Visionet Systems India’s MD believes that employee engagement and open communication channels are necessary to inspire confidence in the workforce
The ‘Great Resignation’ and the ‘Big Quit’ are the two buzzwords trending globally in the employment market post the pandemic where employees in big numbers seem to be voluntarily resigning from their organizations. The growing attrition rate in India’s IT firms suggests that the ‘Great Resignation’ wave has hit our country too. Despite the salary hikes, Indian IT firms are facing 20 percent attrition rates, as per a newspaper report. Major multinationals are facing attrition almost as high as 28 percent and organizations are working hard to strategize their business plans to retain their employees.
Alok Bansal, MD and Global Head of BFSI Business, Visionet India says, “A high attrition rate is a matter of concern for many reasons. It impacts operating margins and increases the financial stress on companies to skill new employees or upskill existing ones. Even short-term skill gaps within the company could impact output, delaying deliveries may create losses for the clients. Onboarding a new employee is not an overnight process. The skilling and orientation process takes time and resources and then the onboarding protocols of setting up a communication system, providing identity and access cards etc. also cost time, energy and money.”
Attrition, he says, could indirectly affect the existing employees, their increments and even salaries in certain cases if the company has to resort to cost-cutting measures. On the other hand, if companies begin to provide salary hikes and other benefits out of turn to prevent attrition, it could add to their financial stress.
Alok believes, that the high attrition rate is usually caused by a lack of growth opportunities and financial benefits and adds, “Unlike a decade ago, it is very easy today to switch careers or choose a hybrid or work-from-home option, so not many employees with much-in-demand skill sets would like to stay in a state of discontent over poor compensation, improper work-life balance, and professional stagnation. A work culture that recognizes individual contribution as well as teamwork, is fair and inclusive, offers health benefits, insurance coverage, and mental health support, makes space for grievances and quick redressal, and also offers upskilling opportunities and career growth inspires loyalty and increases employee confidence.”
Post the pandemic, it has also become clear that the way leaders and managers behave in a crisis also impacts the morale of the employees, so positive and decisive leadership is a must in an uncertain environment.
Alok believes a leader must keep the communication channels open at all times and find out what is causing stress or dissatisfaction among the employees. He adds, “Periodic conversations with employees instill confidence and reassure them that they are valued by the organization. Even exit interviews can be taken as opportunities for self-evaluation and introspection. A 2022 NASSCOM study says that the demand and supply gap for digital tech talent will increase from 1.4 to 1.8 million by 2026. So, business leaders must prepare to deal with this eventuality today. Selecting the right candidates is not enough. Offering training, opportunities and incentives so that they feel encouraged to make a long-term commitment to their jobs is essential. High attrition rate, I firmly believe, can be curbed with a proactive and positive approach and via consistent employee engagement.”
(The author is Mr. Alok Bansal, MD Visionet Systems and Global Head of BFSI Business and the views expressed in this article are his own)
