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Tips on how IT companies can manage attrition and drive positive employee engagement

• By Sumana Iyengar
Tips on how IT companies can manage attrition and drive positive employee engagement

COVID-19 and the lockdown have tremendously altered the structure of the Indian professional, corporate set up, creating new rules and trends in the employee- employer dynamics. On the one hand, as salary cuts and layoffs became a flavour of the season during the early lockdown, involuntary attrition has been plaguing the IT sector in the new normal. As companies struggle to maintain overheads and avoid layoffs, employees are struggling with pay cuts or are still coming to terms with negligible to zero increments. Further, ‘work from home’ has completely disturbed the ‘work culture’ fabric, adding to the insecurity and uncertainty among employees. It is not a surprise then, that while IT as a sector has seen a comparatively steady growth during the lockdown, it has also witnessed a massive attrition trend that has posed a grave internal challenge. On an average, the employee turnaround rate – the rate of recruiting and replacing an employee who has left the job, for the IT sector, remains at 13.2%, higher than other business sectors. While this can be for various reasons, the most prominent right now seems to be the salary cuts and the lack of increments. Moving between companies, seeking higher pay checks that can compensate for the absence of a salary hike, is common. However, in the processes, companies are losing out on well trained staff while employees are making choices that could hamper their long term growth, risk getting trapped in an unfavourable work environment or worse, face layoff in a short term, if the new company is not a stable one.  

Listed here are 5 tips on how IT Companies, especially the MSME/ SME sector, can control attrition and drive positive employee engagement, in the post COVID-19 world: 

While the above tips are handy for senior management and HR personnel to create a positive ‘new normal’ workplace, it is also important for employees to see, appreciate and respond to the initiatives taken by the company. Here are tips for how employees can weigh and take a decision before they decide to call it quits with a company:

As we emerge from a mighty calamity, on the other side of 2020, it would help us to realise and remember that the one thing that helped us all get past the crisis is the ability to face it together, as one unit. For businesses and employees too, it is time to stick together, in mutual support, so as to help each other survive and grow. That is the only way forward!