Despite the global economic slowdown, you still need a solid retention plan to ensure your organisation can keep its best and brightest staff on the books.

Don't be fooled into thinking that the economic slowdown is a safety net for retaining your top IT talent--quite the contrary. The temperature in the overall IT job market may have dropped a few degrees, but the competition for top IT talent is still red-hot.

"There will always be competition based on greener grass on the other side of the fence," said Gary Gunnerson, IT architect at US-based Gannett. "IT employment remains supply-constrained--it's a seller's market."

Organisations are being particular about whom they hire. They aren't surfing the Net for résumés; they're looking inside other organisations to identify the crème de la crème of information technologists.

"Truly differentiated IT talent is always in short supply," said a CIO at a large government organisation who asked not to be identified. "Quality talent rarely looks on Web sites or responds to general efforts. They must find you or be found by someone in your direct or extended organisation."

Affymetrix, for example, "is still aggressively hiring, and we still have difficulties finding someone who has both the technical and business skills required for our positions," said Thomas Miller, Affymetrix's senior director of corporate information systems.

Perks that don't work
If you want to keep the cream of your own IT crop from being whisked away by other companies, your focus must be on retention. An ad hoc strategy to keep employees happy just doesn't cut it anymore. Serious retention plans must be implemented and consistently acted on.

The biggest turnoffs--the perks that don't work--according to the IT managers we surveyed, include mandated team building events, stock options for private companies and counteroffers for certain employees.

"The biggest mistake management can make is not matching the reward to the employee strata," said the CIO. "Money doesn't do much for younger workers, and nonmonetary accolades are meaningless to the most senior."

The best retention plans
Creating a solid retention strategy is not rocket science. The bottom line is that IT personnel, like most other employees, want to work in a friendly environment where there are open lines of communication and where hard work and extra effort is first recognized and then acknowledged.

"After last year's bidding wars--salaries were increasing at the rate of US$5,000 per week--we started substituting other benefits for direct compensation," the CIO said. "Examples include fully funded education and training packages; social functions; and occasional 'nonmonetary' awards, such as temporary reserved parking space."

Indeed, the simpler solutions often reap the most rewards. "Offer challenging work opportunities to work with advanced technology," said Robert Rosen, director of information management for the US Army Research Laboratory.

More specific compensation suggestions include competitive, long-term incentives; a clearly defined bonus plan; timely salary reviews; help in developing IT project portfolios that are aligned with corporate priorities; a flexible manager; training budgets under the general control of the employee and his or her manager; provision for control of a project; technical and business training; monetary recognition; and flex time.

"Time off, without charge to formal leave, seems to work universally," said the anonymous CIO.

Copyright © 2009 CBS Interactive, a CBS Company. All Rights Reserved. ZDNET is a registered service mark of CBS Interactive. ZDNET Logo is a service mark of CBS Interactive. How to retain top IT talent — Create interesting, challenging and experience-gaining projects that have concrete goals — Appreciate and recognise hard work, accomplishments and effort — Offer competitive salaries — Provide ongoing technical and business-process training — Maintain open communication; encourage and respect ideas, suggestions and talent — Offer competitive benefits packages — Create a positive work environment and demonstrate your ability to support and defend IT — Provide the necessary "tools of the trade" (PDA, laptop, cell phone and so forth) — Offer flexible career planning for personal growth — Make sure employees get the time and freedom to do what they do best