The IT industry in India is going through a difficult period of massive attrition. In the last couple of years, these rates have risen to the point that they’ve crossed the threshold of 25 years. There could be a variety of factors behind this. The lack of digital talents, increased demands for professional workers and an enormous increase in wages might be the cause. The good thing is that attrition rates can be managed easily by ensuring that the same amount of information is utilized and incorporated into the hiring process and the rate of attrition. In that regard, here’s an explanation of why IT firms are currently having a high rate of attrition as well as the solutions to address the issue.
Job switch causes that affects attrition
Based on the number of employees, rate of attrition in IT firms tend to be more high when compared with other industries. Based on the employees, opportunities for growth are restricted if one stays longer than two years in an business. The rate of growth isn’t as it was in the past and this isn’t helping since the competition in this area is hard to beat.
The cost association
When we talk about cost associations, we generally mean the amount necessary to train new employees. The costs for attrition are typically very expensive. They can exceed the amount of 5000 rupees for each person. If a person quits immediately after the period of training it is necessary to find an additional person and pay the same amount as the employee who left will not be billed.
How is TCS doing to address this issue?
To maintain its openness, TCS is working towards the development of its current talent by providing promotion and training. However, one of the best and most effective ways you can market your talent is by making use by financial rewards. TCS will also follow market trends that are determined by the personal experience of each individual. In addition the standard procedure to increase a salary is implemented. This allows employees to raise their salaries in line with their professional experience. This means that the employee not only develops professionally, but also increases their salary scale.
TCS also rewards employees who be a hard worker. To commemorate the 10th anniversary of their company, they offered employees a bonus amounting up to 2628 million. And, not only that they try to keep their employees engaged with events off the premises.
What exactly is Tech Mahindra doing about it?
In spite of offering incentives for its employees, Tech Mahindra happens to lose a significant amount of talent and have not been in a position to keep fresh talent. Their goal is to lower the rate of loss without just relying on financial investment because they haven’t done it well. Recently, following the observation of attrition rates that are cognizant as well as TCS they have created a variety of cities of tier 2 and also employ workers with different backgrounds and values.
With a balanced mix of jobs security and values Tech Mahindra is seeking to keep more talented employees. It is now time to concentrate on the education of the entire workforce to increase morale. There is a chance of internal promotions and the development of careers too. If you concentrate on investing in financial assets it will allow you to find the best solutions for any issues that are related to attrition.
What exactly is Wipro doing to deal with this issue?
Wipro is aware of the current situation and is trying to control the talent pool. They have improved their newer intake and are planning to hire more employees in the coming year. Since high turnover reduces the possibility of moving offshore. In addition, businesses are losing their knowledge as they are caught in the cycle of hiring which results in many planned projects not being launched in time. Recruitment and retention are becoming major issues for IT businesses. Thus, organizations must provide work environments where employees feel valued. The most effective way to achieve this is to make use of a rewards and appreciation program.
Conclusion
One of the main reasons for high attrition is due to companies that offer low salaries that force a large number of employees to search for jobs more often. However, due to the rising cost of living, layoffs and a lack of funding many employees are looking to think about their options for employment. Because of this, many employees have also left startups being absorbed by IT companies.
As digitization is growing rapidly businesses are seeking to recruit more experts with a solid understanding of digitization of marketing and other technologies. Experts say there must be a shift in mindset towards recruitment, employment and management of talent to lower the number of people who leave. As the demand for digital capabilities has risen and is essential to recruit those with an excellent digital proficiency as well as a basic education.
