Employee Engagement is Key in the New Talent Landscape

Rhea-AI Summary

ISG expert Ola Chowning emphasized the ongoing talent crisis in tech during her presentation at the All Day DevOps virtual event. Companies must enhance employee engagement to combat the challenges of the 'Great Resignation' and rising wage inflation. Research indicates that 64% of procurement officers rank wage inflation as their top concern. Innovative retention strategies include reimbursing for external education and clearer career paths. With 40% of the IT workforce hired recently, organizations that foster a supportive culture will maintain a competitive edge in retaining talent.

Positive

• Emphasis on innovative employee retention strategies, such as educational reimbursements.
• Recognition that companies engaging employees effectively can reduce turnover.
• Insight into clear career paths as a method to enhance employee investment in the organization.

Negative

• 64% of procurement officers cite wage inflation as their top concern, indicating significant pressure on salary budgets.
• 38% of respondents highlight talent shortages as a critical issue, reflecting competitive hiring challenges.

Challenging global market for tech talent requires new strategies to acquire, retain and engage employees, says ISG expert speaking at All Day DevOps

STAMFORD, Conn.--(BUSINESS WIRE)-- Enterprises and service providers are facing a talent crunch that requires them to double down on employee engagement programs to attract and retain people with critical skill sets, says an expert with Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

Speaking at the All Day DevOps virtual event today, Ola Chowning, partner, ISG Digital Strategy and Solutions, said companies need to engage employees and ensure they are noticed, recognized, heard and valued to improve retention. Chowning made her comments during a 30-minute online presentation, “Skill Shift 2022 - From Deep to Wide, Hard To Soft,” her fifth consecutive appearance at the annual event, the largest of its kind in the industry.

“Talent scarcity, the ‘Great Resignation’ and attrition have dramatically increased the challenge of retaining employees,” Chowning said. “Enterprises are using a broad range of strategies to not only preempt employee exits, but also to preempt the need to counter-offer, which is more costly and rarely succeeds in retaining employees longer-term.”

Finding and retaining talent continues to be a major concern among tech leaders in all industries, ISG research finds. A recent survey of procurement officers by ISG found their number-one concern was wage inflation, cited by 64 percent of respondents. Thirty-eight percent cited talent shortages, which trailed only wage inflation, general inflation and supply chain disruptions on the list of top concerns.

A separate study by ISG found more than 40 percent of the global IT services workforce was hired in the last 12 months, indicative of a job-switching phenomenon the firm called the “Great Reshuffle.”

When it comes to retaining employees, Chowning said bonuses, benefits and gifts are only useful in the short term. Beyond typical compensation, recognition and reward systems, more innovative approaches for nurturing employees with broad and deep DevOps skills include reimbursing employees for external education and certification training and providing access to specialized technology programs.

“Unique, career-specific learning and accreditation is on the rise and can be far more valued by IT employees than widely available online learning,” Chowning said. “Technologists particularly enjoy learning new things and being involved in technology advancements. Linking participation in such programs to career advancement can provide a lane of opportunity and send a message about how the organization values employee expertise.”

Employees often feel unsure of their future opportunities and about the steps they need to take to advance, Chowning said. In response, organizations are making career paths far clearer, allowing employees to plot their career course alongside their leader and assess their progress.

“A clear list of objectives and solid direction and career timing help employees feel more invested with their leader and with the organization,” she said. “When employees are engaged in the corporate culture, have visibility to the executive team and are confident the company values their input, they are significantly less likely to leave. In today’s talent landscape, this is a competitive advantage.”

The seventh annual All Day DevOps 24-hour live stream event started at 3 a.m., U.S. Eastern Time, today. The conference features 180 practitioner-led sessions, across six tracks: CI/CD Continuous Everything; Modern Infrastructure; DevSecOps; Cultural Transformation, Site Reliability Engineering and the Software Supply Chain. Registration and information are available on the event website.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005729/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What did ISG expert Ola Chowning say about talent retention strategies?

Ola Chowning highlighted the need for innovative employee retention strategies beyond typical compensation, such as reimbursing for external education.

What are the main concerns of procurement officers according to ISG's research?

According to ISG's research, 64% of procurement officers identified wage inflation as their primary concern, followed by talent shortages.

How significant is the impact of the 'Great Resignation' on employee retention?

The 'Great Resignation' has dramatically increased challenges in retaining employees, making engagement programs critical.

What percentage of the IT workforce was hired in the last 12 months?

ISG found that over 40% of the global IT services workforce was hired in the past year, indicating a high job-switching trend.

What is a key factor for retaining talent in tech companies?

Chowning stressed that providing clear career paths and recognizing employee contributions can significantly enhance retention.