Higher turnover is a trend that will be more common in the near- and long-term future in Indian Job market. It is increasing in many organizations from a shrinking labour pool, even among those companies who have not experienced turnover in the past. HR and hiring managers now feel compelled to fill open positions quickly with less-qualified people. The situation is getting worse.
The attrition rate in Indian industry is alarming! In India too, long-term employees (especially Baby Boomers) who are retiring or leaving the organization are replaced by younger employees who tend to change jobs frequently. It is not uncommon for a 20- or 30-year employee to be replaced with a millennial who tends to change jobs every two to three years. Even Generation X hops more jobs compared to baby boomers and veteran/traditionalist generations.
According to KPMG Annual Compensation Trends Survey India 2017, top 3 reasons reported for attrition are:
1. Better Pay Elsewhere (28.1%)
2. Better Career Opportunity (23.4%)
3. Personal Reasons (19.6%)
Average Voluntary attrition (2016-17) stats show the highest attrition was reported by the retail sector in India, with e-commerce being on the higher side with the average voluntary annual attrition of 20.4%, followed by media and advertising (18.5%) and banking and financial services (17.4%).
It seems that the one consistent truth across every type of worker, regardless of age, gender, ethnicity, or geography, is that compensation is king for both recruiting and retention. If you don’t pay employees fairly, they will leave—and no perk will change their mind. Apparently, this is the main reason behind the attrition in Indian industry.
And when you have employees, especially millennial and Generation Z’s in your organization, offering more career mobility opportunities, which support employees who want to move across different departments or even change their occupation can help you retain key talents
