The market’s unpredictability has made talent retention a growing priority for many organizations, particularly in fields like software development. After continuous layoffs, employees remaining within their organizations seek opportunities for professional growth, skill development, and a sense of being part of something bigger.
Fostering a sense of belonging is essential, as managing the fear of job loss benefits employees and employers.
VanHack’s Retention Report 2024 sheds light on the intricacies of employee retention, providing invaluable insights for organizations committed to proactively managing the uncertainties of the current market.
This report digs deep into the motivations why people stay with the same employer. What motivates their decision? Skill development opportunities, competitive salaries, and bonuses are considered non-negotiable by more than 55% of professionals. Additionally, 40% point to a supportive work environment as a factor in their decision to stay motivated and committed to their current company.
Recognizing and addressing these key factors is crucial for organizations seeking to retain top talent and foster a positive workplace in tech in 2024.
Overview & the Surge of Layoffs in Tech
In an industry traditionally centred on continuous growth, the tech sector’s resilience during economic downturns and the pandemic has been remarkable. However, after the recent war and ensuing instability, companies have been reducing costs, pausing projects and only rehiring for critical positions, treading cautiously in growing teams, and “managing” payroll costs.
Big tech players have invested in automation, leading to the elimination of entire departments and business functions, which is why employee retention becomes paramount with the need to pivot and adapt.
Organizations must strike a delicate balance between fostering innovation and ensuring the well-being of their workforce.
What Turnover & Retention Rates Should Look Like
Data from LinkedIn highlights significant turnover rates in industries such as Tech, Retail, and Media before the pandemic (2018). Specifically, the computer game (15.5%), Internet (14.9%), and computer software (13.3%) sectors had the highest turnover in tech.
Following the pandemic, there was a notable shift in turnover rates, particularly in fields like Human Resources, Research, and Product Management, as reported by LinkedIn in June 2022. Later that same year, LinkedIn shared insights indicating that the ‘professional services’ and ‘tech and media’ industries were among the top two sectors with above-average turnover rates.
The year 2022 was marked by significant events in the tech sector, prompting leaders to express concerns about productivity relative to their workforce size. Mark Zuckerberg notably stated, “This is one of the worst downturns that we’ve seen in recent history.”
- 2018 Roles with high turnover: Technology (Software) – 13.2%, Retail and Consumer Products – 13.0%, Media and Entertainment – 11.4%, Professional Services – 11.4%, Government/Education/Non-Profit – 11.2%, Financial Services and Insurance – 10.8%
- 2021/2022 Roles with high turnover: Human Resources – 14.6%, Research – 13.1%, Product Management – 13.0%, Marketing – 12.9%, Consulting – 11.7%, Average Rate for All Roles – 10.6%
- 2021/2022 Roles with the HIGHEST turnover: Professional Services – 13.4%, Tech and Media – 12.9%, Entertainment – 11.8%, Accommodation – 11.8%, Retail – 11.4%, Average Rate for All Roles – 10.6%
What’s Changed in the Current Landscape?
With layoffs and economic instability at their peak in 2024, are people now more likely to stick with their current jobs?
According to Workhuman “employees want to feel valued, to connect with their coworkers, and to believe the work they do matters. And a strategic recognition program hits the mark on all three fronts.” Workhuman states that companies that do the work to maintain a strong culture of engaged employees will come out of any downturn stronger than when it began.
Workhuman research with Gallup reveals strategic recognition leads to long-term improvements in employee wellbeing, including: less burnout, overall organizational strength; better engagement and productivity, resulting in: greater retention and happier employees.
Strategic investment in employee recognition makes workers 56% less likely to look for new roles, and five times more likely to see a clear path for growth within the company.
Enhancing compensation packages, expanding professional growth opportunities, and prioritizing employee well-being and work-life balance are among the notable retention strategies implemented by Calm.
So, why do employees choose to stay? How can companies strengthen engagement? And what’s the link between retention efforts and cost efficiency?
Why Do People Stay?
