The pendulum is swinging back from remote working and work from home to physical offices, as the world is recovering from the pandemic. As a result, rethinking workforce planning for the new work environment is a challenge for organizations. More and more businesses are considering implementing a hybrid working model when economically feasible.
According to a Mint report, the Indian labor market shows signs of recovery after a massive drop in 2020, with around 60% of those who lost their jobs in the previous year returning to work. Workers now have the skills they need to adapt to a world of work where machines powered by Artificial Intelligence (AI) and Automation are replacing jobs, and Metaverse & Web 3.0 are changing the virtual world at an accelerated pace. Therefore, organizations must find the right talent that is both future-ready and job-ready because of these factors!
How Can Start-ups Retain Talent Amid The Great Resignation, Attrition Rates?
To attract the most extraordinary STEM (Science, Technology, Engineering & Mathematics) personnel, a well-capitalized start-up must compete with an MNC or a large company like Google or Amazon with vast funds today. But maintaining and retaining the most exemplary employees is more important than recruiting them. This is where 'The Great Resignation' is at the heart of the most pressing issues. The Great Resignation has recently spread to India, where it was once confined.
Aon estimated that attrition rates had fallen to 12.8% in 2020, the lowest in a decade, before rising to 21 percent in 2021, the most in two decades. Additionally, the 21% attrition rate occurred during a time when the majority of employees were still doing their jobs from their homes. According to Deloitte polls, attrition jumped to 19.7% in 2021 from 15.8% in 2020 and 17.5% in 2019.
Therefore, in order to retain good employees, offering a stake in the company's success is one tried and tested method adopted by start-ups to keep them motivated and engaged. When offered as a benefit to employees, the Employee Stock Option Plan (ESOP) fosters a sense of pride in the company's future success. Start-ups should therefore focus on creating an environment where top management isn't afraid to listen to employee feedback.
Impact Of Attrition Rates On Startups & Boutiques
Start-ups and boutique enterprises in India have the greatest attrition rates, despite higher wages and more immediate prospects for career progression. Overworked staff, a lack of power decentralization, and a lack of trust in management contribute to high turnover rates. Consequently, attrition rates in both segments are at 43.7% and 42.1%, respectively. High attrition rates are expected in high-growth companies, such as start-ups and boutique AI firms because Data Scientists frequently leave these organizations, searching for more lucrative positions.
The Data Science Market's Attrition Rate Is Soaring
Compared to 2020, the attrition rate in the Data Science industry is expected to rise by 12.1% in 2021. The rise of internet start-ups in India and the acceptance of digitization by established businesses have increased the demand for digital workers. Data Scientists, in particular, are in high demand across a wide range of companies. Using available data, they assist firms in obtaining customer insights, predicting future trends, and more. Professionals in this field can also move positions for greater wages, more flexible work schedules, ESOPs, and other benefits because organizations are constantly searching for the best talent in the market. Consequently, the Data Science market's turnover rate has increased dramatically.
How can upGrad Placements Benefit Start-ups with Charge-Free Recruitment of Highly Qualified Personnel like Data Scientists
With such severe complexities now plaguing the hiring and job market, one-stop-shop platforms like upGrad Placements can enable start-ups to fill their talent gap in the market with a single click, anytime during the year. As a critical enabler for career transitions, they provide enterprises with the perfect talent pool, to match their goals for highly specialized talent. Furthermore, the talent pool offered by upGrad Placements is upskilled in the latest tech disciplines, which in turn helps start-ups meet their talent demands.
Testifying the same, the upGrad Career Trends Report, 2021 cites that upGrad learners received considerable career advancements in the range of 180% to 450% amid the pandemic when job losses and layoffs were at their peak. Going against the market trend, upGrad learners were hired by some of the world's most prestigious companies, including Amazon, Oracle, Microsoft, TCS, Accenture, and Deloitte. This shows the grit and value of the learners and their specialized skill sets and underlines their technical prowess that can create an impact across industries. Furthermore, this is also proof of the value that upGrad Placements is offering organizations across industries, with the desired talent.