Michael Page Technology – Talent Engagement Survey (Q1 2010)

Market insight to retaining and attracting top Technology talent

With the return of increased business confidence since the Global Financial Crisis (GFC), the employment market is now showing initial signs of recovery. IT employers are being faced with new challenges to retain existing IP and attract new talent as required. The findings contained in Michael Page Technology’s Talent Engagement Survey provide an insight for senior IT decision makers into the most effective strategies for retaining and attracting top IT talent.

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Survey Methodology:

In March 2010, Michael Page Technology conducted an on-line survey targeting Technology professionals registered with its New South Wales and Victoria businesses. In total, 11,704 candidates across three age demographics were surveyed:

1. Generation Y (born after 1981)
2. Generation X (born 1965 - 1980)
3. Baby Boomer Generation (born 1946 – 1964)

All IT skill sets (infrastructure and support, development, project-related and IT management) were included in the sample group, ensuring a broad response perspective. In total, over 600 candidates across these three demographics responded to the survey.

Survey questions were designed to give IT employers direction on the most effective strategies to retain existing IP and attract new staff. Staff retention responses were designed to give IT employers direction on which non-financial incentives IT professionals were most likely to respond to, while staff attraction responses were designed to give IT employers direction on both financial and non-financial means of attracting new talent to their organizations.

Summary of key findings:

1. 74% of IT candidates surveyed would leave their jobs in the next 6 months if offered the right combination of benefits (both financial and non-financial).
2. Across all groups, salary increase was rated the most important factor when considering a move to a new role, however other non-financial factors were also rated highly within each respective demographic:
   • Generation Y listed career progression and job security as the two most important non-financial factors in remaining with their existing employer. When considering a potential career move, this group is equally as interested in gaining exposure to new technologies as they are in increasing their salaries. This dispels the myth that Gen Y is only concerned about salary and their next career move.
   • Generation X highlighted workplace flexibility as the most important factor within their existing organisation, followed closely by job security. Of the 3 generations surveyed, this group is the most willing to move jobs for an immediate increase in salary, possibly willing to sacrifice other benefits for shorter-term financial gain. These findings demonstrate this Gen X’s focus on establishing themselves financially.
   • Baby Boomers communicated that workplace flexibility and recognition for their achievements were most important to them in their current work environment. Apart from an increase in salary, this group is most attracted to new opportunities for reasons of progressing into a more senior role. They also communicated training and support in this new role was important to them, highlighting Baby Boomers are motivated to reach the “next level” in their career, and recognize support from their new employer will be critical to their success.
3. In the next six months, 46% of respondents are planning to ask their current managers for an increase in salary or other non-financial benefits. Of this group, 38% will ask for a salary increase, 26% will ask for more responsibility/career progression and 20% for additional training and professional development.

Survey Responses – Retention and Attraction of Technology Talent

1) “Which non-financial retention strategies would be most effective in retaining you?”

2) “What factors would best enable a prospective employer to recruit you?”

Survey Responses (across all Demographics) - Salary and Benefits Considerations

Implications and Recommendations:

Strategies for attracting top IT talent are most effective when adapted to employee demographics. In terms of retention strategies, IT employers are advised to consider both financial as well as key non-financial retention strategies which are available to them. These need to be tailored to suit the individuals’ needs. As IT teams look towards retaining their existing IP and rebuilding their in-house capabilities, they will face the challenge of competing for top talent in the market. Staff retention and attraction will be key factors which will determine an IT department’s overall capability to meet the growing needs of their respective organisation.

Further information:

To discuss the additional findings contained within this report, including strategies on staff retention and attraction, or to discuss any recruitment needs you may have within your team, please contact MPI Technology in your state:

NSW Corin Cheeseman - (02) 8292 2156
VIC Damien Moss – (03) 9607 5656