Recognizing the importance of prioritizing employee well-being, progressive companies acknowledge the need for initiatives that extend beyond financial compensation, although it’s worth noting that salaries remain among the top reasons why people choose to stay.
In an environment marked by numerous layoffs, individuals employed in the tech industry prioritize opportunities for skill development alongside competitive remuneration packages.
Beyond the High Salaries
Employee well-being is a core priority, and leading organizations understand that meaningful support must extend beyond just financial compensation, fostering avenues for employees to enhance their skills not only benefits individual career growth but also contributes to the success of the company.
From a supportive work environment, recognition and rewards programs, diversity and inclusion initiatives, here are some other findings from the survey on what employees also want to see more of from their employers in 2024:
- Supportive Work Environment: Involves creating a workplace culture that encourages collaboration, provides emotional support, and ensures that employees feel valued and respected.
- Recognition & Rewards, Equity Programs: Value contributions through recognition, bonuses, peer acknowledgment, and equity-based incentives.
- Diversity & Inclusion Initiatives: Involves implementing initiatives such as mentorship programs, diversity training, and resource groups.
Additionally, strong leadership is crucial, with managers focusing on fostering team growth through individualized skills and development training tailored to employees’ desires for future upskilling. Moreover, building trust and transparency within the organization is paramount, as it fosters a sense of security and openness among employees.
“Amidst the uncertainty of market fluctuations and organizational restructuring, the foundation of employee wellbeing—built on security and trust—remains non-negotiable. Investing in this foundation is not just an option; it’s an imperative for enduring success in challenging times.” – Mayara Brandao, Head of HR at VanHack
Exploring the Foundations of a ‘Supportive Work Environment’
If fostering a supportive work environment is crucial for employees’ well-being, then we can draw inspiration from one of the most exemplary companies in retention rates: Calm. According to data from the Work Institute, as emphasized by Calm, “when employees lack sufficient professional development support at work, they may experience feelings of stagnation and demotivation”. It’s important to provide employees with opportunities to advance their careers and broaden their skill sets to maintain their engagement and enthusiasm. Here are Calm’s strategies for expanding professional development opportunities:
- Clarify Career Progression Tracks: Providing transparent career pathways helps employees envision long-term growth and stay motivated within the organization.
- Encourage Continuous Learning: Fostering a culture of continuous learning empowers employees to stay adaptable, engaged, and future-ready.
- Comprehensive Training Initiatives: Robust training programs equip teams with the skills they need to succeed and contribute more confidently to business goals.
Goal Setting and Ongoing Evaluation: Regular goal-setting and performance reviews ensure alignment, track progress, and support meaningful development.
Recent research highlights the importance of prioritizing time as a valuable resource in the workplace, emphasizing its positive impact on employee productivity and well-being. Implementing initiatives such as a four-day workweek, offering one day off for professional development each month, or granting Fridays off during the summer months has been associated with notable benefits for both employees and organizations.
This research, building upon previous studies on the lifestyle and health benefits of reduced working hours, reveals positive outcomes of adopting a shorter workweek. For many employees, transitioning to a four-day week resulted in improved health and well-being. Approximately 40% of respondents reported experiencing reduced work-related stress, while a significant 71% reported lower levels of burnout. Furthermore, over 40% of employees noted improvements in their mental health, with many reporting decreased anxiety and negative emotions.
Harvard Business Review, also brings upskilling as another longer-term investment in engaging with employees and boosting the knowledge, skills, and competencies that help people advance their careers. When employees are offered and encouraged to take advantage of upskilling opportunities for their personal or professional growth, people metrics, such as employee engagement and retention, also go up.
Benefits & Work Arrangements
These questions aimed to gain insights into the preferences and priorities of employees regarding workplace benefits and work arrangements. The responses were gathered from a diverse group of participants, providing valuable data to inform organizational decision-making. Let’s delve into the key findings:
When asked to select up to two benefits they consider most important, respondents showed a clear inclination towards two options:
- Remote Work Options (51.6%): A majority of participants emphasized the importance of having the flexibility to work remotely, indicating a strong desire for a more adaptable and location-independent work environment.
