Women are more loyal than men—at least on the job front. Women employees in India are less prone to frequent job changes than their male counterparts, according to a study—Eco Pulse—by industry body Associated Chambers of Commerce and Industry (Assocham) released on 19 August. According to the study, for every 10 men jumping the fence, there were only two women employees crossing over.
Employees in the age group of 26-30 years and with experience ranging between two and four years are the ones most prone to switching jobs. Services sectors, including civil aviation, financial services and retail, are finding it tough to retain staff, while the attrition rate has slowed down in the information technology (IT) and information technology-enabled services sector to 25-30% in 2007, from 35-40% in 2006.
The growth in the civil aviation sector has fuelled attrition to as high as 46% as pilots and cabin crew keep hopping from one job to another, the study says. Attrition levels in the financial services sector have increased to 44% in 2007 from 32% in 2006 because of a dearth of professionals, the technical nature of operations, and attractive salary packages offered by rivals. Job hopping has mainly increased at the entry and middle levels. Massive expansion in the retail sector has been accompanied with an attrition rate of 50%.
“Attrition is bound to be high in an industry which is growing at such a scorching pace and to add to the problem, there’s only so much talent being eyed by all retailers,” says Sumeet Yadav, head, retail, VF Arvind Brands Pvt. Ltd.
Growth in construction activities has led to a surge in demand for engineers, resulting in an increase in their movement across companies at the rate of 25%, the report says. Engineering companies are resorting to pay hikes and growth assurances to curtail attrition.
The attrition rate in the manufacturing sector has remained unchanged, at 20% in 2007 and the previous year.
According to the study, the loss of intellectual property is one of the most challenging problems faced by the companies as an upshot of attrition. The hospitality, IT and engineering sectors are the worst affected sectors in terms of intellectual property loss, especially in the absence of laws to protect the interests of an organization from employee turnover.
The study reveals that higher compensation was found to be responsible for job changes in almost all the sectors. Apart from salary, growth potential remains an important reason for employees to change jobs.
The average increase in salaries ranged between 25% and 30%, depending on salary structure and experience.