Compensation and inadequate rewards are the main reasons why companies are facing high attrition. As per a Watson Wyatt WorkIndia survey of 9,551 employees across 53 companies, nearly 78 per cent say compensation and rewards are not in line with performance.

Employees felt their pay was linked with the company's performance but they were neither satisfied with their pay nor benefits, the survey said. Only 53 per cent of the respondents said high performers were rewarded sufficiently.

The survey, based on three employee indices, commitment, enablement and alignment, pointed out that employees were positive about their commitment, driven primarily by job satisfaction.

More than 80 per cent said that they had confidence in the success of their companies, while 64 per cent said their company was a good place to work compared with others.

On alignment, nearly 88 per cent of the employees said they knew their job affected customers and 84 per cent employees clearly understood their company's goals.

About 64 per cent of the employees understood the measures used to evaluate their performance but only 54 per cent said they received feedback on a regular basis. Most employees also complained that only a few companies implemented the suggestions that they offered to the management.

However, transparency was a big issue with the employees as 46 per cent felt their companies shared information with them. But 79 per cent employees said they knew about the skills needed to be successful in the company.

In the category of desire for effective supervision, employees felt respected by supervisors but felt less strongly on their supervisors helping them with their professional development.