Attrition Rate [Thread 21493]

Hi,
Could anybody tells me why attrition rate is so high in IT sectors and what is the retention policy we should to take to drop down the attrition rate.
Regards,
Rupendra

Hi Rupendra,
Did you get any answer or solution to your question? If yes then kindly forward me that.

Thanks for the reply. ok, and what if an employee is currently in my IT firm earning 6lakhs p.a. and told to resign because he got a better offer say 10 lakhs. Now I, being an employer do not want to loose my employee but also I am unable to pay him that much or more than that. What can I offer him to stay in my company? What should I do? I cannot afford to loose him but on the other hand I am unable to pay him that much.

Employee will continue if he see he is getting opportunity to learn more and his career growth is more clear to him in your organisation.

else if he see he is getting similar opportunity somewhere else plus more package then why he would stay back.

Have you anytime asked him before what is his interest. because, whenever an employee joins he joins because he has some needs which will be fulfilled in your organisation and if you dont communicate with him regularly and if you dont keep track or dont give him opportunity where his needs will fulfill, he will actually start looking for change. and this is the situation where company suffers at the end moment.

So overall HR Person must undertand every employees needs. Is money is more important for him or career and other opportunities.

You also have to do some activities right from the day one when a person joins a company to build his emotional attachment to the company.

If the employee is serving for economical attachment then he will serve only for minimum period and whenever he gets more money he leaves.

Any questions??

-sanjukta

If he has already made decision to change company for a hike in salary,today or tomorow he will quit for it.So its better to let him change the company if u are unable to give him a competitive offer.
If you offer him what he bargains for may let him with you but making all other employees in his designation looking for opportunities in other companies.
Build personal attachement with employees.Let them feel safe and growing with you.encourage freshers.Offer them compensation as per market standards.

Hello Friends,
I would like to share my views regariding the high attrition rate in IT industry. As far as my understanding is concerned, the high attrition rate is one of the biggest challenge in IT industry. The reason are:
Obsolescence of the technologies being in practice
Compensation package
Compensation package as well as obsolescence of the technology both are the reasin. There is no benchmark in terms of compensation package in any Industry in todays scenario. You never knows that which company may offer you the better package regardless of its size and brand. IT professional infact never think abt the brand image of the company. They rather think the exposure towards the technologies and the compensation package.
Amit Goyal

My observation in regards to the increased attrition in IT Industry is only a matter of better compensation pacakage and a well known company. So if the salary pacakage is high no employee will care for which company he/she is working. Increasing the compensation packages can reduce the attrition rate.