The IT industry is in for a thorough shake-up as recent reports state that the attrition among employees is likely to be over 50%. This has been a gradually increasing industry headwind that has ensued over the last year. The numbers for October 2022 had suggested that IT employee attrition was likely to be as high as 35%.
Over half of IT professionals (53%) are likely to change jobs within the next year (2023-2024), seeking higher compensation, training, and better work-life balance, according to a report.
About 66% of top IT managers attribute the exodus to team skills gaps. This figure has seen a 10% decrease since last year. But according to Skillsoft’s 2022 IT Skills and Salary Report, the attrition will remain high owing to other factors like dissatisfaction with compensation and work-life balance.
The industry is facing a daunting challenge focused on talent attrition, with more than half (53%) of all respondents’ extremely’ or ‘likely’ to look for a new job in the next 12 months, the report added. Skillsoft’s 2022 IT Skills and Salary Report is based on a survey of over 8,000 respondents.
The report showed that over the past year, the workplace has been defined by employee-led “movements”, dubbed the ‘Great Resignation’ and “quiet quitting”.
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The rapidity of digital transformation and reliance on technical resources has pushed many IT professionals to burnout. Skillsoft’s report found that the two biggest challenges for the IT leaders’ are employee retention and recruitment.
“Learning is the catalyst for mutually beneficial growth for employees and employers, especially as organizations struggle to retain technical talent and keep pace with innovation,” Skillsoft General Manager, Tech and Dev, Zach Sims said.
He said companies that create learning and talent development cultures would be most successful in recruiting and retaining ambitious individuals with the right skills and certifications to make an impact.
“This culture not only supports individual employee growth, which is something IT professionals are actively seeking, but also leads to better business outcomes that propel organizations forward,” he added.
IT professionals that changed employers in the past year indicated that their top three reasons for leaving were better compensation, lack of training, and work-life balance.
However, the top cited inhibitor to training is that management does not see a need for it. This is despite 97% of IT decision-makers saying certified staff adds value to the organization, said the report.
The IT professionals are witnessing numerous benefits after training, including improved quality of work (56%), increased engagement (41%), and faster job performance (36%). Due to this, the organizations that invest in their people can expect to see significant Return on Investment (ROI) both to the bottom line and with employee retention, it added.
However, going ahead, the overall exit numbers will remain high, as demand for digitally skilled talent with four-10 years of work experience in global in-house captives or global capability centers is constant.