Finance and IT leaders are shifting their approach to retaining top technology talent as traditional methods of salary increases and financial incentives alone are proving insufficient. This is prompting companies to focus on career development, workplace culture, and employee engagement. Meanwhile, demand for tech talent remains strong as companies across industries continue to prioritize hiring, according to CompTIA’s latest analysis of US Bureau of Labor Statistics data. With demand outpacing supply in key areas like AI and cybersecurity, businesses are competing for top talent while also increasing job postings to meet future workforce needs and tech professionals are expecting meaningful growth opportunities. Chief financial officers and HR leaders must work together to implement strategies that prioritize professional development, mentorship, and internal mobility. Professional Growth Prioritized Over Pay One of the most effective ways to retain IT professionals is by offering clear career development pathways. According to TEKsystems’ State of Digital Transformation Report, 82% of digital leaders are poised to reskill or upskill their workforce. Cosmin Pitigoi, CFO at Flywire, emphasizes that employees are more engaged when they have continuous opportunities to strengthen their skills and expand their experiences. “One of the best ways to keep top talent engaged is to have a clear professional development pathway and provide them opportunities to keep strengthening their skills and rounding out their career experiences,” he says in an email interview. Related:How WFH and RTO Burnout Differ Leslie Deutsch, vice president of people strategy at TEKsystems, says upskilling has become a major priority. “Offering continuous learning and upskilling programs helps employees feel valued and invested in,” she explains via email. Mentorship also plays a key role in this strategy, with Pitigoi stressing the importance of both formal and informal mentoring relationships to provide long-term career guidance. “I’ve benefited from a ‘doors always open’ philosophy in my career and pay that forward in my current role,” he says. He says when IT professionals feel they have support and guidance, they are more likely to stay engaged with their employer. Collaboration Between IT, Finance Leaders Balancing cost control with investments in professional development requires close collaboration between IT and finance teams. Both Deutsch and Pitigoi emphasize that talent retention should be viewed as a strategic investment rather than an expense. Related:Tech Company Layoffs: The COVID Tech Bubble Bursts “Organizations should be leveraging data and analytics to understand how development is impacting productivity and have that inform any investment,” Pitigoi says. Deutsch highlights the importance of forming cross-functional teams that include IT, finance, and HR stakeholders. These collaborations ensure that professional development investments align with both financial and operational goals, maximizing their impact on workforce retention. Another key aspect is fostering an “owner” mindset among employees, where individuals take responsibility for improving efficiency and identifying new ways to work smarter. Flexible Work, Internal Mobility, and Employee Retention Beyond professional development, flexibility in work arrangements continues to be a crucial factor in IT retention. Remote work and hybrid models are now expected benefits rather than perks; IT professionals, in particular, value autonomy and flexibility in managing their workloads. “Implementing hybrid work models that allow employees to balance in-office and remote work is essential,” Deutsch says. Internal mobility also plays a significant role in keeping employees engaged. Deutsch and Pitigoi both stress that organizations must create clear pathways for employees to move into new roles and take on greater responsibilities. Related:What CIOs Should Know About Post-Election Winners and Losers “As part of this, organizations should encourage leaders to allow their best talent to move on to other roles, which is hard to do, but best for allowing talent to develop through diverse opportunities,” Pitigoi says. This approach not only keeps employees engaged but also reduces the need for costly external recruitment. Deutsch adds that companies should structure internal mobility programs with well-defined career pathways and transparent role expectations. “Creating clear pathways for career advancement within the organization encourages employees to take on new roles and responsibilities,” she says. CFOs, CIOs, and HR Leaders Shape Talent Retention Retaining IT professionals requires collaboration across multiple leadership roles. According to Deutsch, CIOs, CFOs, and HR leaders each play a unique part in crafting effective retention strategies. “CIOs drive technological advancements and provide necessary tools, CFOs align financial resources with retention strategies, and HR leaders create a positive workplace culture,” she says. Pitigoi says he agrees, adding that product and data analytics leaders also contribute by identifying innovation opportunities and ensuring that investments align with business needs. “A few key factors of success are having a clear collaboration framework between departments, making data-driven decisions together, and having clear role accountability with implementation,” he says. Consistent communication among these stakeholders ensures that employee experience remains a top priority. Overcoming the Challenges of a Culture-Driven Retention Model However, shifting from a pay-driven retention model to one focused on engagement and culture comes with challenges. Employees accustomed to salary increases as a primary motivator may take time to adjust to a new approach that prioritizes career development and well-being. “Prioritizing engagement and well-being over financial incentives requires open communication and transparency,” Deutsch says. Organizations must build trust by explaining why they are making these changes and how employees will benefit in the long run. Recognition and rewards programs are also effective in reinforcing engagement; while salary growth may be slowing, companies can still show appreciation through meaningful recognition initiatives. “Implementing systems that recognize and reward employee contributions in meaningful ways fosters a sense of appreciation and belonging,” Deutsch says. Pitigoi emphasizes the importance of enabling employees to focus on high-value work. Employees who feel they are making an impact are more likely to stay with their organization. “Investing in systems, automation, and tools helps your best talent focus on doing work they enjoy rather than more mundane tasks,” he says. Measuring the Success of New Retention Strategies For companies transitioning to culture-driven retention strategies, measuring success is critical. Deutsch suggests using employee engagement surveys, tracking professional development participation, and analyzing internal mobility rates. “HR leaders can
