Money alone no answer to keeping IT employees

Many companies hope paying more will be the silver bullet to solve their information-technology employee retention issues, but while compensation is important, it's not the only answer, according to Hewitt IT compensation consultant Georgine Young.

Young suggests that companies factor the following elements to create an effective package to attract and retain IT talent:

Get competitive. Specialists in hot technologies are, and will continue to be, in high demand. As a result, unprecedented raises, sign-on bonuses, etc., are now considered standard.

Don't let historical pay scales hinder effective negotiation.

Rethink total compensation. "Pay matters," Young said, "But pay alone does not make people happy." Focusing on nonpay offerings, such as unique benefits, is giving top American corporations a decisive, strategic edge.

Get employees' input. Finding out what's really going on in the company may include ferreting out the real reasons employees leave.

"Exiting employees may say they're leaving because of pay they can't refuse, but what had them looking or receptive to offers in the first place?" Young said.

"You have to discern what's the motivation behind an employee leaving. Rarely is it just money."

Partner with key departments. To effectively package company offerings, managers are encouraged to forge partnerships with the human resources department, IT management and recruiters (if applicable).

These departments are usually the first to spot trends and competitive activity.

Also, determine if recruiters are gathering applications from within closely associated industries or from business-at-large.

Competition for hot IT talent is global and not limited to individual industry sectors.

Regularly review compensation. Timing is everything. As a result, successful IT employers are reviewing compensation packages at least twice a year, and continually upgrading or abandoning outdated programs.