Indian economy is booming with the increased opportunity in almost every sector. The near to double digit growth (9.4% in 2006-07) has resulted in the enhanced job opportunities and employees’ high ambition to grow.
The trends to grow with greater opportunity have led Indian economy to a damaging attrition rate. The attrition rate for India Inc has gone above than 20%. The services sector is facing the maximum heat of the growth.
According to an Assocham Business Barometer Survey that was conducted on ‘Attrition Problem in a Growing Economy’, if the attrition rate goes to 40% in the services sector, it can be termed as alarming for the further growth. The similar case can happen if the attrition rate goes to 20% in manufacturing sector.
The professionals of the age group of 26-30 years are the main culprits for the maximum attrition rate. The professionals with an experience of 2-4 years are the mostly vulnerable to job-hopping. According to the survey, women employees do not change the jobs as frequently as men do.
The survey says that 52% HR managers accept men professionals are frequent changers. For every 10 males jumping the fence there were only two females crossing over. Women are more stable than their male colleagues despite of balancing families and workplace at the same time.
As India has joined the global world of business, the rising level of employee turnover has been gone high as well. The instant gains in salary package are mainly responsible for the job change in 61% of the cases. 90% of HR managers say that recruitment is an continuing procedure right through the year.
The several online job portals have caused the higher employee turnover now. A country head of a manufacturing firm said that the job portals have provided the professionals a platform to go for a change, I feel the attrition is due to issues happens between an employee and employer.