Managing an in-house IT department is a significant challenge. Apart from ensuring that your information systems are up and running at all times, your IT staff must be engrossed in various complex projects, such as developing new products that give your business a competitive edge in the ever-changing technological environment. It can lead to burnouts, job dissatisfaction, and ultimately, high IT staff turnover.
There's currently a shortfall in tech talent in the US. And while a lot of headlines focus on the shortage of high-end IT experts, one critical piece of the problem is often overlooked: Many businesses in Las Vegas effectively attract and hire niche tech experts, such as IT professionals, but a company will be lucky even to retain them for a year. Not known to many is that the tech sector has the highest staff renewal rate, currently at 13.2%. Work-related stress results in burnout and job dissatisfaction, causing a low retention rate.
One critical mistake that IT managers make is continuing to administer in-house IT departments despite their ineffectiveness and refusing to think over other alternative solutions. A dynamic evaluation of a business and an in-depth analysis of your IT infrastructure could reveal the need to cut costs, bridge the skill gap in IT teams, reduce downtime, software and hardware costs, and recruitment expenses. IT outsourcing is an effective solution, but most enterprises and small businesses are reluctant to engage in it.
Orbis Solutions Inc. is a seasoned managed IT service provider that offers Las Vegas businesses affordable, client-focused, and business-driven IT solutions with enterprise-level capabilities. We provide deep IT analysis to identify issues plaguing your current IT network managed by your in-house team. Our expert IT gurus are ready to provide an action plan to solve operational issues, project planning, and a detailed budget to ensure your company saves money through outsourced IT support.
The debate between in-house and outsourced IT support is a matter of eternal debate. But as a Las Vegas Managed IT Solutions provider, we are a little biased on the side of outsourcing from a logistics and cost perspective. If you're afraid of outsourcing (for whatever reason), it would be best to analyze the depth of resources related to in-house IT support and why its performance remains low.
Hiring in-house IT staff costs time and money. You need to recruit, train, retrain, and obtain their certifications. Additionally, there are other costs, such as payroll, healthcare benefits, 401(k) benefits, and reimbursement to and from each remote location they support. These cost margins can be financially overwhelming, depleting your resources with no tangible results.
Hardly can in-house IT teams guarantee 99.9% uptime, and downtime caused by hiccups in your IT network can be pretty costly. A surveillance report by TechRadar indicated that 25% of SMBs confirmed that they lose between $20,000 and $40,000 per hour due to technology downtime. That's a significant loss. Besides disrupting business processes and employee productivity, downtime may cause critical data loss, vulnerabilities, and failed backup systems.
IT-staff replacement costs
The average job tenure for a Gen-Z employee is about three years. According to a study by the Center for American Progress, a business incurs a fifth of the outgoing employee's salary to replace them. Although that figure might increase among the highest-paid IT staff, employers generally incur high replacement costs. Apart from that, there are costs related to low productivity as new recruits take time to adapt to their new positions and job responsibilities. There are also training costs and the intangible cultural damage caused by the high turnover rate.
Technical skill gaps
IT has become the "Achilles Heel" of many businesses' operations in a tech-driven business world, yet companies grapple with skill gaps when managing IT architectures. A skill gap occurs when an IT department lacks the technical expertise to meet a company's IT demands. C-level executives report that the lack of IT skills remains a major hurdle in aligning technology with business. In fact, skill gaps cost companies up to 416 hours, equivalent to $22,000 per employee annually.
Still, less than 60% of businesses increase their skill development opportunities through technical training. Remember, even training your current employees comes with high costs. Several factors lead to IT skill gaps:
To understand how IT outsourcing companies help mitigate IT staff resignations or turnover rates, it is best to first dig deeper into the causes of high employee renewal rates and the role that outsourced IT services play in their prevention.
A 2016 study by Walden University: "Role of Outsourcing in Stress and Job Satisfaction of IT Professionals" offered valuable insights into why the IT staff turnover rate remains high, and it determined the following as the primary causes of employee resignations:
In IT, work-related stress stems from mismatching employees' abilities and work demands. Sometimes a company's demands may be overwhelming to an employee and maybe harmful to their well-being, resulting in distress. That negatively influences their ability to meet their job requirements, well-being, and overall business success.
That's true, especially during organizational changes. IT staff are often subjected to increased workloads, working hours, and changes in working environments. Physical pain, headaches, exhaustion, and changes in sleeping and eating habits are usually the implications. A third of American IT employees identify job-related stress as the primary source of stress in their lives. An equal proportion projects that they will burn out in the end, while three-fourths account for their low productivity and health problems to work-related stress.
