(Image source from: High attrition rates due to many factors})

Indian companies are likely to witness high attrition rates of up to 25 percent in 2015, due to an upbeat job market and improved economy. Fresher-level attrition is expected to be around 12-14 percent while at senior-level it will be in the range of 8-10 percent, according to a survey by job portal Wisdom Jobs. Mid and lateral-level attrition is pegged to grow to 15-20 percent and key role attrition is expected to touch 7 percent during the year. The causes of these high attrition rates include poor workplace engagement, unsatisfactory work environment and poor salary structures and appraisals. Office politics and restricted career growth are also among reasons for switching of jobs by employees. Upbeat job market and improved economy is influencing to change jobs. The 'Make in India' campaign is gaining steam and thus affecting the traditionally less affected manufacturing sector also with attrition. The employee – employer relationship is also a factor in switching jobs.

"The survey reinforces the gut-feel in the recruitment industry that 2015 will see huge employee turnover in most sectors. This churn can primarily be attributed to job seeker optimism arising from a stable economy leading to a spurt in opportunities," said Wisdomjobs.com founder and CEO Ajay Kolla. "The sectors that are expected to get severely impacted are IT, ITeS (IT-enabled services) and software as these segments are expected to witness attrition of 25 percent or more at entry-level positions," the survey said. Industries like FMCG, pharmaceuticals and aviation exhibited a comparatively lower attrition rate at 18 percent, 12 percent and 15 percent, respectively. PSU sector would witness an attrition rate of 8 percent due to strong employer branding.

By Premji