2/29/2024 0 Comments Attrition rate in it sectorHowever, the intent to hire at the senior level is at 26%, which is a drop of 2 percentage points versus June ended quarter and the least intent is at the mid-level at 22%, seeing a drop of 4 percentage points sequentially. In terms of the job level, the intent to hire is the highest at the junior level at 32% in the July-September quarter, followed by entry-level at 28%, which have seen a growth of 4 percentage points and 7 percentage points, respectively. It has moved from 34% in April- June 2021 to 38% for July- September 2021. There is a 4-percentage point rise in the intent to hire in the July-September 2021 quarter compared to the recently ended June quarter. Sectors like financial services, fast-moving consumer durables and power and energy have only moderate intent to hire, with financial services at 36%, Fast Moving Consumer Durables at 35% and power & energy at 33%.Īccording to the report, though the growth percentage is not as high as the previous quarter the intent to hire is positive. The job market is largely tech, e-commerce, and healthcare driven,” Chakraborty said. ![]() “There is a marginal improvement across all sectors, but it is still marginal. However, what should be worrying is that sectors other than IT are not seeing many job creation opportunities. Other IT majors- Infosys, Wipro, and HCL Tech - also reported high attrition rates at 13.9%, 15.5%, and 11.8%, respectively, in the June quarter. To make up for it, the company has said it will hire 1,00,000 experienced hands this year. US-based technology firm Cognizant, which has two-thirds of its employees in India reported a record high attrition of 31% this quarter, of which 29% was voluntary. To be sure, India’s largest software services exporter, Tata Consultancy Services reported 140 basis points to rise in attrition levels during the April-June 2021 period at 8.6%. Given that there are little signs of this scenario changing anytime soon, the attrition levels will continue, however, whether they inch up from here is guesswork at present, Chakraborty said. “There is a fight, a literal talent war that is going on out there and clearly anybody is willing to offer more for those who would leave and take those opportunities up, which is the reason that the attrition is high,” she said. While the business outlook for all these sectors remains bullish, the supply shortage of talent with required skills is leading to fatter paycheques. Rituparna Chakraborty, co-founder and executive vice president, TeamLease Services told FE that these sectors have proven to be Covid-19 proof with regards to job creation or rather have been direct or indirect beneficiaries of the pandemic. Instead, they want to make the most of the people they already have, the ones on their bench, to work on these projects.Rethink likely on project-specific plans for real estate insolvency Because of this, these IT companies aren't very eager to hire new employees anymore. The bigger economic forces out there have made it harder for these companies to start new projects. Over the past few months, IT companies have faced some tough times. Notably, in Q2FY24, businesses experienced the most substantial drop in attrition rates, ultimately returning to a standard level. Attrition rates have consistently exhibited a decreasing trend over the past four to five quarters. The IT companies said that these occurrences adversely impacted their efficiency and financial returns. Furthermore, companies voiced concerns about their employees utilizing remote work arrangements to engage in 'moonlighting,' pursuing side projects to enhance their skills or create additional income sources. Even as firms such as Infosys and TCS reduce hiring and layoff expendables in order to optimize their bench strength, it appears that techies are hunkering down to keep their jobs.ĭuring the peak of the pandemic-induced technology surge, major IT companies were witnessing the departure of a minimum of one-quarter of their entire workforce over the previous year. ![]() In the aftermath of the Covid-19 pandemic, techies left their steady jobs in IT firms in droves, and these large IT firms struggled to keep up with the exodus of techies. In Q1FY22, when the "great resignation" phase began for IT firms, reporting levels were below that of Q1FY22. ![]() The attrition rate for tech giants has returned to normal levels, with TCS, Infosys, HCL Tech and Wipro reporting attrition rates of 14.9%, 14.6%, 14.2% and 15.5%, respectively in the second quarter of the 2024 fiscal.
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