Attrition rate among employees has hit a five-year low in the country as employees are less inclined to leave companies in a hurry, according to a survey of 700 firms by Aon Hewitt.
“The attrition rate in India is dropping. At 16.3 per cent, it is the lowest that corporate India has observed since the 2009 financial crisis,” the survey found.
Aon Hewitt also put out the top five reasons why employees quit their jobs:
1) Salary is by far the leading cause of employee dissatisfaction, the survey found.
2) Limited growth opportunity in a company is the second biggest reason for employee attrition, the survey says.
3) Many employees quit in order to get higher education, according to the survey.
4) Too many years in a particular role is the fourth biggest reason why employees quit a company, the survey found.
5) A large number of employees quit because they do not get along with their bosses, according to the survey.
To manage employee attrition, HR managers should ensure that jobs are rotated and focus on work-life balance of employees, Aon Hewitt said.
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The survey also found that while attrition rate for broader population is falling, the same for key talent has increased from 5.9 per cent in 2014 to 7.3 per cent in 2015.
“Increasingly organisations are developing separate retention plans and policies for their top talent. While rewards continues as a retention tool to ring fence top talent, programs around leadership opportunities and coaching, overseas assignments, fast track programs for hi – potentials are fast gaining prominence,” Aon Hewitt said.