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Right now there are quite a few challenges that are faced by the IT enabled services industry and attrition is one of them. However, the attrition rate in India is only 18 percent whereas the USA faces an attrition rate of 42 percent. India’s attrition rate is also lesser than the global attrition rate that is 24 percent. But a continuation of this trend of attrition means a loss of 20 percent of the annual revenue for a company.
There are various reasons behind attrition. These reasons include, odd working hours, better opportunities, and untimely demise of an employee. In the year 2005 this attrition rate was about 30 to 40 percent in India and in 2007 it leaped to 50 to 55 percent. But Last year it has seen a considerable drop of 30 percent in this rate of attrition. The credit could be given to some positive and unique steps taken by companies like Infosys and Wipro to hold back good workers.
The IT enabled services companies have taken some positive steps to stop poaching, meaning the hiring of employees by rival mainly small companies. That is the reason that most big companies have an attrition rate of 45 percent. Now these international companies are showing their appreciation towards the best workers by hiking their pay package and giving them promotions so they don’t leave that quickly.
But the most unique step that these India based companies has taken to stop this attrition is helping their employees to voluntarily participate in various social works. Companies like Infosys, and Wipro are giving one year to six months break to its employees so they can help various NGOs in philanthropic work.
This is a trend that is the brainchild of NR Narayana Murthy, the chairman of Infosys. This company first introduced it at the end of the year 2008. Taking the cue from this Nasscom too is trying to encourage IT enabled services workers to do some philanthropic works. Apart from checking the attrition rate this step is also supposed to give these companies boost their image by looking more humanitarian.
Any worker who has been with Infosys for two years can avail this voluntary offer. During this period their pay package will be 50 percent of their current salary.
IT service enabled companies are now hoping that this kind of social work will help its workers find extra enthusiasm in their regular work because it will refresh their whole mental constitution.
Even some of the workers of UST Global, a company that also provides BPO services among others, are helping in the rebuilding process of a village. This village is located in Namma Chennai and is called Azhinjivakkam. These workers are now trying to give the villagers healthcare, and education. They are also trying to improve the environment there.
Now, the world can take a cue from these steps taken by the Indian companies and try to at least reduce the attrition rate.