Double-digit salary hikes, leave encashment facility, medical insurance and travel allowance for the entire family, stock options — these are some of the perks that companies are doling out to retain senior-level staff. And what’s more, it is likely to bring down the attrition level this year as well, a survey by executive search firm Mancer Consulting has found.
Pay hikes, perks to bring down senior-level attrition (Illustration by Jayanto)
Besides a salary increase of 15-20%, companies this year are also offering a 20% rise in bonus amount and deferred cash plan as a long-term incentive for professionals with more than eight years of experience, and this has helped stabilise attrition levels across all sectors, the survey says.
However, more people are likely to quit at the junior level with information technology-enabled sector (ITES) topping the list with 30% attrition rate. Other sectors in which junior-level attrition is expected to be high include media, IT and pharma.
“The main reason attributed to high attrition in these sectors is flexibility of entry and exit. There is a constant shift of employable population, especially within ITES and hospitality sectors,” said Satya D Sinha, CEO, Mancer Consulting.
Other reasons that prompt change include easily transferable skills, better exposure and economic prospects, in addition to international opportunities.
Over a million new jobs are likely to be added by corporate India this year, with both domestic and foreign firms opening up their hiring purse, according to the report. A major chunk of this hiring will take place for those with four to seven years of experience.
“Sectors such as manufacturing, engineering and chemicals have remained sensitive to political instability and their hiring and salary growth were very low in 2013,” said Sinha. “But in 2014 sectors such as services, mining, construction and infrastructure are expected to up in their hiring activities.”