With appraisal season just around the corner, strategic job moves is most expected to be faced by HRs in India. HR consultants in India expect high employee exodus in months that immediately follow the appraisal with an average rise of 15 percent to 20 percent attrition rate.
The buzzing job market and increasing employee expectations are among the reasons cited for this post appraisal season job moves.
Aditya Narayan Mishra, president of staffing at Randstad India predicts, “Attrition is likely to be more pronounced in the tech sector with emergence of new businesses like e-commerce and growth of small and medium enterprises benefitted by cloud computing.”
Further ‘HR Game Changers 2015’ survey conducted by Randstad in December 2014 indicates 59 percent employees are looking for a job change in 2015. This year may witness a surge in attrition rates to a two-year high over the next months, due to the buzzing job market and new opportunities coming up in India.
Rituparna Chakraborty, co-founder and senior vice president of TeamLease Services told EconomicTimes, “Companies need to be ready for attrition May-June onwards and it will be 20 percent higher than the past two years. Hiring in BFSI (banking, financial services and insurance) and consumer sector will grow and IT is going to lose employees to the expanding ecommerce sector.”
See: Two-way appraisal: Is that the way to a better workplace?
To reward and retain good employees, companies in India are planning to roll out an average 10 percent to 12 percent hike for talented professionals with unique skillsets in demand. Many corporate majors are also willing to go to an extent of offering top-up benefits.
“Lots of innovative benefits are expected to be introduced, apart from car, luxury watches, smart phones, iPads, family holidays, flats and more. Start-ups are expected to offer ESOPs for key resources,” Sunil Goel, Managing Director of executive search firm GlobalHunt told EconomicTimes in another report.
Employees employed in digital marketing and analytics might see a performance hike of upto 30 percent while those from FMCG and consumer industries will witness a decent 10 percent to 15 percent salary hike during the coming season. While some companies seek top-up benefits as a means to retain top talent, there are some others who are looking forward to revolutionize the performance appraisal criteria.
According to a company statement by Igate, “A few employees had been put on PIP (Performance Improvement Plan) since they were rated as NI (Needs Improvement) in 2014. PIP is a developmental plan with investment from the company to train and develop employees in a focused manner. This shall not be understood as an effort to separate employees.”
Srinivas Kandula, chief people officer at Igate sent a mass email to employees on the similar lines saying, “Employees who will complete their PIP successfully will be confirmed and those who are not will be dealt within the framework of the company policy.”
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