Shaping a Culture that Attracts and Retains Top Technology Executives

Companies are facing a wide range of threats, including the availability of key talents, uncertain economic growth, geopolitical uncertainty, and technological change — all of which have profound consequences for their workforce strategy.¹ With worries of a potential economic slowdown, companies are simultaneously focused on increasing productivity and saving costs. Having the right technology executives in place to build and develop high-performing technology teams has become even more crucial.

Talent Risks: A major concern to company executives

There have been many stories about talent shortages, record turnover, and the great reshuffling of talent from one company to another. Employee turnover puts the onus on CEOs and HR leaders to create an attractive environment for technologists. According to Russell Reynolds Associates’ 2022 Global Leadership Monitor survey, 86% of technology executives reported that employee turnover had increased at their organizations in the past year. However, the talent risk is not just about employees. It also happens at the management level. Globally, executives are considering their options. Our Monitor showed that, in 2021, nearly three out of five (56%) technology executives moved to a different company, significantly more than their peers in finance, human resources, legal, risk & compliance, and operations functions.

  ^{Source: Russell Reynolds Associates Global Leadership Monitor 2022; n = 76 global technology executives}

Half of technology executives willing to move to a new company today

While there is ample evidence that the Great Reshuffle is a phenomenon across functions, the situation has further deteriorated within technology and digital teams. According to our 2022 Monitor, 50% of technology executives, including chief technology officers (CTO), chief digital officers (CDO), chief information officers (CIO), and chief information security officers (CISO), said they would be willing to change employers for the right opportunity today. Among this group, half of them expressed a strong desire to leave their current employer.

Companies looking to use these talent moves to their advantage, potentially to build out a team or accelerate transformation efforts, must focus on how they can attract top-tier talent, but also on how to retain their own. Based on a recent global study by Bain & Company, only 13% of the surveyed employers said they are able to hire and keep the tech talent they need most.² For companies who are focused on developing or consolidating the existing team, the priority becomes how to keep their talent in the company and remain engaged.

Half of technology executives say that they are ready to make a career move to a different employer today. 
Willingness that respondents will leave their current job today, %

^{Source: Russell Reynolds Associates Global Leadership Monitor 2022; n = 63 CTO/CDO/CIO/CISOs, 44 CFOs, 40 CHROs}

High mobility between industries: one in two tech executives willing to change industries

Besides switching companies, some technology executives are seizing this moment to pursue new careers. Almost half (49%) of technology executives are willing to accept new opportunities beyond their current industry, while 32% say they are more likely to stay in their current industry. Industry experience is rarely a mandate for technology leadership roles. The best technology executives have greater strategic and “front-to-back” impact. They create or enable new revenue streams, simplify ways of working and increase organizational resilience.

Technology executives are looking for opportunities beyond their current industry
Willingness that respondents will move to a different industry, %

^{Source: Russell Reynolds Associates Global Leadership Monitor 2022; n = 63 global technology executives}

Tailor your approach: What are tech executives looking for?

Top-tier talent does not simply leave the workforce. They quit their jobs in search of mission, fulfillment, and clarity of impact. There has been a clear shift in what candidates are looking for in a potential employer.

Better pay is no longer the leading factor for technology executives. Our research shows a shift towards more intangible things, such as authentic recognition and healthy company culture. Seeking new responsibilities (39%), closely followed by a desire to feel more valued by an organization (38%), were the most important two factors for technology executives when considering a career move. In addition, leadership, company culture, and environment matter. Technology executives are seeking a different type of leadership (31%) and company culture (20%). They are also looking for a work environment where they can prioritize their physical and emotional well-being (30%).

Intangible factors are more important to technology executives
Most important factors when considering a career move, % of respondents¹

^{Source: Russell Reynolds Associates Global Leadership Monitor 2022; n = 32 global technology executives}

Moreover, it is crucial to understand what attracts next-generation leaders, who may hold the key to enabling digital and cultural change in many organizations. Based on the respondents from 433 next-generation leaders in the same survey, next-generation leaders are looking for career progression. More than half (55%) of next-generation leaders place great importance on career advancement. 31% of next-generation leaders consider feeling valued by the organization important when considering a career move, which is higher than C-level executives. In addition, they are seeking better pay (44%) and a culture that allows them to prioritize physical and emotional health (18%).

