Struggling with High Employee Turnover? How Can We Retain New Joiners in a Competitive Market?

I am working with an IT company. As per current market trends and the lucrative market, employees are resigning one by one. It is not possible to match their expectations in terms of salary as the business is not growing at the rate they expect. Hence, I want to design a retention policy to retain the new joiners at least, or any methods if you can suggest to lower the attrition.

Regards, Swati

Is salary the only reason for the resignations, or are there any other reasons? Please focus on the actual reasons that must be revealed during exit interviews.

To initiate a retention policy, you must first list out the reasons. Then, you can work out what monetary and non-monetary rewards you can offer to your staff.

Thank you.

It is a simple problem if you look at what you have shared, though the solution is not simple.

The challenge of retaining employees

The employees are getting better offers, so they are leaving. How can you retain them? By paying market rate salaries.

Addressing salary issues

If you are saying that the customers are not paying you better rates, then either you are in the wrong market or your operations are inefficient. There is no other reason why others are able to pay good salaries and you are not.

Retaining talent in smaller software companies

For smaller software companies, retaining good people has always been a problem. They take freshers and train them, but as soon as they are able, they switch to better companies paying more. The solution is in business and operations, which should enable you to pay salaries properly. There is nothing else that will matter really.

If you are thinking of some convoluted ways like bonds and the likes, it will not work.