No company ever wants to talk about their turnover, even in industries where it is common. The tech industry currently has one of the highest rates, and while tech employees are normally salaried, it’s important for hourly companies to take note of how this challenge is being addressed. For one small tech company in Massachusetts, the solution was embracing it.
Strategies the Company Uses
Paragus, a small outsource IT services firm in Massachusetts, had a problem. Employees pointed out to the CEO, Delcie Bean, that it seemed like an employee departure was being announced every other year. This was having a discouraging impact on the 30-employee sized company.
While loosing around 13% of your employees is normal in the tech industry (Paragus was looking 10-15%), Bean felt the need to push back against turnover.
He already thought the company had great perks: unlimited time off, a 40% employee stock ownership plan, dogs in the office, etc. But employees were still leaving for bigger employers who could pay them more. Paragus couldn’t match their salaries, although that was the first suggestion.
So, Bean wanted to know what embracing turnover looked like.
Embracing Turnover
The company decided to lean into the reality of people moving on. They created a Wall of Fame to honor positive contributions and began hosting farewell parties they called graduations. More importantly, they were upfront during interviews that they could not compete with larger firms on salary, which was often the reason people left.
What Changed?
This shift made a difference. Acceptance rates for job offers jumped from 90% to 99%, and employees who had left began reapplying. Since 2016, around twenty to thirty workers have resigned, but nearly eight have returned.
Embracing turnover doesn’t mean ignoring it. It means planning for turnover and strategizing ways for it to impact your company the least. Employee referral programs like Refered helps you do just that. Refered creates incentives for your employees to stay and recommend other qualified employees, keeping you ahead of the turnover rate. Request a demo today.
