With relatively easy recruitment norms, the country’s ITeS industry is expected to see high double-digit attrition rates with most exits likely at the junior levels, says a report.
Going by findings of executive search firm MANCER Consulting, ITeS (Information Technology Enabled Services) will face an overall attrition of 21% — the highest across all industries — this year.
“This sector (ITeS) faces the highest overall attrition rates (21%), closely followed by Media, IT and Pharma sectors,” MANCER Consulting CEO Satya D Sinha said.
While ITeS is likely to witness high exit rates across different levels of management, the maximum attrition (30%) would be recorded among the junior staff.
The junior-level attrition in ITeS is also the highest across industries, the report said.
Sinha said: “Easy entry and exit barriers, with minimum qualifications and skills levels required, makes the junior level staff in ITeS sector less stable workforce.”
Besides, the sector would witness 20% attrition at mid-level management and 13-15% among its top management.
“ITeS sector has earned the reputation of being talent banks, funding the requirements of other sector like retail, health and wellness, entertainment and tourism,” Sinha said.
“Raising the barriers to entry and exit, providing opportunities for brushing up skills and better pay packages can help bring down the attrition levels in the ITeS sector,” he added.
Executive search firm Spectrum Talent Management director Vidur Gupta was of the view that as entry level talent at ITeS firms are paid at par with other industries and therefore “it is not difficult for other firms to poach such talent with a not very substantial hike in compensation”.
Additionally, Gupta said that as “a lot of the junior population working in the industry are undergraduates, with a high likeliness of absence of proper career orientation. A mere salary hike or a more preferred location could be more than good reason for them to change assignments”