AHMEDABAD: Companies located in the southern cities of Bangalore, Hyderabad and Chennai are finding it difficult to hold on to their young employees as attrition levels in these cities stood at 15%— the highest in the country during the last twelve months.
A recent survey conducted by TeamLease Services Pvt Ltd showed that the attrition rate in these cities of South India that have a significant concentration of IT and ITES firms have the highest attrition rates. "While on an average, attrition hovers around 8-10% in most organizations, in IT companies and BPOs – where most staffers are in their early 20s – attrition is astonishingly high," says Sangeeta Lala, co-founder and vice-president, TeamLease Services.
"As the markets have opened up post-recession, companies are grappling with the key issue of holding on to their young employees. This is adding to the high attrition rates across sectors.," she says adding that companies are desperate to hire people.
The survey also showed that "better salary" was one of the major reasons for high attrition levels. Majority of the respondents in all of the surveyed cities expressed this view.
Junior level profiles having work experience of 1-3 years stole the limelight from across all other hierarchical levels. This segment showed the highest and the fastest growing intent to hire, while middle-level hiring (with 3-7 years of work experience) showed a marginal drop in the data collected from about 8 major cities. The survey spans eight industry sectors and covers small, medium and large companies.
The survey shows that in the last 12 months, attrition has been the highest in Infrastructure companies, IT& ITES firms. The attrition rates in these sectors hovered around 15%.
Ms Lala points out that the attrition has been the maximum at the junior and middle level positions. Even Delhi have a high attrition rate of 15.26%.
Among the cities surveyed, both Ahmedabad (9.02%) and Mumbai (9.83) had the lowest attrition rates in the last one year. Even during the last three months (April-June 2011), the attrition levels in both Mumbai and Ahmedabad were just over 7%, while both Chennai and Hyderabad had attrition rates over 10%.