IT Services: How to Attract and Retain Talent - An Industry Perspective on IT

how to attract and retain talentan industry perspective on information technology

kelly global workforce index™

rory spanier & stephen white

Kelly Global Workforce Index™ 2

Our research about what attracts, motivates,

and retains workers across different industries

brought to light some striking differences.

Although there is a strong pattern of voluntary

attrition across all industries and regions, the

responses of some 170,000 employees, globally,

provide valuable insights for employers seeking

to retain and engage talent in these sectors.

This global industry perspective, taken from the

2012 Kelly Global Workforce Index findings, provides

flight risk and engagement indicators across key

industries. From there, we offer an even deeper

look into the responses from over 10,500 workers

in the IT sector, providing valuable, candid insight

into the contributing factors that guide these

workers and their career pursuits. These workers

reveal both the specific corporate attributes that

attract them to particular jobs as well as issues

concerning job engagement and satisfaction.

The scope of this study also offers a glimpse

into employees’ practical reasoning for leaving

jobs and a guide to what employers can do

to help retain their best performers.

introduction

3Kelly Global Workforce Index™

all industries: workforce flight risk

≤

do you intend to look for a job with another organization within the next year? (% yes)

2009 2011 2012

50%

55%

60%

65%

70%

75%

2012

2011

2009

Natural ResourcesLife SciencesAll Industries

59%

69%

66%

Financial Services

60%

67%

66%

Information Technology

59%

65%

64%

58%

69%

67%

60%

68%

64%

At any given time, a large section of the workforce

is in a state of flux. Globally, across all industries,

two-thirds of workers (66%) said that they intended

to look for a job with another organization within

the next year. Although more positive for employers

than 2011 (69%), this represents a significant

increase from the level in 2009 when 59% indicated

they planned to look for a job elsewhere.

Across the industries we investigated, workers

appear restless. While the IT and Natural Resources

industries show a slight advantage, we found that the

climate of today’s workforce has eroded the retention

of employees across the board. The IT sector is

generally more accustomed to an active employment

market due to the rapid pace of innovation, but

across the board we are seeing this “new norm”

translate across industries. The seemingly new norm

has employees continuously keeping a finger on the

pulse of the job market waiting for the next, better

opportunity. Unless employers can offer meaningful

work and ongoing opportunities for growth, workers

today feel that it is in their best interest to keep

their careers in a perpetual state of motion.

Note: The above question was excluded from the 2010 KGWI survey.


all industries: workforce engagement

≤

Across all industries, employee engagement rates

have fluctuated over the past few years, with the

strongest rates cited in 2010. Rates dipped lower

in 2011 in a possible response to the strengthening

economy; they have since rebounded in 2012.

Fluctuations aside, today’s engagement rates

might be viewed by some employers as a

positive sign—an indication that employees plan

to stay put. However, given the fact that two-

thirds (66%) of workers say they plan to look for

a new job next year, it seems contradictory that

nearly the same amount (63%) say that they feel

committed/engaged with their current employer.

At the surface, this doesn’t appear to add up.

By digging a little deeper, however, we hope to

shed some light on this paradox. Aside from salary/

benefits, our research uncovered lack of opportunities

for advancement and poor management rank highest

in terms of what factors are most likely to cause an

employee to leave an organization. Could it be that

although workers are engaged in their jobs, they see

little opportunities for advancement if they stay?

% of workforce that feels committed to current employer (% committed)

50%

55%

60%

65%

70%

75%

80%

201twelve

201eleven

200ten

Natural ResourcesLife SciencesFinancial ServicesInformation TechnologyAll Industries

70%

57%

63%

72%

59%

66%

70%

61%

67%

74%

61%

64%

66%

60%

74%

2010 2011 2012

2010: 70%

2012: 67%


trends over time

compared to all industries

trends over time

workforce engagement

Although workers in this industry are more likely to look for a new job next year, their flight risk is lower than most other industries and significantly lower than workers (on average) across all industries.

Workforce loyalty today among workers in the IT industry is significantly lower than in 2010, when 70% felt committed or engaged with their current employer.

Compared to 2009, significantly more workers in the IT industry intend to look for a new job within the next year. In 2009, 59% indicated they planned to look for a new job the following year, compared to 64% in 2012.

