With most companies giving out the appraisal letters and thanks to the buzzing job market, employees are likely to look for greener pastures, according to headhunters. In a first after 2007, estimates suggest companies might witness high employee exodus this year, and attrition rate is likely to register an over 50% increase over last year.
Sectors that are likely to lead the charge include financial services, logistics, e-commerce, retail, fast-moving consumer goods (FMCG) and IT.
“Largely on account of the positive job market, the attrition rate is likely to grow by at least 40% to 50% this year, especially for entry-level to middle-level employees,” said Rituparna Chakraborty, senior vice-president at staffing firm TeamLease Services.
“A hike in salary would be the top reason to make a switch. While, niche roles would attract a hike of over 40%, the average hike at would be about 20%.”
According to industry experts, the average voluntary attrition rate across sectors was about 13% last year, which is likely to jump over 19% this year.
“Attrition will be high only for niche functions such as analytics, digital, e-commerce and other IT services, which are receiving most of the venture capital funds,” said Amit Garg, executive director, digital initiatives, HT Media, which owns Shine.com.
According to a recent survey by Dutch staffing firm Randstad, 59% of the Indian workforce is considering a job change this year.
“The highest attrition levels, greater than 20%, are expected in IT and IT-enabled services sectors,” said Moorthy K Uppaluri, chief executive officer, Randstad India. Companies are also preparing drafts on counter offers in order to brace themselves against expected high exodus.
“Organisations are being more aggressive in offering salary hikes based on criticality of skills and sense of urgency in order to buy the talent faster than competition,” said Kamal Karanth, managing director of US-based Kelly Services and Kelly OCG India.