An interesting aspect of the technical recruiting business is its involvement with two evolutionary milestones in a high-tech business - its birth and death. When a high-tech startup (including the dot.com’s) develops its business plan, one of the critical needs is the right technical staff. In a tight labor market this must occur early in the process and a recruiting firm is often employed. Conversely, when a high-tech business is in financial trouble, the employees that catch wind before the ax falls quickly distribute their resumes through technical employment venues. So from this unique vantage point we learn which businesses are posturing for start and those that are closing their doors. Between those extremes, however, we hear the grumblings of the high-tech employee that are invisible to the employer they are about to leave. In the interest of finding another job they share information with recruiters that they don’t share with their family or friends and certainly not with their former employer. And the most pressing question that employers have for them is why are you leaving?

Why do tech workers get antsy after a year and a half? Why is it that on a national level Information Technology (IT) workers remain an average of 18 months in a position. Certainly it is difficult enough to find the IT worker. But if the turnover is every 18 months and the time-to-hire is upwards of several months the challenge shifts to retaining the ones that were so hard to get in the first place. It’s in the numbers.

Various formulas place the turnover cost of an IT worker from anywhere from 1.5 to 3 times the persons salary. A $50,000 programmer could cost from $75,000 to $150,000 to replace. Why so high? A myriad of direct and indirect costs associated with finding, recruiting, screening, interviewing, hiring, training, and integrating a new employee. A major variable is lost business or projects left idle. No small wonder that a cottage industry of employee retention consultants are doing brisk work.

The reason they get antsy is partly in the nature of technical work itself. Many software developers, and engineers feel they have finished their work when their project is functioning smoothly. If they cannot find another interesting position internally, or if they want to continue developing software or projects, they have no choice but to look elsewhere.

Recent studies of high-tech employees in this region suggests that three main factors (no particular order) affect IT employee retention:

Work environment (e.g. challenging work, atmosphere, physical environment)

Educational opportunities

Quality of life

Compensation and benefits were mentioned but to a lesser extent. Most of them are aware of the demand for their services and know that all they need to do to get a salary increase of 12-15% is to put themselves on the job market again.

Not surprisingly, many companies find it difficult to provide a constant challenge for their high-tech workers. Sometimes the work is of a maintenance nature and not quite as stimulating. Notwithstanding the inability to provide a 24/7 challenge, companies strive to make the rest of the work environment pleasant in the hope of keeping their staff.

Warren Hutton of Suncoast Scientific Inc. in Shalimar, Florida is passionate about employee retention and helped shape the policies there that led to a very low turnover rate of 3-4% for their technical staff. Their formula is simple but strictly followed:

They are selective about whom they hire. At least four people interview each candidate.

Hire only what they need. Avoid hiring for project only and then have to terminate later.

Make them feel wanted and important to the company. They mentor new hires and emphasize a strong personal touch.

Office environment, build around the employee versus making them fit a mold. A personal space that is tailored to the individual makes the workspace pleasant.

Suncoast values longevity because they see it as an investment in their "corporate knowledge".

For Maria Weisnicht, of Computer Education and Design in Gulf Breeze the key to keeping her staff is "flexibility". She offers her employees flexible work schedules. They can choose their work hours and even work days as long as they meet their customer requirements. This philosophy as allowed her to retain half of her staff over 5 years.

Some companies allow additional flexibility by letting their employees telecommute on a limited basis. Workforce automation tools such as Intranology’s Web-based Knowledge Management Tool allow companies to link their geographically dispersed workforce through a common interface.

Bullock Tice Associates, a Pensacola-based architectural consulting firm, promotes their ability to design the physical work environment in order to help retain employees.

Educational opportunities are very important to IT workers. A recent survey by the web portal ComputerJobs.com revealed the 93% of IT workers surveyed (2296) said educational opportunities were "critical" to their career. Getting the education to keep one’s skills current in their work requires the type of flexibility to balance work and education. Ms. Weisnicht further stated, " Learning should be an ongoing part of a company's corporate culture - but again flexibility is important to meet individual learning styles. Some people want formal classroom training while others learn best through books and on-the-job training.  We budget training dollars for each employee - some are using this money to pay for degreed classes at UWF and PJC while others stock up on technology books from the bookstore."

Quality-of-life reasons for an employee leaving apply mostly to those relocating to another living environment and not to those making job changes within this region. We discovered many sought this area as an escape from the metropolitan maze of traffic, crime, congestion, smog etc. This area’s waters and beaches are a strong attraction for those fed up with the rat race. This lifestyle attraction is key to St Joe company’s strategic vision of attracting IT workers to NW Florida. But it is important to note that those content with the quality of life are less likely to leave the region. High-tech employees motivated by primarily by compensation will follow the money wherever it takes them.

In an information technology economy shaped by knowledge-based workers, the financial cost of a technical member leaving is akin to robbery, embezzlement, or litigation. It is as financially horrific as the corporate knowledge that a high-tech employee takes when he unceremoniously walks out the door. And this is not a commercial problem alone. The DoD and the contractors at local military bases are affected as well. Projects stymied or aborted by lack of technical expertise are equally devastating.

Many companies are aggressively pursuing measures to redefine the workplace in order to minimize turnover costs and intervene early into situations in which a critical member may be taking flight. In some larger firms an "Office of Retention" has been created to be a focal point for retention matters. This office can easily pay for itself by keeping a key employee. Making the workplace challenging and pleasant has now become bottom-line driven.