Migratory Talent Patterns Spell Trouble for High-tech Firms

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The employee you can't afford to lose

Digital-born companies grab hold of the tech workforce

In a world that rewards innovation, speed and agility, high-tech companies born in the digital age, “digital-borns,” have an edge over their more established peers. But established companies, “tenured-techs,” aren’t ready to cede without a fight. They are transitioning to leading-edge platforms and tying their visions to the promise of digitally driven innovation.

The responsibility for executing a new digital vision falls to the leaders of tenured-tech companies. For decades, they’ve been masters of embracing change and beating the odds. But digital-borns pose a new kind of threat—one that calls for new skills, talent strategies and organizational capabilities.

Digital-born companies pose a significant threat to tenured-tech companies. They are attracting investor interest and talent at a steady pace.

Tenured-tech workers are defecting to digital-borns—and not coming back.

For every employee a tenured-tech company gains from a digital-born company, it loses eight employees to digital-born companies.

It’s not just young workers who aren’t interested.

Of millennial job changers, only 2 percent stayed in the tenured-tech camp. And only 6 percent of tenured-tech Gen Xers and baby boomers opted for a position at another tenured-tech.

DOWNLOAD SURVIVAL OF THE FITTEST: MIGRATORY TALENT PATTERNS SPELL TROUBLE FOR ESTABLISHED HIGH-TECH FIRMS INFOGRAPHIC [PDF]

To successfully weather digital disruption, tenured-techs need to convince investors of their future growth potential and reclaim their position as worthy employers of highly skilled digital talent. To that end, leaders must:

Walk the talk. Leaders must set the vision and foster a culture of experimentation and collaboration by embodying the attributes they hope to inspire among their employees.
Become a change master. Tenured-techs must flatten structures, reduce spans of control, and break down silos.
Offer “gig-like” experiences. Tenured-techs need to understand what workers expect from their employers. Project-based “gig experiences,” personalized talent strategies, and career paths that encourage lateral and upward moves make the difference.

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