With a 20–28% brain drain at the largest IT businesses, IT job attrition has become concerning.
Finally, work-life balance has moved up the priority list for career-savvy techies to the point that many are considering leaving their comfortable IT industry jobs.
According to a report published by TeamLease Digital titled “Brain Drain: Tackling the Great Talent Exodus in the IT Sector,” there has been a noticeable rise in the attrition rate for IT professionals, with about 25.2% of workers leaving their positions.
It also raised issues with the contract staffing market, predicting that turnover in this field would increase from 49% in 2022 to 50–55% in 2023.
A sizable enough number of opportunities have opened up for them to seek employment in non-IT areas as a result of the increasing digitalization of every industry on earth.
Tech talent in non-tech industries will see a 3X increase in the next few years, opening up around 1 million additional tech jobs by 2025.
According to Sunil Chemmankotil, CEO of TeamLease Digital, this will result in more IT talent leaving traditional firms shortly. Although the attrition rates for IT jobs have decreased from their peak, the current situation cannot be taken for granted.
Worrisome job attrition rates have been reported in the IT sector, with major IT firms like TCS, Infosys, Wipro, and HCL reporting attrition rates of between 20 and 28% during the past three months.
According to the research paper, pay increases and benefits will not help businesses maintain employee morale if management and leadership do not support employees’ professional development and job requirements.
Even while frequent compensation increases could maintain employee satisfaction, the pandemic has transformed the bounds of a person’s sense of worth over time. While almost half of the respondents cited a lack of better pay and benefits as their primary reasons for quitting a job, 25% pointed to employee disengagement and a lack of career advancement as the main reasons that talent is attracted to other sectors.
“There is evidence of a trend reversal, implying that retaining business-critical talent has undergone a significant transition in the previous two years,” Chemmankotil claims, referring to the pandemic’s disruption.
They are looking for possibilities that can offer what they genuinely desire, such as flexibility, professional advancement, and employee value proposition, after realizing what they have been losing continuously.
Approximately five million individuals are currently employed in India’s $227 billion IT sector. 700 employers and 6,000 employees were polled by Teamlease.
A little over 57% of the IT professionals who were polled said they would prefer to pursue challenging tasks and new career paths over working in the IT sector.
According to Teamlease Digital, the digital industry will increase from 50 lakh to 1 crore over the next few years. And as concluding advice, it cautions that the loss of IT professionals will only increase until IT organizations step up their hiring processes with goals for staff and their improvement.
The development of the IT human resource eco-system will depend on how well employers can make their staff members feel appreciated in their work and not only as resources to be used by others. Chemmankotil observes that “a major transformation in the employment value proposition leads to deeper employee-employer ties, a strong sense of ownership, and purpose-driven work.”