63%66% 67%64% All industries: % of workers that feel committed or engaged with their current employer

All industries: % of workers who are likely to look for a new job next year

IT industry: % of workers that feel committed or engaged with their current employer

IT industry: % of workers who are likely to look for a new job next year

compared to all industriesCompared to workers across all industries, significantly more workers in the IT industry feel committed or engaged with their current employer.

2009: 59% 2012: 64%

workforce flight risk

it industry summary

≤


0%

5%

10%

15%

20%

25%

30%

OtherSocial media presence

Corporate social responsibility

LongevityReputation for innovation

Financial performance

Strong market presence/leadership

Corporate culture

IT Industry

All Industries

All industries

IT industry

it industry: candidate attraction and acquisition

≤

Workers in the IT industry are quite similar to

workers in other fields. The top two organizational

characteristics they consider when applying for a

job are “corporate culture” and a “strong market

presence/leadership.” “Reputation for innovation”

has established itself as the mark of excellence in

technology. Therefore, it should not be surprising that

employees in this industry, more so than in most other

industries, greatly value “reputation for innovation” in

prospective employers.

The IT industry workforce, however, is not the only

group enticed by innovative companies; workers in

the Life Sciences and Natural Resources industries

also share this notable trait.

When looking for a job, “longevity” ranks much

lower on the IT industry worker’s influence scale. In

fact, compared to workers overall, IT workers are

considerably less influenced by an organization’s

“longevity.” It seems that these workers hold values

other than date of establishment in higher esteem

when considering a potential employer.

when considering applying for a job, what organizational attribute influences you the most?


it industry: candidate attraction and acquisition

≤

which of the following factors would drive your decision to accept one job/position over another?

Not unlike other workers, when the time comes

to choose between jobs, two top factors drive

the decision in the IT industry: “personal growth/

advancement” (37%) and “personal fulfillment/

work-life balance” (36%). However, when

these workers are making a decision between

two prospective jobs, they are significantly

different from others in the weight they put on

“compensation/benefits.” Significantly more

workers in the IT industry responded that they

consider “compensation/benefits” an important

factor when choosing one job over another.

0%

10%

20%

30%

40%

50%

IT Industry

All Industries

OtherCorporate sovereignty/good will

Compensation/benefits (high risk/high reward)

Personal fulfillment(work/life balance)

Personal growth/advancement

All industries

IT industry


0%

5%

10%

15%

20%

25%

30%

35%

IT Industry

All Industries

OtherMore support with health, fitness and

well-being from employer

Opportunity for telecommuting

(working from home or

remotely)

More flexible work

arrangements

More or improved

training

A better balance between work and

personal life

More meaningful

responsibility

Higher salary and

benefits

More interesting

or challenging work

All industries

IT industry

it industry: employee engagement

≤

The top factors that make workers in the IT industry

feel more committed/engaged:

1. More interesting and challenging work

2. Higher salary and benefits*

3. More meaningful responsibility

*Compared to workers (on average) across all

industries (24%), significantly more workers in

the IT industry (26%) indicated that “higher

salary and benefits” would make them

feel more committed or “engaged.”

For a plausible explanation, we can start with

the fact that many workers in this industry are

already highly-compensated. Their skills are in

demand and they realize their market power. With

more employment options available to them,

it’s not surprising that salary and benefits play

a key role in retaining these critical workers.

what one factor makes you feel more committed or “engaged” with your job?


0%

5%

10%

15%

20%

25%

IT Industry

All Industries

OtherConcern with

corporate reputation

Lack of flexible

work arrangements

StressPoor communication

Poor staff morale

Inadequate work/life balance

Poor management

Lack of opportunities

for advancement

Poor salary/benefits

it industry: employee engagement

≤

Across the board, the top three factors that would

be most likely to cause workers to leave are “poor

salary and benefits” (21%), “lack of opportunities

for advancement” (21%), and “poor management”

(20%). For workers in the IT industry, not only is

“poor salary and benefits” cited as the top factor for

attrition, salary and benefits are significantly more

important to workers in the IT industry compared

to the average of workers across all industries.

what factor would be most likely to cause you to leave your organization?


candidate attraction/acquisition

• Weknowthatemployerswhoarethecenterof

innovation, driving new discoveries, new products

and the latest technological innovations are

extremely appealing to this group of workers. So,

when looking to attract workers in the IT industry,

make sure you are promoting every aspect of

your organization’s innovations and advancements

throughout every stage of your candidate attraction

process—from the job description to the initial

recruiter contact.

