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Employee retention at digital services companies (ESN) is one of the key challenges.
Technical profiles represent real added value for companies in the digital sector, as they are their main asset.
However, the sector has a structurally high turnover rate: around 18% according to Numeum, the trade association for digital companies. This means that nearly one in five consultants leaves their digital services firm each year. Understanding why is the first step toward taking action. This article details the 12 Main Causes Staff turnover in IT services firms. For specific strategies to retain employees, see our dedicated article: How to Retain IT Services Consultants and Reduce Turnover.
12 Reasons for High Employee Turnover in IT Services Companies
1. Workplace ill-being
This sense of unease can stem from several factors: the consultant’s feeling of loneliness, as they often move between client sites and lack a stable emotional anchor (colleagues, corporate culture, etc.). It can also stem from difficulties encountered during assignments (lack of an ID badge or workspace), as well as from poorly managed periods between jobs. A consultant who finds himself without an assignment for several weeks—with no clear prospects and no support—quickly begins to feel anxious and useless, two common triggers for resignation.
2. Work overload
Work overload can affect the morale and motivation of your consultants and drive them to leave; particularly when combined with other factors such as unhappiness, unattractive remuneration, etc.
3. Unattractive remuneration
It’s no secret that remuneration plays an important role in the attractiveness of a position. In fact, according to an Opinion Way survey, the number one reason employees are happy is that work enables them to look after their families and themselves financially.
4. Lack of recognition
The IT services company’s consultant may be treated as nothing more than a resource for a given period of time, and feel that the work he or she has done has only benefited the company’s reputation, rather than his or her skills.
Recognition is good for self-esteem. It makes you feel useful and valued, and therefore has an impact on your self-confidence. The lack of recognition linked to work gives employees the feeling that they are not visible and present in their environment. So he’ll look elsewhere to fill this need for esteem.
5. Limited opportunities for development / lack of visibility
After several years in a job, it’s natural to want to evolve. It’s sometimes difficult for IT services company’s employees to plan ahead: they have no control over their choice of assignment, and little visibility over training and career development opportunities.
As a result, they choose to take matters into their own hands by applying elsewhere to develop their careers.
6. Inter-contract period too long
By applying their skills, IT consulting professionals find meaning in their work. If you leave your consultant without an assignment for too long, you risk losing their motivation and commitment—and, above all, they’ll seek out an assignment at another IT services firm.
7. Poor use of skills
Some consultants may feel that their skills are not being properly exploited by their company: for example, through an assignment that has nothing to do with their skills, or that offers too low a level of interest or experience to be implemented.
This situation leads to frustration on the part of the IT employee.
8. Lack of training
The digital sector is evolving rapidly, with new technologies emerging all the time. To stay competitive and grow professionally, your consultants need training. The absence of a training plan gives the impression that the company offers no prospects for development.
9. Work-life balance
The consultant must be able to strike a balance between his private and professional life. A bad atmosphere at work, complex hierarchical relationships, too heavy a workload can influence our attitude in our personal life: stress, confidence, burnout, etc.
10. Recruitment mistakes
An ill-suited hiring process can also contribute to higher employee turnover: poor onboarding and lack of alignment with the company culture, or a lack of roles that match an employee’s profile.
11. Lack of attachment to corporate culture
Often absent from the company’s premises, IT services company’s employees don’t have the opportunity to become attached to the company’s culture, to enjoy the working atmosphere, and to meet other employees. As a result, a sense of belonging to the company plays no part when an IT services company’s employee wants to jump ship.
12. Mission difficulties
Every time the consultant starts a new assignment, it’s the same obstacle course all over again, at least according to the many testimonials.
Their badges are late in arriving, so they have difficulty entering the customer’s premises, their workstations have not been prepared for their arrival, and this can take up to several weeks.
This kind of situation takes its toll on the consultant’s morale and motivation.
How Should We Deal with Employee Turnover?
These 12 factors explain why turnover in IT services firms remains structurally high. But knowing the causes isn’t enough: you also need to implement a retention strategy tailored to your organization and corporate culture.Our comprehensive guide to retaining IT services consultants details, cause by cause, the concrete measures you can take—including managing the period between contracts, which is often underestimated in HR strategies.
→ Read: How to Retain IT Services Consultants and Reduce Turnover
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