- Flexible Working Hours (48.5%): Nearly half of the respondents valued the option to set flexible working hours, underlining the significance of work arrangements that accommodate individual schedules and preferences.
Other benefits considered by participants included Training and Development (46.6%), Health Insurance (29%), and Stock Options or Profit-Sharing (16.6%).
Understanding the preferred work arrangements is crucial for designing policies that align with employee expectations. The survey asked participants to indicate the work arrangement that would best ensure their commitment to the company. The results were as follows:
- Fully Remote (57.6%): A majority of respondents expressed a strong preference for fully remote work arrangements. This suggests a growing desire for the flexibility, autonomy and cost savings (no long term leases) that come with remote work.
- Hybrid (32.7%): While a significant portion still favors a mix of remote and office-based work (hybrid), it is clear that fully remote options are more popular among the surveyed employees.
- Office-Based (9.7%): A minority of participants indicated a preference for an exclusively office-based work arrangement, a more traditional office setups.
The ‘Fully Remote Work’ Debate
As organizations worldwide navigated the challenges posed by unforeseen circumstances, the concept of remote work emerged as a transformative force, reshaping traditional notions of the workplace. What began as a temporary response during the pandemic has evolved into a broader conversation about the future of work itself.
Since COVID-19, the adoption of full remote work has become more than just a contingency measure; it has become a symbol of adaptability and resilience in the face of uncertainty.
Employees and employers alike have experienced the benefits and challenges of this new work paradigm, prompting a reevaluation of long-standing assumptions about where and how work gets done.
“The Fully Remote Work” debate is not merely a discussion about physical work locations; it encompasses the expectations and priorities of employees. The results above emphasize a clear inclination towards remote work options plus flexible work hours, reflecting a workforce’s desire for adaptability and autonomy. Organizations grappling with the decision of shaping their work policies can leverage these insights to align with employee expectations and foster a workplace culture that resonates with the ever-changing dynamics of the modern professional landscape.
Gender Perspective on the Concept of ‘Fully Remote Work’
When it comes to diversity and inclusion, the gender dynamics of ‘fully remote work’ becomes particularly important. Companies committed to promoting diversity must recognize the importance of creating an environment that accommodates the diverse roles and responsibilities women often shoulder.
By incorporating a gender-sensitive approach, organizations can contribute to cultivating a workplace that not only embraces diversity but also empowers all employees, irrespective of gender, to thrive in the evolving landscape of remote work. Through open dialogue and proactive measures, we can pave the way for a future of work that is not only flexible and dynamic but also truly inclusive.
Diversity, Equity, Inclusion & Belonging
As organizations navigate the aftermath of layoffs, economic recession, and the impact of the pandemic, fostering a workplace culture that embraces diversity becomes paramount for long-term success.
Talent retention is all about creating an environment where employees feel valued, included, and have opportunities for growth. DEIB initiatives play a crucial role in addressing these aspects and contributing to a positive workplace culture.
Feedback & Performance Evaluation
Amid economic uncertainties, VanHack’s survey reveals that over 75% of respondents deem regular feedback as paramount in their roles. Employees express a desire for more frequent performance evaluations, recognizing them as valuable opportunities for professional development.
In this current environment, with uncertainty, the Radical Candor Approach, brings the dual importance of caring personally and challenging directly, fostering collaboration within organizations. It’s the perfect balance between empathy and honesty, creating an environment where feedback is both constructive and supportive, promoting transparency and trust essential for retaining talent.
How to Retain Tech Talent
There’s no one-size-fits-all solution when it comes to nurturing environments where employees thrive and stay. In addressing why individuals choose to remain with an organization, it becomes clear that prioritizing employee well-being transcends conventional compensation structures. To truly retain talent, companies must embrace comprehensive strategies that encompass more than just financial incentives.
