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How can SaaS companies retain top talent?
SaaS companies strive to give their employees the best benefits
packages,
they aren’t afraid to pay a premium for talent, and they offer some of the most flexible working
options of any industry. So why are tech companies struggling to keep their people, and what can
they do about it?
Companies are seeing employees leave sooner. One in four employees would
leave their current job for a 10% raise, according to our Employee Engagement Report. Employees
aren’t afraid to hunt for a better situation at another company.
Why are tech companies famous for their generous perks?
Google and Amazon have some of the lowest retention rates, according to
PayScale, both averaging tenures of around one year. It’s not because they’re bad places to work
—
in fact, they’re routinely rated as the best places to work.
The reason is that the tech industry is extremely competitive. Every
company
is competing for the most talented employees. Offering a generous package is intended to keep
those
employees around longer. As we saw in our 2016 Tech Report, turnover in this industry is growing
stronger day by day.
Some Interesting facts:
1 in 4 employees would quit for a 10% raise Elsewhere
Nearly 70% of all the employees do not feel they are completely fulfilling their job role
Not even 1 in 3 employees feel valued in their job
What can make you keep your employees?
Did you know that a recent study found that 78% of today’s business
leaders
rate engagement and retention as one of their top concerns? With so many leaders across the
globe
invested in this topic, we had to dig in and see what was driving (dis)engagement.
In all, we found seven major trends impacting workplaces around the world
- •Never Underestimate Culture: Culture drives happiness. Some of the strongest factors correlated to employee happiness include work environment and organizational culture.
- •Peers & Colleagues Rule: The #1 thing that employees love about their workplace is their peers and colleagues.
- •Attrition Is Around the Corner: Believe it or not, nearly one in four employees would leave their workplace if offered a 10% raise elsewhere.
- •Professional Growth Is Lacking: A mere 25% of employees note strong opportunities for professional growth — troubling news for millennial rich workplaces with employees that crave these opportunities.
- •No One Feels Valued or Appreciated: Not even one in three employees feels strongly valued thanks to managers failing to show appreciation.
- • Employees Don’t Feel They’re Meeting Their Potential: Over 70% of all employees don’t see themselves meeting their full potential.
- • Lack of Colleague Follows-Through Kills Productivity: 35% cite that their colleagues do not finish tasks to completion and do not communicate back, which destroys productivity.
How do we solve this problem?
It’s so easy to brush aside intangible things like culture. After all,
they
often aren’t measured, and managers are rarely judged by their ability to create a good culture.
And
yet culture matters. A lot!
When we looked at the factors with the highest positive impact on
employee
happiness, factors like mental wellness, physical wellbeing, work environment, organizational
feedback culture, productivity-increasing, and team-building efforts all made the cut.
How engagement affects employee happiness
| Engagement Factor | Correlation to Happiness. |
|---|---|
| Productivity & Focus |
32
|
| Health & Wellness |
40
|
| Team Building |
12
|
| Organizational culture |
16
|
No, we’re not saying compensation and benefits don’t matter. They do.
But
these stats show that interpersonal and environmental factors play a huge role in affecting
employee
happiness and engagement.
Perkfix admins are able to add pre-approved perk programs and filter out
transactions in real-time. No receipts, no fuss.
Don’t be shortsighted. An investment in engagement is an investment in the business.
Think money is the #1 thing employees love about their jobs? Think
again!
According to studies, One out of every two pointed to their peers and
colleagues as motivators that drive them to stay engaged and keep on learning.
