It is an employees’ market in the technology sector.
According to a recent study, voluntary employee turnover in the technology sector, a closely-watched metric for human resources leaders, has increased in eight out of 10 markets this past quarter. Only India and Taiwan saw a decrease, highlighting the need for companies to relook at retention strategies.
The conclusion is based on the Radford Global Technology Survey results. Radford is part of Aon plc.
As employee turnover has gone up, so too has the percentage of technology companies reporting aggressive hiring plans. Companies reporting that they are actively planning and recruiting for organizational growth increased in six out of 10 key Asia Pacific markets.
In Singapore, the percentage of technology companies that plan to hire aggressively increased from 5.5% to 6.0%. At 18.4%, India has the highest percentage of companies actively growing their workforce.
Meanwhile, China experienced a drop in companies expecting to grow headcount -- from 10.9% to 7.0% -- which could be partly driven by an ongoing trade dispute with the U.S.
Trend lines often converge between turnover and hiring. When the technology sector is in a robust state of growth, employees are more likely to be lured into new jobs by attractive rewards plans, career advancement, and opportunities to expand their skills.
"We define rewards as anything an employer provides that an employee finds valuable," said Alexander Krasavin, partner and chief commercial officer of Emerging Markets in the Rewards Solutions practice at Aon.
"As companies reassess their retention strategies, they must work harder to optimize their rewards to align them with their employee preferences. In addition, businesses with a voluntary turnover of more than 10% should evaluate their employer brand and human capital practices carefully," he added.