Work-life balance has risen to the top of the priority list for techies, to the point where they are considering leaving well-paid IT jobs. According to a TeamLease Digital report titled 'Brain Drain: Tackling the Great Talent Exodus in the IT Sector,' there has been a significant increase in IT job attrition, with approximately 25.2% of employees quitting their IT jobs. It also expressed concern about the contract staffing industry, predicting that attrition will reach 50-55% in 2023, up from 49% in 2022. “Tech talent in non-tech companies will see 3X growth in the coming years, opening up approx 1 mn new tech jobs by 2025. This will lead to further shifts of IT talent from traditional companies in the near future,” said Sunil Chemmankotil, CEO of TeamLease Digital. According to the report, the IT job attrition rates have come down from the peak, and the current scenario is not worth relaxing. IT industry job attrition rate has been worrisome with Major IT companies like TCS, Infosys, Wipro, and HCL clocking around 20 to 28% attrition rates in the last three months. Because of the increasing digitalization of every industry on the planet, a sufficient number of doors have opened for them to seek employment in non-IT sectors.
Its research paper is unequivocal in stating that pay raises and perks will not help companies maintain employee morale if management and leadership do not respond to the employees' occupational requirements and career growth. Even though regular pay raises could keep employees happy, the parameters of self-worth have changed over time as a result of the pandemic. While nearly half of respondents cited a lack of better compensation and benefits as the primary reason for leaving a company, a quarter cited employee disengagement and a lack of career growth as the primary reasons for talent to move to other industries.
"There is evidence of a reversal in trend, which implies that keeping a business-critical talent has experienced a major transformation in the previous two years," Chemmankotil says, referring to the disruption caused by the pandemic. Recognizing what they have been losing, they are looking for opportunities that can provide what they truly desire, such as flexibility, career growth, and employee value proposition.
The $227 billion Indian IT industry employs approximately five million people. 700 employers and 6,000 employees were polled by Teamlease. Around 57% of the surveyed IT employees stated that working in the IT industry is not on their radar because they would prefer to pursue new career opportunities and challenging roles.
According to Teamlease Digital, the digital industry will grow from 50 lakh to 1 crore in the next few years. As a final piece of advice, it suggests that unless IT companies ramp up their organization's hiring strategies, with goals for employee development, IT employee attrition will only worsen. Making employees feel valued in their work and not treating them as mere tools for the benefit of others will determine how the IT human- resource eco-system develops. "A fundamental shift in the employment value proposition leads to deeper employee-employer relationships, a strong sense of ownership, and purpose-driven work," laments Chemmankotil.
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