News: One small hike for employees, one giant gain for industry

#Updates

One small hike for employees, one giant gain for industry

After several months of salary freezes and job cuts due to economic slowdown, the IT sector has only recently started doling out the long due salary hikes to its employees. However, it is already starting to have its impact on the industry as despite the average hike being only marginal (about 1.4%), it is proving to be enough to arrest the high attrition rate plaguing the industry. According to a survey conducted by IDC, a global market research and advisory services firm, average rate of attrition in the IT sector has dropped by 3 percentage points from 18 percent in 2008 to 15 percent in 2009. In addition to that, the salary hike has also resulted in an increase in the average retention rate in the last one year from 79% in 2008 to 85% in 2009.

Topics: Updates, Employee Relations

Did you find this story helpful?

Author


QUICK POLL

Is technology the answer to new-age talent acquisition challenges?

On News Stands Now
q_auto,f_auto/v1560247231/mag-june-2019.png

Subscribe now to the All New People Matters in both Print and Digital for 3 years.

In the next three years, 120 million jobs in the world’s 10 largest economies will need retraining or re-skilling. To adapt to this new environment and help shape it, employees need to embrace continuous learning. Amid these changes, HR needs to not think, act, or be like traditional HR; they need to understand their job is now “human transformation”. In this issue, we will focus on what HR leaders and organizations need to consider today to prepare for tomorrow.

Subscribe
And Save 59%

Subscribe now