Big fluctuation of IT workers in Serbia
IT professionals in Serbia typically stay with a company for a few years on average, a trend largely influenced by the COVID-19 pandemic and the subsequent slowdown in the industry. While everyone hopes for market stabilization, experts in the sector remain divided on whether the future will bring even more pronounced workforce turnover. However, it seems that most are not optimistic about this issue.
Different tendencies are observed among certain job profiles, employees, and companies. For instance, the recruitment agency BPS Tech distinguishes between companies focused on outsourcing and those that develop their own products.
“In outsourcing companies, we see that the average tenure is decreasing to about a year to a year and a half, after which candidates are open to changing companies. In product companies, there is still a tendency for longer retention, with the average still around three years,” they say.
They believe one reason for this situation is the market itself, which is predominantly oriented towards outsourcing (estimated at around 80%) as opposed to companies with their own products. Additionally, candidates still prefer working on products, as the purpose and the ability to leave their personal mark on the company are important to them, which is why the average retention is higher in product companies. “The more interesting the product in a company is and the more opportunities there are to participate in its development and immediately see its application, the longer employees will stay with the company.”
When it comes to outsourcing companies, candidates often lack a sense of belonging and purpose, as they predominantly work on existing solutions that aren’t as interesting, BPS Tech assesses. They cite the most important factors influencing employee retention in a company as challenging projects, opportunities for advancement, variety of work/projects, work environment, salary, and benefits.
Employee experiences on Joberty, a platform connecting employers and candidates in the IT sector, show that, generally speaking, the average tenure of IT professionals in companies remains similar to previous years—between two and four years. “Behind this, however, lies a completely different explanation,” they note.
Namely, the fact that the rate of job changes hasn’t significantly altered doesn’t mean that the situation in the IT sector hasn’t changed significantly. “The last two years in IT have been more specific compared to the period before, primarily due to the market crisis which resulted in numerous layoffs. Many people change companies involuntarily, which also affects the overall retention of the company. On the other hand, we notice that people who weren’t laid off are staying longer, even under less-than-ideal conditions, while waiting for the market to stabilize.”
In contrast, during the COVID-19 period, there was an expansion of IT projects and digitalization, leading to an increased demand for IT professionals, which allowed them more choice and, consequently, more freedom to change companies more frequently.
“What can be concluded is that the duration of tenure in companies is dictated by the current supply and demand of skilled workforce in the market, as well as specific macroeconomic factors, rather than just free will,” say the interlocutors from Bloomberg Adria.
Milan Šolaja, Executive Director of the Vojvodina ICT Cluster, estimates that we are now in a period when employees value stability and job security more than in the pre-COVID period of somewhat reduced growth when workforce turnover was stronger.
“As a result, turnover is lower, at a level that does not jeopardize companies’ ability to conduct their operations without major problems with staff turnover. Of course, this has nothing to do with demand, which is still strong; there is always a need for staff who can take responsibility and deliver results,” Šolaja says.
Miloš Turinski, PR Manager of the employment and career development center Infostud, says that lately, there has been a general tendency for the average time IT workers in Serbia work in one company to decrease. “A few years ago, an average tenure of three years was quite common, but now there is a trend of more frequent job changes, especially in the technology sector.”
Larger companies or well-known brands often offer more stable jobs, better benefits, and opportunities for professional development, which can lead to longer employee retention, he assesses. Conversely, smaller companies and lesser-known brands may have higher turnover due to less stability or a lack of resources for career development.
Turinski highlights that the seniority of an employee is the primary factor that can influence the duration of tenure. Junior workers, he says, often change jobs more quickly as they are still in the phase of discovering their interests and possibilities in the industry. Seniors, on the other hand, usually stay longer, especially if they are satisfied with their role and involved in the development of the team and company, Turinski notes, but adds that they too may be inclined to change if they encounter better opportunities or challenges.
However, BPS Tech would disagree with these claims.
“Juniors often stay longer in a company to hone their skills, as well as due to the strength of the company’s brand, while mid-level professionals with three or more years of experience are more open to change, mainly due to a sense of stagnation in their current companies, repetitive job descriptions, limited advancement opportunities, and a desire to work with different technologies and projects to expand their existing knowledge,” they say.
They emphasize that for more experienced candidates, corporate culture is extremely important, which is why they tend to stay in companies for an average of five to seven years, sometimes even longer. “In essence, mid-level and senior professionals are more open to changing jobs, as shown by experiences from BPS Tech’s recruitment processes—even if they are satisfied with their current companies, they are still open to entering the recruitment process and seeing what’s happening in the market.”
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