Why is Employee Turnover So High at MSPs?

Employee turnover is a common challenge across many industries, but it’s particularly notable in the managed service provider (MSP) space which Kyber operates in. MSPs have a fast-paced, high-demand environment as demanded by our clients. This combination of factors often results in a higher-than-average turnover rate. But why exactly is this happening, and what can be done about it?

Let’s explore some of the main reasons turnover tends to run high in the MSP world, along with a few things that we do to address this issue.

High Workload and Stress

We handle multiple clients, each with unique IT and security needs, expectations, and challenges. Supporting several businesses means that our employees need to be able to adapt quickly, manage priorities, and perform under pressure. Moreover, the need to meet strict service level agreements (SLAs) can add to the stress.

For many, the combination of multiple clients and demanding SLAs can feel overwhelming, especially when juggling several critical issues simultaneously. Over time, this level of stress can lead to burnout, prompting employees to seek less stressful environments.

Long Hours and Poor Work-Life Balance

Because MSPs provide IT support to clients around the clock, our team is often expected to work outside of regular business hours. This may include late nights, weekends, and even holidays to handle maintenance, updates, or urgent client needs.

This on-call, unpredictable nature of the work can lead to poor work-life balance, which, in the long run, becomes unsustainable for many employees. They might leave to seek positions where they have a more consistent schedule and fewer disruptions to personal life.

Limited Career Advancement Opportunities

Many MSPs are small to medium-sized companies with limited hierarchy and fewer advancement opportunities. Without clear paths for growth or promotion, employees may feel stagnant or underappreciated in their roles. Additionally, MSPs often have flatter organizational structures, which can mean fewer management or specialized roles available for those who want to advance.

As a result, employees seeking to grow in their careers often find themselves looking outside their current MSP employer for new roles that align with their aspirations and ambitions.

Relatively Low Pay

The margins for many MSPs such as Kyber are tight, making it difficult to offer top tier salaries. While we work hard to prioritize other benefits and workplace culture, matching the pay rates that larger enterprises provide is difficult.

When employees find similar roles at larger companies with higher salaries even at the sacrifice of benefits, it’s hard for many to resist the lure of better financial stability. Unfortunately, this makes it challenging to retain top talent when we can’t match the market rates offered by other IT positions.

Stepping Stone for Career Development

Kyber provides a great training ground for IT professionals. Working here will expose employees to a wide range of clients, systems, and problems, making it an ideal environment for developing a broad skill set. Many IT professionals use these MSP roles as stepping stones, staying just long enough to build up their skills before moving on to specialized roles in larger companies or higher-paying positions in other areas.

High Turnover Across the IT Industry

Turnover is high across the tech industry, not just at Kyber or other MSPs. There’s a high demand for IT talent, meaning employees have more job options and flexibility than in many other sectors. The combination of a booming industry and a high-stress job environment naturally leads to frequent job changes. While high turnover in the IT industry may make it seem like a given, at Kyber we take steps to address this by improving the work experience for their employees.

How Kyber Works to Reduce Turnover

While some turnover is inevitable, there are several steps we take to make our environment more attractive to employees and improve retention:

1. Invest in Employee Well-being: We recognize the importance of work-life balance and provide resources that support mental health. Flexible scheduling, time-off policies, and access to other health resources can make a significant difference.
2. Offer Competitive Compensation and Benefits: While it’s not always possible to compete with large tech companies, we provide competitive pay and a comprehensive benefits program to help retain valuable employees. We focus on employee recognition and living by our core values to help everyone understand our commitment to the team.
3. Provide Opportunities for Growth: We have developed career paths and employee growth plans for our employees to help them understand what opportunities are available to them at Kyber.  Training programs, mentorship, and upskilling opportunities are available to show our employees they can grow with the company. Clear paths for advancement helps our employees feel like they’re not at a career dead-end.
4. Build a Supportive Work Culture: We foster a collaborative and supportive work environment to reduce stress and improve employee satisfaction. Encouraging teamwork, providing resources for problem-solving, and recognizing employee achievements all contribute to our positive workplace.
5. Be Transparent with Job Expectations: We clearly communicate the demands of the job upfront during the hiring process. Employees who know what they’re signing up for are more likely to be satisfied and stay longer.

Final Thoughts

The high turnover rate at MSPs is a complex issue, driven by industry demands, workload, and compensation. However, our intentional strategies around employee well-being, career development, and workplace culture help to improve retention and create a more sustainable work environment for our team.

At the end of the day, happy employees are productive employees — and that’s good for both Kyber and our clients.