Information Technology companies are likely to report yet another quarter of high attrition as they begin reporting their quarterly earnings for the April-June period.
Human resource professionals and industry executives said that IT companies likely witnessed peak attrition during the June quarter on a last twelve months (LTM) basis.LTM is based on the average employee resignations in the last 12 months and the total manpower strength of a company.
Gaurav Vasu, chief executive officer of IT market intelligence firm Unearthinsight sees sequential attrition growth at 2-4% on account of LTM and hike season, according to Economic Times.
The big four of Indian IT —Tata Consultancy Services, Infosys, HCL and Wipro—reported record high attrition of 17.4% to 27.7% during the quarter ended March.
Kamal Karanth, co-founder of specialist staffing firm Xpheno said the attrition in the recent quarter is likely to report higher or at elevated levels as the gap between demand and supply of digital talent continues to remain high.
High demand leads to increased attrition; also the onboarding ratio currently stands at 60% which means that only 6 out 10 job offers are being accepted. Normally this figure is upwards of 80-90%, added Karanth.
He further added that increments usually satisfy just 30% of workers who are the top performers, and the remaining 70% can be divided into two categories: those who are part of legacy skills and the other who are in the digital skills but not top performers.
