Attrition is Indian firms' new worry
India's economy is showing robust growth, but employers enjoying the boom have a flip side: that of restless staff seeking greener pastures as the war for talent hots up. Vivek Sinha reports.business Updated: Mar 09, 2011 21:54 IST
India's economy is showing robust growth, but employers enjoying the boom have a flip side: that of restless staff seeking greener pastures as the war for talent hots up.
As companies struggle to keep their flock together, the overall attrition levels for corporate sector stood at 19% in 2010, a survey by global HR consultancy firm Aon Hewitt said this week.
No sector seems an exception, but attrition is particularly severe in business process outsourcing, pharmaceuticals and information technology and more so at junior management levels (see table).
"Robust economic growth has meant increased businesses for companies, which has led to a spurt in hiring. This has opened an array of employment opportunities especially at the junior managerial level," said Nitin Sethi, India practice leader, Aon Hewitt. "Attrition has, now, become a way of life for companies."
"Due to the economic slowdown, employees did not switch jobs but with growing opportunities they feel this is the right time to move," said Kamal Karanth, managing director, global staffing firm Kelly Services.
To counter the attrition effect, organisations are are doubling increments and doling out long-term incentives. "If a company is ab