In today’s competitive job market, especially in the tech sector, retaining top talent has become one of the biggest challenges for organizations. With unemployment for tech roles hovering at just 2.9%, finding — and keeping — skilled IT professionals is harder than ever.
Hiring managers and CIOs are feeling the pressure. According to The Futurum Group’s Q2 2025 Global CIO Survey, 72% of IT leaders rank attracting and retaining talent as their number-one concern. Meanwhile, McLean & Co.’s 2025 HR survey found employee retention is now a higher priority than recruitment, coming in second only to leadership development.
“Given today’s uncertainty, retaining employees is essential,” says Grace Ewles, director of HR research and advisory services at McLean & Co. “It’s the foundation for productivity, culture, and building future leaders.”
And the numbers back her up: companies with lower voluntary turnover (10% or less) are 18% more likely to report strong overall performance. Yet turnover risk remains high, with Gallup research showing that half of U.S. employees are open to leaving their jobs. Encouragingly, 42% of those who left voluntarily in the past year said their organization could have done something to keep them.
The message is clear: retention is just as critical as recruitment — if not more so.
What Is Employee Retention and Why It Matters
Employee retention refers to an organization’s ability to keep employees engaged and committed long-term. Companies with strong retention programs enjoy a stable workforce, better productivity, and reduced costs from constant hiring and training.
This is especially important in IT, where talent shortages are expected to intensify. “CIOs need to focus on retention as much as recruitment if they want the right skills on their teams,” says Ewles.
Effective retention strategies often combine competitive pay, growth opportunities, flexible work arrangements, and recognition — but high performers require even more thoughtful attention.
7 Strategies to Retain Top Talent
1. Identify Your High Performers
Savio Lobo, CIO of IT services provider Ensono, works closely with his leadership team to pinpoint critical roles and top performers at every level. “We identify primary and backup talent for key roles and incorporate this into our performance review process,” he says. This ensures the company is prepared for succession planning while also targeting development programs for high-impact employees.
Jamie Smith, CIO at the University of Phoenix, refers to these employees as “10Xers,” recognizing their outsized contribution to productivity.
2. Proactively Engage Star Employees
Smith’s approach is to reach out before high performers start looking elsewhere. He regularly discusses career goals, offers new challenges, and promotes deserving talent quickly. “If we don’t give them more interesting work, they’ll find it elsewhere,” he says.
He assigns them to innovation projects or leadership roles early, keeping them energized. Ewles supports this approach, encouraging “stay interviews” and flight-risk assessments to proactively address retention risks.
3. Empower and Challenge Them
Top performers thrive on autonomy and opportunities. “They’re easier to retain when solving complex problems,” says Anthony Caiafa, CTO and acting CIO at SS&C Technologies. Giving employees freedom over their projects, techniques, and tools creates ownership and keeps them engaged.
Smith also places his top talent on collaborative innovation projects, allowing them to push boundaries and learn from peers.
4. Show Them the Impact of Their Work
Sebastián Arriada, CIO at tech services provider Globant, ensures his employees understand how their work connects to the company’s mission. “Top talent wants to do work that matters. We show them the bigger picture so they feel part of something meaningful,” he explains.
5. Make Recognition a Priority
Feeling valued is crucial for retention. “Recognition isn’t just about compensation; it’s about visibility and trust,” says Sibyl McCarley, Chief People Officer at HireVue. This can include public praise, leadership opportunities, or presenting achievements to other departments.
Caiafa takes recognition a step further with bonuses, hackathons, and competitions where employees pitch ideas to leadership. “These programs energize employees while celebrating achievement,” he says.
6. Invest in Targeted Training
Ensono’s training programs are a cornerstone of retention. “For top performers, we focus on curated career development,” says Lobo. This ensures high-potential employees are continuously growing and advancing.
7. Focus on Developing Everyone
Lobo emphasizes growth for all employees, not just high performers. “If they’re growing, they’ll likely stay. If they grow and eventually leave, that’s still a success story,” he says.
He cites a powerful example: a long-time contributor who, through targeted development, rose to a senior manager position. “Investing in employees shows you care, and that’s a powerful retention strategy.”
Final thoughts…
Retention is about more than just keeping people from quitting — it’s about creating a culture of trust, growth, and recognition. CIOs and HR leaders who invest in developing and empowering employees not only keep their best talent but also build a pipeline of future leaders. In a world where skilled professionals have endless opportunities, companies that prioritize retention will come out ahead.