Strategic Retention Policies
According to Gallup and Workhuman, organizations that invest in employee recognition experience significant benefits in retention and engagement. In such organizations, employees are 73% less likely to frequently feel burned out and 56% less likely to seek new job opportunities.
The report suggests that even small acts of appreciation can significantly enhance productivity and impact overall business outcomes.
The reason why it’s essential to explore strategic retention policies that encompass a broader range of initiatives that may include
- Empowering Professional Growth: Provide transparent career advancement paths to guide employees in their professional journey.
- Flexible Work Arrangements: Respond to evolving employee preferences by offering options such as remote work and flexible schedules.
- Supportive Work Environment: Cultivate a culture of collaboration, respect, and champion diversity and inclusion initiatives to ensure all employees feel a sense of belonging and equity.
- Feedback & Performance Enhancement: Embrace the principles of the Radical Candor Approach to strike a balance between empathy and honesty in feedback exchanges.
‘People First’ Retention Policy
There’s no one-size-fits-all solution; it’s about placing people at the forefront.
Less about rigid formulas, more about genuine human connection. A ‘people-first’ approach requires a tactical and personal touch, where transparency and trust form the cornerstone.
In discussions surrounding retention strategies, emphasizing empathy is crucial. This involves recognizing and addressing the unique needs, concerns, and aspirations of each individual. By fostering a culture of empathy, organizations can create an environment where every employee feels valued, supported, and understood. This not only boosts morale and engagement but also solidifies retention efforts by demonstrating a genuine commitment to each employee’s well-being and success.
Retention Checklist
Based on the insights from VanHack’s Retention Survey alongside reputable sources, we’ve put together a comprehensive checklist of 9 key points designed to address various aspects of employee satisfaction, well-being, and growth within the organization, aimed at empowering hiring managers to foster employee retention and engagement effectively:
- Prioritize Employee Well-being: Implement initiatives addressing mental health, work-life balance, and stress management.
- Offer Flexible Work Arrangements: Provide remote work, flexible hours, and hybrid options to enhance work-life balance.
- Offer Opportunities for Professional Growth: Establish clear career paths and offer continuous learning opportunities.
- Create a Supportive Work Environment: Allow time for training, courses, or personal projects.
- Implement Recognition and Rewards Program: Value contributions through recognition, bonuses, peer acknowledgment, and equity-based incentives.
- Promote Diversity, Equity, Inclusion and Belonging (DEIB): Foster inclusivity through mentorship, diversity training, and resource groups.
- Provide Regular Feedback and Performance Evaluation: Establish structured feedback mechanisms for recognition and development.
- Regularly Evaluate Compensation and Benefits: Ensure competitive compensation.
- Leverage Technology for Recruitment and Retention: Utilize innovative recruitment partners like VanHack for streamlined hiring and cultural fit assessment.
By checking off these items, companies can enhance their employee retention efforts, foster a positive workplace culture, and ultimately drive long-term success in today’s competitive market.
Translating Strategic Retention Policies into Cost Savings
A savings of $16.1M annually for every 10,000 employees. This translates to $44K every day!
The insights shared in the Gallup & WorkHuman report extend beyond boosting morale and engagement—they have notable financial impacts as well.
For instance, implementing these strategies can generate annual savings of $16.1 million for every 10,000 employees, equivalent to roughly $44,000 in savings per day.
These figures emphasize the tangible benefits of prioritizing employee recognition and retention efforts. By investing in strategies that promote job satisfaction and engagement, organizations not only cultivate a positive workplace culture but also realize significant cost savings in the long term.
Hiring Tech Talent During Uncertainty
The ability to attract and retain top-tier talent is a key driver of organizational success, especially during times of uncertainty. At VanHack, we understand the significance of making strategic hires that contribute to long-term growth and sustainability.
When uncertainty looms, companies need a recruitment partner they can count on – a partner with a proven track record of connecting businesses with exceptional tech professionals. VanHack stands as a beacon in the tech talent acquisition realm, offering a unique blend of expertise and innovation to streamline your hiring process.
