www.CHRMglobal.

com
Why Attrition Rate is more in IT-
Sector & what are the steps taken to
reduce it?


www.CHRMglobal.com
Attrition: A reduction in the number of employees through
retirement, resignation or death.

Attrition rate: The rate of shrinkage in size or number.

Introduction: In the best of worlds, employees would
love their jobs, like their coworkers, work hard for their
employers, get paid well for their work, have ample
chances for the advancement, and the flexible schedules
so they could attend to personal or family needs as and
when necessary.

www.CHRMglobal.com
But then theres the real world. And in the real world,
employees ,do leave, either because they want more
money, hate their co workers, want a change or because
their spouse gets a dream job in another state.So,what
does all the turnover cost? And what employees are
likely to have the highest turnover? Who is likely to stay
the longest?

Information Technology as an industry is very dynamic,
lots of staunch competitors in the same field. IT as an
industry is segmented into Global Consulting or Product
Development companies. With the increased offshore
projects hitting, a lot of technological companies are
trying to acquire as many projects as possible. Lots of
Projects coming to INDIA, due to cheap labour and
professional excellence proved.
www.CHRMglobal.com
If you compare the increasing demand for the
IT professionals and the jobs that need to be
offshore in India, there is a huge dissonance in
the demand and the supply.Naturally,acquirrng
talents become difficult in such a situation.
Since the inflow of fresh talent is relatively
less, the same professionals in the market keep
moving from one companies to another.

www.CHRMglobal.com
Lot of things attract such individuals as well
as there are reason for attrition as follows:
Salary hike
Promotion
Less onsite opportunities
Brand
Job satisfaction
Facilities
Working Environment
Work Pressure.
www.CHRMglobal.com
Work culture and management-IT industry is known
for its high pressure work atmosphere and long
working hrs, which create high levels of
stresss,employee and high attritions rates.
Transformation in lifestyles, identity and family
Lack of good leaders who can motivate and guide
their team well-IT managers lack both the time and
tools needed for assessing their team members and
taking corrective action to improve their performance
which is directly related to job satisfaction.
Increasing percentage of women employees-Most
women leave their job either after marriage or
because of long working hours, work stress and other
social pressures.
www.CHRMglobal.com
Attrition is higher because salary is dynamic
There is more demand and less supply so people are
getting what they want. One sure way to prevent this is
to provide excellent working condition and make the
organization a people centric place.
PDC-Product Development Companies(Most of the IT
people in IT services would like to move PDC as the
kind of work would be challenging & exciting)
Some companies & their domain are exciting.
Quality of the work Some companies are offering its
employees the high end quality work.
Most employees dont leave but quit because they did
not like their job, they quit because they did not like
their boss.

www.CHRMglobal.com
Steps to Reduce Attrition:
1) Focus on Exit-interviews
Employers should not ask why are you leaving? rather
they should ask when you start searching for a job?
Getting an insight and inside scoop can really help. It
gives information about internal problems, employees
perceptions of the organization, underlying workplace
issues and colleagues.
2) Let employees know that their opinions are valuable. Ask
them to open up. Listen to employees ideas; never
ridicule them.
3) Compliment and Thank your employees for their
valuable contribution. Recognize and celebrate their
success.
www.CHRMglobal.com
4) Setting up a feedback mechanism to maintain
consistency in performance and high motivation
levels. Offer performance feedback and praise good
efforts and results. Criticize but Praise publicly.
5) Give them job security
6) Providing opportunities of learning by constantly
upgrading the skills of employees
7) Paying attention to employees personal needs and
participation
8) Gauging the needs of the employees through open
communication and polls.
www.CHRMglobal.com
9) Communicate goals, roles and responsibilities so that
people know what is expected from them and feel a
part of crowd.
10)Keep employees informed about the happening in
the company so that they will be confident about the
future or not to look for better option.
11) Encourage humor & laughter in workplace to deal
with stress which will ensure that the employees are
happy which gets reflected in their services especially
critical in voice based transaction.

www.CHRMglobal.com
12)Feeling valued by their managers or superior in the
workplace is a key to high employee motivation and
morale.
13)Not hiring employees who have a history of jumping
from one job to other. Recognizing the contributions
of achievers would also inspire others to try hard and
put in their best.
14)Group cohesiveness also helps in copping with the
attrition. Built teams and generate competition
between them.

www.CHRMglobal.com
15)The attrition battle could be won by focusing on
retention, making work a fun place, ongoing learning
and treating applicants and employees in the same
way as subordinate.
16)Infusing creativity in the routine job and
communicate the firms larger objectives and goals to
each employee to achieve that objective.
17)It has been observed that attrition rate was lower
when employees perceived their workplace as a fun
environment and viewed their jobs as enjoyable.
www.CHRMglobal.com
18) Monotony and stress have contributed to increased
attrition rate. So keep changing the duties or position
of employees after fixes period.
19) Induction program and Exit interview are very
important.
20) Identify the key employees of the firm or categorize
the employee according to need of the firm. It will
help you to customize your retention program.
www.CHRMglobal.com
21)Your staff members must feel rewarded, recognizes
and appreciated. Monetary rewards, bonuses and gifts
make the thank you even more
appreciated.Undersstanble raises tied to
accomplishments and achievements help to retain
staff. Offer an attractive, competitive, benefits
package.
22)Select the right people in the first place through
behaviour-based testing and competency screening.
www.CHRMglobal.com
23) Demonstrate respect for employees at all times.
Treat the employees well & provide a dignity of job.
24)If a key employee resigns, it should be taken up on a
priority basis and kept confidential as far as possible
and the senior management should meet the employee
to discuss his reason for leaving and evaluate if his
issues bear merit and whether they can be resolved.
25)People want to enjoy their work. Make work
fun.Engage,employ the special talents of each
individual.
www.CHRMglobal.com
So if we want to reduce attrition we can take
the points mentioned above for the same and
can do best from our end to reduce attrition
rate in IT-Sector.