Contrary to the unflattering news stories about some tech startups, many "new tech" companies have cultures which foster a significant amount of employee engagement, according to Culture Amp's report "What New Tech Employees Need."
"The most exciting organizations in the world right now are predominantly new tech organizations," the authors write. "They're internet-based and disruptive, bringing new solutions to old challenges through innovative thinking — not only for technology products and services, but also in how they think about people, including employee engagement."
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The survey of more than 200 fast-growing tech companies from industries including telecommunications and electronics and medical manufacturing, show new tech employees score higher on motivation and pride, while "traditional tech" organizations score higher on long-term commitment.
"It may be that employees in new tech organizations are more likely to move between jobs every couple of years, regardless of the environment, or that people who enjoy being in smaller organizations leave when they get larger," the authors write.
"New tech companies are also more likely to employ people who have had short tenures in other roles. Headhunters are also more likely to target employees at new tech organizations prompting them to move on."
Employee engagement at new tech firms is driven by how workers feel about the organization's leadership, learning and development, and "company confidence."
Digging deeper, the survey compared what the Top 10 percent of engaged new tech companies do differently: 84 percent of workers in the Top 10 say their "leaders communicate a motivating vision," while the overall average of the survey respondents agreeing with this is 70 percent.
Eighty-eight percent of the Top 10 say their "leaders demonstrate people matter," while the average is 74 percent. Finally, 82 percent say "there's a commitment to social responsibility," while the average is 65 percent.
Organizations with higher employee engagement scores perform better in many other business metrics: The average Mattermark growth score for the Top 10 percent of new tech companies is 612, compared to the average score of 292 for all new tech respondents. The average Glassdoor CEO approval rating for the Top 10 percent is 95 percent, compared to the average rating of 80 percent for all new tech companies.
"Overall confidence in leaders is incredibly important to employees," the authors write. "Specifically, employees want to see leaders demonstrate that people are important to the company's success, and they want to understand and be motivated by the organization's vision."
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
