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Attrition touches double digits in IT
By | Thursday, 25 March 2010, 04:09 Hrs |
13 Comments
According to Teamlease, one of the largest staffing solution firms in the country, "a steady and drastic increase in attrition levels" has been seen since January-February. "Attrition began mid last year. However, around December 2009, it went up by 20 percent from the previous quarter. In the past three months, companies have seen almost 25-30 percent rise in attrition compared to last year," the company's General Manager, Surabhi Mathur Gandhi, said. "We expect attrition levels to go up even higher in the coming quarters," Surabhi said, adding that current estimates indicated that by the end of 2010, attrition will be 30 -35 percent higher.
"There has been a definite rise in attrition across the industry in the past two-three months. With markets improving and the number of job offers going up in the new financial year, we are bound to see more movements," TV Mohandas Pai, Board Member and Director (human resources), Infosys, told DNA. He, however, said the job-hopping this time was not accompanied by high salary gains. "The industry will not grow like it did previously and therefore, it is not really a boom time for salaries," Pai said.
Ganesh Natarajan, Vice-Chairman and CEO of Zensar Technologies, said attrition had already risen from 2009's 6 percent-7 percent to 10 percent -11 percent. "This is almost 50 percent higher than last year's figures in corresponding quarters. In the coming months, all companies are likely to see people switch jobs and the numbers would be higher in large firms," he said.
S Janakiraman, President and group CEO (product engineering services), MindTree, said, "It (attrition rate hike) is a short-term spike that occurs after every slowdown and will vanish. We had seen a similar trend in 2001-02 when the market rebounded after a slump of two years." Janakiraman estimated the industry attrition rate to have doubled to 13-15 percent in the past two months.
E Balaji, CEO of Ma Foi Management Consultancy, also said the all-India attrition rate was up 10 percent this month from 5-6 percent last year. He said the rate was highest in Bangalore and concentrated in the IT-BPO sector, which was worst hit by recession. "In the IT-BPO sector, attrition is much higher at 15.16 percent compared to the industry average of 10-12 percent."
Analysts said the turnaround in the economic scenario was throwing up job opportunities with better perks and remuneration. Besides, the restructuring exercise undertaken by some firms has caused resentment among employees, prompting them to look out. For example, about 2-3 percent of the workforce at Infosys did not like the company's recently launched role and career enhancement programme and the firm lost 4,000 employees in February alone.
However, IT industry insiders do not think attrition has increased greatly. "Attrition shot up in the November to January period, but has since returned to normal. As lateral hiring is experience-based, I believe there was a spurt in such hiring in that period. A dot doesn't create a trend," Jeya Kumar, CEO, Patni Computer Systems, said.
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Reader's comments(13)
1:
I would say 2009 was employers year...
they did what they want by taking recession as advt.
Now 2010 is employees year....:)
now we can take advt. of this hot market.
they did what they want by taking recession as advt.
Now 2010 is employees year....:)
now we can take advt. of this hot market.
Posted by:some employee
- 14 Apr, 2010
2:
As said below, company policies are reponsible for attrition. Actually what happens is, one person goes from A to B and other from B to A, costing both the companies and benefitting both the persons. But companies companies still do this because they avoid giving big hikes to all the employees (working already) by giving big hikes to few people hired from outside.
Posted by:gyan
- 29 Mar, 2010
3:
Job-switching happens because of the company policies which create a pay-differential between the people already in the company and those which are hired laterally. Big companies pay peanuts to the people already working for them, prompting them to switch and then hire a professional for the same position from job market, sometimes with lesser experience, for a far greater package. This inherently implies that, say, three years in this company are valued less than the 2 years in outside company. So switching is must to get money and dignity in work once you are 2-3 year old in a company.
Posted by:itbuff
- 29 Mar, 2010
4:
The article says that there is no significant hike when you switch job now. This is total bullshit. Few of my friends have quit and they have a fat pay check now.
The reason for the rise in attrition, as some people already pointed out here, is that these companies cleverly cut down on the incentives to the employees in the name of recession. Some companies even phased out coffee vending machines (how pathetic that is). Now that the job market is improving it's time the employees show it openly that they are indeed pissed.
Hail IT, Long live attrition.
