The consequences of turnover for your IT services company

Increased staff turnover unbalances the company’s stability. What’s more, this creates problems other than simply launching a recruitment drive to replace a departing employee.

IT services company’s employees have skills in new technologies and IT that the company will “sell” to other companies in the form of services.

Generally speaking, IT services companies have several technical profiles specialized in digital technology, such as consultants, developers, systems architects and so on.

Thanks to these varied profiles, the IT services company will be able to offer various services such as technology consulting, technical infrastructure management, auditing, website creation and so on.

As a result, the operational employee is constantly changing missions, and therefore geographical zones, with little or no control over the choice of mission and therefore location.

Ultimately, the employee is often mobile and therefore more immersed in the culture of the client company in which he or she works. Under these conditions, it’s difficult for IT services company’s employees to become attached to their own company.

This is why, when the social climate, hierarchical relations or the mission are no longer conducive to fulfillment, employees have no trouble leaving their IT services company.

Here are 7 consequences of high turnover in IT services company:

Work overload for consultants still on the job

When a consultant leaves the company, ongoing projects are distributed among former colleagues who are still with the company. This can quickly lead to overwork and further resignations.

More stress

A vicious circle can quickly emerge, creating stress: an employee resigns, bringing with him or her a work overload which in turn creates more stress.

At this stage, relations between managers and consultants continue to be strained, which can increase employee dissatisfaction.

Reduced team motivation

One of our employees’ main motivations is the quality of their relationships with colleagues. So if an employee leaves the company, this can have an impact on team morale. All the more so if the person was well-liked. What’s more, it could also prompt other consultants to resign.

Difficulty keeping up with ongoing projects

When a consultant leaves the company, it’s time to take over his or her current projects. It’s a process that can take time, especially if the project is well underway. So we need to identify the various customers for whom the initial consultant will be working, and identify a consultant who is available to put him or her on the project.

In such situations, managers have to juggle schedules and skills within the company.

Financial losses

The departure of an employee is a financial loss for the IT services company. According to one study, this is equivalent to 63 days’ compensation for an employee about to leave the company. And we’re only talking about loss of performance.

Productivity slowdown

The transition between the departure of an employee and the arrival of a new one leads to a slowdown in productivity. This loss of productivity corresponds to the time it takes for the newcomer to become operational.

The costs involved

Departure means replacement. It’s a process that costs the IT services company’s money, because the new employee has to be recruited, trained and integrated.

Finally, a high turnover rate has financial, human and reputation consequences for an IT services company. These consequences can plunge her into a vicious circle.

The inconvenience of project management can damage a company’s reputation and cause it to lose customers.

The work overload, stress and reduced motivation of the remaining employees can affect productivity and lead to further resignations and absenteeism.

What’s more, a departure entails a financial loss equivalent to 63 days’ compensation for the employee, not to mention the costs involved in recruiting, training and integrating his or her replacement.

That’s why it’s so important for IT services companies to implement a strategy to retain their consultants.

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