Tech talent demand keeps recruiters on toes
According to data from Aon, the attrition in the IT domain is at 24.4% which is the highest in a decade
Attrition rates have touched record highs as the buoyant market for tech talent is keeping recruiters on their toes, The Economic Times reported on Wednesday. For one job posting, they are being forced to keep a shortlist of at least five candidates, according to experts. As per an executive search firm, EMA Partners India, Tech hiring has become a headache for clients and consultants. It also said that the massive surge in need for these talents across levels has made the company to have five to six back up candidates. However, there is no surety of candidates taking up the offer, it added.
Inequity in pay a reason for attrition
According to data from Aon, the attrition in the IT domain is at 24.4% which is the highest in a decade. It also said that organisations bouncing back is not a surprise as there is a surge in hiring demand both for replacement hires as well as fresh hires.
At the same time, companies are planning steep increments and more promotions and more promotions for digital talent in FY22, the data said.
The payout for top talent is slated to be 1.7 times of the average increment, for digital talent on the other hand the payout is projected at 1.9 times. Promotions as a percentage are 13.1% as compared to the overall 11.6%.
Adding to that, the Aon data said that the main reason for leaving is the inequity in not getting paid well enough by the employer. Other reasons for attrition include limited growth opportunities in the current organisation, underutilisation of skill sets and nature of work.
IT companies like Wipro and Mindtree said that attrition rates are likely to come down in the coming quarters. Wipro Ltd reported an attrition of 20.5% in the September quarter.
PwC India said that the next phase of this war will be likely be played out at colleges. Companies are increasing their focus on campus hiring as a source of talent.