'Retention of employes key issue for IT, ITeS companies'

By Staff
|
Google Oneindia News

Bangalore, Mar 13 (UNI) The high growth trajectory of Information Technology and ITeS industry in India is leading to an increasing talent war, resulting in soaring attrition, according to a survey.

The survey, conducted by the National Association of Software and Services Companies (NASSCOM) along with Hewitt Associates, said ''attraction and retention of employees remain a key issue for the IT and ITes industry. At the junior level, organisations have reported an average attrition rate of 30 per cent in the IT and 40 per cent in the ITeS industry.'' More than 125 local and foreign owned companies were surveyed for the 'total rewards study 2005,' which covered market analysis on key elements of compensation as well as prevalence of critical benefits and HR practices. The study also highlighted trends in compensation based on location, skill and process complexity and captured the changing rewards landscape owing to fringe benefit tax.

The study said capability development continued to be an area of focus with 70 per cent of the surveyed partners laying emphasis on ongoing assessment of skills, knowledge and abilities to identify the employees and development opportunities. It revealed that organisations were actively undertaking employee development measures through initiatives such as job postings, internal transfers, job enrichment and job redesign.

Performance based pay was gaining ground within the industry as most employees view it as an opportunity to earn more. More than 80 per cent organisations across these two industries report a prevalence of short-term incentive plans and about 40 per cent report existence of long-term incentive plans with stock options being the most favoured.

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