Overall, attrition was 21.2 per cent in India Inc. with 16.8 per cent being voluntary attrition and 3.6 per cent being involuntary attrition, says the Future of Pay Report.
In terms of attrition, the top three sectors were financial institutions, e-commerce and technology, with 28.3, 27.7 and 22.1 per cent attrition, respectively. While 23.2 per cent of the attrition in the financial institutions was voluntary, 5.1 per cent was involuntary. About 24.9 per cent in the e-commerce segment was voluntary and 4.9 per cent was involuntary. In the tech sector, 19.1 per cent was voluntary attrition, while 3.2 per cent was involuntary attrition.
Reasons for voluntary attrition
Lack of opportunities for career growth and advancement was the primary reason for voluntary attrition. This was followed by external and internal inequity of compensation. The fourth and fifth top reasons for voluntary attrition were role stagnation and lack of recognition, respectively.
Thanks to the Indian startup ecosystem and the way it has matured, the companies with strong financial backing have been hiring tech talent with aggression in a bid to push growth and expand. The ripple effect is being felt throughout the industry.
With various sectors moving towards digital channels for growth, the demand for tech talent has grown further.
Top talent and high performers possessing critical skills are commanding salary premiums from 1.7 to 2 times that of average talent.
As per the EY Future of Pay Report, some of the most promising emerging sectors for jobs in India in 2023 include renewable energy, e-commerce, digital services, healthcare, telecommunications, educational services, retail and logistics and fintech. It is expected that these sectors will keep growing and provide a wide range of job options for qualified employees.