A study by staffing firm TeamLease Digital predicts that two to 2.2 million employees in the tech sector will likely quit their jobs by 2025 as the industry continues to witness a double-digit attrition rate of 25.2 percent this year.
More than five million people are currently working in India's $227 billion IT industry. "57 percent of IT professionals would not consider returning to the IT services sector in the future. The main attractions for employees in their new jobs were ‘a new career alternative’ and ‘challenging roles’," the report titled 'Brain Drain: Tackling the Great Talent Exodus' said.
The IT hiring chain has seen tremendous growth in the last decade. But with the global pandemic disrupting the same, there is evidence of a reverse trend which indicates retaining a business-critical talent has undergone a significant change in the last two years, Sunil Chemmankotil, Chief Executive Officer - TeamLease Digital, said.
"TeamLease Digital predicts up to 55 percent growth in contract staffing attrition for FY 2023 as compared to 49 percent in the financial year 2022," the report added.
According to the survey, while a pay raise is necessary, employees are re-evaluating their careers and quitting their well-cushioned jobs mid-way. Employees' needs and priorities have changed, such as the desire for flexibility, career growth and employee value proposition.
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Nearly half of the survey respondents believe 'lack of better compensation and benefits is the most significant reason for talent exodus. Twenty-five percent believe lack of career growth is why IT companies are experiencing dysfunctional turnover where the best employees of companies are voluntarily leaving at higher rates.
Also, it said that the lack of quality management or leadership has turned out to be a major factor leading to higher disengagement of employees.
TeamLease Digital surveyed 700 employers and 6,000 employees in the tech sector for the report.
The Talent Exodus Report suggests that organisations' strategic hiring plans must contain goals for their employees and their betterment. This ultimately translates into soul searching over whether an employee feels valued in their work or merely creates outcomes and value to benefit others.
"A fundamental change in the employment value proposition leads to deeper employee-employer relationships, a strong sense of owning and purpose-driven work," Chemmankotil added.
