Attrition levels across industries in India are likely to fall to their lowest in the past few years as employees prefer to stick on to their present jobs for some more time, amid cautious sentiment owing to demonetisation, which has thrown businesses out of gear and led to a postponement in hiring activities.
With annual appraisals coming up within the next two months’ time, not many employees are looking forward to switching jobs because of fewer opportunities and therefore reduced bargaining.
According to Anandorup Ghose, a partner at human resources consultancy Aon Hewitt India, voluntary attrition will go down considerably; last year it was around 16%, and this year the chances are that it might go down even to a single digit in the coming year.
The compensation tracker, had in its annual salary survey last year, pegged attrition levels at a five-year low of 16.3%. Any further dip will lead to an overall six-year low.
The apprehension in employees is looking for a new job these days’ is quite apparent, said Ajit Issac, chairman of the business services provider, Quess Corporation.
S Venkatesh, president-group HR, RPG Enterprises, said, “People will stay put and hold onto their jobs until the negative sentiment blows over”.
Venkatesh said that, besides demonetisation, another factor that is likely to restrain people from changing jobs is the much-anticipated boom that did not quite take place in the recent past. He said that fresher hiring has gone down at companies and even hiring at senior management levels have also witnessed a dip.
“It’s a wait-and-watch for executives at C-levels, which is likely to last for at least a quarter,” said Uday Chawla, managing partner at executive search firm Transearch India.
Managing and retaining talent in corporate India is one of the most challenging issues that HR professionals are currently facing. Needless to say, that loss of good employees costs a lot to the companies. According to a Philips spokesperson, given the current macro environment, attrition levels will come down. Everybody is aware of the fact that if the increment isn’t going to be substantial within the organisation, it won’t be any great even outside.
So, if you are a job seeker and considering changing jobs or switching jobs, it is advisable that stick on to your current organisations as of now and waits for the economic situation to improve in the coming months.
Source: The Economic Times