Bangalore: With the worst behind and signs of positive demand for outsourcing and offshoring from the U.S. and European markets, which account for about 80 percent of Indian software exports, the IT industry is gearing up for a gradual recovery in the new year. But Indian IT industry still continues to face the problem of attrition, especially when companies are now offering strong pay packages to make up for the lost ground. What really drives employees to jump jobs? Is it only due to bad bosses or there are other reasons involved as well?
India surveyed people from the IT industry to find out top 10 reasons why people quit their job in IT industry. While we were sure that organization and management play a crucial part in the decision, there were many other reasons as well which may have become more relevant in recent times. "While most people including the managers are of the opinion that majority of people leave because they are unhappy with their compensation, nothing could be farther from the truth. There has been enough research done globally and across industry segments to prove that unhappiness with compensation is only one of the many reasons that people think about quitting," said Puneet Jetli, Senior Vice President and Head - People Function, MindTree.
1. Mismatch between the promised job and the situation on hand
Employees are often promised certain things on what exactly the jobs consist of but after joining the company they find out a completely different picture. It becomes painfully clear to the new hire that the company played a bait-and-switch game and now they are trapped in doing something that they don't want to.
2. Limited opportunity for personal growth and skills
"Every ambitious person is looking to further their career in the shortest possible span of time. Hence despite being in a high growth sector if there isn't ample opportunity for reasonably quick vertical or lateral growth; then it is usually time to move on," says Pradeep Thomas Abraham, Managing Director of Paytronic Networks limited. The most successful employers find ways to help employees develop new skills and responsibilities in their current positions.
3. Boss too much to handle
Prashant Hannovar, Manager of Human Resource of NextBiT Computing has had a fair deal of experience in dealing with different kinds of candidates. He says, "Employee leaves the organization because of a manager's leadership style or bad management style. Employee leave because of managers who puts the blame on the other employee, making others a scape goat, a Micro manager-who is known for having no trust/confidence in self and on the team."
4. Lack of recognition of the good work being put-in
Individual accomplishments should be considered by the company and should be pointed out in praise that will help to further increase productivity, make the employee feel appreciated, and create an example for other employees to follow, knowing that they will be rewarded. "Many employees who have quit and answered the exit interviews have revealed on not getting recognized despite of hard work/good Performance," says Hannovar.
5. Management freezes raises and promotions
Money is not always a very important category for people to quit, but it definitely ranks high. Many employees quit the Organization as they get better compensation/salaries with the competitors. Also with the salaries, many of the Techies (engineers) today are offered Onsite opportunity too. This is the normal phenomena in the IT Industry which nothing much can be worked out.
6. Poor work culture/work ethic
Another important factor that results in undesired attrition is the bad work culture. Bad work culture constitutes unhealthy political work environment where you can find lot of rumors/grape wines, partiality, favoritism, lack of trust, lack of good HR best practices like restrictions imposed on the employees on clothing, leaves and many more.
7. Inability to maintain/achieve a healthy work-life balance
In the light of the recent trend of laying off huge number of employees, many employees (who are not fired) feel the heat of too much work. Sometimes they find themselves doing the work of more than two people which often result into work taken home and extended
office hours. Too much work often creates stress which can force the employee to quit.
8. Lack of Feedback Mechanisms
Lot of managers don't provide the proper feedback at regular intervals on the employee performance. Many employees look for feedback which helps them to grow in their career. Lack of feedback makes an employee or the team members frustrated, feel out of the team or lost, which leads to the rise in the attrition level in the organization.
9. Lack of decision-making power
A lot of managers simply do not know how to delegate effectively. This results in undue micro management by the immediate superior that shakes the faith and self confidence of the employee. A manager should empower employees and allow them the freedom to make suggestions and to take decisions.
10. No fun or enjoyment in job/ unchallenged
Two scenarios can fit into this. One is when employee becomes dull of the daily routine. Same job, with same skills and everything becomes dull, then it's time for employees to move on. The second scenario can be when employee don't feel challenged with the current job. Employees sometime need more responsibilities and work to challenge their skills or they leave in hunt of another job for fresh challenges.
