80% Stick To A Company For Less Than 5 Years: Study

by CXOtoday News Desk    Mar 01, 2016

attrition

With attrition levels being on the rise across job categories and companies, most employers are at a loss to stop the churn. The fallout of this for organizations includes increasing recruitment costs and loss of revenue as well as adverse effects on organizational stability, according to a new study. The study further shows that the trend of short tenures is the highest in the IT sector at 45%, followed by the BPO sector at 38%, ITes sector at 33%, and the Recruitment sector at 28%, the main reasons being target-oriented roles and higher stress levels

The Hyderabad-based job portal Wisdom Jobs that recently carried out a survey of private sector employees which found that more than 80% of the respondents have had tenures of less than 5 years with their current employers. This is in sharp contrast to a decade ago when nearly 25% of employees had tenures of 10 years or more.

According to the study, 65% of the respondents had a current tenure between 2 and 5 years; Of them, 17% of had been with their current companies for less than 2 years. On the other hand, only 12% of those surveyed have served more than 10 years with a single organization

The respondents cite various reasons for shorter tenures. More than 50% of those surveyed say that their shorter tenures are a result of them seeking more senior roles. Again, 24% said that it was due to lack of visible growth in their current roles. Nearly one-fifth attributed it to their desire to learn a new skill, which they felt was not a possibility in their earlier roles and finally, 10% said their shorter tenures are due to unsatisfactory appraisals and the need for higher remuneration.

The study shows that the trend of short tenures is the highest in the IT sector at 45%, followed by the BPO sector at 38%, ITes sector at 33%, and the Recruitment sector at 28%, the main reasons being target-oriented roles and higher stress levels