Crisis concerns to cool attrition across board

“It is a wait and watch attitude both from the employer and employee. 2008 is not a very distant memory and therefore both the sets are very cautious,” said Hay Group Managing Consultant,Mumbai Operations,Sridhar Ganesan.

In the wake of slowdown concerns and weak markets,people do not want to risk their jobs at this juncture and want to avoid “last-in,first-out” scenario in case massive lay-offs take place.

Ma Foi Randstad MD CEO E Balaji said,”When there is a slowdown,job opportunities become less and people are a little more nervous to try out new things. Because of decreased opportunities,the risk taking ability of people will become lesser,so lesser attrition.”

Grappling with global economic uncertainties,especially the escalating European debt turmoil,companies worldwide are cautious on business prospects,resulting in slow hiring.

According to a recent report by global staffing services firm Manpower,one in every four Indian employers is uncertain about the hiring plans for the fourth quarter of 2011.

“Attrition and hiring go together in an industry. Less number of jobs always decreases opportunities for the people,so attrition goes down,” GlobalHunt Director Sunil Goel said.

India’s economy recorded 7.7 per cent growth in the first three months of the current fiscal,as against 8.8 per cent in the same period in 2010-11.

Besides,industrial production plunged to a 21-month low of 3.3 per cent in July this year,as compared to 9.9 per cent growth a year ago.

Moreover,in what may have repercussions for industrial growth in August,eight core industries grew at their slowest in 11 months — 3.5 per cent,down from 7.8 per cent in July.

Recruitment process outsourcing firm Elixir Consulting Manager (IT Practice) Prateek Srivastava said that amid the ongoing slowdown fears,job security is one of the key motivators for an employee to stay with current employer,bringing down the attrition level.

Symbiosis Management Consultants Founder and Director Vinay Grover said,”The new jobs,if available,will not give people 30-40 per cent salary hike and the risk proposition for a job change with a marginal increase does not make sense. The attrition levels are bound to come down.”