The Secret to Retaining Talent: Inclusion

It’s no secret that tech innovation is booming in the DACH region, with Berlin specifically becoming a major hub for startups and global tech giants. Despite continuous expansion, the region faces a relatively small talent pool – making the market more competitive than ever. One international study found almost 80% of companies experience their greatest tech talent shortage in Western Europe. Companies that retain top talent do so by intentionally creating inclusive cultures that prioritise genuine wellbeing and job satisfaction.

Before we delve into ways we can foster inclusive cultures, it’s worth understanding the reasons behind why people are leaving in the first place.

What’s driving tech talent to leave?

• Burnout: high workloads coupled with always-on culture rife in the tech industry makes for poor work-life balance, pushing people out of roles faster than most managers realise.
• No clear growth or career opportunities: without clear growth pathways, top talent feel unmotivated to remain at their current roles.
• Uninspiring work environment: in an industry where talent have endless opportunities, many will switch for more meaningful work with a strong mission and capacity for creativity.
• Misalignment of skills & job requirements: the rapid pace of the industry means technologies and tools quickly become outdated, requiring continuous upskilling initiatives. Without this, employees are left feeling ill-equipped to navigate the ever-changing demands of their roles.

What attributes make an inclusive work culture?

1. Psychological safety

Employees need to feel safe sharing their ideas and voicing their concerns without fear of ridicule and retaliation. This looks like leaders who encourage their teams to ask questions, maintaining open lines of communication and responding constructively to feedback. A recent study found that teams with high psychological safety were 27% more likely to report strong performance.

2. Transparent progression opportunities

Companies can promise new employees the world in interviews, but without a tangible plan in place, people lose trust fast. Companies with clearly structured career frameworks and evidence of internal mobility foster increased trust and give employees a reason to stay and strive for more.

3. Flexible working conditions

Flexible working conditions remain a top priority, with a recent European tech study finding  76% of tech workers ranked flexible working as the most important factor in their roles after salary. This can look like hybrid working, asynchronous working hours, mental health inclusive working models and strong parental leave policies – signalling trust and valuing your employee’s lives beyond what they contribute at work.

4. Recognise & reward

People stay where they feel seen and valued. Pay rises matter – clear and unbiased bonus incentives & salary reviews. Equally as important, is recognition in team meetings and fostering a culture of peer recognition.

5. Accountability in leadership

Running employee feedback surveys is nothing new, but often, changes are made too late or glossed over.  When people feel unheard or like their concerns are unimportant, they leave.

The solution? Be proactive instead of reactive.

• Don’t wait until your employees say they’re leaving to start making changes, train managers to have regular 1:1s focused on growth and wellbeing, not just tasks
• Set KPIs based on team retention not just output
• Train managers to spot signs of dissatisfaction and burnout early
• Establish confidential and trusted reporting channels for people to voice their concerns

6. Create upskilling pathways

The rapid pace of tech industry development means that constant upskilling is required, so finding talent with the right skills can be a costly, lengthy and exhausting process.  Introducing boot camps and training initiatives within your organisation can help improve and retain existing talent – a win for both employer and employees.

The key takeaways

Positive and inclusive work cultures are ones that support wellbeing and leave employees feeling motivated and inspired, so always remember, when in doubt – listen to your people. What do they need? Because great cultures don’t trap people, they give them reasons to stay.