Employee Attrition in IT Industry – A Sign of Growth
Employee Attrition in IT Industry A Sign of Growth
By,
S.SALEEM, Final MBA
Srikaliswari college, Sivakasi.
In today's scenario, Indian IT companies are facing a "fast-growth-high-opportunity" challenge. According to the Britannica concise encyclopedia dictionary, the word attrition means a reduction of employees in numbers as a result of resignation, retirement or death. This seems to be a turbulent time of the company, but it is not. Perhaps the time is meant for refreshing our company with new talents and ideas if we think positively. Persistence would make our whole organization to think positively and ignore negative thoughts. Attrition is a right time for any HR managers to prove his potential in terms of retaining the existing resources and attracting new talents. Irrespective of good or bad attrition, of course the business will be impacted by tangible and intangible ways. Like a coin, there are two sides as good and bad attrition. But, here we are going to emphasis the positive side of the coin.
Deependra L. Chumble, Chief People Officer, Hexaware Technologies Ltd, says BusinessLine eworld on july5, 2010"attrition is a sign that the industry is growing. The industry will experience a high level of attrition and it would largely be more at the beginner level as people in these positions always want to experience different roles, different organizations, and explore different career avenues."
This trend can be seen mainly among employees with three to six years of experience. IT professionals largely switch jobs for either money, career planning and grow or the opportunity to work with newer technologies.
Benefits of Attrition
According to the study of Harvard Business Review, 80% of employee turnover can be attributed to the mistakes during hiring process. To overcome this, employee attrition will be used to hire the right candidate for a right job again. A Healthy attrition minimizes the problems associated with some job holders and desirably that will impact on business. In one hand desirable attrition includes termination of the employee with whom the organization does not want to continue relationship. On the other hand this can be done by resignation of employees. Any how this may help to company positively as follows...
Opens a gate for the new talents to enter into the team.
Can get new-age people with latest technical expertise.
Helps to build a new team for new project.
Generates new thoughts, ideas and creativity and innovation in work.
Removes the bottle-neck among the internal customers.
Can get employees at lower cost with fresh skills and competencies, If the company looking for fresh candidates.
Can get employees with best knowledge, practices and experienced candidate, if the company looking for a candidate with work experience.
Outside Information and expertise are shared by new candidates.
A healthy attrition will leads to voluntarily resignation by the employee who is not able to satisfy the expected performance of the company. Some people have a negative mind set and he/she does sub ruler activity influence on the culture and team performance. That employee continuation of service would give a negative impact on the business growth. This will not be beneficial to the organization in the long-run.
Growth in Employment Opportunity
"I hope the U.S makes more positive investments to create jobs and to become competitive, rather than taking any regressive action which seems negative and will lead to protectionist measures around the world" Nasscom president Som Mittal said on Nasscom Infrastructure Management Services Summit 2010. He said the coming decade would see the indirect employment of 20 million in the IT and BPO sector. "Women employees alone will contribute to five million," he added.
The number of persons directly employed in the IT and BPO sectors are expected to touch 10 million in the coming decade, according to apex IT industry body National Association of Software and Service Companies (NASSCOM).
IT giants in India have already announced huge hiring plans. TCS, the country's largest software services provider, has said it will hire 30,000 people this year. About 70% of the gross hires will be fresher, and the rest lateral hires.
Infosys, India's second largest software exporter has announced that it plans to appoint 15,000 professionals through campus recruitment in 2010-2011.
Cisco India has announced that it will employ 10,000 to 12,000 persons in the coming years. The company has been aggressively expanding its commercial space in Bangalore totaling a floor area of 700,000 sq ft. At present, Cisco has about 4,000 employees in India.
"I think the companies in the industry need to join hands to tackle the uncertainty on the resources front. It is a part of our corporate governance paper the employee employer relationship," said Nasscom President Som Mittal. The overall hiring for the IT sector is expected to be 1, 50,000 professionals for fiscal 2011.
Based on employee surveys, meetings and exit interview feedback it has been found that lack of match between personal requirements and organizational culture is reason for attrition. As a conclusion statement, the attrition battle can be won by focusing on retention, making work a fun place, having education program and proper training, recognizing employee's suggestions and ideas and treating employees in the same way as treating our customers.
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