• ForworkersintheITindustry,“moneytalks.”You

cannot afford to pinch pennies if you want to entice

strong candidates during the final stages of the

hiring process. While they’ll look at the personal

factors like growth opportunities and work/life

balance first, they are also heavily influenced

(more so than workers in other industries) by

the compensation/benefits package. Offer a

competitive compensation/benefits package

to keep prospective talent from choosing your

competition over you.

it industry

≤

employer recommendations

employee retention

• WorkersintheITindustryareeagertokeep

their skills relevant and up-to-date, so make sure

there are plenty of ongoing opportunities for

your employees to develop and grow in their

areas of expertise/interest. Ongoing training and

development programs are some of the most

effective retention tools available; champion

these workers by offering help or support with

new certifications, conferences or workshops.

Most employees will not only be thankful for

the opportunity to build their personal skill set,

they’ll be more engaged and more productive.

• Connectiontoco-workersisimportantto

engagement efforts; when possible, look

to create “teams” to complete projects,

and don’t forget to foster a climate of

camaraderie by allowing “downtime” for the

entire staff to connect with one another.

• ItisagiventhatkeepingworkersintheITindustry

engaged requires assigning interesting and

challenging work, but in terms of engagement

and commitment, these workers, more so than

others, are looking for competitive salary and

benefit packages. Once you get the best talent

in the door, make sure your compensation

package is strong enough to hold onto the best.

Kelly Global Workforce Index™ 11

While there are some sweeping worker trends

witnessed across all industries, one thing is clear:

not all employees are the same. For some, like

those in the IT industry, an innate attraction to

innovative projects and a call for a competitive

salary and benefits package rank high on the list.

For others, it’s more about measurable, personal

outcomes—sharing in what they help create.

Different industries have different workforces; those

workforces have unique attitudes and motivators

that attract them to certain organizations, keep them

engaged in their work, and, ultimately, keep them

loyal to their respective organizations. Learning

what these factors are and understanding ways

to influence them may give employers in the IT

sector the crucial competitive edge they need to

win and retain the critical talent they seek in their

constantly evolving, ever-competitive industry.

conclusion

12Kelly Global Workforce Index™ exit

kellyservices.com

about kelly services®

KellyServices,Inc.(NASDAQ:KELYA,KELYB)isaleaderinprovidingworkforcesolutions.

Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class

staffing on a temporary, temporary-to-hire, and direct-hire basis. Serving clients around the globe,

Kelly provides employment to more than 560,000 employees annually. Revenue in 2012 was $5.5 billion.

Visit kellyservices.com and connect with us on Facebook, LinkedIn, and Twitter.

Download The Talent Project, a free iPad app by Kelly Services.

about the kelly global workforce index

The Kelly Global Workforce Index is an annual survey revealing opinions about work and the workplace.

More than 168,000 people across the Americas, EMEA, and APAC regions responded to the 2012 survey.

This survey was conducted online by RDA Group on behalf of Kelly Services®.

iPad is a registered trademark of Apple Inc. An Equal Opportunity Employer © 2013 Kelly Services, Inc.

about the authors

RORYSPANIERservesasdirectoroftheglobalsolutionsteamatKellyServices®.

He specializes in delivering complex workforce solutions, including managed service

providers (MSPs), business process outsourcing (BPO), recruitment process outsourcing

(RPO), and traditional staff augmentation services within the High-Tech client vertical across

North America, APAC, EMEA, and LATAM. Rory has more than 12 years of experience in the

workforce solutions industry, seven of which were concentrated in the operational delivery of

MSP/VMS solutions with leading global clients.

STEPHEN WHITE serves as global director of the global solutions team at Kelly Services®.

He provides global strategic account management, solution development, and workforce

consultative services within the High-Tech vertical. With over 18 years of strategic and

workforce development experience, Stephen brings a wealth of diverse and specialized

knowledge in the areas of managed staffing, global workforce solutions,

business process outsourcing (BPO), process innovation, change management, and

organizational development.

http://www.kellyservices.com

IT Services: How to Attract and Retain Talent - An Industry Perspective on IT

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