Why VanHack for Your Tech Talent Needs
- Global Talent Pool: In the tech world, diversity of thought and experience drives innovation. VanHack brings you access to a global talent pool, ensuring that you can select from a wide array of skilled professionals with diverse backgrounds, perspectives, and expertise.
- Focused Tech Recruitment: We specialize in tech recruitment, understanding the nuances of the industry and the specific skill sets required for success. This focus enables us to identify and present candidates who not only meet your current needs but are also poised for long-term contributions to your organization.
- Holistic Assessment: We employ a meticulous assessment process, ensuring that the professionals we present align not only with your current job requirements but also with your company’s future goals and culture. Through strategic partnerships with best-in-class technical assessment providers, we streamline the talent selection process, delivering shortlists of top-tier candidates. This approach not only saves you time and energy but also ensures that you are presented with the cream of the crop, ready to contribute to your organization’s success.
- Innovative Hiring Solutions: Our recruitment approach leverages innovative solutions to streamline the hiring process. From cutting-edge candidate matching algorithms to virtual recruitment events, we ensure efficiency without compromising on the quality of talent.
- Long-Term Partnership: We believe in building lasting relationships. VanHack is committed to being your strategic partner in talent acquisition, offering ongoing support and solutions to meet the evolving needs of your tech team.
Get to Know VanHack’s Talent Pool
Candidate Demographics and Relocation Preferences
With an expansive talent pool exceeding 458,000 candidates, our retention survey sheds light on the diverse backgrounds and preferences within the tech workforce.
The majority of our candidates are currently based in three key regions: India, Brazil, and Nigeria.
These locations represent the primary geographical distribution of our talent, closely followed by candidates from Pakistan, Colombia, the Philippines, and Egypt.
Preferred Locations for Relocation
Should relocation become a reality, candidates express a strong preference for the following countries:
Candidates express diverse motivations for contemplating relocation. Key factors include:
- Seeking an improved quality of life.
- Pursuing professional advancement.
- A desire for exposure to diverse work environments.
Insights into Salary Ranges Within VanHack’s Talent Pool
Understanding the salary expectations of VanHack’s diverse talent pool is essential for crafting competitive and compelling retention strategies. Based on the data collected, the average salary ranges across different regions are as follows:
- Salary Range (CAD): $87,000 is the average salary expectation for roles in Canada.
- Salary Range (Remote): $63,000 is the average salary expectation for roles with a remote arrangement.
- Salary Range (USD): $75,000 is the average expectation for on-site positions within the United States.
- Salary Range (EUR): €53,000 is the average salary expectation for opportunities within Europe.
These figures can guide companies in customizing retention strategies to meet industry benchmarks and ensure their offerings remain appealing to Software Developers worldwide.
According to data compiled from various reputable sources, including the U.S. Bureau of Labor Statistics, Glassdoor, PayScale, LinkedIn, industry reports, and job postings, the salary ranges for software developers in the United States are commonly reported as follows:
- 0-2 years of experience: $60,000 to $90,000 per year.
- 2-5 years of experience: $80,000 to $120,000 per year.
- 5+ years of experience: $100,000 to $160,000 or more per year, depending on their expertise and the location.
It’s important to note that these salary ranges are averages and can vary based on factors such as location, specific skills, industry, and the size of the employing company.
Salary Strategies Made Easy
While financial compensation is commonly cited as a key factor in job retention, our survey indicates that it’s not the sole consideration
At VanHack, drawing from our extensive experience in facilitating over 2,000 successful hires in the tech industry, we understand the critical role that salary plays in talent retention. That’s why we’ve developed the VanHack Tech Salary Calculator, a platform that provides real-time access to salary trends for remote technical work and relocated staff.
This tool enables employers to navigate the complexities of global talent acquisition. Whether companies are considering fully remote employment or relocation opportunities, this tool offers helpful insights into market rates across various locations, including the USA, Canada, and Europe.
