Why the Tech Industry Has the Highest Turnover

According to LinkedIn, the top 3 industries with the highest turnover are media and entertainment, retailer and consumer products, and technology software at number 1. Their turnover rate? A whopping 13.2%. But with the average software developer salary at over $100K, why the high turnover?

Rising Compensation

Technology experts are in the highest demand ever. 43% of employers say they’re looking for hard skills specifically in potential employees. These skills vary from interface design to Java developers.

Because tech jobs are in such high demand, professionals in the technology industry are easily able to move from one job to the next, especially if another job is offering more money. For example, experience designers are extremely in-demand, so it makes sense that their turnover rate is at 23.3%. Basically, professionals in the tech industry are not afraid of leaving their jobs at the slightest inconvenience. They have no trouble finding a job in their field at a salary they want. Don’t believe us? 49% of departing tech employees take another job within the tech sector.

Prejudice in the Workplace

It’s been reported that toxic environments and employee mistreatment are core drivers behind tech turnover. Reports show prejudice in the workplace, specifically towards minorities, is contributing to turnover. Women and people of color make up a small portion of the tech industry, but the problem is more complex. Minorities in the tech industry are citing inappropriate comments, offensive behavior, and unfair compensation as their reasons for leaving.

The Solution?

We’re seeing more tech giants like American Express tackle this issue with diversity programs. Our solution for your hourly tech professionals? Retinent, an hourly employee recruitment and referral software. Request a demo today.

2019-05-22T23:11:46+00:00 May 1st, 2019|Blog|