Compensation & Coffee | Ep 2 | Hidden cost of IT talent turnover and Role of Compensation Strategy

Turnover Reflects Market Demand Cycles

In the IT industry, attrition often mirrors demand cycles. High turnover typically follows strong industry growth, while slowdowns reduce exits. The real focus should not be on eliminating attrition, but on strategically managing key talent during demand spikes.

Segment Attrition Before Acting

Not all turnover requires intervention. Some employees leave for personal reasons, others due to EVP misalignment, execution gaps, or market pull. Leaders must diagnose which quadrant attrition falls into before redesigning rewards or retention strategies.

Compensation Must Align With Philosophy and Trade-offs

Compensation decisions involve constraints and trade-offs. Leaders must define clear principles—such as skills, performance, growth, or retention priorities—and align all HR elements accordingly. Ongoing data analysis and course correction are essential, as no compensation strategy remains permanently effective.