KEEPING A HAPPY FACE ON I.T.

• Author: MEYERS, KERBY
• Position: Retaining information technology employees - Statistical Data Included

DOWNTURNS DON'T DIMINISH NEED TO RETAIN TOP EMPLOYEES

AS THE U.S. ECONOMY ROARED THROUGH THE LATE 1990S AND INTO 2000, TECHNOLOGY WORKERS experienced a sellers' market for their skills. Colorado companies wooed anyone who knew the difference between PERL and Java, and often stole other companies' workers to fill vacancies.

Salaries started at $60,000 to $80,000. Desperate recruiters dangled stock options, personal valet services, catered meals and an assortment of other, more quirky perks before their prospects.

The standard workplace was transformed from a serious, sterile cubicle farm requiring somewhat formal attire, to a cool place to hang out and do some coding between matches in the day's Foosball tournament.

But as the economy stomped on the brakes last year, reality resurfaced in the workplace. "Employees have always reminded me of stock traders in that, when it's time to be paranoid, they're more paranoid than they should be, and when they can be arrogant, they're more arrogant than they should be," said Lu Cordova, president of the Boulder Technology Incubator. "We've moved from a market of arrogance to a market of paranoia pretty quickly over the past year and many people are happy to have their jobs."

Yet while conditions have softened the demand side of the employment equation, Cordova and many other Colorado information technology executives are quick to admit they've learned some lessons during the years of frenzy Most importantly, they discovered how a few employee-oriented efforts could play a key role in retaining top IT performers.

"We work on retention pretty much every day," said Chuck Shellhouse, an operations executive with tech services firm EDS in Colorado Springs. "And frankly, we do more things for top performers than those who are just along for the ride, because those are the people we can't afford to lose."

Money is no longer the easy answer to holding on to key employees. Not only are companies unwilling to throw cash at an IT employee contemplating a move, they've found that valued employees care about more than cash. Appreciation for their role in the business, for example. "These are not dumb people," said Jon Nordmark, president and CEO of Greenwood Village-based eBags. "They're really smart, good at what they do, and want to be treated with respect."

To that end, most companies accommodate personal preferences by adopting flexible schedules and dress codes. However, to build a stronger sense of mutual...