Final Thoughts
Retaining top talent requires more than just competitive pay; it needs a whole-person approach. Employees are prioritizing meaningful work, supportive environments, flexibility and growth opportunities, and organizations that listen, invest in their people and align their culture to employee values will be best placed to navigate uncertainty.
By focusing on recognition, inclusion and development, companies can not only survive economic downturns but thrive with a more engaged, resilient and loyal workforce.
Frequently Asked Questions
What makes tech employees stay in their current roles?
Retention is driven by more than just salary, it’s about growth, purpose, support, and trust.
Professional Growth Opportunities: Employees are more likely to stay when they see a clear path for advancement, skill development, and long-term career progression.
Flexible Work Models: Fully remote and flexible work hours are top priorities, with over 50% of professionals preferring remote-first environments.
Purpose & Meaningful Work: Being part of something bigger, whether it’s innovation, impact, or mission, helps employees feel connected and committed.
Recognition & Appreciation: Companies that invest in recognition programs see major reductions in burnout and job-switching behaviour.
Supportive Culture & Belonging: Psychological safety, inclusion, and trust within teams encourage long-term commitment from tech professionals.
How does diversity, equity, inclusion, and belonging (DEIB) impact employee retention?
DEIB isn’t just about representation, it directly supports retention by fostering fairness and connection.
Inclusive Growth Paths: Mentorship, transparent promotion processes, and development opportunities empower underrepresented groups to advance.
Psychological Safety: Creating space for all voices and perspectives helps build a work culture where employees feel safe to contribute and stay.
Community & Belonging: Resource groups and peer networks foster community, especially for minority groups navigating remote or hybrid settings.
Cultural Competency Training: Training on bias, empathy, and cross-cultural communication boosts cohesion across global teams.
Equity in Recognition & Rewards: Ensuring that recognition, bonuses, and leadership access are distributed equitably helps prevent attrition driven by unfairness.
Why is employee feedback essential for tech talent retention?
Regular, meaningful feedback supports development, builds trust, and encourages growth, all key to keeping employees engaged.
Desire for Frequent Reviews: More than 75% of surveyed tech professionals want ongoing performance feedback, not just annual reviews.
Development-Oriented Dialogue: Constructive feedback tied to career development helps employees see progress and stay motivated.
Radical Candor in Practice: Balancing empathy with honesty (as per the Radical Candor approach) strengthens manager-employee relationships.
Transparency Builds Trust: Open communication around performance and expectations fosters alignment and psychological safety.
Recognition Embedded in Feedback: Feedback that includes appreciation alongside improvement points drives both morale and retention.
What are the most effective strategies companies can use to retain global tech talent?
Retaining international tech talent requires strategies tailored to their needs, preferences, and personal goals.
Competitive & Region-Sensitive Compensation: Use salary tools (like VanHack’s Tech Salary Calculator) to ensure offers align with global market expectations.
Support for Relocation or Remote Work: Over 57% prefer fully remote setups, but clear support for relocation is also key for globally mobile professionals.
Career Growth & Upskilling: Continual learning opportunities, training budgets, and certification support are non-negotiable for global candidates.
Cultural Alignment: Ensuring a good fit between company culture and personal values plays a major role in long-term retention.
Personalized Onboarding & Retention Plans: Understanding individual motivations, from quality of life to visa support, leads to stronger retention of international hires.
What measurable business benefits come from investing in retention strategies?
Investing in retention isn’t just good for morale—it leads to major cost savings and stronger organizational performance.
Significant Financial Savings: Strategic retention efforts can save $16.1M annually per 10,000 employees, or about $44K per day.
Lower Burnout & Turnover Rates: Organizations with strong recognition programs see a 73% reduction in frequent burnout.
Improved Productivity & Engagement: Retention strategies like feedback, flexibility, and DEIB drive employee performance and collaboration.
Reduced Recruitment Costs: Fewer resignations mean lower spending on sourcing, onboarding, and training replacements.
Stronger Employer Brand: Companies known for retaining talent attract better candidates, reducing time-to-hire and improving team cohesion.
