The report is forward looking statistics for ‘Intent to Hire’ for January to March 2023, for both manufacturing (nine industries) and services sectors (14 industries), which is based on a survey of 874 small, medium and large companies.
The report revealed that the Information Technology industry in the services sector had higher average attrition (27.19 per cent) compared to Healthcare and Pharmaceuticals industry in the manufacturing sector (15.67 per cent).
It found that healthcare and pharmaceuticals industries saw double digit attrition rates (15.67 per cent) as compared to Manufacturing, Engineering and Infrastructure (7.51 per cent), Agriculture and Agrochemical (6.55 per cent), Power and Energy (5.63 per cent), Construction and Real estate (4.19 per cent) and Fast Moving Consumer Durables (4.03 per cent).
Whereas the Textile and Electric Vehicle and Infrastructure industry, faced the lowest attrition trends for the third quarter with 1.22 per cent and 2.63 per cent, respectively.
Other industries in the manufacturing sector recorded negative attrition during October to December quarter.
Among start-ups in manufacturing, attrition rates were alarmingly high at 26 per cent, it added. “Attrition has increased for a number of reasons, including an unprecedented high demand for hot skills in technology, risk, assurance, and areas such as ESG (environmental, social, and governance). In the post-Covid era, the war for talent became more intense and the impact was high on the manufacturing segment,” TeamLease Services Vice President and Business Head Balasubramanian A noted.
Meanwhile, from a services sector perspective, key industries which witnessed higher attrition were Information Technology (27.19 per cent), Educational Services (18.02 per cent), Ecommerce and Allied Start-ups (15.13 per cent), Knowledge Process Outsourcing (13.79 per cent) and Telecommunications (12.05 per cent).
However, the rest of the four industries, namely Travel and Hospitality, Logistics, Consulting and Media and Entertainment saw low attrition rates of below 5 per cent during the October-December quarter, it stated.
“Influenced by upcoming appraisals, economic turmoil in the ecosystem, and increased migration between allied industries, attrition has increased significantly. Attrition has been reported to be higher also due to increased new age opportunities,” TeamLease Services Vice President and Business Head Ajoy Thomas added.