IT resignations hit a high

Survey reveals job dissatisfaction is rife in IT industry

Resignation rates in the IT sector are higher than in any other sector in the UK according to research released today by the Chartered Management Institute (CMI).

The CMI 2006 National Management Salary Survey, questioned 22,480 individuals and revealed that executives in the IT sector have become frustrated by company pay structures and a lack of job satisfaction.

Labour turnover rates in the IT sector stood at 10.7 per cent, compared to five per cent in food and drink and 7.3 per cent in engineering. Resignations stand at 4.4 per cent for managers in the sector, higher than the 1.5 per cent in pharmaceuticals. Requests for internal moves are reported at 3.9 per cent, compared to 1.4 per cent in the utilities sector and three per cent in manufacturing.

When asked to explain the retention and recruitment problems, many firms cited dissatisfaction with the working environment. Twenty per cent of respondents said restructuring or job insecurity caused uncertainty, 15 per cent suggested staff were unhappy with office location or relocation plans, and nine per cent focused on the lack of facilities available at work.

In terms of pay, 39 per cent of firms claimed they lost staff because of the salaries on offer and the distribution of bonus payments. The survey also showed that bonus payments were down, with 62 per cent of managers receiving a bonus compared to 69 per cent last year. However the proportion of directors receiving bonuses has increased to 85 per cent, up from 77 per cent.

Finally 37 per cent of firms admitted they offered little in the way of career development or training, and 29 per cent said structured training was not open to all staff.

Jo Causon, marketing director at the CMI said: “The reported increase in resignations is a matter for concern, especially as organisations continue to identify skills gaps in specialist areas. Of course, a certain amount of labour turnover can be a good thing, but if the current trend is allowed to continue it could breed dangerous levels of uncertainty and impact on the strategic development of UK organisations.”

In an attempt to redress the trend in resignations, the 2006 Survey revealed that organisations are offering a range of benefits to staff. These now include private medical cover (72 per cent), childcare vouchers (67 per cent) and life assurance (63 per cent). Almost all offer some form of pension provision (99 per cent), but the number offering contributory final salary schemes has dropped from 34 to 28 per cent.

Paul Campfield, director of Remuneration Economics, said: “The report, which is now in its thirty-third year, shows that many organisations are creating packages that offer the flexibility to match employees’ differing requirements. With the increase in staff turnover this is an area that will inevitably attract greater attention as employers look to retain the best talent.”