Attrition control is now going beyond HR policies as a result of increasing competition and acute talent shortage. The attrition rate experienced by a company reflects the effectiveness of its HR policy. A high rate of attrition generally projects a negative image of the company and of late, companies have become sensitive to this kind of publicity. With high attrition rates being the bane of every industry, companies are devising innovative business models for effective retention of talent. There are a lot of factors responsible for attrition and employers are getting increasingly conscious of the factors that can keep an employee committed.

Employee retention has become the latest buzzword of the corporate world. Each and every department of the organizations worldwide faces unabated levels of attrition. Attrition rates of India Inc., are overblown and as the country is moving towards a billion-dollar economy, retention has turned out to be a major concern for the entire industry. Attractive salary package is not the only driving factor for attrition. Factors such as seasonality, employees opting for higher studies, dearth of professionals in a particular industry have also led to rising levels of job-hopping. A candidate who has a particular skill succeeds in finding different kinds of work opportunities. Candidates who possess the right skills for the job always attract the recruiters and have more demand in the job market.

The HR departments of the organizations are under tremendous pressure to retain the talent and are devising various innovative strategies to face this challenge. But since star performers are always in great demand and intellectuals are valued highly, the companies are having a real hard time in attracting and retaining them. The BPO and IT sectors have the highest attrition rates and it is fast spreading to other branches of service like civil aviation, finance, retail, engineering and pharma. Indian IT companies, which are already struggling to cope with the rupee rise, are finding it hard to retain their staff. The employees of top four IT firms; TCS, Infosys, Wipro and Satyam witnessed a flight of about 10,000 people in the first quarter of last year. Industry estimates show that while attrition rate in the IT sector has decreased to 25-30% in 2007 as compared to 35-40% the year before, the aviation sector, with the entry of numerous players is witnessing attrition to the tune of 46%.

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