Don’t Overlook DE&I’s Impact on Hiring and Retention in Tech
Top talent is looking for exactly what DE&I initiatives provide, says the 2023 State of DEI in Tech report.
![hiring and retention in tech hiring and retention in tech](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/bltc890e56809959b6b/6523f8f126847c42e3923484/Recruit-and-retain.jpg?width=700&auto=webp&quality=80&disable=upscale)
Shutterstock/EtiAmmas
According to the 2023 State of DEI in Tech report, 40% of tech professionals considering a new job prioritize companies that offer flexible work opportunities.
For employees deciding whether or not to stay with their current employer, 45% would remain if flexible work opportunities were available.
In evaluating potential employers, 38% of tech professionals look for companies with wage transparency and equitable pay.
Wage transparency and equitable pay would keep 40% of employees considering a change right where they are.
Twenty-five percent of tech professionals look for companies that celebrate diversity-driven holidays in meaningful ways such as giving employees time off, making donations and hosting employee events.
The observation and celebration of diversity-driven holidays was an important consideration for 28% of employees deciding whether or not to stay.
Paid parental leave is a priority for 24% of tech professionals looking for a new job. It’s important to 28% of those wondering if they should leave or stay.
Whether they’re looking for a job or assessing the one they currently have, 77% of tech professionals want to work at companies where they will feel respected and valued by their peers and managers
Seventy-three percent of tech professionals want to work at companies with clear anti-discrimination/anti-harassment policies.
For 73% of tech professionals, it’s important to work at a company where they can feel an overwhelming sense of belonging.
For 73% of tech professionals, it’s important to work at a company where they can feel an overwhelming sense of belonging.
Hiring and retention in tech, as in every industry, are the life blood of any company. No matter how good the product or how unique the service, chronic employee turnover can quickly flatten a business. This can happen for a number of reasons, including:
Recruitment and training costs. Hiring and training new employees can be a costly process, High turnover requires correspondingly high investments of time, effort and resources into recruiting, interviewing, onboarding and training new employees.
Loss of productivity. Constant employee turnover disrupts workflows and negatively impacts productivity. New employees must ramp up, taking time to adjust and learn their new responsibilities before they can become fully productive. This can create extra work for existing employees who must “take up the slack” for new employees while they are being trained and/or actually do that training. In both cases, productivity suffers.
Knowledge and skill drain. When employees leave, they take their knowledge and expertise with them. The departure of a key employee can hit especially hard as they can take unique skills and experience with them. While the business struggles to replace them, the business can suffer from a loss of productivity and competitiveness.
Decreased morale. The constant churn in the workplace caused by chronic employee turnover can cause remaining employees to experience a slump in morale. They may experience a sense of instability and insecurity. They may feel demoted, uncertain about their own futures and unmotivated, less engaged in their work. This negative work environment can lead to problems such as decreased productivity and increased absenteeism.
Customer dissatisfaction. When customers must deal with a different employee every time they contact a company, there’s likely to be inconsistencies in service and miscommunication which can lead to a loss of trust. And when unhappy customers take their business elsewhere, it can damage the reputation and profitability of a company.
Negative company culture. A revolving door of employees can disrupt the development of a positive, cohesive company culture. Constant turnover can prevent the formation of strong relationships, teamwork and shared values. And in such a climate, it’s difficult to for employees to have a sense of loyalty, commitment and long-term vision.
Decreased operational efficiencies. Each new hire has a learning curve that affects productivity and efficiency. A normal part of this learning curve is errors. So when a sizable portion of the company’s workforce is in a learning curve, delays and operational inefficiencies are likely to occur. And this can lead to a drop in customer satisfaction, product quality and the overall performance of the business.
To improve their hiring and retention, companies need to educate themselves about the priorities of today’s top talent. They also need to remember that at the same time they’re assessing a candidate, that candidate is assessing them. The interview process is two-way exchange.
According to Built In’s 2023 State of DEI in Tech report, DE&I is an important element in both hiring and retention in tech. Working in partnership with Brandata, tech recruiting platform Built In surveyed tech professionals and tech employers to find out about their attitudes and efforts concerning DE&I.
Click through the gallery above to find out what the survey revealed about the vital role DE&I plays in hiring and retention in the tech industry.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Buffy Naylor or connect with her on LinkedIn. |
About the Author(s)
You May Also Like