Ultimately, that leads to job dissatisfaction and undesirable work outcomes for employees and companies. An IT staff member working under such conditions will typically have a profound intention to resign, leading to higher staff turnover.
Job dissatisfaction is when a worker has a negative opinion about their job as influenced by their work duties and responsibilities, organizational management, and inclusion in decision-making.
IT staff express displeasure in the workplace because of work-environment mismatch. The consequences are low job commitment, poor performance, non-compliance to a company's norms and expectations, and a high turnover intention.
Lack of performance and career development also makes employees dissatisfied with their jobs. As aforementioned, less than 60% of decision-makers say they offer career development opportunities and technical training to their employees. That denies IT staff a pathway to progress their careers.
An employee needs positive outcomes in their work, whether it's through professional development, promotions, or professional effectiveness. If a company can't offer that, a lack of fit between work and environment occurs, and job satisfaction dwindles. The outcome: the employee will be more inclined to change the work situation or resign with the prospects of finding a job match in another company.
This refers to an in-house IT worker's desire to quit their job. IT staff turnover is directly influenced by job satisfaction and organizational commitment to meet employees' needs. Staffs are likely to remain in their companies if their interests are satisfied and will usually tolerate the work-related physical and mental challenges because of their love for their job.
An employee's behavior predicts their turnover intentions. While others carry themselves professionally before resigning, others exhibit negative behavior, such as detachment, lost interest, absenteeism, purposely reducing their performance and productivity levels, and low interest in receiving positive feedback from their superiors. Such behavior compromises a company's effectiveness, including the quality of products and services offered to clients.
At such a point, the company may initiate the turnover intention due to an employee's ineffectiveness and negative attitude. If it's due to job dissatisfaction, the staff member will express their intention to quit and find alternative employment.
By outsourcing IT infrastructure, you contract your networking assets, personnel, and information systems management to a third party, thereby alleviating the need to hire an in-house IT team. Many organizations have discovered that tasking an in-house IT department with their technology needs leads to significant costs, technical-skill gaps, and poor IT-infrastructure performance.
Therefore, IT outsourcing companies alleviate the need to hire an in-house IT department. Having done that, you won't have to worry about high turnover rates or costs related to managing your IT infrastructure on your own.
Bridging technical skill gaps
Additionally, IT outsourcing bridges the technical skill gap within your in-house IT support. Typically, IT professionals acquire broader knowledge and skills in the field. That presents a challenge when a company wants to narrow down or require a specific skill to improve its networking architecture. Usually, they are left with no other option but to hire an employee with general knowledge of IT instead of a competent one with specialized skills to handle the specific task.
Outsourced IT support leverages the sharpest minds, experienced, and skilled IT professionals specializing in various facets of IT infrastructure. The flexibility of managed IT services gives businesses the freedom to choose the specific solutions they need. Whether you need an entire IT infrastructure built from scratch or need to out-task a specific, time-sensitive task, Orbis Solutions is here to help.
We have the expertise and specialized knowledge, hardware, and software to satisfy any IT needs you may have. Our client-centric IT solutions help companies improve their performance, productivity, specialized technical skills, quality, and competitive advantage.
Best IT outsourcing practices
One of the best means of determining the reliability and quality of outsourced IT services is to evaluate the provider's staff churn rate. An MSP's employee turnover rate is closely connected to their clients' staff retention. As a trusted Las Vegas IT support provider, we are overly committed to our employee retention strategy. We do that through:
Businesses that choose Orbis Solutions for their outsourced IT department unequivocally experience the business benefits of the partnership and get the best outcomes from their IT infrastructure. We boast a knowledgeable IT team backed by robust company culture, work ethics, and core values, and that's critical in improving employees' job satisfaction level and IT staff turnover rate.
If your company is splurging more resources in your in-house IT department with a low retention rate, it's time to consider outsourcing IT department. Orbis Solutions Inc. is a trustworthy managed IT service provider in Las Vegas with a full-service portfolio of IT solutions, from cybersecurity and business communications to cloud computing and business continuity. Visit us online today or contact our sales desk at (702) 710-8950.
Special thanks to Paul and Troy with Pure IT in Calgary for their help with this article. Click here to visit their website.
Orbis Solutions, Inc., in Las Vegas, Henderson, Summerlin and throughout Nevada, has developed creative, strategic and cost-effective technical solutions for a wide variety of clients. Offering a diverse range of products and services, Orbis provides IT solutions to promote your company’s productivity and profitability, and help you sort through the latest-hyped technology, so you can select the best hardware, software or service for your business needs.