The reason for the rise in attrition, as some people already pointed out here, is that these companies cleverly cut down on the incentives to the employees in the name of recession. Some companies even phased out coffee vending machines (how pathetic that is). Now that the job market is improving it's time the employees show it openly that they are indeed pissed.
Hail IT, Long live attrition.
Posted by:rdx1312
- 28 Mar, 2010
5:
I agree with that - its absolutely right. Companies (including mine) have tried to take undue advantage of the situation. Lot of other measures (some of them being very silly) like pay-deferrals, variable bonuses, timing restrictions etc were implemented. Now that new jobs have opened up, its good for the employees. Right time to kick in the companies' teeth.
MAH Replied to: rdx1312
- 28 Mar, 2010
6:
Is it real that with not appreciable pay hike attrition rate is on hike? If so then this is something every concerned company should be concerned about, is it because of their not-so-sound HR practices or is it that the opportunity with in their company limited? Every employer should have a insight on these issues for successfully holding back good employees. I don't see any reason for any employee to jump jobs just like that..!
Posted by:Sen De
- 27 Mar, 2010
7:
I Agree with this. If attrition rate is high without much pay hike it's obvious that the employee is dissatisfied withe the company he is with and it's policies and care towards it's employees.you should not afford to lose a Worthful employee.
Sai Kishore Replied to: Sen De
- 28 Mar, 2010
8:
Do not believe these big guys saying that there wont be high salary hikes when you change a job. Nothing like that. They just want to spread some rumors to reduce the attrition...
Posted by:Zzz
- 26 Mar, 2010
9:
Funny numbers, really.
So, last year, there was 1 guy leaving a company, now there are 2. Attrition? 100% increase.
This is a silly number and does not say anything about attrition levels.
Mid-2008 onwards, employees had few choices for change. Comparing current attrition numbers (which I would say are still low) with attrition in that period is simply misleading.
Allegory: Investment agents selling mutual funds or ULIPs during boom time saying that the investments grew 100% in the last year, so it would grow 800% in 5 years.
Beware of such numbers.
So, last year, there was 1 guy leaving a company, now there are 2. Attrition? 100% increase.
This is a silly number and does not say anything about attrition levels.
Mid-2008 onwards, employees had few choices for change. Comparing current attrition numbers (which I would say are still low) with attrition in that period is simply misleading.
Allegory: Investment agents selling mutual funds or ULIPs during boom time saying that the investments grew 100% in the last year, so it would grow 800% in 5 years.
Beware of such numbers.
Posted by:Kaushik
- 26 Mar, 2010
10:
Attrition is increased due to last year indian employers are took advanages of Recession
employers are took advantage of employee because of the recession. Introducing sharp practices and conditions for no other reason than they know people have no choice but to accept because they are "lucky to have a job.This time last year people, if weren't happy in their place of work or were being treated badly, would just leave and find something better. Now the tables are turned
employers are took advantage of employee because of the recession. Introducing sharp practices and conditions for no other reason than they know people have no choice but to accept because they are "lucky to have a job.This time last year people, if weren't happy in their place of work or were being treated badly, would just leave and find something better. Now the tables are turned
Posted by:Nadir Sheikh
- 25 Mar, 2010
11:
Fully agree with your view. Why to show loyalty towards company when they are sucking our blood during recession time. Its better to leave the job n lookout for higher package. These big firms saying that there wont be high salary hikes when you change a job now. Don't believe in this. Many of my friends quitted their current jobs and joined different firms, and they got double the package which they had in earlier company. So i would say, if your company sucking ur blood like anything or if they are not giving good hikes and promotions, then just prepare yourself and quit the company. You will find many other company grab you with higer pakage along with job satisfaction.
Shankara Replied to: Nadir Sheikh
- 26 Mar, 2010
12:
1.Attrition levels always in double-digit figures accross IT companies.
2.IT employees controlling their angry on bulshit indian IT companies since 18 months. This is and coming days are the right opertunity to teach a lession to these so called IT companies.
2.IT employees controlling their angry on bulshit indian IT companies since 18 months. This is and coming days are the right opertunity to teach a lession to these so called IT companies.
Posted by:A Kumar
- 25 Mar, 2010
13:
As the job markets open up, employees have started looking at better options hence they jump jobs..
Posted by:daniel
- 25 Mar, 2010
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