The attrition rate in the IT-BPM sector in India is reaching gigantic proportions and up to 22 lakh IT professionals are likely to quit their jobs by 2025, a report has said.
The findings showed that 57 per cent of IT professionals would not consider returning to the IT services sector in the future.
The 'Talent Exodus Report' report by TeamLease Digital predicts up to 55 per cent growth in contract staffing attrition for FY 2023 as compared to 49 per cent in FY 2022
The report said there is a huge misconception with the sentiment in the candidate market, that a salary increase would improve performance and boost job satisfaction, and 20 lakh-22 lakh employees are expected to leave their jobs by 2025.
"The Indian IT sector has witnessed tremendous growth in the last decade. It has recorded 15.5 per cent growth, which is the fastest in more than a decade and touched $227 billion, creating additional 5.5 lakh jobs in FY22 alone," said Sunil Chemmankotil, Chief Executive Officer, TeamLease Digital.
However, with the global pandemic disrupting the IT hiring chain, "there is evidence of a reverse trend which indicates that retaining a business-critical talent has undergone a great change in the last two years", he added.
With the usual demand for salary hikes and other benefits, the main attraction for employees in their new jobs is 'Great Reflection' on the internal policies and external factors that "should be relooked at by employers as we are viewing great changes in the employees' feelings about work and life", Chemmankotil added.
While employees' needs and priorities have changed, such as the desire for flexibility, career growth, and employee value proposition, they are re-evaluating their careers based on these aspects and quitting their well-cushioned jobs in the mid-way.
The alarming figures reveal that the flexible structure has heightened the choice.
"Organisations' strategic hiring plans must contain goals towards their employees and their betterment. This ultimately translates into soul searching over whether an employee feels valued in his/her work or merely creates outcomes and value to benefit others," said the report.
New age firms ramping up their workforce was the chief cause of attrition in the IT services sector in 2021.
Nearly 50 per cent of respondents believe that 'lack of better compensation and benefits' is the greatest reason for talent exodus, whereas 25 per cent believe lack of career growth to be the reason
"IT companies are experiencing dysfunctional turnover where the best employees of companies are voluntarily leaving at higher rates," the report mentioned.