India Inc sees a dip in attrition to 17% in 2023 amidst global tech downturn: Deloitte survey
Attrition levels across India Inc dropped to 17% in 2023 from 19.7% in 2022 on the back of a subdued job market, macroeconomic headwinds, layoffs across sectors, and an uncertain future environment.
As the tech industry faced a global downturn and employees hunkered down to hold on to their jobs, the biggest drop in attrition has been in the IT/ITeS sector, where employee turnover fell to 15.5% in 2023 from 21.3% in 2022, according to the Deloitte attrition survey shared exclusively with ET.
Attrition numbers dipped across sectors barring financial services where it rose to 32.7% in 2023 compared to 29.2% in 2022.
Employee turnover slowed down to 18.1% (18.4% in 2022) in consumer products, 19.4% (20.5%) in life sciences, 18% (19.3%) in services, and 11% (13.5%) in manufacturing.
“Attrition is always positively correlated with business growth… When companies grow, the demand for talent grows, and within the defined talent market, it translates into attrition,” Anandorup Ghose, partner, Deloitte India told ET.
“With demand for technology talent coming down on account of both a slowdown in customer markets (for IT services companies) of North America / Europe as well as lesser funding available for early-stage companies, the need to hire more people has declined and, with it, the large attrition numbers,” he said.
Core sectors and core skill attrition was not significant ever and at this point has seen a marginal decline but not as sharp as technology-related sectors, Ghose said.
HR heads and industry experts say lower attrition levels are likely to continue in the first half of the new year.
“The entire job market has slowed down; industry has slowed
