Did you know that tech professionals in Portugal stay, on average, 3.1 years in one company? In 2022, it was 2.9 years. Don’t take our word for it, it’s been verified by more than 7 thousand tech professionals.
What are companies doing to keep employees happy and engaged, maintaining retention and avoiding high rotation rates?
Portugal has emerged as a thriving hub for the technology sector in recent years. With its vibrant startup ecosystem, skilled workforce, and attractive quality of life, the country has become an increasingly popular destination for tech talent. However, as the competition intensifies, companies need to focus on retention.
Here are some effective strategies and actionable tips to help you retain tech talent in Portugal.
Understanding what tech talent wants 🔎
What drives the careers of tech professionals in Portugal? Before jumping into designing strategies for retention, it’s clever to take a step back and find data that shows exactly what tech professionals value and look for in employers.
The most recent market data shows that for tech professionals in Portugal, salary and work-life balance matter the most. Money is still the top driver regarding career management, and its importance grew in comparison to 2022.
Tech professionals don’t really seem to care about recognition and status, but work-life balance is a progressively relevant career driver. Career progression, technological challenges and cultural fit are also topics you should keep in mind.
Creating a positive work environment 🌱
Foster a culture of collaboration
Collaboration lies at the heart of innovation. Encouraging teamwork, knowledge sharing, and open communication among team members is essential. By creating a supportive work environment that values diverse perspectives and encourages the exchange of ideas, you can nurture a collaborative culture that boosts employee satisfaction and engagement.
Promote work-life balance
Recognising the importance of work-life balance and promoting policies that allow employees to maintain a healthy equilibrium is crucial. By encouraging flexible working hours, remote work options, and providing wellness programs, you can demonstrate your commitment to supporting their overall well-being.
Provide opportunities for growth and learning
Tech professionals thrive on continuous learning and professional development. Offering training programs, conferences, and workshops helps employees enhance their skills and stay up-to-date with the latest industry trends. Additionally, providing clear career paths and opportunities for advancement within the company shows them their growth and development are valued.
Offering competitive compensation and benefits 💸
Staying informed about market trends and ensuring that employees’ salaries are competitive is vital. Regularly reviewing compensation packages to align with industry standards and provide fair and attractive remuneration helps retain top talent. You can also consider additional perks such as performance-based bonuses and stock options to further incentivise employees.
It’s important to stay updated on the salary the industry is practising in order to guarantee you’re compensating your team fairly. The above table shows the average gross annual salary for developer and tech leadership roles in Portugal in 2023.
Comprehensive benefits package
Beyond salaries, a comprehensive benefits package significantly contributes to employee satisfaction and retention. Including benefits such as health insurance, retirement plans, paid time off, parental leave, and employee assistance programs demonstrates a commitment to their well-being and work-life balance.
Our study has shown that tech professionals in Portugal value health benefits the most, closely followed by annual bonuses, training sponsorships, and equipment allowance.
Recognising and rewarding excellence 🥇
Implement a recognition program
Establishing a formal recognition program that acknowledges outstanding performance and achievements is essential. Celebrating individual and team successes, both big and small, boosts morale and motivation. Companies should recognize employees publicly through internal communication channels, company-wide meetings, or annual awards ceremonies.
Provide growth opportunities
Employees are more likely to stay with a company that invests in their growth. Offering opportunities for career advancement, mentorship programs, and challenging projects allow individuals to expand their skill sets and take on new responsibilities. By providing growth opportunities, you’re proving your commitment to your team’s long-term development and success.
Cultivating a supportive leadership style 💙
Lead by example
As a leader, you play a pivotal role in shaping the work culture and employee experience. Demonstrating integrity, transparency, and empathy in your leadership style is crucial. Being accessible and approachable fosters a sense of trust and mutual respect among team members.
Provide regular feedback
Regular feedback helps employees understand their strengths and areas for improvement. Implementing a robust performance management system that includes timely feedback, goal-setting, and constructive coaching sessions is important. Encouraging two-way feedback allows employees to voice their opinions and concerns, fostering a culture of open communication.
Fostering a sense of purpose 🎯
Clearly define the company’s mission and values
Communicating your company’s mission and values clearly to employees is essential. Helping them understand how their work contributes to the larger purpose instils a sense of collective pride. By establishing a strong sense of purpose and motivation, you can inspire your team to remain engaged and committed to their roles.
Encourage employee involvement
Empowering employees to contribute to decision-making processes and offering suggestions for improvement is crucial. Encouraging innovation and entrepreneurship within the company by creating channels for idea generation and implementation fosters a sense of ownership and engagement among employees.
Retaining top talent is vital if you want your business to succeed.
Companies are made of humans, and humans need to be taken care of. Each team member is an individual with particularities, different needs and personalities, so it’s also important to guarantee that each and every one of them has a structured support system within the company.
By creating a positive work environment, offering competitive compensation and benefits, recognising and rewarding excellence, cultivating supportive leadership, and fostering a sense of purpose, you can significantly increase your chances of retaining tech talent in Portugal.
By implementing these strategies, you can foster a culture that attracts and retains the best tech professionals, ultimately driving innovation and growth.
If you want to learn more about tech careers in Portugal, download the Global Tech Talent Trends 2023.