From TCS, Infosys, Wipro to HCL, most of India's IT sector giants have had a common point of worry in the past couple of years. It's the high attrition rates. And no relief seems to be in store in the coming years, as per the findings of a survey.
The attrition rate in the IT-BPM (Information Technology and Business Process Management) sector in India is reaching gigantic proportions, with up to 22 lakh IT professionals likely to quit their jobs by 2025, a report has said.
For the uninitiated, the?attrition rate is a metric used to calculate the rate at which employees have voluntarily left a company.
The findings from the report showed that 57% of IT professionals would not consider returning to the IT services sector in the future.?The 'Talent Exodus Report' report by TeamLease Digital predicts up to 55% growth in contract staffing attrition for FY 2023 as compared to 49% in FY 2022
The report said there is a huge misconception with the sentiment in the candidate market that a salary increase would improve performance and boost job satisfaction, and 20 lakh to 22 lakh employees are expected to leave their jobs by 2025.
"The Indian IT sector has witnessed tremendous growth in the last decade. It has recorded 15.5% growth, which is the fastest in more than a decade and touched $227 billion, creating additional 5.5 lakh jobs in FY22 alone," said Sunil Chemmankotil, CEO, TeamLease Digital, as per IANS.
However, with the global pandemic disrupting the IT hiring chain, "there is evidence of a reverse trend which indicates that retaining a business-critical talent has undergone a great change in the last two years", he reportedly added.
As employees' needs and priorities have changed, such as the desire for flexibility, career growth, and employee value proposition, they are re-evaluating their careers based on these aspects and quitting their well-cushioned jobs in the mid-way.
The alarming figures reveal that the flexible structure has heightened the choice.?"Organisations' strategic hiring plans must contain goals towards their employees and their betterment. This ultimately translates into soul searching over whether an employee feels valued in his/her work or merely creates outcomes and value to benefit others," said the report.
Also Read:?Despite Highest Attrition Rate Among IT Giants, Infosys Records Most Employee Additions In Q2
Nearly 50% of respondents believe that 'lack of better compensation and benefits' is the greatest reason for talent exodus, whereas 25% believe lack of career growth to be the reason.
"IT companies are experiencing dysfunctional turnover where the best employees of companies are voluntarily leaving at higher rates," the report mentioned.?It also mentioned that new-age firms ramping up their workforce was the chief cause of attrition in the IT services sector in 2021.
Also Read:?Apple Employees Reject CEO Tim Cook¡¯s Return To Office Plan By Threatening To Quit
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