There are many more reasons which may be valid from person to person but these are the top ten reasons which the IT industry must really look upon to improve on to reduce attrition. "The only way to work on retention is to pro-actively focus on establishing policies, practices, systems and culture that help reduce triggers on these counts," said Jetli.
India surveyed people from the IT industry to find out top 10 reasons why people quit their job in IT industry. While we were sure that organization and management play a crucial part in the decision, there were many other reasons as well which may have become more relevant in recent times. "While most people including the managers are of the opinion that majority of people leave because they are unhappy with their compensation, nothing could be farther from the truth. There has been enough research done globally and across industry segments to prove that unhappiness with compensation is only one of the many reasons that people think about quitting," said Puneet Jetli, Senior Vice President and Head - People Function, MindTree.
1. Mismatch between the promised job and the situation on hand
Employees are often promised certain things on what exactly the jobs consist of but after joining the company they find out a completely different picture. It becomes painfully clear to the new hire that the company played a bait-and-switch game and now they are trapped in doing something that they don't want to.
2. Limited opportunity for personal growth and skills
"Every ambitious person is looking to further their career in the shortest possible span of time. Hence despite being in a high growth sector if there isn't ample opportunity for reasonably quick vertical or lateral growth; then it is usually time to move on," says Pradeep Thomas Abraham, Managing Director of Paytronic Networks limited. The most successful employers find ways to help employees develop new skills and responsibilities in their current positions.
3. Boss too much to handle
Prashant Hannovar, Manager of Human Resource of NextBiT Computing has had a fair deal of experience in dealing with different kinds of candidates. He says, "Employee leaves the organization because of a manager's leadership style or bad management style. Employee leave because of managers who puts the blame on the other employee, making others a scape goat, a Micro manager-who is known for having no trust/confidence in self and on the team."
4. Lack of recognition of the good work being put-in
Individual accomplishments should be considered by the company and should be pointed out in praise that will help to further increase productivity, make the employee feel appreciated, and create an example for other employees to follow, knowing that they will be rewarded. "Many employees who have quit and answered the exit interviews have revealed on not getting recognized despite of hard work/good Performance," says Hannovar.
5. Management freezes raises and promotions
Money is not always a very important category for people to quit, but it definitely ranks high. Many employees quit the Organization as they get better compensation/salaries with the competitors. Also with the salaries, many of the Techies (engineers) today are offered Onsite opportunity too. This is the normal phenomena in the IT Industry which nothing much can be worked out.
6. Poor work culture/work ethic
Another important factor that results in undesired attrition is the bad work culture. Bad work culture constitutes unhealthy political work environment where you can find lot of rumors/grape wines, partiality, favoritism, lack of trust, lack of good HR best practices like restrictions imposed on the employees on clothing, leaves and many more.
7. Inability to maintain/achieve a healthy work-life balance
In the light of the recent trend of laying off huge number of employees, many employees (who are not fired) feel the heat of too much work. Sometimes they find themselves doing the work of more than two people which often result into work taken home and extended
office hours. Too much work often creates stress which can force the employee to quit.
8. Lack of Feedback Mechanisms
Lot of managers don't provide the proper feedback at regular intervals on the employee performance. Many employees look for feedback which helps them to grow in their career. Lack of feedback makes an employee or the team members frustrated, feel out of the team or lost, which leads to the rise in the attrition level in the organization.
9. Lack of decision-making power
A lot of managers simply do not know how to delegate effectively. This results in undue micro management by the immediate superior that shakes the faith and self confidence of the employee. A manager should empower employees and allow them the freedom to make suggestions and to take decisions.
10. No fun or enjoyment in job/ unchallenged
Two scenarios can fit into this. One is when employee becomes dull of the daily routine. Same job, with same skills and everything becomes dull, then it's time for employees to move on. The second scenario can be when employee don't feel challenged with the current job. Employees sometime need more responsibilities and work to challenge their skills or they leave in hunt of another job for fresh challenges.
There are many more reasons which may be valid from person to person but these are the top ten reasons which the IT industry must really look upon to improve on to reduce attrition. "The only way to work on retention is to pro-actively focus on establishing policies, practices, systems and culture that help reduce triggers on these counts," said Jetli.
