High Attrition rate continue to plague services: ASSOCHAM Survey

Unabated level of attrition rate continues to be plague India Inc spreading fast from IT and
ITes to other service sectors such as civil aviation, financial services, retail and engineering,
according to an ASSOCHAM Eco ulse Stud!"
#hile the attrition rate in IT and ITes sector has slo$ed b! %& per cent to fall in the range of
'()*& per cent in the !ear '&&+ as compared to *(),& per cent rate in previous !ear but the
service sectors at the crucial -uncture of their gro$th including civil aviation, financial
services and retail are facing tough times in retaining their staff"
. Human resource is the most valuable asset for an! compan! in the modern econom!"
Companies $ould have to not onl! benchmar/ the compensation levels and upgrade the
re$ard structure time to time in order to retain their emplo!ees but also have to integrate
human resource management $ith overall corporate gro$th strategic0, said Mr" 1enugopal
2hoot, resident, ASSOCHAM"
3ig time consolidation in the civil aviation sector has fuelled attrition to an unmanageable
level of ,4 per cent as the pilots and cabin cre$ spot opportunities in gro$ing demand b!
domestic as $ell as foreign airlines"
2earth of professionals, technical nature of operations, increasing finance)5Os and
attractive salar! pac/ages have led to rising -ob hopping at entr! and middle level in the
financial services sector" The attrition level has increased from *' per cent in the !ear '&&4 to
,, per cent in the current !ear" 3an/ing, trading and real estates are facing ma6imum problem
due to the -ob changing b! the human resource"
Massive e6pansion in the retail sector is accompanied $ith rapidl! increasing attrition rate to
even to the e6tent of (& per cent in fe$ cases" The companies no$ prefer to sign bonds for
three !ears as the! are imparting them the necessar! training and speciali7ed /no$ledge of
retail functions"
8ro$th in construction activities in the econom! has led to surge in demand for engineers,
resulting into increase in their movement across companies at rate of '( per cent" The
engineering companies are sorting to pa! hi/es and gro$th assurance, to curtail the attrition
level"
9evel of attrition rate in the manufacturing sector has remained almost same at '& per cent in
'&&+ as previous !ear" The functional areas li/e those of production, maintenance and safet!
controls, bear highest attrition problem"
9oss of intellectual propert! is one of the most challenging problems faced b! the companies
as an upshot of attrition" Hospitalit!, IT, hospitals, engineering sectors are $orst affected
sectors in terms of intellectual propert! loss especiall! in absence of an! la$s to protect
interest of an organi7ation from emplo!ee turnover"
The Stud! has found that the ma6imum of attrition is ta/ing place among the emplo!ees $ho
are in age group of '4 to *& !ears" It found that the segment of emplo!ees $ho are most
vulnerable to change are $ith e6perience range bet$een ' to , !ears"
The most stable chun/ of emplo!ees is found to be in age *: to ,( !ears as the! find
themselves to be unsettled in their -obs and companies that the! have been associated"
Attrition trend also reveals that $omen emplo!ees are less prone to fre;uent -ob changing
than their male counterparts" <or ever! %& males -umping the fence b! changing the -ob, there
$as onl! ' females crossing over"
The immediate gains in salar! pac/age $as found to be responsible for -ob change in almost
all the sectors, ho$ever the gro$th potential remains an important reason prompting
emplo!ee movement"
The recruitment has no$ become an ongoing process throughout the !ear" The Average
increase in salaries offered b! the companies $ith ne$ placement range bet$een '( to *& per
cent depending upon the salar! structure and individual strengths"
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