India is set to face the highest attrition rate globally with over 25 percent of its employees in organized sector expected to switch jobs in next five years, according to a recent survey.
The survey conducted by a global management consultancy, Hay Group, in association with the Center for Economics and Business Research, indicated that with an improvement in economic and labor market conditions, the worldwide employee turnover would accelerate in 2014.
“Indian economic growth is set to pick up and this will be warmly welcomed by businesses. But it will come with a risk—driven by an ambitious middle class, employers are likely to face a talent exodus in the coming year,” Mohinish Sinha, Hay Group’s Leadership and Talent practice leader, said in the report.
India might lead the region in turnover rates at 26.9 percent; the figure is expected to go up further in 2014 to stand at 27.5 percent.
“Make no mistake; we are in the eye of an employee turnover storm. In order to protect employee retention, organizations in India must give serious thought to what drives employee commitment,” he said.
The analysis of employee opinion database showed that in Asia Pacific, including India, over 60 percent of employees are supportive of the direction and goals of their organization and have confidence in their senior management. At the same time, around 55 percent Indians expressed concerns about the fairness of their compensation, while one in every three employees expressed concern over a lack confidence in being able to achieve their career objectives with their current employers.
“Organizations need to give serious thought to how they stack up against these factors now before the job markets begin to improve. Those who do not are likely to find employees exiting in increasing numbers as more opportunities become available,” Sinha said.
The study covered 700 million employees in 19 countries worldwide.