Factors and Potential Solutions of High Turnover Rates of Tech Companies and Based on Mathematical Statistics Analysis

The technology industry is known for its high turn-over rate. This paper focuses on the factors contributing to the high turn-over rate in the Technology industry and gives the appropriate recommendations to the corresponding factors. The paper utilizes three methods to analyze this situation: Literature Research, Comparative Analysis, and Case Study. Through these methods, we can perform both quantitative and qualitative analysis through analysis of the data, statistical significance testing. In the quantitative testings, we have gathered data from multiple sources and developed our own hypothesis tests to see the significance in different factors' relationships with turn-over rate. Through the data analysis, we have concluded several factors that have major impacts on the high turn-over rate in the Technology industry. These factors are organizational commitment, job-seeking behavior, quality of management, company culture/environment, and high-competitive hiring in the expanding technical field. Due to the high costs (both implicit and explicit ones) of employee resignation for the Information Technology (IT) companies, we have proposed strategies for them to better keep the employees through updating the current management system by giving the employees more freedom in making decisions, providing a more relaxing working environment and signing contracts that are more binding in terms of the time of stay. This paper aids to give the employees a clearer idea about the company's culture and thus help to generate a better communication system between the employer and the employees. We want to help both the employees and the IT companies improve their current collaboration system to make the work more enjoyable for both parties.