Nicola Sfondrini – Partner Digital and Cloud Strategy at PWC.
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Tech professionals are more important to businesses every year, and not just in IT. Departments like marketing, HR and other traditionally nontechnical areas depend on employees who have experience using ever more complex tools. Demand for these skills far outpaces supply; 86% of CIOs recently reported that competition for qualified tech candidates has become more intense, and 73% are concerned about potential attrition in their IT workforce.
That’s why it’s critical for companies to retain skilled tech talent. The knowledge gap between seasoned internal talent and new hires can be significant. Current employees have a deep familiarity with a company’s specific technology stack as well as its goals, culture and standards. Even when new hires are available, they still have to be brought on board and trained.
What can companies do to ensure that their tech teams not only stay but thrive within their organizations? The answer combines compensation, growth opportunities and continuous learning, as well as creating an environment where people feel valued and trusted.
Beyond The Paycheck
Offering competitive salaries is essential, of course. Specialized tech roles often command significantly higher salaries than their nontechnical counterparts. The median total compensation for a software engineer in the tech industry is over $500,000, especially in high-demand areas like AI and data analytics. Salaries at top companies like OpenAI and Google can soar far higher. But not every business can match the million-dollar packages offered by tech giants. Smaller companies can still attract and retain talented tech professionals by focusing on three core areas: career growth, skill development and autonomy.
Customized Career Paths
One of the most effective ways to retain tech talent is by offering flexible, tailored career paths. Many tech professionals don’t follow traditional career trajectories. Instead, they want to broaden their skill sets. Companies that support these goals can create an environment where tech professionals feel they have room to grow both vertically, by deepening expertise in their chosen field, and horizontally, by developing a wider range of complementary skills.
This “T-shaped” approach to career development blends deep expertise in one area with broader skills across multiple fields. An AI engineer, for instance, might build on their expertise in AI by learning negotiation or business strategy. A comprehensive development plan lets tech talent contribute meaningfully across multiple teams, which can help keep them interested and engaged.
In industries where technology evolves by the hour, continuous learning is essential. Investing in learning and development programs can help retain tech talent by boosting their productivity and effectiveness within the company. Structured learning opportunities like sponsored certifications, specialized courses and on-the-job training build both skills and loyalty.
Rethinking Noncompete Agreements
Companies have traditionally used noncompete agreements (NCAs) to prevent employees from taking jobs with competitors, believing it would reduce attrition and IP transfer. But NCAs can be frustrating and counterproductive, leading to resentment and, ironically, decreased loyalty.
In the tech sector, where skills and knowledge are highly transferable, NCAs can discourage employees from signing on in the first place or from fully engaging even after they’re hired. That’s a large part of the reason the U.S. Federal Trade Commission recently announced a rule banning most NCAs for nonexecutives, recognizing that job mobility can spur innovation and economic growth.
Instead of using legal leverage, companies should focus on building an environment where tech talent feels trusted and valued. Protecting IP is still essential, but this can be achieved with solid confidentiality agreements and a culture of loyalty and respect. Moving away from NCAs can also improve a company’s reputation as a fair and supportive workplace, which helps attract new talent.
Understanding and addressing the unique needs of tech professionals helps reduce turnover, and also helps safeguard a company’s future. Organizations that prioritize meaningful work, continuous learning and flexible career paths will encourage their best tech talent to stay right where they want them.
Fostering A Culture Of Innovation And Experimentation
Providing technology talent the freedom to try things out and make something new is a crucial component of a productive work environment. Autonomy allows tech employees to experiment, challenge the status quo and make their mark on the company’s vision. This freedom not only leads to increased job satisfaction but also keeps employees in place, because they feel known and able to make an impact.
Creating a fun environment in which tech teams can innovate and challenge one another without fear of failing empowers tech engineers to become more responsible for their work, as well as accelerate both personal and company development. By fostering an environment of innovation, meaningful work, ongoing learning and career mobility, enterprises can create a more engaged, loyal tech workforce ready to tackle new industry issues and stay invested in the company’s long-term viability.
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{Author}Nicola Sfondrini, Forbes Councils Member{/Author}
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