Average attrition rate in it industry professional#

Clearly, the attrition is a lot more pronounced and popular in the new age economy sectors compared to the traditional old economy sectors.Ĭertainly employees and professionals are not complaining. However, attrition has been much lower at 14% in engineering, 12.9% in chemicals, 12.4% in automobiles and 8.6% in metals and mining.

Average attrition rate in it industry professional#

In addition professional services at 25.7% and financial services at 24.8% also saw high attrition. In the technology and digital space, ecommerce has attrition of 28.7%, High Tech at 21.5% and ITES 21.4%. You would have guessed that technology takes a chunk of the big attrition stories in India. There are now a lot of people, especially among the young, looking for better work-life balance.Īre there any sectoral trends in the attrition. This gives them the confidence to tender their resignation and branch out on their own, albeit small. Already, people are finding that it is possible to make a living consulting for multiple companies, especially for individuals with specialized skill sets. In fact, with the global recession concerns, this fear is likely to get more pronounced and we could find higher levels of attrition in India. Interestingly, there is also a lot of attrition among companies on account of concerns over job security. Interestingly, a largely number of employees have left their jobs for higher education or acquiring new skill sets. There has been a sharp rise in people quitting jobs due to hostile managers, unfavourable work environment etc. What has increased is people leaving their jobs because their current job profile makes them stagnate and does not provide them the required growth opportunity. Interestingly, people leaving the job due to better pay or internal disparity has reduced. AON PLC has identified some key triggers for the high level of attrition in India. What is driving attrition in India in such a big way. Also, work-for-home has turned out convenient for a lot of employees and many have actually turned down jobs when asked to report back to duty at the offices. Secondly, post the COVID crisis, employees have become more conscious about work life balance and are willing to take pay cuts for the same. Firstly, the demand for digital skills is much more than demand and that segment is seeing the maximum amount of attrition. Now this has been triggered by various reasons. Attrition and employee cost hikes will be the big challenge in FY23 and FY24.Īttrition is defined in technical parlance as the pace at which people leave a company either voluntarily or involuntarily.

One of the outcomes we see today is that moonlighting has become a major issue for IT companies and some are even forced to tolerate moonlighting just in order to retain workers. The high level of attrition in FY23 is likely to put further pressure on companies for retaining employees. Not surprisingly, salary levels are expected to rise by 10.4% in FY23, on top of a steep 10.6% increase in the year FY22. The attrition rate also means that the demand for workers is more than supply and that makes good resources a scarce product. If you have been hearing about the Great Resignation and how lesser number of people are opting for jobs, here is the perfect example of how the Indian employee market is changing at a rapid pace. This is sharply higher than the previous periodic averages. According to the AON PLC report, in the first half of the calendar year 2022 (H1-2022), India witnessed overall attrition rate of 20.3% on an average. A recent survey by AON PLC shows that this is not just limited to the IT industry but is across a number of industry segments.

You have been reading reports about rising attrition in the IT sector.