IT departments should focus on taking steps to retain their top IT staff as the job market for IT professionals is picking up. IT staff are moving jobs again after two years of a stagnating jobs market. Where attrition rates are normally 20%, recently they have dropped to 5%.
In previous downturns, companies released permanent staff and replaced them with contractors. This time however, companies have retained permanent staff resulting in a more limited pool of permanent staff on the job market than in previous downturns, making poaching more likely.
For the past 18 months, demand for permanent staff has seen growth each month and in particular, demand for business analysts and project managers is significantly increasing.