Employee Retention in Software Development Companies like InterVenturePosted by InterVenture on April 15, 2019
It is becoming increasingly difficult to find qualified employees in the software development industry. Companies are going all out to hire accomplished developers and talented IT experts, and they are doing even more to retain such employees. Satisfied employees who are motivated and willing to support the company’s mission are, in general, more likely to deliver high-quality results. For companies, this is an extremely relevant factor as the employees’ work is what satisfies the clients of the company.
But which factors determine employee retention and what makes employees stay with a company? The following aspects should be the first steps in the right direction.
6 crucial factors affecting employee retention
1) Job Satisfaction
No one wants to work a dead-end job. Employees need to feel acknowledged and proud about their jobs, because failure and dissatisfaction will lead to them searching for employment elsewhere. Job satisfaction mainly describes the workers’ contentment with their job and whether or not they like the position or individual aspects of it, such as the tasks and responsibilities, and the relationships between the supervisors and co-workers. In addition to many other factors, job satisfaction pertains to comprehensive communication as well as mutual cooperation between the employer and employee to determine what it takes for the latter to feel satisfied with the current job.
2) Leadership Style
The management and leadership style within a company is a decisive factor when it comes to keeping the employees (and, therefore, the clients) happy. In fact, poor leadership leads to rebellion among employees and eventually ends in resignation; research shows that 80% of turnover depends on leadership style. It is, as such, important to review the way employees are treated in the company. Managers should be more communicative and supportive of their employees’ needs and should adjust their leadership to a particular employee and the overall situation. At InterVenture, we try to encourage leadership on our partners’ side to enable the creation of an environment in which people can benefit from aspects such as mastery, autonomy, and purpose realisation so that they can do their best and enjoy their job.
Autonomy is intimately intertwined with motivation and, consequently, performance and turnover. It is described as the ability to control one’s life in a variety of aspects, including work. Granting employees greater autonomy motivates them to work at their best as they feel it is more of a responsibility. In contrast, an employer’s need to control everything about their employees is likely to make work feel more like an obligation, which results in poor performance.
InterVenture shares the common idea that autonomy motivates employees to think creatively without needing to conform to strict workplace rules. By rethinking conventional ideas of control, such as dress codes, regular office hours, financial targets, we intend to strengthen staff autonomy, build trust, and improve innovation and creativity.
4) Innovation and Creativity
Innovation is absolutely necessary in the IT sector. Employees in the software development industry should, naturally, be creative. But just how creative they can get, partially depends on their employers. It is important to grant employees greater autonomy and encourage them to come up with new ideas, both personally and professionally. Employers should also grant their employees the resources they need to bring their ideas to life. This also leads to job satisfaction and longer employee retention. Owed to the interesting portfolio of InterVenture Partners, our software engineers have the opportunity to work in some quite interesting and innovative domains, with cutting-edge technologies and the freedom to express their creativity.
5) Training and Development
Training and development are important as it improves employees’ skills, and results in better performances. However, this aspect could be discouraging to some employers in terms of employee retention. According to Ilana Gershon, an Associate Professor at Indiana University, good jobs are those that prepare you for the next job. Despite this, it is still important to invest in employees’ development, and it highlights why it is all the more crucial to ensure job satisfaction. Apart from advanced training conferences and internal jam sessions, InterVenture is working even more on employee development to enforce knowledge-sharing in the future.
6) Work-Life Balance
The standard 8-5 business clock is not working for many employees. They need more time for their personal lives; more time with their families and loved ones. A lack of an appropriate work-life balance leads to discontent employees and inhibits efficacy, eventually resulting in resignation. As such, companies should consider granting their employees more flexibility with regards to their personal lives, for example by establishing designated days to work from home.
InterVenture strongly believes in the power of people, and greatly values the employees they have onboard. By providing a pleasant working environment, team events, game rooms, fruit and snack bars, and team lunches, we at InterVenture try to go the extra mile when it comes to satisfying our people.
These six factors are certainly not enough to guarantee employee retention, but they play an important role in promoting wellbeing in the workplace. They are all intertwined, and come with more benefits than just satisfied employees, which are namely high-quality work results, satisfied clients and, in the long run, increased profits. Although it has become a standard for most companies to consider these factors, InterVenture is well-versed in maintaining these standards. We actively follow our motto “Growing together, both personally and professionally” and like to focus on our employees, ensuring that their wellbeing is always a priority. For instance, some months ago we organized a Hackathon on company level open to all software engineers and IT experts employed by InterVenture to give them the freedom to test and try out new ideas, get together and discuss new technologies and promote a creative, collaborative working environment.