IT, banking sectors see high attrition

The information technology (IT) and healthcare sectors are witnessingthe highest attrition rates among talented employees, making retention ofcritical manpower resources a key challenge, says a survey.

According to a study conducted by MyHiringClub.com, the ITand ITES sectors saw the highest attrition rate of 23 per cent in the firstquarter of 2010-11.

In contrast, the banking and financial services sectorwitnessed an attrition rate of 18 per cent, followed by healthcare (12 percent), FMCG (11 per cent) and automobiles and manufacturing (11 per cent).

"Attrition is a major problem with India Inc and itsuddenly got increased in the first quarter of the current fiscal year. Themajor reason behind (this) was that firms had started paying more to newlyhired employees. Beside pay packages, career level growth and relationshipswith supervisors are the other reasons for higher job attrition,"MyHiringClub.com Founder and CEO Rajesh Kumar said.

The main reason for switching a job is pay packages (21 percent), followed by career level growth (16 per cent), dissatisfaction withsupervisors (15 per cent) and work pressure (14 per cent).

Employees with experience of up to five years had thehighest attrition rate of 39 per cent, while it was 27 per cent for those with5-10 years of experience and 22 per cent in the 10-15 years' experiencebracket.

Interestingly, senior-level employees (experience more than15 years) had a very low attrition rate of 15 per cent.

"Entry level and young blood employees want to reach onhigher pay packages as soon as possible to fulfill there need and avail goodfacilities of life.

"If they continue with the same job, they can get a10-20 per cent salary hike, but if they switch jobs, they can easily getsomewhere around a 25-40 per cent salary hike from current CTC. A higherattrition rate causes panic among employers and the direct impact of a higherattrition rate comes in hiring costs," Kumar added.

The survey was conducted by MyHiringClub - an Asia and Gulf/Middle East recruitment tendering platform- among 11,800 employees and 249 employers between May and June this year.