Chief Information Officer of of AvidXchange, a leading provider of accounts payable and payment automation technology.
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The war on talent is starting to sound like old news, but it remains a critical priority for IT leaders as they fight to hold onto their most prized asset: their people.
Despite highly publicized layoffs and pressures to cut spending amid rising costs and economic uncertainty, the demand for tech talent still exceeds the supply. Gartner, Inc. reports that 86% of CIOs face more competition for qualified candidates and that 73% are worried about retaining their talent. As companies look to keep up with demanding IT initiatives across hybrid work environments, tech leaders are wrangling with how to connect with employees and ensure they feel valued.
While competitive salary, PTO and better benefits can help employees feel valued by their employer, what sets an organization apart from its competition is the quality of its human connections. Connection can be a key indicator of job satisfaction, ultimately improving retention efforts and helping to attract new hires. It's an intrinsic factor that can be tough to master, but understanding why it matters and how it differs from one individual to another goes a long way.
The High Cost Of Disconnection
A 2022 Gallup study found that only 21% of employees around the world feel engaged at work and estimated that disengagement costs the world $7.8 trillion a year in lost productivity.
Today's hybrid work environment is a powerful hiring tool and a boon for providing flexibility and better work-life balance, but it can exacerbate the problem of disconnection. An Igloo report found that 70% of employees working remotely feel left out of their workplace, and an article in The Atlantic shares numerous studies that illustrate other disappointing trends resulting from post-pandemic remote work—including loneliness, burnout and depression.
However, it's not just remote work that's to blame for disconnection and dissatisfaction. Growing workloads, mundane tasks and pressures to help companies navigate economic turmoil by cutting costs also contribute to the problem. These factors make it all too easy for team members to field calls from recruiters and consider other, seemingly greener, employment options.
Providing Purpose Through Work
An important part of strengthening relationships with employees is to help them connect to a greater purpose that aligns with their organization. McKinsey research found that 70% of people define their purpose through their work, yet 85% of those surveyed feel unsure about whether they are living their purpose in their day-to-day work.
This presents an opportunity for organizations to create the connection employees crave by aligning what they care about to their work and to the business. It starts with recognizing that values are unique and that conversations and connections with each individual need to be custom tailored.
For example, to better understand what makes my diverse IT department tick and what may compel each member to leave the organization, AvidXchange leveraged a simple yet direct survey as a conversation starter. We asked each tech team member if they felt connected with peers and leaders and if they felt valued or rewarded for their contributions. This process enabled our company to translate truthful feedback into an actionable plan for each employee, fostering a strong sense of purpose and belonging across teams while providing resources needed to increase job satisfaction and elevate careers.
Thinking Like People Leaders Rather Than Tech Leaders
In an IT setting, it can be challenging for leaders to concentrate on people rather than technology. To retain their most prized asset, they need to operate like a tech company—with awesome engineers, processes, capabilities and architecture—while thinking like a people leader.
Providing meaningful work and empowering teammates to collaborate to solve bigger problems are effective ways to think like a people leader. Additionally, burnout can be kept at bay by leaning on technology (including automation) to eliminate mundane, time-consuming tasks that keep people from more rewarding work.
Technology and creativity can protect human connection and offer flexibility through hybrid work arrangements, offering tools such as digital whiteboarding platforms and virtual breakout rooms in addition to in-person meetings, creative sessions and customer summits.
Companies should also constantly look for unique ways to identify and develop qualified talent through continuous learning initiatives that connect teammates to the company's vision and empower them to help with growth goals and the development of the business. Additionally, diversity and inclusion (D&I) learning objectives can strengthen connection and foster innovation through diversity of thought and connectivity, ensuring that every member feels seen and heard.
Protecting Valuable Assets By Keeping People Connected And Cared For
No HR program or benefits package alone will solve the war for talent, but creating and nurturing connections with employees by valuing their time and purpose will help compel them to stay and recruit others to join them. The Gallup study has shown that these efforts increase overall productivity and profitability rates, and this is also critical to maintaining success in today's uncertain economy.
With more eyes on the bottom line, IT leaders can't overlook those who can move the needle for their businesses. However, that ultimately requires them to master the human connection.
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