What factors create a high attrition rate in IT fields?
In order to properly answer this question I had to research. Professional journal and articles have been used so a precise answer can be given. An IT recruiter also got interviewed to give current attrition trend in IT field. Research:
Attrition is a reduction or decrease in numbers, size, or strength. A gradual reduction in work force without firing of personnel, as when workers resign or retire and are not replaced (attrition. (n.d). Information Technology companies are notorious for having higher attrition rates. There are several factors that lead to these higher attrition rates, like: Historical events, role Demographic variables, Role stressors and Career Experiences, which also leads to problems for people in the industry. Although they were many factors that lead to a high attrition rate, a big factor in this field was the Dot-com bubble burst. When the Dot-com bubble burst happened in 2000, many did not think that the industry would rejuvenate itself so rapidly. The Information Technology industry had few takers right after the Dot-com bubble burst, and the financial institutions and their creditors had turned their backs on companies in the Information technology field (Adhikari, A). In a remarkable turnaround, the industry has become one of the most sought after industries. Share prices of IT companies, which had plummeted during the slump, soared to over hundred times the value for some companies (Adhikari, A). Software and services exports continued to remain on top of the IT industry’s revenue table. The export-driven software sector saw major long-term projects come to the Information and Communication Technology (ICT) leaders (Gupta Meenakshi). The most prized resource in today’s knowledge economy is its highly talented technical work force. India has the 2nd largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India, for example has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals Factors Affecting Employee Attrition: A Multiple Regression Approach 3 9 every year. The government is stepping up the number and quality of training facilities in the country to capitalize on this extraordinary human resource. It is the knowledge industry that will help take the economy to a sustained higher rate of growth and the policy makers are fully aware of this (Adhikari, A).
The IT industry is not all about fat pay packages, foreign tours, prestigious training programs and coding on a computer. It is also about long work hours, sleepless nights, monotonous work, stressing deadlines and of course attrition. Young programmers and managers who join the forces of the most prestigious IT companies, are often disgruntled and leave (Gupta Meenakshi). It is true that often attrition is taken as a measure of the maturity of an industry and that it helps avoid the unpleasantness of laying off people, but the figures should be around 4-5 percent. However, in the IT industry, the attrition has far overshot the mark. Attrition in this multi-million dollar industry is giving the doyens of the industry a lot to think about. The retention policies employed by the companies leave a lot to be desired and a proper complaint handling and suggestion system is often found lacking in many companies. Some join a company just to learn the ropes in the trade and shift to a bigger brand name. Some leave in pursuit of better pay. The speculations can go on and on. Through this research, we aim to target this growing malaise, called attrition. What does exactly ail the IT industry where people feel so compelled to leave? This is just one of our objectives. Today, attrition is one of the important issues in an organization....