With intense competition for the right talent, attrition is turning out to be a "big challenge" for businesses in India, resulting in massive costs, according to global consultancy Deloitte.Emerging economies such as India are seeing high attrition rates, which are estimated to be in double digits.
"Attrition is a big challenge, especially as it results in massive costs for businesses. In India, attrition is one of the most challenging things to deal with (for companies)," said Deloitte Global Service Line Leader (Global Employer Services) Bruce M Stewart.
He is also the Regional Managing Partner (Asia Pacific Tax).
Stressing on the overall negative impact of employees leaving a company, he noted that the attrition cost is about "three or four times"
that of the individual's salary.
A young population in India is not only producing a wider talent pool, but also seem to be resulting in increased attrition across industries.
Many companies are now focusing on talent retention initiatives, including skill development programmes and long-term rewards.
He said the cost of deployment for employees is rising and added that standardisation of existing practices would help in ensuring better deployment processes.
Pointing out that businesses are facing the risks related to compliance, he said that such risks could even drive up overall costs.
There are various kinds of risks (of compliance) such as legal, tax-related and social security issues, among others.
"The speed of doing business is increasing (worldwide)... which also brings an added level of complexity," he said.
