Small Firms Win Over IT Talent

Mid-market companies need to attract and retain more technical talent, but don’t have the deep pockets of their larger competitors. That isn’t proving to be an insurmountable barrier, however. While large companies focus on pay-based incentives to recruit and retain employees, or turn to outsourcing and cut staff, mid-market companies are much more likely to invest in their IT staffs for the long haul, offering technical training and benefits that contribute to the work/life balance. The result: Mid-market IT organizations have a 6% turnover rate, 3 points lower than the rate at larger companies. Of course, all employees want to be paid well. But at a time when so many IT professionals feel uncertain about the future, job security and opportunities for career growth are a winning combination.

Finding One

Midsize Firms Beef Up on Technologists

Programmers are in demand. Midmarket firms have modest IT organizations but will generate an enormous
number of new IT jobs, since nearly 60% expect their IT organizations to grow in the next 12 months and only
3% plan to cut back. They also experience a relatively low 6% turnover rate and most don’t do college recruiting,
which means most hiring will be to fill new positions for experienced IT professionals. Except for project
management, the greatest demand will be for technical positions—particularly programming, tech support and
systems integration—rather than managerial jobs.

Finding Two

Mid-market Companies Retain Tech Talent

Working for mid-tier firms has its advantages. Mid-market companies may not offer the highest salaries or
send employees to expensive training and leadership programs, but many offer IT professionals job stability,
technical training and work/life balance. Large companies, by comparison, may be less attractive because of
their greater reliance on outsourcing and the stronger likelihood of cutbacks. This means mid-market companies
can be more attractive places to work than larger companies. CIOs at mid-market companies should press
their advantage; they are not condemned to lose the “war for talent” simply because of their size.

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