Drop in attrition rate and salary of IT employees
The economic slowdown seems to have seen a drop in attrition rate and salary increase of IT employees, according to a survey.business Updated: Sep 20, 2009 12:49 IST
The economic slowdown seems to have seen a drop in attrition rate and salary increase of IT employees, according to a survey.
The average IT sector attrition rate, which was 18 per cent last year has dropped to 15 per cent, according to a survey by IDC, a premier global provider of market intelligence, advisory services, and Dataquest.
Despite the marginal increase in salaries, a freeze on fresh induction, lay-offs, cutting down on talent and keeping offer letters on hold, the industry saw a dip in attrition rate to 15 per cent.
The average retention rate, defined as percentage of employees retained out of the total employees as on March 31, 2008, improved to 85 per cent, from 79 per cent in 2008, the survey stated.
The survey results indicate a visible improvement in work environment even though the average salary increases during the year were pared to 1.4 per cent.
The salary increases for employees with less than two years of experience earned 2 per cent increase. Those between 5.1 and 10 years received an average salary hike of 5 per cent and those with over 10 year experience earned four per cent salary increase.