23 February 2016 · Reports
- 59% of IT jobseekers are considering moving to a new workplace (down 8%)
- 46% rate flexible hours as their top non-financial benefit (up 4%)
- 9% are considering moving overseas in 2016 (down 15% )
Our latest IT Jobseeker Insights Report reveals that IT job seekers are more content with their current employment situation and that New Zealanders are less likely than ever to cross the ditch for new job AbsoluteIT Job Seeker Insight Feb 2016 opportunities.
More content IT employees
“IT staff retention in a very tight and competitive labour market is always a headache for New Zealand employers, but it seems that they are becoming more successful to address the issue of staff retention. In our latest IT Jobseekers Insight Report we saw an 8% drop in IT jobseekers who wanted to change jobs in 2016(59%), in contrast to 67% as recorded in 2015,” says Grant Burley, Director, Absolute IT.
Across the globe the IT sector is notorious for its high rate of employee turnover, the average number for tenure in the UK is just over two years and at Google average tenure is only 1.1 years.
“Staff churn has high business financial implications as staff turnover can cost an employer 50% to 300% of base salary per person departing, depending of course, on the role. There is also the loss of institutional knowledge and the impact on productivity that can further negatively impact a business,” says Burley.
Extra benefits and flexible hours as motivators
But what do IT employees want from their employers?
While ‘better remuneration’ is rated as one of the top motivators for accepting a job offer it is losing ground to ‘challenging work’ as a motivator. ‘Better remuneration’ is down 8% for permanent staff (at 36%) and down 5% for contractors (26%) while the ‘challenging work’ category saw an increase of 6% for permanent staff (at 19%) and an increase of 1% for contractors (at 32%).
Burley says that employee retention goes further than the tangible salaries or challenging projects and employers should also think of the softer benefits to keep and attract staff.
“The Job Seeker Insight Report showed that the number one non-financial benefit that IT job seekers want is flexible working conditions (47%), up 4% over the past year, followed by career development (23%) and additional leave (12%). Savvy employers tapping into the work/life/balance mantra for their workforce may develop an edge over their competitors in regards to staff loyalty and retention.”
He goes on to say that New Zealand employers are paying attention to this trend with over half of IT employers offering extra benefits and flexible working conditions in order to retain their valuable IT staff.
“Employers offering flexible working conditions are up 1% (51%) and we also recorded that 62% of tech employees get additional benefits and as part of their remuneration offering, this figure is up 2% from July 2015.”
IT employees considering to work overseas reaching record low figures
Another surprising finding from the latest Jobseeker Insight Report is the huge drop in IT jobseekers who are considering working overseas in 2016.
“It is heartening to see that the outflow of IT talent is slowing down so much. There has been a steady downward trend over the past three years and this year we are seeing a record low of 9%, down 15% from last year. ”
While Australia is still the most popular destination of choice for those who want to work overseas, it seems that the tough economic climate in Australia is taking its toll, as figures from Statistics New Zealand paint a similar picture, a 9.5% decrease in migration figures from 2014 to 2015.
“New Zealand offers IT professionals a highly developed, dynamic and fast growing IT sector with the added bonus of living in one the world’s most beautiful places, tipping the balance heavily in our favour and savvy employers will make the most of this competitive edge” says Burley.