Trends of Attrition, Poaching & Hiring in India
As the economic recession is melting down, the companies are in the phase of hiring new employees. With the recession there was seen changes in the percentage of attrition. The attrition rate at present in India is about 9-11% which was 18-20% earlier. This has happened because of less available job opportunities as compared to the past. The number of lay offs are also less in India as compared to the rest of world. In India 12.6% companies are considering to lay off their employees whereas in US 55% of companies are doing this. China is at 30.6%, Japan at 17% and Australia at 32.4%.
But with the squeezing of economic recession, new jobs can again give rise to the problem of attrition in India. BPO sector in India has the highest attrition rate. Gone are the days when people used to stick to one job & got retired from the same job after 25-30 years. The trend has changed a lot. Now everyone wants to grow at much faster pace & keep looking for job change & satisfaction. As per the Hay Group's report, the attrition rate in BPO is 23.5% that is followed by Communications (22%) & Retail (18%). The IT industry is seeing 15-16% attrition rate. The major reasons citied are no post job benefits like pension & PF with very less basic salary. Apart from this numerations & bonuses are also very less as compared to other industries that are leading to attrition. Further if the companies will not think from the employee's perspective then the never ending attrition will further increase.
Most of the Call Center or BPO sector hire freshers with or without graduation. So when they get experience of one or two years they look for more greener pasture and thus change the job for more salary & position. But if the attrition rate is compared to the last two to three years then for year 2009 there has been a decrease. This is because of the less availability of new job opportunities due to recession. Attrition at senior level is further low than the executive level because of the job satisfaction both on professional & financial front.
Many companies thus to solve this problem are looking for employees who are already employed. Companies are taking lateral entry that means hiring employees from the other company at same level & salary. Although in India there are anti-poaching laws but yet this is being practiced.
The sectors of financial services, insurance, telecom & retail are seeing major recruitments. New companies & extensions along with the less availability of talent in these sectors have led to more job recruitments in these sectors. As per Manpower Consultants, the employment service providers, there is a scope of 25% employment in India for fourth quarter in 2009 which was 19% in the first quarter. Kotak Mahindra Bank is hiring around 750 people by the end of this year. 100 employees will be freshers. Capegemini is also on the way of hiring employees and expected to increase the work force to 40,000 from 17,000 by 2010. Also major hiring will be seen in Deloitte that was once facing the high attrition.
So overall it can be seen that with the expansion of the companies, the hiring is on. Present day employers are looking for the quality rather than quantity. So you as an employee can brush up your talent to grab the matching job opportunity that will be knocking your door soon.
