India’s corporate sector is one of the biggest growing industries and is a major contributor to the economic growth of the country. The blooming of this sector can also be attributed to the explosion in the Indian startup ecosystem. But, India Inc. has to battle out a number of challenges to keep up the growth in the system. Amidst the mushrooming of the companies, one thing that is holding back the sector is the higher attrition rates amongst the employees.
The IT industry is currently the biggest testimonial of the grossing attrition rates prevailing in the country. Infosys is witnessing its highest attrition rate in history at 23.4% in the June quarter. Tech Mahindra is not far behind with figures standing strong at 21%. The startup ecosystem is also not lucky when it comes to employee retention as most of the employees tend to quit their jobs within two years of joining.
A company can tackle the problem of employee retention by simply focusing on what an employee needs. Offering him the right benefits and a work culture that can enhance his productivity can make an employee go a long way.
The reasoning for the high attrition rates can be low pay, unreal expectations from an employee or toxic work culture. The alarming rate does not only affect a company’s profitability but it can also prove to be a major setback for the economy.
Finding the right talent for your work can be a gruelling task and if the trend of attrition continues at this rate, it can increase a corporation’s burden both in terms of money and time. A company can tackle the problem of employee retention by simply focusing on what an employee needs. Offering him the right benefits and a work culture that can enhance his productivity can make an employee go a long way. An employer needs to be open and transparent with his workforce so as to create a sense of community which in turn makes an employee feel valued.
Addressing the issue of attrition is important as it can adversely affect a company’s performance and also lower productivity amongst the industries.