.  

It might sound cliché, but it happens all the time.  

Gallup research shows that managers account for as much as 70% of the variance in employee engagement scores. So, if employees aren’t motivated and engaged, it won’t be long before they’re looking for work elsewhere. 

If you’ve decided to prioritise management skills as a retention driver for 2023 – good for you! 

By investing in training and upskilling your managers, you’re benefiting the entire team.

Empower your managers with the tools they need so that they can contribute in a positive way to employee retention.  

#3 Development and growth 

For a lot of employees, it’s all about growth. 

Today’s workforce places a high value on opportunities for training and development. 

LinkedIn’s 2019 Workforce Learning Report found that 94% of employees say that they would stay at a company longer if it invested in helping them to learn and grow.

That’s right.  

94 per cent. 

Ninety-four per cent. 

94%.

Whichever way you write them, the stats speak for themselves: upskilling is key to future-proofing your organisation and retaining talent in 2023. 

Employee development isn’t just about moving up the career ladder anymore. 

In this world of rapidly changing technologies, consistent upskilling and training are equally about lengthening your talent lifecycle.  

Real-world example: Amazon, Upskilling 2025. 

Aware of the importance of retaining talent in 2023, Amazon has committed over one billion dollars to employee education and training programs. 

‘Upskilling 2025’ focuses on creating career pathways to areas forecast for rapid growth. For inspiration, check out the courses.   

Check out our Candidate Motivators Report for further insights into the generational breakdown of retention drivers for 2023. 

#4 Mentorship 

As mentioned, managers are vital retention drivers for 2023. 

Q: How can your organisation develop great managers?

A: Mentorship programs. 

It’s a strategy implemented by over 71% of Fortune 500 companies. And it just makes sense!

For the first time in history, there is potential for five generations to work side-by-side. 

Gen Z are beginning their careers, and with the Silent Generation on their way out of the workforce (and Baby Boomers not too far behind them), mentorships are a sound way to ensure that knowledge, skills and company culture are not lost. 

In addition to fostering desirable management and leadership skills, mentor programs can have other benefits, such as reducing employee turnover and decreasing the formal training needed for new hirees. 

So how about it? Consider implementing a mentorship or buddy program as part of your strategy for retaining talent in 2023. Just imagine the possibilities for growth and success. 

The power of retention: stories of success 

Software and analytics company SAS believe that “world-changing innovation starts with happy employees”. 

Known for a focus on employee development and career growth (Reminder! One of the retention drivers for 2023), the company provides training, mentoring and coaching opportunities to help advance skills and careers. 

These drivers have all helped to create unprecedented loyalty and engagement among employees - the retention data is outstanding.

At the end of 2021, the average SAS employee tenure was an impressive 12 years, compared to an industry average of 3.9 years (USA). In addition, their voluntary employee turnover rate was 7.4%, versus the industry average of 57.3%. 

This is a classic case of a company working smarter, not harder, and reaping the rewards from the strong connection between employee loyalty and business success. Reducing turnover results in company benefits, such as lower recruitment costs, knowledge retention, and happier, more productive employees.  Read more about the importance of retention in 2023.

Want to learn more? 

While the above mentioned trends, strategies and companies are great examples of retention drivers for 2023, they are general in nature.  

To gain a more comprehensive idea about what technology talent in Australia is looking for when considering a company, check out our  Candidate Motivators Report.