“It can lead to substantial costs, including recruitment, training and lost productivity,” Subburathinam added. Photo: Shutterstock
Poor work-life balance, flexibility and job dissatisfaction are leading to a 4-5 per cent annual rise in ‘job attrition’ (employees leaving the company within six months of joining), mainly in sectors such as consumer durables, IT and software, and BFSI, said a top executive at TeamLease Services.
“Child attrition in India, seen mostly in the 22-32 age group, is growing annually at 4-5 per cent and is driven primarily by factors such as poor work-life balance and flexibility, which is particularly important for younger workers, job dissatisfaction, poor onboarding, insufficient compensation, which leads employees to look for better opportunities,” TeamLease Services Chief Strategy Officer Subburathinam P. told PTI.
Lack of career development opportunities, organizational culture, work environment, management impact and family changes are also driving new employees to leave in search of environments where they can grow and progress, he said.
Childhood dropouts may also mean there are more job opportunities, allowing people to change, he said.
“In India, the concept of attrition gained a lot of attention in the early 2000s, particularly in the IT sector. The rapid growth of the IT industry created a huge demand for skilled professionals and companies faced challenges in retaining new employees,” Subburathinam said.
This phenomenon, he said, can have a significant financial impact on the country’s businesses and it is estimated that child dropouts represent around 10-15 percent of annual labor turnover.
“It can lead to substantial costs, including hiring, training and lost productivity,” Subburathinam added.
Child attrition refers to the phenomenon whereby employees leave an organization within a short period after joining, usually within the first six months or during the probationary period; some companies also consider three months as child attrition.
Subburathinam further said that at 49 per cent, the consumer durables sector has the highest child attrition rate as new employees leave within the first six months.
Other sectors such as IT and software, banking, financial services and insurance (BFSI), telecom, retail and manufacturing are other sectors that are witnessing this phenomenon, he added.
This trend is particularly pronounced in southern India, where the child dropout rate is as high as 51 percent, he noted.
As far as gender is concerned, Subburathinam said, the overall male dropout rate stands at 84.5 percent and female dropout at 15.5 percent.
Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Telangana are the states with the highest child dropout rates, he added.
First published: September 1, 2024 | 1:33 PM IS
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