As the demand for skilled tech professionals shows no signs of slowing down and turnover rates among the tech industry continue to rise, the large companies who rely on a continuous flow of these specialized workers are left spending serious time and resources on hiring and retention efforts. A much smaller divide between the layers of upper management and development teams in a mid-sized company may provide some insight into why developers are leaving large companies at such an alarming rate.
According to a recent survey by Stack Overflow, the average age of a developer is 29 with the median age of 27 years old. For this sought-after group of young, highly-skilled developers and engineers, the salary and status of working for one of the big names like Google and Amazon is often hard to resist. With a barrage of office perks to entice these young professionals like fully-stocked kitchens, meditation rooms and premium salaries, a job at one of the tech giants has always been viewed as the holy grail for developers. But this may be changing.
Turnover in Tech
Between the high salaries, endless perks and perfectly decorated open offices, the widely recognized names in tech rarely struggle to attract top talent in the short-term. But even with all the flash and notoriety, the giants in tech still struggle to retain top talent. According to a 2017 LinkedIn report, out of every business sector, the tech sector had the highest turn-over rate at 13.2%. Driven by continued demand and a shortage of skilled professionals, it is easy to assume that these tech savvy job seekers are jumping ship year after year for the next best salary offer. While compensation may play a part in the turnover of some developers and engineers, salary is only part of the equation.
Although it is not entirely known why tech workers are leaving at such a fast rate, studies have shown that turnover throughout all fields is often tied to the lack of career advancement opportunities. After these developers and engineers settle into the large companies they once idealized, the realities of career growth opportunities within these behemoths is disillusioning. Whether it’s a time-consuming project that never got off the ground or the gap between development and management, many of these tech professionals begin to reassess their direction.
Shifting Priorities for Developers and Engineers
A recent 2018 LinkedIn report showed that the biggest jump in market value happens between a software engineer’s entry into the workforce and the five-year mark. With an eager group of young tech talent ready to fill these lucrative positions behind them and little room for growth above them, many successful developers and engineers are shifting their long term career priorities after only a few years at these large organizations.
We spoke with a Machine Learning Engineer who left a major credit card company to join Solugenix. As to why they left such a large company for a mid-sized company like Solugenix, the answer was simple: “I can see a direct impact in the company with the work I do”. While their response didn’t point to a lack of career advancement opportunities as a reason for leaving, it did highlight another important quality that working for a mid-sized company can provide. “At Solugenix, any of my inputs/suggestions in any use case is appreciated and taken into consideration,” he said. "This makes me want to exceed expectations in whatever work I do.”
Rather than being treated as another cog in a much larger machine, many of these high-skilled professionals are seeking a more direct and immediate impact into the vital work they provide each day. For example: “At [a previous employer], once the project was completed, there were several approvals which needed to be taken by leadership to decide if the finished work should be implemented and deployed. There was always a possibility that the completed project may never be used,” shared our Machine Learning Engineer.
Changing Career Priorities During a Recession
With the formal boom of social media and tech success coinciding with the last economic recession, job seekers in this industry have benefited from nearly complete stability and profitability. With more than a decade since the last economic downturn, the current state of the economy may contribute to a change in career priorities for developers, software engineers and other in-demand tech workers.
In light of a looming recession, or what is being described as “unprecedented times”, today’s high-skilled tech workers are prioritizing things that don’t exactly align with the once coveted silicon-valley tech scene. With less layers of upper management and fewer levels of individuals with seniority, the mid-sized companies that rely on developers, programmers and software engineers may be better positioned for this change in career priorities.
