Techssocial | The IT sector in India is facing a tough time with massive attrition rates. In the past few years, the rates have been so high that they have crossed 25 years. There could be multiple reasons for this. Lack of digital talent, more demand for professionals, and a massive increase in wages could be considered a factor. However, the good part is that these attrition rates can be easily managed if the same level of information is used and implied to manage the hiring process as well as the attrition rate. On that note, here’s a look at why many IT companies are today facing high rates of attrition and the solutions for the same.
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Causes behind job switch that impacts attrition
Depending on numbers, the rates of attrition for IT companies happen to be on the higher side compared to various other industries. As per employees, growth opportunities are limited if one spends more than 2 years within an organization. The level of growth is not how it used to be before and this doesn’t help as the competition here is quite tough.
The association of cost
When we speak of cost associations, we usually mean the expense that is required to train new employees. Attrition costs are usually quite high. They could be above 5000 rupees per person. And if that person leaves right after the training period, you have to hire someone new and pay them the exact cost as the left employee won’t be billable.
What is TCS doing about this?
In order to maintain its inclusivity, TCS is working towards developing its existing talent with the help of training as well as promotions. But one of the best and most significant ways that you can retail the talent is with the help of financial incentives. TCS also follows market trends that are defined by the experience of an individual. Apart from that, a standard process for an increment is followed. This allows employees to also increase their salary alongside their experience. So the employee not only grows professionally but also improves their pay scale.
TCS also tends to reward employees who like to work hard. In order to celebrate their ten years as an organization, they gave employees a bonus that went up to 2628 crores. Not just that, they also try to keep people motivated with off-site parties.
What is Tech Mahindra doing about it?
Regardless of providing financial incentives to its people, Tech Mahindra happens to be losing a lot of talent late and they are not able to hold on to new talent either. Their idea is to decrease the rate of attrition without simply depending on financial investments as they have not worked clearly. Recently, after seeing attrition rates cognizant and TCS, they have diversified tier 2 cities, they also hire a workforce with various values and backgrounds.
With a healthy combination of financial gains, job security, and values, Tech Mahindra is now looking to retain a lot more talent. The goal is now to focus on the training of all the existing workforces in order to boost morale. There is a possibility of internal promotions as well as career development too. When you focus on financial investments, you will be able to look for better solutions for all problems related to attritions.
What is Wipro doing to handle this concern?
Wipro understands the present case scenario and is making attempts to manage the talent landscape. They have improved their fresher intake and plan of hiring more people in the upcoming year. After all, high attrition loses the chance of going offshore. Not just that, companies end up losing knowledge as they get caught up in the vicious hiring cycle that leads to many scheduled projects failing to launch on time. Recruiting as well as retention are becoming massive issues for IT organizations. Hence, companies must also create work environments where employees feel appreciated. The best way to do this is with the help of a rewards and recognition program.
Conclusion
A major reason for massive attrition rates also includes startups offering poor salaries, which forces a lot of employees to shop a lot more aggressively. But, with inflation, layoffs, and funding crutches, several employees want to reconsider their job opportunities. As a result of this, most employees are also leaving startups by getting absorbed with IT companies.
With digitization growing at a rapid pace, many companies are also looking to hire more professionals who are well-versed in digital marketing and technologies. Experts also say that there has to be a mindset shift towards employment, recruiters, and talent management in order to reduce these attrition rates. While the need for digital capacity has increased, it’s important to hire the right people who have good digital capabilities and a basic educational background.
Hemant is Digital Marketer and he has 6 + years of experience in SEO, Content marketing, Infographic etc.