Tech Company Turnover Down in Q2
Tech companies have returned to normal hiring, though the overall turnover rate dropped slightly in this past quarter, according to a survey released July 24 by San Jose, Calif.-based Radford Surveys and Consulting.
The Q2 QSIT (Quarterly Summary of Industry Trends) Survey of technology companies found that turnover at tech companies fell slightly from 12.6 to 12.3 percent in Q2 while overall turnover fell from 20.5 to 19.3 percent.
33 percent of respondents reported that they thought turnover was "somewhat up" from the same time last year.
"The perception of higher voluntary turnover may be due to the fact that companies are anticipating a significant workforce change in the next 12 months," said John Radford, senior vice president, Radford Surveys and Consulting, in a statement.
"Globally, nearly half of tech companies in the QSIT predict up to 15 percent employee growth in their global operations in the coming year. Normal to aggressive hiring is being reported at nearly 70 percent of responding companies, with less than 1 percent reporting a hiring freeze. With these statistics in mind, its not surprising that respondents would perceive an increase in turnover, even if the results dont bear them out right now."
When asked about compensation philosophy, a majority of companies said they communicated this to employees. Most tech companies have adopted a compensation philosophy that targets the 50th percentile of the market for salary. Across compensation vehicles, averages were in the 50th and 60th percentile.
The Q2 QSIT revealed that most companies have adopted a compensation philosophy that targets the 50th percentile of the market for salary.
With some companies targeting higher, averages result in the 50th and 60th percentile across compensation vehicles.
"As the economy picks up, companies are working harder to communicate their compensation plans, to improve the motivation and retention value of their programs. By having a stated compensation philosophy companies can better communicate what differentiates their rewards programs from others in the market," said Linda E. Amuso, senior vice president, Radford Surveys and Consulting, in a statement.
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