In this article, we will look into the reasons for higher attrition rate in IT Industries. Now a days, it is not very uncommon to see someone leaving a tech giant due to various reasons. IT Industries has gone through various phases in last couple of years but recently especially after coronavirus pandemic it is reported that the attrition rate in IT Industries are on all time high. While there are various problems going around the world but tech giants has its own problem to deal with. One can think of some of the common problems that are responsible for this higher attrition rate but here we will see all the reasons in great detail.
What are the reasons for higher attrition rate in IT Industries
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1. Toxic Work Culture
The first and foremost thing responsible is the toxic work culture employees encounter during their work tenure. Before the pandemic, a lot of time it was felt that the Organization should mandatorily allow employees to work from home atleast for few days in a week or month to build the healthy employee work culture. This has only turned true during the pandemic and now when the Organizations are opening their offices back, they are found to be little reluctant to go back to pre-pandemic work culture.
2. Business Models
Organizations business models has lot to play in growth of the company but sometimes due to lack of clear and persistent business models, it is difficult to predict the company growth in the future. A lot of company rely of adaptability model which means workforce can be hired and fired according to client and business requirements. This might not be the best approach to take as it decreases the credibility of an organization. Management should have the business model clear in the minds of every employee working to build a long term relationship.
3. Management Approachability
You might have observed in many occasions reaching out someone in the senior management directly is sometimes not easy and may not be even permittable as there is a chain of command followed in almost all the Organizations. To build a healthy relationship, management should always be an easy reach to answer any reasonable questions coming from the employees end. But sadly, this is not the case in many big organizations. This leads to mistrust and hence seen as an important factor in higher attrition rate.
4. Fear of Layoff
In past few years, many times it is witnessed that slowness in the Global Industries led to unpredictable lay offs across all the verticals but it is more prominently felt in IT sector. Being a techie myself, I personally witnessed lot of layoffs in multiple organizations where I have worked on in past few years. This obviously decreased the credibility of organizations and created a mindset to switch job whenever the organization is not doing well. Sometime even if the organization is capable, it still rely on Layoff to adjust the profit goals as we have seen during the last pandemic. Check more on Livemint.
5. Gender Discrimination
While there are lot of measures taken by the Government to deal with Gender Discrimination problem which has also been sincerely implemented by many Organizations but still this problem persists in some of the places. In India, laws like The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 are implemented to prevent women harrasment at the workplace. Management should implement the principle of Inclusion to not only encourage the women workforce but the workforce from LGBTQ community as well.
6. Rewards and Recognition
Sometimes employees does not get rewarded or appreciated properly for their hard work and extra effort. This gives a sense to the workforce that their work is not getting acknowledged and valued. Timely recognition and appreciation for every work done is a sign of healthy and friendly culture that should be promoted at every work front. It keeps the workforce motivated and helps in achieving the company's goal. It also motivate the employees to apply an extra effort to get the job done.
7. Lack of Growth Opportunities
This is one of the very common problem for high attrition rate in many Organizations. Lot of employees working in a team ends up doing work in the same team at the same position for many years. This lead to a rising frustration among the employees which ultimately forces them to switch jobs for better career and growth opportunities. In the last few years, the increase in number of startups has given lot of options to talented people to pursue their career with the organization best suited.
8. Poor Management Delivery
Every financial year, management makes lot of aggressive plans and promises to deliver which if remain unfulfilled raises a question mark about the strategy followed. The promise to provide a certain compensatory benefits binds the employee to its employer and fulfilling them generate the trust and an unbreakable bond between the parties. Hence delivery is equally important as the promise.
9. Lack of Resources
Availability of adequate resources to perform a task efficiently is the primary requirement of any organizations. Resources gets allocated from the Capital or Operation expenditure for every project depending on the client and business requirements. It is observed that employees not getting minimum end system to do their job suffers a lot. This not only impact their work but the overall project duration which can further compromise customer expectation and satisfaction. Hence logistics plays a vital role in delivering a piece of work in any organizations.
10. Lack of Training and Learning
Continuous learning and training the minds of workforce according to business requirements is the best way to keep them updated about the latest technologies used. Employees all round development is absolutely necessary for any IT organizations so that they will be properly equipped with all the tools and technologies needed to do their job. Training should not be just be like a classroom one but it should also consist of team discussion, townhall and expertise sessions.