Employee Attrition in Information Technology Industry – An Overview

Abstract

Indian IT sector is regarded as one of the rapidly growing industry in the country. The industry has marked worthful brand equity in the global IT markets. According to the report published by Indian Brand Equity Foundation in July 2019, Indian IT sector contributes 7.7 per cent to the country’s GDP and expected to contribute 10 per cent to the country’s GDP by 2025. One of the major issues faced by the IT sector in India is increasing level of employee attrition. Hence in this theoretical study, reasons for attrition in Indian IT sector, its effects on organisations and strategies to reduce employee attrition are emphasised. The major reasons for employee attrition are better payments in other organisations, lack of opportunity for growth, inadequate training and motivation, lack of proper rewarding system etc. The major negative impacts of attrition are disruption of routine activities, high costs of recruitment, low workplace morale etc. The study suggested various measures to retain the employees such as fair remuneration, opportunities for career development, proper motivation and training, performance appraisal and rewarding systems etc.