Topics In Demand
Notification
New

No notification found.

Retaining Talent a key focus across sectors, and not just a “Tech” story
Retaining Talent a key focus across sectors, and not just a “Tech” story

September 13, 2021

245

0


Listen to this article



Over the last couple of months, there has been a lot of discussion on attrition being a key concern in the technology industry. In case of Indian technology companies, we have seen a continuous uptrend in attrition over the last couple few quarters. This trend in turn is driven by rising demand for new-age skills as demand for digital increases across industries, which the companies are trying to counter through increased hiring and focusing on reskilling (Read more on the Indian Technology Industry Quarterly Trends).

The Problem: Rising Employee Attrition

A recent McKinsey survey of employees highlighted that Attrition is happening across industry and is not specific to any one segment.

Also, this trend is likely to continue as employers are experiencing greater turnover, which could worsen the problem over the next six months.

What is even more scary is the fact that employees are willing to quit without a job lined up.

The Driver: Expanded Remote Work Options, Employer Disconnect

Now the question that the employers need to answer is – what is driving this huge urge to quit or shift? The answer to this question goes beyond compensation to ‘having more options in terms of location agnostic positions’.

And also, a lack of understanding on the employer’s part as to why employees are quitting.

Exhibit below shows the clear disconnect between employers and employees and how employees were far more likely to prioritize relational factors, whereas employers were more likely to focus on transactional ones.

The Solution: Turn Attrition into Attraction

What employers can do to tackle this?

  • Motivational Leaders: Toxic leaders is a key reason for employees to leave, thus companies need leaders who motivate and inspire their teams and lead with compassion
  • Strong Organizational Culture:  Needs of employees have changed post the pandemic and incase of most organizations the culture may not have kept up, and any prior organizational weaknesses are now magnified. With options increasing employees will have little tolerance for a return to a status quo they didn’t like before.
  • Transactional Environment: There is a need to solve for beyond compensation. The best people will always have a better cash offer somewhere else. If we need to do something it is to solve the problems of the whole person (not just their bank accounts) as well as the whole organization.
  • Align benefits to employee priorities which might have taken a big shift post the pandemic
  • Provide for career paths and development opportunities
  • Build a sense of community

Overall, there is a need to listen, learn, and make the changes employees want—starting with a focus on the relational aspects of work that people have missed the most post the pandemic. By understanding what the employees want and acting on it this challenge of great attrition can be made an opportunity for Great Attraction.

 

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Neha Jain
Senior Analyst

Neha Jain

© Copyright nasscom. All Rights Reserved.