Higher Attrition Rate in Indian Companies Driving Increments, Says Report

New Delhi, March 29: Indian companies are witnessing a higher attrition rate that is also set to fuel increment for jobseekers in the coming months, according to a report.

Recruiters across the country are indicating a strong hiring sentiment for the first half of 2022. The Naukri Hiring Outlook Survey 2022 revealed that 57 per cent of recruiters indicated both new and replacement hiring in their organisations in the coming months till June 2022 vis-a-vis 51 per cent in last year's survey. Interestingly, 62 per cent of the recruiters expect the hiring to go back to pre-Covid levels in their organisations by June 2022.

Active hiring is expected most in IT (59 per cent), business development (43 per cent), and marketing (36 per cent). Indian Frontline Workers Worry Job Loss if Fail To Adapt to New Technology, Says Microsoft Report.

Recruiters also expect attrition to rise further in the coming months. The majority of this attrition is expected from employees in the experience bracket of three to five years (51 per cent), followed by 1-3 years (45 per cent).

The IT sector is expected to witness a high employee fallout rate of 49 per cent. It is interesting to note that the number of recruiters anticipating an attrition rate greater than 20 per cent grew by 33 per cent when compared with the previous survey conducted last year.

As per the survey findings, the number of recruiters planning to roll out increments greater than 30 per cent in their respective organisations grew substantially by 60 per cent versus the previous outlook survey conducted in July 2021.

At the same time, the number of recruiters foreseeing an increment below 10 per cent reduced from 37 per cent to 33 per cent.

"The anticipation of returning to normalcy by companies is fueling a strong hiring sentiment as there has been pent up demand across sectors," said Pawan Goyal, Chief Business Officer, Naukri.com, in a statement.

In the survey "57 per cent recruiters indicated a surge in both new and replacement hiring in their organisations, only 2 per cent recruiters foresee a hold on hiring, while just 1 per cent indicate layoffs for the coming months which indicates re-stabilisation after a turbulent period", he added.

The campus hiring is also showing signs of improvement since last year, and several companies have also agreed on hybrid models.

About 41 per cent Indian companies are gearing to kickstart work from office, while 42 per cent recruiters believe that work from home is equally productive as working in office while around 14 per cent recruiters said they would be back to office with a restricted team size.

The bi-annual survey was represented by 1,879 recruiters and consultants in over 10 major sectors.

(The above story first appeared on LatestLY on Mar 29, 2022 03:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).