The global tech talent shortage is no secret – for many employers, it’s the single biggest barrier to growth. While improving hiring strategies matters, retention is just as critical. Finding brilliant developers, QA specialists, or data scientists is one thing. Keeping them is another.
The companies that succeed at retention understand it goes beyond just a single perk or policy. To really see results, you need an approach that touches everything from hiring and onboarding to management, reward, and culture. This guide is designed as a practical playbook full of our best advice for CTOs, hiring managers, and HR leaders to help reduce churn and create an environment where top talent thrives.
Hire with retention in mind
Retention begins before day one.
Recruit not only for technical ability but for alignment with your mission and stage of growth. One report suggests half of workers cite unmet expectations as the reason for leaving a new role. Minimising this risk means being upfront about responsibilities and challenges right from the beginning of the process. We also recommend sharing a clear plan during the offer stage so new hires know what success looks like from the start.
Offer competitive, transparent rewards
In tech, pay clarity matters. Benchmark salaries, bonuses, equity, and day rates regularly, ideally every 6–12 months, to make sure you’re staying competitive. It’s important to remember that “one size fits all” doesn’t apply here: some candidates value equity, while others prefer extra leave or learning budgets, so some flexibility when negotiating packages could make all the difference. And crucially, don’t hide the numbers. Transparency around total compensation and rewards builds trust and reduces salary-driven exits.
Build clear career paths and technical ladders
Retention often fails when progression feels opaque or unreasonably beyond reach. To tackle this, map out frameworks for both developers and managers, with defined levels and expectations. Something to remember is that not every developer wants to become a manager – you might want to consider offering parallel technical and management tracks, so engineers aren’t pushed into leadership just to progress. Once you have the progression pathway(s) in place, make promotion criteria visible and objective to eliminate any confusion and frustration.
Invest in learning and meaningful work
Top engineers stay where they’re challenged. Giving people room to learn through training budgets, conferences, research time, or certifications shows you’re invested in their growth and future. Pair this with ownership of meaningful projects to keep work stimulating, while rotating staff across teams or domains broadens their skills and helps them stay engaged long-term.
Make manager quality a priority
Poor management is a disaster waiting to happen for your teams and the success of your company as a whole. That’s why you need to equip your technical leaders with people management skills: coaching, feedback, career conversations. Structured 1:1s are a great way to manage employees well, but only if these conversations focus on development and wellbeing, not just task updates. Always keep track of manager effectiveness through regular engagement and feedback scores, keeping accountability front and centre.
Create a healthy, inclusive culture
Psychological safety underpins retention. The truth is, a culture where people feel safe to speak up, make mistakes, and learn openly is one where talent sticks around. Celebrate wins, but also treat failures as learning opportunities rather than something to hide. Effective diversity and inclusion initiatives are also essential as they strengthen collaboration, boost problem-solving, and contribute to employees feeling like they belong at work, leading them to stay longer.
Developer-friendly practices
Retention in tech often comes down to how the work feels day-to-day. Reduce churn by protecting “maker time” and limiting unnecessary meetings. Give your engineers modern tools and budget to tackle technical debt – nobody stays motivated fighting outdated systems forever. Above all, show them the impact of their work through metrics and user feedback; it connects the code they write with the value it creates, making their job feel fulfilling.
Flexibility as standard
While there has been a noticeable shift back to onsite work across all industries, it’s clear that for many talented tech candidates, flexibility has gone from perk to expectation. Hence, we would recommend letting workers choose what works best for them where possible – provided it makes sense for your business, of course. This might look like hybrid or remote-first working patterns, or flexible hours. If you’re worried about disengaged workers, this is where you can get creative! Foster connection and keep cohesion alive between employees with optional in-person rituals, co-working budgets, or team offsites and socials. Just as important is respecting work-life boundaries, as constant availability is a fast track to burnout!
Don't burn bridges
Not every departure is a loss. If done well, offboarding and exit interviews can bring valuable insights to the surface, and alumni networks often generate “boomerang hires” or even candidate referrals. Always treat leavers with respect – you never know what could come of maintaining positive relationships!
Measure retention with the right KPIs
How will you know if your retention strategies are working? It shouldn’t be a guessing game. Track a handful of meaningful metrics like voluntary turnover, retention at 12 months, offer acceptance rate, time-to-productivity, and engagement scores. Keep reviews regular so you spot issues early and act before they have a chance to snowball.
Recruiters as strategic partners
Working with a specialist recruiter can make a significant difference to retention as well as hiring. Beyond delivering strong candidates, they provide valuable market intelligence, from benchmarking salaries and benefits to highlighting competitor hiring trends that could tempt your people away. A good recruiter also helps you plan ahead by building passive candidate pipelines, ensuring you’re not scrambling when a critical role opens up.
At senior levels, recruiters can discreetly manage searches for leaders who shape culture and stabilise teams, preventing disruption further down the line. They also act as an external sounding board, offering perspective on how your employer brand is perceived in the market and where it can be strengthened. When treated as a long-term partner, recruiters become an extension of your team: providing insights, reducing time-to-hire, and helping you create an environment where top talent wants to stay.
Final Thoughts
When it comes to retention, the organisations that do best are the ones that view people strategy with the same level of discipline as product or engineering strategy. They measure results, adapt continuously, and create an environment where talented individuals can thrive. When employees feel supported, valued, and challenged, they’re far more likely to stay and invest their best work in the company’s success.
In short, retention doesn’t hinge on a single initiative – it’s the sum of many deliberate actions that shape how people experience your company. Taken together, these actions build resilience, reduce churn, and give your people every reason to grow with you rather than elsewhere.
