Attrition rates have been quite controlled in the last one year and a half because there was a job market squeeze. Many even lost jobs due to the pandemic-led recession. However, in all likelihood attrition rates may see a rise, once the pandemic is over and restrictions are eased. The tell-tale signs are already visible.
An Eagle Hill Consulting survey this year, has revealed that every one out of four employees plans to quit the existing job once the pandemic subsides. The number is more in case of millennials and employees who are also caregivers.
Several factors are contributing to the increase in job searches. Given the uncertainty that pervaded the job market last year, many had put off their search in the hope of better times. With vaccination in place, the job market is hopeful of opening up, and those seeking a change will resume their search once again.
“Many industries will resume production in full capacity or increase it post-pandemic to cope up with the losses incurred over the last two years, and more and more job opportunities will spring up as a result of it,”
Ranjith Menon, SVP-HR, Hinduja Global Solutions
The Survey also states burnout as one of the primary causes for employees to consider moving. Heavy workload, skewed work-life balance, lack of effective communication are some of the reasons for employee burnout.
At any given point of time, in any organisation today, 20 per cent of the employees are not even available. About 10 per cent would be tending to someone or themselves recovering from COVID. They would, of course, all be exhausted. The workload of these employees passes on to the other employees, who, in turn, experience fatigue from the additional burden. The ‘Me time’ that employees once cherished has become non-existent, with official and personal boundaries getting blurred. All this has only added to the stress, and that will lead to people looking out for a change in job.
Attrition is always proportional to the jobs available in the market. The more the jobs are available in the market, the attrition rate will be higher.
“Once people are pampered, it will become a continuous process and a vicious cycle. We will hire from each other more, and that will hike the cost of doing business.”
SV Nathan, partner and chief talent officer, Deloitte India
Companies that have a large US presence, that is, outsourcing units, will start to really suck up the talent from the market given that the US is outsourcing more to India than before. This will put a pressure on the availability especially in the tech industry
Besides, companies are now looking at a buy model rather than a build model.
SV Nathan, partner and chief talent officer, Deloitte India, shares that last year more people came in from campuses. This implied that companies needed more time than usual to coach and train the new talent and make them job-ready. However, things are expected to change, and companies will look for ready talent, which means they will try to poach from other organisations.
Next the empathy quotient will also decide whether the employees decide to stay on with their current organisation. Organisations that rose up to the occasion to help their employees during these difficult times will be the ones who will perhaps survive this turnover tsunami, as many are calling it.
“Companies which fail to adapt to the new ways of working will see their fair share of attrition, especially amongst the younger lot, which has a more growth-oriented mindset.”
Ravi Kumar, head of human resources, Roche Diabetes Care India
Ravi Kumar, head of human resources, Roche Diabetes Care India, believes employees will move to join employers who are ready to ‘personalise’ the employee experience for their people. Even HR policies may start getting customised to employee needs at an individual level, given the new ways of working in a pandemic/post-pandemic workplace.
“On the other hand, companies which fail to adapt to the new ways of working will see their fair share of attrition, especially amongst the younger lot, which has a more growth-oriented mindset.” adds Kumar.
The other reason why job search has increased in recent times is for the convenience of it. With most companies having moved to WFH, virtual interviews and virtual onboarding, it has become easier to search, apply and appear for job interviews. In the tech space, job seekers have multiple offers and are taking their best pick.
Things are picking up in the manufacturing and other sectors as well. “Many industries will resume production in full capacity or increase it post-pandemic to cope up with the losses incurred over the last two years, and more and more job opportunities will spring up as a result of it,” says Ranjith Menon, SVP-HR, Hinduja Global Solutions.
The consequence of this talent war will be an increase in cost. “Once people are pampered, it will become a continuous process and a vicious cycle. We will hire from each other more, and that will hike the cost of doing business.”
It is believed that only the risk-averse employees of an organisation will avoid making such switches. They are mostly the senior rung of people who have families to care for.