Corporate India reeling under continuous attrition
Even as corporate India spreads its wings abroad more and more, the services sectors continue to face large-scale attrition of skilled manpower resulting in manpower shortage, says a survey.business Updated: Aug 19, 2007 17:02 IST
Even as corporate India spreads its wings abroad more and more, the services sectors continue to face large-scale attrition of skilled manpower resulting in manpower shortage, says a survey.
Sectors such as IT and IT-enabled services, civil aviation, financial services, retail and engineering are all facing huge manpower shortage due to increasing attrition, said the survey done by the Associated Chambers of Commerce and Industry of India (Assocham).
"Human resource is the most valuable asset for any company in the modern economy. Companies would have to not only benchmark the compensation levels and upgrade the reward structure time to time in order to retain their employees but also have to integrate human resource management with overall corporate growth strategic," said Venugopal Dhoot, president of Assocham.
In the country's aviation sector, the level of attrition is 46 per cent amongst pilots and cabin crew due to growing opportunities and more avenues in the sector. Others such as banking, real estate and trading are also facing a dearth of professionals due to increasing incidents of job-hopping in these industries.
Growth in construction activities in the economy has led to surge in demand for engineers, resulting in the increase in their movement across companies at the rate of 25 percent. Engineering firms are resorting to pay hikes and growth assurance to curtail the attrition level, the survey said.
As the level of attrition rises, companies are also facing the problem of loss of intellectual property. Sectors that are worst hit by this are hospitality, IT, hospitals and engineering in the absence of laws to protect the interests of an organisation from employee turnover.
The survey also highlighted that maximum attrition was seen among employees in the age group of 26 to 30 years. It found that employees who are most vulnerable to change are with experience ranging between two to four years.
Employees within the age group of 39 to 45 were found to be most stable in their jobs. Interestingly, the survey also showed that the frequency of changing jobs was more prevalent in women than their male counterparts.