Why Is Attrition So High in IT, and How Can We Improve Employee Retention?

Hi,

Could anybody tell me why the attrition rate is so high in the IT sector, and what retention policy should we implement to reduce the attrition rate?

Regards,
Rupendra

Thanks for the reply.

Okay, what if an employee is currently in my IT firm earning 6 lakhs per annum and is told to resign because he got a better offer, let's say 10 lakhs. As an employer, I do not want to lose my employee, but I am unable to pay him that much or more. What can I offer him to stay in my company? What should I do? I cannot afford to lose him, but on the other hand, I am unable to pay him that much.

Employee will continue if he sees he is getting an opportunity to learn more and if his career growth is clearer to him in your organization.

Else, if he sees he is getting a similar opportunity somewhere else plus a better package, then why would he stay back?

Have you ever asked him about his interests before? Because when an employee joins, he does so with certain needs that he expects to be fulfilled in your organization. If you don't communicate with him regularly, keep track, or provide opportunities where his needs can be met, he will start looking for a change. This is the point where the company suffers at the last moment.

Therefore, every HR person must understand each employee's needs. Is money more important to him, or is it his career and other opportunities?

You also need to engage in activities right from the first day a person joins the company to build an emotional attachment to the company.

If the employee is only in it for the financial aspect, then he will only stay for the minimum period, and as soon as he finds a better offer, he will leave.

Any questions?

- Sanjukta

If he has already made the decision to change the company for a hike in salary, today or tomorrow he will quit for it. So it's better to let him change the company if you are unable to give him a competitive offer.

If you offer him what he bargains for, it may keep him with you, but it could lead to all other employees in his designation looking for opportunities in other companies.

Build a personal attachment with employees. Let them feel safe and growing with you. Encourage freshers and offer them compensation as per market standards.

Hello Friends,

I would like to share my views regarding the high attrition rate in the IT industry. As far as my understanding is concerned, the high attrition rate is one of the biggest challenges in the IT industry. The reasons are:

1. Obsolescence of the technologies being in practice
2. Compensation package

Both the compensation package and obsolescence of technology are the reasons. There is no benchmark in terms of compensation packages in any industry in today's scenario. You never know which company may offer you a better package regardless of its size and brand. IT professionals, in fact, never think about the brand image of the company. They rather focus on the exposure to technologies and the compensation package.

Amit Goyal

My observation regarding the increased attrition in the IT industry is that it is primarily due to better compensation packages and the reputation of the company. If the salary package is generous, employees are less concerned about the specific company they work for. Increasing compensation packages can effectively reduce the attrition rate.