The trouble with retaining tech talent is high-demand and rising compensation within the industry.
By Staff Writer, Khaleej Times
The technology sector, retail and media industry witnessed the highest talent turnover in the Mena region as employees moved to search for better opportunities, a study by LinkedIn has revealed.
The findings, based on LinkedIn’s data on half-a-billion professionals, show that in 2017, tech companies (software, not hardware) had the most turnover with a 13.2 per cent rate. Retail and consumer products – a historically high-churn sector – follows closely behind at 13 per cent, while media/entertainment stands at 11.4 per cent.
While every industry has unique drivers motivating its workforce, LinkedIn research has found that almost half the participants (45 per cent) said they left their jobs due to lack of opportunities for advancement.
The other biggest reasons people jumped included being unhappy with leadership (41 per cent), being unhappy with the work environment (36 per cent) and a desire for more challenging work (36 per cent).
“The trouble with retaining tech talent is high-demand and rising compensation within the industry. As employers and offers get more competitive, top talent is more eager to jump on new opportunities. Emphasising career advancement can help retain current employees and attract new ones,” said Ali Matar, head of LinkedIn Middle East and North Africa. Almost half (49%) of departing tech employees take another job within the tech sector.
According to LinkedIn, to mitigate turnover problems, improve retention, and attract more talent, companies need to arm themselves with insights. “Once you have the data to anticipate turnover, you can act to retain key employees and recruit new ones way ahead of time. It’s the difference between constantly reacting and proactively planning,” added Matar.
Over the last few years, these sectors have consistently seen the highest turnover rates.
While tech, retail, and media may have the most “liquid” workforces, each one sees talent turnover for very different reasons.
According to LinkedIn representatives figures of high turnover in retail “aren’t surprising”, especially with the rise of online shopping.
Retail companies, therefore, need fewer people on the ground, with many former salespeople have to find completely new careers: Only 35 per cent of people leaving jobs in retail stay within the sector, according to our data.
Sectors with highest turnover rates
>Technology (software) 13.2%
> Retail and consumer products 13%
>Media and entertainment 11.4%
>Professional services 11.4%
>Financial services and insurance 10.8%
>Oil and energy 9.7%
> Healthcare and pharmaceutical 9.4%