27 % Indian staff set to switch jobs

Globally, the number of workers taking flight is expected to reach 161.7 million in 2014 - a 12.9 per cent increase in people leaving compared to 2012, says a Hay Group study

News | by CIOL Bureau

BANGALORE, INDIA: Over the next five years, 49 million more employees as compared to 2012 are going to leave their current employers and switch jobs, global management consultancy, Hay Group's new research, in association with the Centre for Economics and Business Research (Cebr), has revealed.

As far as India is concerned, it finds itself in the eye of the storm, with a predicted employee turnover of 26.9 per cent (in the organized sector) in 2013 - the highest attrition rate globally.

The study, Preparing for Take-Off, covers 700 million employees in 19 countries worldwide and is based on a unique Hay Group macroeconomic model that analyzes the main factors affecting employee turnover across the globe, stated a release.

The study finds that global firms will face an imminent threat of rising employee turnover, as a result of expected improvement in economic and labor market conditions in the next five years. As growth builds and employment opportunities increase, the worldwide employee turnover is set to accelerate in 2014, after having barely moved between 2010 and 2012, added the release.

Globally, the number of workers taking flight is expected to reach 161.7 million in 2014 - a 12.9 per cent increase in people leaving compared to 2012. Average employee turnover rates over the next five years are predicted to rise from 20.6 to 23.4 per cent, and the number of global departures in 2018 will stand at 192 million.

Mohinish Sinha, Leadership and Talent practice leader, Hay Group India, explains, "Indian economic growth is set to pick up, and this will be warmly welcomed by businesses. But the upturn will come with a risk - driven by an ambitious middle class, employers at India Inc are likely to face a talent exodus in the coming year. Already, we see employees around the country starting to seek new job opportunities as growth returns and labor markets begin to pick up."

Mark Royal, senior principal at Hay Group, comments, "The turbulent labor market associated with the economic downturn has held down turnover rates in many firms. But as the economy recovers and global employment becomes less volatile, dissatisfied workers are a significant flight risk for organizations across the world. To keep high value employees from leaving in search of more favorable work arrangements, firms must address engagement and enablement challenges."