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Why retaining tech talent in 2025 is harder than ever (and what CIOs can do about it)

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If you’re a CIO or technology leader in Australia right now, chances are you’ve felt the pressure. The market for tech talent is still running hot, and keeping your best people on board is harder than it’s ever been.

Here’s the thing…it’s not just about money anymore. Sure, salary matters, nobody’s saying it doesn’t, but the idea that throwing bigger pay packets at tech professionals will guarantee loyalty? That’s a myth.

We’re seeing talented developers, engineers, analysts, and IT leaders leaving companies that pay well because something else is missing. And if you’re leading a tech team in 2025, you can’t afford to ignore it.

Myth-busting: salary isn’t the silver bullet

For years, salary was treated as the golden handcuff. Pay people more, and they’ll stay. But in 2025, tech professionals are looking for more:

  1. Flexibility: Hybrid isn’t a perk anymore, it’s expected. If a competitor offers better work-life balance, it’s a no-brainer for many.

  2. Purpose: Tech talent wants to feel they’re building something meaningful, not just solving tickets or coding features that don’t see daylight.

  3. Culture: Teams stay when they feel connected, supported, and included. Toxic or disengaged cultures are a one-way ticket to turnover.

What tech talent really wants 

Here’s what’s rising to the top of candidate conversations:

  1. Clear career pathways

    Tech professionals don’t just want a job, they want to see where it leads. Whether it’s progression into leadership or the chance to specialise, clear roadmaps help people commit for the long haul.

  2. Upskilling & development

    The pace of change in tech is relentless. CIOs who invest in continuous learning (AI, cybersecurity, cloud, data analytics) aren’t just upskilling their team, they’re showing commitment to their people’s future.

  3. Flexible work that’s actually flexible

    Hybrid doesn’t mean “you must be in the office three set days a week.” The best retention strategies empower individuals to choose how they work best while still keeping collaboration alive.

  4. A culture of connection

    Tech professionals are in high demand, and they know it. They’re choosing employers who create belonging, transparency, and real community in their teams.

What CIOs & tech leaders can do right now

Here are three practical steps you can take today to boost retention in your tech teams:

  1. Start with Conversations, Not Policies

    Ask your team what they value most. You’ll often discover simple tweaks, like flexible hours or more project ownership, that make a huge impact.

  2. Build Learning Into the Day-to-Day

    Don’t just send people to courses once a year. Encourage mentorship, pair programming, and give people time each week to explore new tools or innovations.

  3. Sell the ‘Why’ of Your Work

    Remind your teams of the bigger picture. Whether it’s digital transformation, sustainability, or improving customer experiences, tech people want to know the “why” behind their code.

The takeaway

In 2025, retaining tech talent in Australia isn’t about who has the deepest pockets. It’s about who can provide flexibility, purpose, growth, and a culture where people genuinely want to stay.

The CIOs and tech leaders who crack that code won’t just keep their best people, they’ll build teams who are engaged, loyal, and ready to take their organisations into the future.


FutureYou | The power to connect

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