Attrition at IT firms easing amid huge layoffs
Turbulent job mkt makes IT employees continue in their present jobs
- Attrition at 20% in Sept quarter
- It's coming down in absolute terms
- Numbers calculated on LTM (last 12 mths) yet to reflect the fall
- It's estimated that attrition will fall on LTM basis in Dec qtr
- Over 25,000 people had lost jobs globally
- Job loss in Indian IT yet to be declared
Bengaluru: Indian IT services companies are witnessing a sharp fall in employee attrition numbers as layoffs by global technology firms and startups have resulted in employees sticking to their present jobs. HR experts also said that irrational salary hikes are also passe now with expectations of both employees and employers have come down on the back of ongoing turmoil in the technology world.
"Indian IT firms should see fall in voluntary attrition numbers in the third quarter (October-December) period. Staffers are a lot more rational now as far as hikes are concerned. Ongoing situation has raised the importance of sticking to a steady job in the current time," Supaul Chanda, vice-president of technology recruitment firm Experis of Manpower Group told Bizz Buzz.
In the quarter ended September, employee attrition numbers remained at more than 20 per cent for most IT firms. Though attrition had come down in absolute terms, the numbers calculated on LTM (last twelve months) basis were yet to reflect the fall. However, many believe that voluntary attrition numbers will see a fall on LTM basis in December quarter.
Due to mass layoffs by global technology firms like Meta, Amazon, Twitter, and Microsoft among others, more than 25,000 people had lost their jobs in recent months globally. Though the number of employees affected in Indian operations of these companies is not known, it is believed to be sizeable.
Similarly, Indian startups fired more than 20,000 staffers this year as external funding to these new age companies dropped substantially.
"We have not reached the bottom of layoffs yet and this will very well continue in first half of 2023. So, people are sticking to their steady jobs than searching for new jobs. Of course, involuntary attrition is going on in Indian IT industry with employees getting impacted due to loss of projects or cost cutting moves. But this is not a large number yet in Indian context," said another HR expert who wished not to be quoted.
With many European economies entering into recession, technology spend on new projects is likely to see a fall in 2023.
Taking this into account, most IT firms are going slow with new hiring and deferring onboarding of fresh engineering graduates.
"Traditionally, October-December is a weak quarter with less working days due to furloughs. So, hiring activity remains a little subdued. But, we are witnessing an uptick in hiring towards contractual workers as uncertainty about economy grows," said Chanda of Experis.
Indian IT firms should see fall in voluntary attrition numbers in the third quarter period. Staffers are a lot more rational now as far as hikes are concerned. Ongoing situation has raised the importance of sticking to a steady job in the current time
-- Supaul Chanda, V-P at technology recruitment firm Experis of Manpower Group