Mon, Jun 14 12:47 PM
After a period of massive layoffs and salary cuts, it is now once again the time for high attrition.
Corporate houses, especially in the information technology ( IT) and banking space, are facing the problem of high attrition levels.
However, to stem the tide these companies are trying various methods to retain talent. This includes both monetary and non- monetary incentives.
"The job market has improved a lot and most of the companies who were holding their expansion plans during the economic slowdown have started expanding and are hiring now. Sectors like FMCG ( fast moving consumer goods), banking, telecom and IT are very aggressive in hiring," Kamal Karanth, managing director, Kelly Services, a global recruitment firm told M AIL T ODAY . "But as the job market is robust and with multiple openings, even the attrition rate has gone up too high, especially in IT and banking sectors," Karanth added.
According to Karanth, the attrition rate which was about 15 per cent at the beginning of this year, has gone up to as high as 30- 35 per cent in sectors such as IT and banking sector, where frequent job switch has become a norm. Even companies like Infosys and Wipro are finding it hard to retain their talent.
One common practice among personnel selected to join a company, is not showing up at the date of joining. To obviate such issues, many companies, including Infosys Technologies, are offering higher salaries and incentives like speedy promotions and bonuses. Companies like Genpact are focusing on providing the desired job profile to the employees in order to keep them on board.
FMCG companies are using smart options like retention bonuses. Companies like Dabur and LG are paying bonus to all employees who successfully complete two years of stay, which is often 10- 15 per cent of the annual cost to company ( CTC).
In the last two years, most companies either gave no hikes or cut salaries. And this year, as the job market is looking up, companies are increasing salaries but by only 15- 20 per cent. So, in order to make up for the stagnant salaries of the past year, employees are job hopping.
"When I joined TCS in 2006 I was looking for stability. But the financial crisis changed it all. There was no hike in the past two years while the cost of living has gone up. Also, the increment offered this year was 10 per cent. So, I took the increment and rather than slog for another one year, I decided to join Genpact at a 25 per cent salary hike," said Aditi Sinha, a software professional.
Aditi is open to looking for another job in the next six months if she gets a better offer.
"Stability does not make sense in the age of financial uncertainty. It make sense to move ahead and look for better options than sticking to the old company when job loyalty hardly pays. Many of my friends and colleagues are doing the same," Aditi added, justifying her move.
According to Kamal, postslowdown the employees have become choosy and ask questions like the number of staff the company lay off during the slowdown and the size of the projects the company handles and its order book size.
Reproduced From Mail Today. Copyright 2010. MTNPL. All rights reserved.
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