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

Most employees believe that management will notice it, value it, and increase its salary. This is a big mistake. No leader in his right mind will increase the expenditure, thereby reducing the revenue. A business is created to maximize the profits of the founders themselves, and not to improve the quality of life of employees. Otherwise, you won’t make money on the Porsche Panamera ... If you met a company in which a periodic staff assessment takes place and the company initiates promotions, this is the merit of the HR department and they managed to “sell” this need to the management. For example, over the past decades, in IT there was a rapid increase in rates and so that the employee did not run away, they raised him. Since then, rates have grown to their maximum, the market has stabilized a bit. How to get a promotion? When will the employee be held? How to minimize the effects of fluidity? About everything below.

There is nothing sacred in receiving a raise, but the answer is obvious and simple, only few people want to recognize it ... We need to show our value. Work harder and harder? Not. It is necessary to solve business problems. Different scenarios are possible here. You can come with an analysis, saying that such a process is inefficient, this system does not work fast enough, there you can reduce costs, but here you can make the product better with little blood. This is certainly better than not doing anything or whining about how bad things are. This approach has a drawback: what the employee considers important may not be that way for the leader. In case of refusal, the employee is demotivated and may become depressed.

The surest option is to talk with the leader and find out what tasks the leader faces, how you can help him, what financial and time constraints are. Then you should carefully analyze the data and go to a second meeting with suggestions for solving problems. Remember the value? The value is to offer the most effective solution, to think through everything to the smallest detail, to be ready to take up implementation and solve the business problem. If there is no solution, then it’s better to report it directly, and not try to come up with at least something. If you already take it, then be sure to finish it, otherwise the second chance may not fall out.

In addition to promotions, a second important aspect is employee retention.

Do you know which IT companies in Fortune 500 have the shortest average employee hours? Answer: Amazon, Google, Visa and Apple. According to the payscale rating, the average employee has been working in these companies for less than two years. The indicator for Amazon and Google is 1.0 and 1.1 years, respectively. Moreover, the degree of satisfaction with these companies is quite high: 70% + employees are satisfied with the work.

In the high-tech industry, fluid is one of the highest in the market. On average, an employee stays with a company for 3.6 years. Large companies linger 30% longer. In big cities, they change jobs more often. The older the employee, the less inclined to change jobs and more loyal to the company. Generation Y, they are also millennials, are delayed on average 2 years. There is even the term "job hopper" for people who often change jobs. Millennials, and now the Z-generation, are actively looking for their place in the sun and until they have children and families, they tend to change companies often and look for their dream company. But a frequent change can play a cruel joke, because recruiters closely study previous experience and a frequent change of jobs is a call for the company.

But these are still 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. That's who will work even harder. Partly for this reason, technology companies are adapting now. Is it not just that great attention is paid to cultural codes and processes for the adaptation of specialists? They do not just talk about culture and toxicity.

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

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

First, the business is losing 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, team leaders or C-level, there are not so many such people. Secondly, team productivity is reduced, and this will affect either quality or speed. Very often, the leader tries to maintain the development speed at the same level and attracts other team members to overtime. Particularly irresponsible leaders burden the most malleable people until they are completely burned out.

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

The Center of American Progress conducted a study and found out how much it costs to replace an employee: for low-paying positions, the cost of replacement can be from 5 to 15% of the annual rate, for the middle class 20-30%. Replacement of managers can draw up to 1.5-2 annual rates. Stackoverflow for Valley and IT cites figures of 6-9 monthly salaries.

What conclusion can be made?

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

The USA has long been puzzled by the problem of high turnover millennials, huge search costs and carefully approaches onboarding and thereby optimizes training and integration costs. In the CIS countries, few people think about this. There is work to do.

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The material was 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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