Achieving an Engineer Attrition Rate Below 7% Through Self-Directed Learning Initiatives by OM Network

OM Network's Innovative Approach to Engineer Retention

OM Network Corporation, based in Niigata City, Japan, has taken a proactive stance in tackling Japan's ongoing IT talent shortage. According to a survey by the Ministry of Economy, Trade and Industry, the country is expected to face a shortage of up to 790,000 IT engineers by 2030, with rural areas struggling significantly due to the concentration of talent in Tokyo. In response to these challenges, OM Network has shifted its focus from simply recruiting outside talent to nurturing and retaining its existing workforce.

One key strategy implemented by OM Network is its monthly 'Development Department Study Sessions,' which have become instrumental in promoting a culture of continuous learning among engineers. While these sessions on their own may not deliver immediate KPIs, their cumulative impact has fostered an environment where engineers feel secure and empowered to grow.

The results speak for themselves: OM Network has successfully reduced its engineer turnover rate to below 7%, significantly lower than the industry average of 9-13%. Furthermore, it boasts a 90% retention rate for new graduates within three years, compared to the national average of approximately 70%.

Building a Knowledge-Sharing Culture

The success of OM Network’s study sessions is rooted in their inclusive format, where engineers of all skill levels, from beginners to experts, take turns presenting. Jr. Engineers share foundational knowledge, mid-level engineers discuss problem-solving case studies they encountered in their work, and senior engineers provide insights into cutting-edge technologies and specialized fields.

This approach aligns with the Learning Pyramid theory, which suggests that the retention rate rises to 90% when individuals teach others. The preparation for presentations allows engineers to systematically organize their knowledge, while the Q&A sessions offer opportunities for gaining fresh perspectives. This cyclical process of teaching and learning creates what can be described as a 'compound effect' on technical expertise that benefits the entire organization.

Overcoming Initial Challenges

However, the implementation of these study sessions was not without its challenges. In the initial stages, the topics tended to gravitate towards trending subjects like AI and machine learning, which sometimes alienated those who were seeking foundational knowledge. Disparities in skill levels also posed obstacles, particularly when junior engineers struggled to convey their thoughts effectively during their presentations.

Recognizing these issues, OM Network promptly restructured the format of the sessions into two distinct parts: 'Beginner Sessions' focusing on foundational skills and 'Advanced Sessions' aimed at deeper dives into specialized topics. This reorganization allowed all participants to engage comfortably at their skill levels, thus enhancing the perceived value of the sessions.

Supporting Beginners Through Structured Reviews

To further support junior engineers, a 'pre-review' process was introduced, where managers review presentation slides beforehand. This ensures that the content is well-organized and comprehensible, while simultaneously enhancing the presenters' understanding. Such proactive steps have created an environment where younger engineers feel more confident and willing to take the initiative.

Looking Forward: Developing a Local Ecosystem for IT Talent

The study sessions at OM Network may not appear to be groundbreaking initiatives aimed at instant results. Still, over time, they have significantly boosted communication among engineers, improved the atmosphere for sharing concerns, and enhanced psychological safety. Feedback from junior engineers reflects that they have gained deeper insights and have felt a sense of personal growth through their presentation experiences.

Moving forward, OM Network aims to build upon its study session framework by incorporating collaborations with local universities and vocational schools, paving the way for a 'Niigata IT Human Resource Development Ecosystem.' Additionally, there are plans to open-source the methodologies behind these study sessions, allowing other regional IT companies facing similar challenges to benefit as well.

With a growing focus on human capital management, OM Network's commitment to developing talent as a valuable asset has the potential to address Japan's nationwide shortage of IT professionals. Their journey demonstrates that even in regional settings, nurturing and retaining IT talent is not just a possibility—it's an achievable reality. OM Network is dedicated to ongoing improvements and leadership in this important area of workforce development.