11/20/2023 0 Comments Attrition rate of it companies![]() Below listed are a few proven strategies to reduce it. This is why controlling attrition rates matters. Let’s take an example to understand this- if an employee leaves, the cost of attrition includes training a new employee, salary paid during non-billable activities, and the foregone billings in the training phase, among other down sides. Best ways to reduce unplanned attrition in IT companiesĮveryone has heard the adage that hiring someone new costs more than retaining the talent you already have. Now, let’s dive into the strategies that can help manage unplanned attrition and keep your skilled employees on board.Ģ. These factors, along with experiences of micromanagement and a lack of promotion, can contribute to a high rate of employee turnover. It includes issues such as fatigue, anxiety, and an increased risk of illness among tech workers. This will cause them to seek job opportunities elsewhere to secure more favourable compensation and benefits packages.īesides, the demanding work culture of Silicon Valley, characterized by long hours and little time off, can lead to burnout and other adverse effects. These limited career advancement opportunities can lead to dissatisfaction resulting in unplanned attrition.įurther, employees may feel demotivated when IT firms do not offer higher salaries and other incentives, such as bonuses, stock options, and flexible working arrangements. However, some companies may not be fully equipped with the necessary infrastructure to provide right opportunities. ![]() This has led employees to seek a more flexible work environment with better work-life balance, job security, and growth opportunities.Īdditionally, the rapid digitization of industries and increased focus on emerging technologies drive high demand for advanced digital skills. The IT industry is currently plagued by a phenomenon known as the Brain Drain, where highly-skilled employees are leaving at high rates due to funding crunch, rising inflation, layoffs, etc. What causes high unplanned attrition in the IT industry? This blog elucidates the causes of unplanned attrition in the IT industry, discusses effective ways to retain them, and how resource management software can help.ġ. It suggests that if firms do not cater to these evolving employees’ needs appropriately, they can lose their top talent, thereby affecting the firm’s profitability and sustainability. Today, employees prioritize company culture, leadership, career development, quality of life, and work environment more than just reasonable compensation. ![]() Moreover, reluctance to resume work from offices has aggravated it further. These resignations in the tech sector can be attributed to numerous factors such as low compensation, limited career advancement options, less opportunity to go abroad for onsite projects, higher burnout rates, etc. “According to a report by TeamLease Digital, the IT sector has been dealing with an all-time high attrition rate – averaging around 25 per cent.”
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |