As a result, the days of simply throwing more money at employees to retain them are over, and the need for more creative, flexible management of the problem is coming to the forefront. Experts say the soaring salaries for qualified IT workers are likely to continue. But, at the same time, deep pockets won't solve every problem. With the highly publicized labor shortages in the industry, companies across the country are groping for strategies to keep competitors and consulting houses from luring away their best IT talent. The industry is facing the dual challenge of recruitment and retention.
Experts agree that keeping current employees is a much more cost-effective strategy.
Higher salaries are often a knee-jerk reaction to turnover. Competitive salaries are one way to lure and keep employees, but forward-thinking employers are trying to build the employee loyalty that was lost in the era of corporate downsizing and frequent layoffs. One such company is an Atlanta-based clothing manufacturer. We'll take the whole team to the best steakhouse in Atlanta. That's cheaper than paying one headhunter once.