Attrition Rate in It Industry
According to human resource experts, the average attrition rate is projected to grow at 31 per cent in Indian firms in the April-June quarter, a rise of 9-10 per cent from the preceding quarter (January-March).
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In the April-June quarter of 2011-12, the average attrition rate was 27 per cent.
Generally, employees would have received their annual appraisals during the April-June period and those not happy with their performance review or salary hikes seek better opportunities. Consequently, attrition rates are seen going up in these three months, experts opined.
"In the current quarter, we are expecting an average attrition rate of 30 per cent. In Q4 employees were not keen to switch jobs due to appraisal season. Now in April they reached on higher salary compared to previous one and have a chance to negotiate for better salary with new employer along with new appraised designation," MyHiringClub.com CEO Rajesh Kumar said.
"Salary and designation are the major factors for higher attrition outlook in Q1, FY13. One more concern is having in employees mind if they'll change their job in this quarter they are entitled to enter into appraisal cycle with their new employer also. So they are not going to loose anything with job change," he added.
Another HR consultant Ripples Consultancy Services CEO and MD Rishi Raman said. "We would see a high attrition rate of 30-31 per cent in the first quarter of the current fiscal.
The reason behind such attrition is many employees are not satisfied with their appraisals.
"A good performer did not expect 10-15 per cent of hike, their expectation is not less then 20 per cent," he added.
Experts said that attrition would be in double digits in all the sectors. It would be highest in the IT/ITeS sector at 31 per cent, followed by telecom (26 per cent), banking and financial services (23 per cent), aviation and hospitality (22 per cent ), real estate (15 per cent), FMCG
SPECIAL: Best companies to work for India
In the April-June quarter of 2011-12, the average attrition rate was 27 per cent.
Generally, employees would have received their annual appraisals during the April-June period and those not happy with their performance review or salary hikes seek better opportunities. Consequently, attrition rates are seen going up in these three months, experts opined.
"In the current quarter, we are expecting an average attrition rate of 30 per cent. In Q4 employees were not keen to switch jobs due to appraisal season. Now in April they reached on higher salary compared to previous one and have a chance to negotiate for better salary with new employer along with new appraised designation," MyHiringClub.com CEO Rajesh Kumar said.
"Salary and designation are the major factors for higher attrition outlook in Q1, FY13. One more concern is having in employees mind if they'll change their job in this quarter they are entitled to enter into appraisal cycle with their new employer also. So they are not going to loose anything with job change," he added.
Another HR consultant Ripples Consultancy Services CEO and MD Rishi Raman said. "We would see a high attrition rate of 30-31 per cent in the first quarter of the current fiscal.
The reason behind such attrition is many employees are not satisfied with their appraisals.
"A good performer did not expect 10-15 per cent of hike, their expectation is not less then 20 per cent," he added.
Experts said that attrition would be in double digits in all the sectors. It would be highest in the IT/ITeS sector at 31 per cent, followed by telecom (26 per cent), banking and financial services (23 per cent), aviation and hospitality (22 per cent ), real estate (15 per cent), FMCG