“I finally got my Indian peer up to speed and we’re working well together. But now he is leaving and I have to start all over again…”
Churn is a big headache in India. The cost of attrition is 18 months’ salary and hiring externally hikes up salary costs by 20%. Aside from the tremendous costs, it has a huge impact on international team performance and satisfaction.
I once met a company in China where churn was so high that they broke jobs down into tasks that took only 30 minutes to train. Churn is not solely an Indian problem but with RPA, job complexities in India are only getting bigger, not smaller. Since 30-minute job training is not an option, let’s dive into this subject.
What are normal attrition rates in India?
Job-hopping is widely accepted in India. A recent survey by KPMG India shows a 13,4%. attrition rate across industries. In some industries such as professional services however, a 25% rotation every single year is normal. Multiple heads of GBS in India reported an average churn of 17-18%.
Why is churn so high?
Millennials: You’ve probably noticed that your Indian colleagues are very young. On average, Indian employees are 29 years old. Over 50% of the population is under 25. You’re working with an almost exclusively Millennial workforce. So, how do Indian Millennials compare to their peers across the globe?
Tell-tale signs that your organisation has
Check the data: Churn rates vary per industry. Reputable recruitment companies in India know industry data so you can compare your churn to companies in a similar field. They can also tell you whether external factors such as location could be contributing to your churn.
Interview your source:Why are your people leaving? Anjali Raghuvanshi, Chief People Officer at Randstad India first recommends companies to hold stay interviews to prevent staff from leaving in the first place. Should they hand in their notice, Anjali finds that face-to-face exit interviews work better in India than an online survey because you’ll get more genuine answers. Staff often cite personal circumstances: getting married, relocating etc. Sometimes these are genuine. However, medical circumstances are often used to escape the notice period.
Detect a pattern: Anjali always looks out for patterns. If almost everyone is citing personal circumstances for leaving, you need to ask yourself why. Is the manager too strict? Once you detect a pattern, alarm bells start should start ringing.
The key ways to retain talent
So, what do you do when you have a problem in your
You have detected a pattern. The issue is internal, not external. Your Indian management says the churn is normal but you don’t think it is. Or you hear a lot of excuses. You’ve asked for action plans but you don’t see results. You have an uneasy feeling; that you don’t have a grip on what’s going on. So, what do you do? Fire people? Accept it? Before taking any action, you need to check if your global policies work for India. Secondly, you need to understand what you are dealing with. And that means immersing yourself with knowledge about the Indian way of working. You need to be able to answer whether you have the right people - which means this is a case of skill development - or if you have the wrong managers - who are perhaps a little chalta hai or old school, driving performance but also churn.