BENGALURU: Attrition (the departure of employees) across manufacturing and services industries witnessed an average of 8.27% in the December quarter, a 0.46% increase from an average of 7.81% in Q2FY23, according to TeamLease report on Employment Outlook.
Attrition rates among start-ups in manufacturing were high at 26% in the third quarter, the report added.
Highlighting attrition trends, the report says the IT industry in the services sector had higher average attrition at 27.19% when compared to healthcare & pharmaceuticals industry in the manufacturing sector at 15.67%. In the September quarter, attrition in the healthcare & pharmaceuticals industry stood at 14.71%.
Textile, electric vehicles and infrastructure industries faced the lowest attrition trends for Q3 with 1.22% and 2.63%, respectively. Other industries in the manufacturing sector recorded negative attrition during October to December quarter.
Balasubramanian A, VP and business head, TeamLease Services, said, “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.”
In the services sector, apart from IT, educational services witnessed 18.02% attrition, followed by ecommerce & allied start-ups (15.13%), knowledge process outsourcing (13.79%) and telecommunications (12.05%). However, the rest of the four industries - travel & hospitality, logistics, consulting, and media & entertainment saw low attrition rates of below 5% during the December quarter, the report says.
“Influenced by upcoming appraisals, economic turmoil in the ecosystem and increased migration between allied industries, attrition has gone up. Attrition has been reported to be higher due to increased new-age opportunities”, said Ajoy Thomas, VP & business head, TeamLease Services.