In the outsourcing business employee turnover is the dirty little secret that catches unsuspecting customers by surprise, sometimes as soon as days after the contract is signed. It can be intentional with some vendors pulling a “bait and switch” substituting in less experienced developers shortly after the project begins, or it can be that the vendor’s retention rate is so low you find yourself training new team members every couple weeks. The problem is significant and the trickle down effect of employee turnover will impact every aspect of your business. Here are some things we’ve done to keep our employee retention at 95%.
Hire the right people
Too many times hiring is done strictly on credentials. Since our business is software development, we use technical testing processes that determine aptitude for the given position. In addition, our award winning HR director drills down on a multitude of compatibility questions regarding communication skills, personal background, relocation and similarities to team members they will be working with. The idea here is that we are adding teammates and not hiring employees. You may need to pass on someone that looks like a rock star skill wise but fails the “compatibility test”.
Simply put, micro management does not develop teammates and you should be building a team, not managing employees. You empower your team by having them “own” their duties, giving them a greater vision and purpose to their work. We do this by eliminating the layers of management that traditionally exist in offshore development. Direct interaction with the customer is motivating to our developers because they get to discuss the projects directly with our clients; they receive the vision and scope of their duties direct from the source.
Give them more than a job
We are passionate about reaching the community around our Indian office and we share that passion with our employees. Regularly we invite all our employees to be involved in the community outreach we are doing including volunteering at free health clinics or helping out at a rehabilitation center for the physically disabled we support. Not only does this benefit the community but it also boosts team morale and creates a bond between the team that you cannot achieve in the workplace. Exposing your team to something that is greater than themselves is truly powerful.
VP – US Operations