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Employee attrition
and retention
strategy in
IT sector
01
2
3
0
5
10
15
20
25
30
TCS Wipro Infosys
Q2 FY22
Q3 FY22
Attrition rate in Indian IT Sector
4
Reasons for attrition in IT sector
 As employees voluntarily quit their jobs in large numbers the attrition in top tier Indian
IT companies was in double digit
 Besides increasing opportunities in the job markets for techies with specialized skills
(cloud,cybersecurity,AI) – a shift in employees perspective and work dynamics have
been some of the key factors for the rise in attrition
 The preference of todays workforce have changed in the wake of covid 19 especially
the way they view their job or works
 Today there is a lot of demand for futuristic skills and in India the availability of such
skill sets has been limited. Hence that has lead to a crunch in talent in the indian IT
industry
5
Why attrition happens:-
Poor
pay/benefit
Illness and
death
Lack of growth
Poor work life
balance
Retirement Relocation
6
Is it good or bad?
• Reduction of talent in workplace
• On the other hand it is a good thing as it allows the organization to identify issues
in the work place
• It also helps down to cut down the cost labor cost and attract new employees
• While the demand of IT services companies remains booming with digitalization a
huge number of employees leaving organizations remains the top concern
• Due to the record high attrition rate the companies are focusing on recruiting new
talent especially freshers.
Effect on companies
7
• It causes companies to lose knowledge
• Incur training fees
• Never ending cycle of hiring
• To fall behind on scheduled projects
• Employee recruiting and retention are big issues for IT organizations, So companies
should create a work environment where the employees are involved in the
development of rewards programs.
How to manage attrition
8
• Foster a pleasant work environment
• Appoint the right leader
• Give employee freedom
• Prioritize professional growth
• Offer competitive compensation and benefits
TIPS
• Feedback survey
• Internal promotions
• Conduct exit interviews
Wipro’s management on attrition
• Thierry Delaporte “Attrition is a reality across almost all industries. It has
been no different for us. We expect attrition to slowdown only after a few
more quarters. However we now feel more confident of having stabilized
our attrition rate in Q3 and expect it to moderate next quarter
• Wipro – Launched one of its biggest employee retention programs aiming to
stem the exodus of experienced executives by offering them a chance to
study on some of the nation’s premier engineering and management
colleges
• Wipro rewarded top 20% of its workforce with double the salary.
9
“Employees who feel valued and believe that the companies that are invested
in their success will be happier, more productive and more loyal – a win for
everyone”
10
- Rachel Hastings
Thank you!
11

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Employee attrition and retention.pptx

  • 2. 2
  • 3. 3 0 5 10 15 20 25 30 TCS Wipro Infosys Q2 FY22 Q3 FY22 Attrition rate in Indian IT Sector
  • 4. 4 Reasons for attrition in IT sector  As employees voluntarily quit their jobs in large numbers the attrition in top tier Indian IT companies was in double digit  Besides increasing opportunities in the job markets for techies with specialized skills (cloud,cybersecurity,AI) – a shift in employees perspective and work dynamics have been some of the key factors for the rise in attrition  The preference of todays workforce have changed in the wake of covid 19 especially the way they view their job or works  Today there is a lot of demand for futuristic skills and in India the availability of such skill sets has been limited. Hence that has lead to a crunch in talent in the indian IT industry
  • 5. 5 Why attrition happens:- Poor pay/benefit Illness and death Lack of growth Poor work life balance Retirement Relocation
  • 6. 6 Is it good or bad? • Reduction of talent in workplace • On the other hand it is a good thing as it allows the organization to identify issues in the work place • It also helps down to cut down the cost labor cost and attract new employees • While the demand of IT services companies remains booming with digitalization a huge number of employees leaving organizations remains the top concern • Due to the record high attrition rate the companies are focusing on recruiting new talent especially freshers.
  • 7. Effect on companies 7 • It causes companies to lose knowledge • Incur training fees • Never ending cycle of hiring • To fall behind on scheduled projects • Employee recruiting and retention are big issues for IT organizations, So companies should create a work environment where the employees are involved in the development of rewards programs.
  • 8. How to manage attrition 8 • Foster a pleasant work environment • Appoint the right leader • Give employee freedom • Prioritize professional growth • Offer competitive compensation and benefits TIPS • Feedback survey • Internal promotions • Conduct exit interviews
  • 9. Wipro’s management on attrition • Thierry Delaporte “Attrition is a reality across almost all industries. It has been no different for us. We expect attrition to slowdown only after a few more quarters. However we now feel more confident of having stabilized our attrition rate in Q3 and expect it to moderate next quarter • Wipro – Launched one of its biggest employee retention programs aiming to stem the exodus of experienced executives by offering them a chance to study on some of the nation’s premier engineering and management colleges • Wipro rewarded top 20% of its workforce with double the salary. 9
  • 10. “Employees who feel valued and believe that the companies that are invested in their success will be happier, more productive and more loyal – a win for everyone” 10 - Rachel Hastings