New Delhi: India Inc is likely to witness attrition rates of up to 25 percent in 2015, thanks to an upbeat job market and improved economy.
Fresher-level attrition is expected to be around 12-14 percent while at senior-level it will be in the range of 8-10 percent, according to a survey by job portal Wisdom Jobs.
"The survey reinforces the gut-feel in the recruitment industry that 2015 will see huge employee turnover in most sectors. This churn can primarily be attributed to job seeker optimism arising from a stable economy leading to a spurt in opportunities," said Wisdomjobs.Com Founder and CEO Ajay Kolla.
Mid and lateral-level attrition is pegged to grow to 15-20 percent and key role attrition is expected to touch 7 percent during the year.
"The sectors that are expected to get severely impacted are IT, ITES and software as these segments are expected to witness attrition of 25 percent or more at entry-level positions," the survey said.
The causes of these high attrition rates include poor workplace engagement, unsatisfactory work environment and poor salary structures and appraisals.
Additionally, office politics and restricted career growth are also among reasons for switching of jobs by employees.
Moreover, 65 percent of the respondents said upbeat job market and improved economy is influencing them to change jobs.
The survey added that the 'Make in India' campaign is gaining steam and thus affecting the traditionally less affected manufacturing sector.
Meanwhile, industries like FMCG, pharma and aviation exhibited a comparatively lower attrition rate at 18 percent, 12 percent and 15 percent, respectively.
The sectors that would see the least rate of attrition are automobile and infrastructure at 8 percent and 10 percent, largely due to lack of industry growth.
On the other hand, PSU sector would witness an attrition rate of 8 percent due to strong employer branding, and 46 percent respondents see the sector as an attractive one to make a switch, the survey said.
