How can IT service companies retain consultants and reduce turnover?

Reading time: 8 minutes

Employee turnover is a completely normal phenomenon in an IT services company because it helps bring in new talent and skills.

But if employee turnover continues to rise, it is a sign of problems within the company—such as working conditions, workplace atmosphere, management, etc.

And for good reason: the staff turnover rate at digital services companies is one of the highest in the service sector, at 18%, according to Syntec.

To combat employee turnover, it is essential to implement a talent retention strategy.

But it’s important to know what makes employees thrive.

In this regard, an Opinion Way study highlights the factors that contribute to happiness at work in the service sector.

It includes :

  • The work atmosphere / colleagues.
  • Financial recognition / remuneration.
  • Work-life balance.
  • And the pleasant working environment.

However, in the IT services sector, your employees are often on site at client locations and rarely have the opportunity to meet their colleagues or connect with the company culture. Career advancement opportunities are often difficult to discern.

Result: in IT services companies, resignation is the main reason for offboarding consultants.

9 Best Practices for Retaining Your IT Consulting Firm Consultants

To reduce employee turnover, you need to analyze the issues that are causing high turnover rates within your IT services company. These may include the work environment, the hiring process, management, and so on.

Then you can implement a loyalty strategy for your employees, involving both management and the Human Resources team.

Here are some best practices for reducing employee turnover at your digital company:

  1. Produce a medium- and long-term training plan.
  2. Offer competitive salaries.
  3. Evangelize corporate culture to consultants.
  4. More personalized management.
  5. Open up capital to employees.
  6. Redistribute profits.
  7. Proposing a funded pension scheme.
  8. Creating a pleasant working environment.
  9. Set up tools to make everyday life easier.

The Opinion Way study also shows that, in the service sector, digital tools are recognized for their ability to:

  • Making everyday life easier.
  • Improve productivity.
  • Reassure
  • And strengthen social bonds.

The Benefits of ERP in Reducing Turnover Among Your IT Services Consultants

65% of French workers surveyed believe that having a digital tool tailored to their industry makes their day-to-day work easier.

SaaS ERP software designed for digital services firms, consulting firms, service companies, and engineering firms is a real asset in implementing your employee retention strategy.

It is becoming a strategic tool for reducing employee turnover and strengthening team cohesion.

The various modules and features offered by the management solution allow you to enhance the employee experience and stay closely on top of your talent and HR management.

By centralizing information and automating HR processes, ERP software has become a true ally of the Human Resources department.

Internal communications to stay connected with your consultants

Thanks to the internal communiqués available within the ERP solution, you can easily communicate with your consultants on the move, to keep them informed about company activities: new arrivals, new processes, internal events, etc.

This helps employees at digital services firms—who are often located far from the company’s headquarters—feel included in company life.

Maintaining these connections is crucial for reducing feelings of isolation, which are often responsible for high turnover rates in service companies.

A Better Everyday Experience: Ease in Managing Time-Consuming Tasks

A heavy workload can quickly lead to increased stress. Administrative tasks are tedious for consultants (expense reports, time tracking, etc.), and this is often a source of friction within your teams.

Management software helps reduce this administrative burden and streamline processes:

  • Submitting the Activity Report (CRA) via a mobile app.
  • Automatic reminders for entering expense reports, time logs, and absences.
  • Centralized data updated in real time: paid time off, availability, etc.

This time savings improves the quality of life at work and allows employees to refocus on their core responsibilities.

Monitoring the training plan and skill development

Your IT services employees need opportunities for professional growth and training to develop their skills. The training module in your HR management solution allows you to create a training plan and share it with your employees.

You can provide them with a repository of all the training courses you offer.

Your employees can sign up on their own to submit a request directly in the app.

Good human resources management software also makes it possible to track acquired skills and better anticipate future needs.

This career progression model significantly reduces consultant turnover by giving meaning to their career paths.

A clearer picture of your digital services company’s operations and your consultants’ skills

Thanks to the data progressively integrated by the various company players, you have access to reliable, up-to-date data on your company’s activity.

This data allows you to better optimize your human resources and reduce errors in scheduling, recruitment, and so on.

You have a clear view of the resources available for an assignment, the skills required per case, and so on. This enables you to place the right candidate with the customer, quickly identify skills that are lacking within your organization, and so on.

By managing assignments more effectively, you can avoid the frustrations associated with poorly matched assignments—another key factor in consultant turnover.

A More Personalized Approach to Management

When working remotely, it can be difficult to gauge an employee’s state of mind: Are they satisfied with their role? Does it meet their expectations?

Management and the work environment have a significant impact on employee motivation.

ERP software allows you to track progress more effectively by scheduling meetings several times a year, conducting performance evaluations, or gathering information on a monthly basis, for example.

Individualized monitoring makes it possible to detect early warning signs of demotivation or a desire to leave, and to take action before it’s too late.

Reduce consultant turnover with VSActivity

Consultant turnover is therefore a major challenge for digital services firms. To address this, it is essential to implement a tool that centralizes, automates, and streamlines all your HR processes.

VSActivity is management software that transforms the work of Human Resources and a SaaS ERP designed for digital services companies. Thanks to its intuitive interface and advanced HR features, you can:

  • Better track your employees’ motivation and expectations,
  • Reduce the administrative tasks that interfere with their daily lives,
  • Offer training to help them develop their skills,
  • Improve the visibility of your HR planning.

The goal: to improve and professionalize human resources management to strengthen team loyalty. With a 360° view of employees’ career paths and satisfaction, you create the ideal conditions for reducing consultant turnover.

Want to learn more about how an ERP system can transform your HR department?

Schedule a free demo with one of our experts and discover how VSActivity can help you reduce employee turnover and address your HR challenges.

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Interested? Discover our vsa software!

VSActivity (vsa) is the all-in-one SaaS ERP expert for IT services companies and consulting firms. With our comprehensive, ISO 27001-secured management software, everyone in your company can focus on their core business.

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