TeamLease, one of India’s employment services providers, has recently released its “Employment Outlook Report” for Q4 (2023) for both manufacturing and services sectors. The report which also delves into attrition trends, indicated the continuance of the great churn, highlighting that attrition across industries witnessed a 0.46% increase, from an average of 7.81% in Q2 to 8.27% in Q3. A comparison between manufacturing and services sectors indicates that the information technology industry in the services sector had higher average attrition (+27.19%) as compared to healthcare and pharmaceuticals industry in the manufacturing sector (+15.67%).
Analyzing industry wise trends in an in-depth manner, the report finds that in the manufacturing sector, healthcare and pharmaceuticals industry saw double digit attrition rates (15.67%) as compared to manufacturing, engineering and infrastructure (7.51%), agriculture and agrochemical (6.55%), power and energy (5.63%), construction and real estate (4.19%) and fast moving consumer durables (4.03%). Whereas the textile and electric vehicle and infrastructure industry, faced the lowest attrition trends for the Q3 with 1.22% and 2.63%, respectively. Other industries in the manufacturing sector recorded negative attrition during October to December quarter. Among start-ups in manufacturing, attrition rates were alarmingly high (26%).
Balasubramanian A, Vice President and Business Head, TeamLease Services, said, “Attrition has increased for a number of reasons, including an unprecedented high demand for hot skills in technology, risk, assurance, and areas such as ESG (environmental, social, and governance). In the post-COVID era, the war for talent became more intense and the impact was high on the manufacturing segment.”
From a services sector perspective, key industries which witnessed higher attrition were information technology (27.19%), educationalservices (18.02%), ecommerce and allied start-ups (15.13%), knowledge process outsourcing (13.79%) and telecommunications (12.05%). However, the rest of the four industries, namely travel and hospitality, logistics, consulting, and media and entertainment saw low attrition rates of below 5% during the October – December quarter.
“Influenced by upcoming appraisals, economic turmoil in the ecosystem, and increased migration between allied industries, attrition has increased significantly. Attrition has been reported to be higher also due to increased new age opportunities”, added Ajoy Thomas, Vice President and Business Head, TeamLease Services.