High attrition rate: a bad news or good news for India?

High attrition rate: a bad news or good news for India?

A survey showed that India has the highest attrition rate in comparison to other countries of the world. In India, 35 per cent of the workforce has term of less than two years compared to the western markets where it is 15 per cent. Harnessing talents is one of the most vital challenges faced by organizations of IT and telecom sector mostly, along with most of the private companies as well as the government organizations. Youth is in constant hunt for new and better opportunities that would boost their talent and forfeit better than the current one. The question arises whether high attribution rate in India is a negative thing or positive news.


1. Company’s loss: Employees who are talented and have proved to be a boon for the company definitely knows his work well. If they resign from their position, the company will have to look for a new employee to fill the space and there is absolutely no guarantee that the hunt will yield desired result. It might take time to find a suitable employee with the desired profile and even if it succeeds in finding one, training and some experience that develops over time shall be needed and all this while, the company might have to compromise in terms of yield.

2. Increased cost: Over the time, employees who have spent more than 2 years in a company knows their work well and doesn’t need much help with their core. When new employees are hired, it automatically increases the expenses of the organization towards training, recruitment and selection costs, possible product/service quality problems, cost of temporary staff, etc.

3. Dissatisfactory working conditions: Increase in attrition rate signifies that the employees of those organizations are not happy with the working conditions, or present remuneration, or perhaps they do not see a scope for development in their current position. Companies must make efforts to retain its employees so that they could concentrate on strategies for increasing their yield instead of allotting the same work to different employees in every two year.

4. Switching job dilemma: When employees give in their 100% and do not see their efforts being rewarded with incentives and awards, they opt for switching job which is neither good for the individual or for the organization. After working for years in a company, the employees not only get professionally attached to the organization but also develop an emotional synchronization it. Though youth seeks better opportunities, but at one time they would want to be stable part of an organization.

5. Growth depends on employees: The growth of an organization depends greatly on its employees and that is why we say that employees are the biggest asset of an organization. Only if an organization takes care of the needs and gives them the right importance, then the employees will be satisfied with their job and that would lead to more efforts towards the benefit of the organization.


1. Better market: Attrition is seen as a quality of a recovering market, indicative of better job opportunities and better compensation along with growth of individual profiles. Some people are of the view that when employees want to stick to their present job even when they are not completely satisfied with the working condition, then the nation is a state of recession.

2. Experimenting with skills: High attrition rate also shows that individuals in India are keen in trying their hands at various skills instead of sticking to their domain of expertise which becomes monotonous after sometime. People do leave the jobs where they were paid well to do things they always wanted to do – maybe a dream career they wanted to pursue. It is time when India is witnessing engineers turned writers and economist turned chef.

3. More space for freshers: High attrition rate is one of the reasons why a fresher out of college does not need to strive to find his/her first job. Experienced individuals switching jobs for better opportunities gives openings to these newcomers who would otherwise struggle to find a good job.


Though high attrition rate has some plus points, yet for the growth and development of the economy of a nation, retention of talented employees is very important. Intellectuals switching jobs are not only finding better openings in India but also abroad. India needs its young employee to develop a better economic state. Instead of solely focusing on the profits of the company, they need to understand and value the interests of the employees.
Post your comment


  • RE: High attrition rate: a bad news or good news for India? -Deepa Kaushik (10/29/14)
  • High attrition is not all that good. The reason for the attrition being the greed for an increased salary package often leads to brain drain. It is well known fact that Indian companies are not offering a handsome package, or for that reason even a reasonable deal in comparison to MNCs.

    The work cultire and the lifestyle of the common man especially in the metropolitan cities have changed drastically with immense western imprints to it. This change is slowly attracting our young talented minds abroad. So we have the manpower that we don't utilize rationally, we have talent which we don't care to retain, we have hard work that we don't perform in the desired direction. Precisely we are big losers with all sorts of resources in hand. Calling the attrition as a favourable note is a good example of our foolishness.

    High attrition can not create jobs for the freshers. An experienced employee is always replaced with the employee with experience. The openings for freshers come up only if new opportunities are created. No organization lands in a losing deal to spend on freshers on their training formalities in place of a existing employees, unless the employee quits from the root level with unacceptable expectations from the company.

    Thus, the high attrition rate is an alert call for India to wake up and save the creamy layer from being plundered across the world