These different factors show that companies have to take a multifaceted approach to attract and retain technology talent. Traditional methods, such as competitive compensation and attractive positions, are not enough. The COVID-19 pandemic has led more executives to reevaluate their priorities and what they want from their careers. It is vital to understand the aspirations of the technology executives and their career goals in order to tailor companies’ efforts to retain them. Based on RRA research, 89% of technology executives want to take on more responsibility in the next two to three years. Many of them are looking to elevate their impact, focus on innovation initiatives, and take on P&L management. However, only 59% of them see a clear path to a larger role with more responsibility.

^{Source: Russell Reynolds Associates Global Leadership Monitor 2022; n = 63 global technology executives}

Implications: How to attract and retain your top technology executives?

In today’s tighter labor market, companies are coming to terms with the different priorities of leaders and the need to explore innovative ways to support employees’ personal and professional development paths beyond their direct areas of expertise. It starts with making a concerted effort to understand the factors that influence technology executives’ career decisions and shape the company culture to retain them.

CEOs and HR leaders should consider the following strategies to avoid tech talent turnover.

01. Leadership Development

Create a tailored leadership development program that accelerates technology executives’ ability to contribute to the organization.³ Start with reconsidering the development program from the individual worker’s perspective. This also enhances the fit of next-gen leaders that can step up to senior leadership roles.

02. Career Advancement

Provide a more transparent plan for career advancement for next-generation leaders. Leading-edge organizations are establishing a programmatic yearly review of their human capital needs, often facilitated by an external provider, to prepare internal talents for the next leadership spot. Also, consider finding ways to reward people at additional levels within their existing ones to provide more opportunities.

03. Culture Assessment

At RRA, we define culture as the shared set of assumptions held by people within an organization about who we choose to hire, how we behave, how we lead, what we reward, and what we punish. ⁴ Finding a better company culture and improving job satisfaction were the top reasons technology executives sought new opportunities. Company culture is a greatly consequential force in human affairs. Measuring what’s happening in the organization and understanding what motivates and energizes technology executives has never been more imperative.

04. DE&I Program

RRA believes that Diversity, Equity, and Inclusion (DE&I) should be of critical focus for managing retention. Our analysis shows that while organizations may have made good progress in DE&I at employee levels, there is still a lack of diversity at the C-suite level. On average, 21% of technology leaders globally are women. Organizations will need to adopt DE&I approaches to attracting and retaining diverse tech talent.

To understand how Russell Reynolds Associates can help you attract and retain top-tier technology talent, please visit: Technology, Data & Digital | Russell Reynolds Associates.

Authors

• Tristan Jervis leads Russell Reynolds Associates’ Technology Officers capabilities. He is based in London.
• Eric Sigurdson leads Russell Reynolds Associates’ Chief Information Officers Practice. He is based in Chicago.
• George Head leads Russell Reynolds Associates’ Technology Officers Knowledge team. He is based in London.
• Suya Xiong is a member of the Technology Officers' knowledge team. She is based in Boston.

References

1. Jemi Crookes, Tom Handcock, "2022 Global Leadership Monitor: Preparing leadership for tomorrow's critical issues," Russell Reynolds Associates, May 2022.
2. Will Poindexter, Jessica Craig, “Survey: What Attracts Top Tech Talent?” Harvard Business Review, October 2022. 
3. "Divides and Dividends: Leadership + Culture = Impact," Russell Reynolds Associates, September 2021.
4. Gretchen Anderson, Leah Christianson, Eric Wimpfheimer, Andrew Wood, “Measurement Mindset: A Practical Approach for Understanding Culture” Russell Reynolds Associates, August 2022.