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The Great Resignation is disrupting the tech industry

The news: Only 29% of global IT workers have a “high intent” to remain in their current roles, per a Gartner survey of 18,000 employees that included 1,755 who work in IT. 

Why it’s worth watching: The “Great Resignation” is hitting the tech industry hard, and tech firms are getting desperate, per The Register.

  • Only 16% of IT workers ages 19 to 29 plan to remain in their jobs, versus 48% of workers in the 50- to 70-year-old segment.
  • Tech workers in Europe are the most likely to remain loyal, at 40%. In the US, 28% said they were happy staying on. Workers in Australia and New Zealand are the most open to moving—only 18% plan to stick with their current jobs.
  • Faced with worker exodus, Big Tech companies like Amazon and Google are willing to pay more to retain top talent. “Compensation is a big driver for IT pros in data science, cloud, product, or agile development,” said Graham Waller, VP of Gartner.

The problem: “Most companies seem to ignore the importance of nurturing existing employees,” Periklis Venakis, CTO of learning tech company Epignosis, told EBN. “Companies put an emphasis on attracting new talent instead of truly investing in their own teams.” 

  • More than 4.3 million people in the U.S. voluntarily left their jobs in January per the Bureau of US Labor Statistics.
  • COVID-19 and the resulting white-collar shift to remote work have rendered many pre-pandemic hiring perks and benefits obsolete. In-office snacks and meals, gym memberships, and corporate outings no longer resonate with far-flung remote workers.
  • Employee engagement is another challenge: The new distributed work reality can result in indifference and burnout.

The bigger picture: Hiring and retention concerns will intensify as companies plan their return-to-work strategies. HR and benefits are undergoing a massive change to accommodate the new reality.

  • Companies are finding new ways to attract employees: Pinterest improved fertility benefits and parental leave, and fintech Finder added an extra five days on top of PTO and sick leave entitlements.
  • Some candidates are offered money just to show up to job interviews. Deutsche Familienversicherung offers $550 to anyone it interviews and another $1,100 for those making it to a second round—as well as $5,500 for completing a six-month probation, per Wired.