The Indian IT industry recorded 25.2 per cent employee attrition in FY22 and that pain will continue as it loses talent to other industries, said a report by TeamLease.
The attrition in the contract staffing industry is predicted to touch at least 50 per cent in FY23 compared to 49 per cent in FY22, said the report called 'Brain Drain: Tackling the great talent exodus in IT sector'.
Company policies, payment and work flexibility is making talent move, as non-technology firms step up demand.
“Tech talent in non-tech companies will see 3X growth in the coming years, opening up approx 1 million new tech jobs by 2025.
"This will lead to further shifts of IT talent from traditional companies in the near future,” said Sunil Chemmankotil, chief executive officer of TeamLease Digital.
The IT industry is growing but it is becoming difficult to retain talent.
“The survey indicates that 57% of IT professionals would not consider returning to the IT services sector in the future.
"With the usual demand for salary hikes and other benefits, the main attraction for employees in their new jobs is ‘Great Reflection’ on the internal policies and external factors that should be relooked at by employers as we are viewing great changes in the employees’ feelings about work and life,” said Chemmankotil.
The IT industry is expected to grow from 5 million employees to 10 million in five years, resulting in opportunities for job seekers.
As employees prioritise company culture, leadership, quality of life, and work environment, employers may have to offer a lot more than just good compensation.
“With the industry expected to grow two fold over the next few years, we expect organizations will continue to lose their top talent and it would be very difficult to retain them without any strong measures,” said Siva Prasad Nandur, chief business officer, TeamLease Digital.
As many as 60 per cent of respondents said workplace flexibility could make them stay with a company.
The survey said that 50 per cent of respondents said employers should provide opportunities for career development.
As many as 27 per cent of them wanted employers to focus on company culture to retain their employees.