An IT company’s philosophy, brand, and other loyalty factors
In this part of the review, we will analyze the strategies for working with personnel in the IT market. Leading HR specialists are commenting.
Do a company’s positioning and philosophy affect the loyalty and motivation of employees?
Research and surveys show that a company’s mission, brand reputation, and overall corporate culture are becoming important factors in employee loyalty and candidate motivation. According to LinkedIn, a good brand reputation is one of the main conditions for 75% of job seekers. Roughly the same number of respondents are not ready to choose a company with a bad reputation, even if they are experiencing difficulties with finding a job.
According to Glassdoor’s survey, more than 84% of employees wouldn’t mind shifting to a company with a better reputation. A strong brand makes hiring qualified employees three times easier. The same is true for the mission and culture of a company. Glassdoor’s study shows that more than three-quarters of people surveyed cite the company’s mission, goals, and culture as top prerequisites for applying. For more than 60% of respondents, the company’s mission is a key factor for personal motivation and loyalty. More than half of the survey participants believe that corporate culture as a factor of job satisfaction is more important than salary.
For Eastern European countries, Private Invest’s study shows different figures. Only 29% of IT professionals focused on the company’s brand when looking for a job, putting income and interesting projects in first place. The events of 2020 have also increased candidates’ interest in telecommuting.
In the 21st century, it is important for people to feel that they belong to a noble mission, for example, to the green movement or charitable initiatives, says Elena Kanatko. This is especially true for workers of the IT sector, who are at the higher levels of needs of the Maslow pyramid. Having its own mission and defining philosophy is very important for a company. Andersen’s philosophy has not been clearly articulated yet – but this is only due to its rapid growth in recent years.
Having started on its path as an IT startup in 2007, Andersen has over 1,800 employees in 2021.
Various humanitarian and social activities organized on a regular basis are a positive factor.
A company’s philosophy may include general strategic development priorities that are understandable primarily to top management, adds Lyudmila Voroshilova. However, for most employees, the overall corporate culture has more weight – openness and honesty, based on mutual trust between employees and managers, strict adherence to agreements, even in the smallest details, the ability to build transparent relations with management, a public report by top leaders on the indicators of the organization’s development effectiveness, etc. When an employee feels that they are a necessary element of a team project, their loyalty increases significantly and can influence their decision to continue working for the company.
Does a social package affect the loyalty and motivation of employees and how much?
In TeonaDaushvili’s opinion, the very existence of additional bonuses and programs for employees is an important psychological factor. This allows employees to associate not only their work but also some aspects of their daily life with the company. Ideally, this provides a harmonious fusion of life and work processes, as illustrated by the example of Google’s extended social package.
At the same time, although additional conditions can become a competitive advantage when hiring an employee, it is important for the company to simply “stay in the market”, without relying too much on the benefits of the social package as a guarantee of loyalty. Almost all good employers have social packages, so they are often perceived as a must-have. The presence of bonus programs, as Elena Kanatko emphasizes, should be viewed primarily as an indicator of the company’s concern for its employees.
Availability of employee health insurance in the IT market for 2017-2020 according to Personal Invest.
In general, the proportion of different additional bonuses may not be the same. Dice’s survey of 2018 found that for most technicians, the key benefits are employee insurance programs and telecommuting opportunities. Other perks like a fitness center or free parking are already less in demand. Even when negatively motivated, about 11% of employees are willing to stay at their job if they are offered comprehensive insurance.
According to Glassdoor’s research, only about 12% of respondents from different countries consider compensations and bonuses to be the main factors of their job satisfaction. As reported by Private Invest, the norm for IT outsourcing companies in Eastern Europe are medical insurance (for 85% of company employees), flexible hours and remote work, referral programs (more than 80%), additional payments (69%), and entertainment activities (96%).
How effective are other ways of motivating employees, apart from financial benefits?
The prestige of the company can become a significant non-financial factor, emphasizes Elena Kanatko. The worth of the projects being developed is also important – this can additionally motivate employees, arousing their interest. But the main thing is career prospects, ensured by a career map and transparent assessment mechanisms.
In TeonaDaushvili’s point of view, Andersen’s advantage in this matter is regular assessments that guarantee career growth, together with constant communication between the management and employees. A strong corporate culture, friendly team, and employee training paid by the company are also important elements of staff motivation.
One of the ways to improve the psychological state and increase the efficiency of employees is to regularly change the projects an IT specialist is working on. If an employee has worked on a project for more than six months and wants to find a more interesting option, in 90% of cases, the company is ready to cooperate.
According to Private Invest’s study, salary adjustments and the possibility to change their role or project are the key strategies for maintaining loyalty for most IT companies in Eastern Europe. In general, it is crucial to keep employees motivated to work and give them the opportunity to improve their qualifications and status within the organization.
The main mechanisms for retaining employees of IT companies according to Personal Invest
According to the data from Glassdoor, the top three drivers of employee satisfaction are company culture and values, quality of the management, and career growth (over 20% per category, globally).
Instead of a conclusion – TOP 5 tips to improve employee motivation and loyalty in the IT field
When answering the question of how to improve employee motivation and loyalty, Andersen’s HR specialists almost unanimously came to the conclusion that the key success factors for any IT company are:
- The openness of management: the ability to communicate with employees and constantly provide feedback.
- The honesty of top management and a policy based on trust.
- The opportunity for career growth and professional development.
- Constantly expanding social package and bonus offers as an expression of care and personal attention to the needs of employees.
- A strong brand, care for their reputation, and enhancement of the corporate culture.
The experience of 2020 showed that it was the honesty of the company’s management, constant dialogue, openness in terms of goals, and quick resolution of current problems that strengthened employees’ confidence in top management and helped to overcome the crisis period.