Global companies may be coming out of the economic downturn shadow, but accelerating growth will also re-energise the job market as it will give employees more options, paving the way to higher attrition, a new study estimates.
Consulting firm Hay Group estimates that across the world 161.7 million workers will leave their jobs in 2014 — a 12.9 per cent increase in the number of people leaving compared to 2012. According to the study Preparing for Take-Off , “49 million more employees will leave their employers over the next five years compared to (the number that left in) 2012.”
And, the study says, India will be in the eye of the storm. It will witness the highest predicted employee turnover globally at 26.9 per cent in 2013.
Mohinish Sinha, Leadership and Talent Practice Leader, Hay Group India, says, “The upturn will come with a risk — driven by an ambitious middle class, employers at India Inc are likely to face a talent exodus in the coming year. Already, we see employees around the country starting to seek new job opportunities as growth returns and labour markets begin to pick up.”
He adds that organisations in India must give serious thought to what drives employee commitment and focus on employees with critical skills, high potential and those holding crucial roles.
The study notes that with employment opportunities increasing, the worldwide employee turnover, which was more or less stagnant between 2010 and 2012, will accelerate in 2014.
The study covered 700 million employees across 19 countries.
“Average employee turnover rates over the next five years are predicted to rise from 20.6 per cent to 23.4 per cent, and the number of global departures in 2018 will stand at 192 million,” the study adds.
Mark Royal, Senior Principal at Hay Group, said that companies must address engagement and enablement challenges to ensure that high-value employees don’t leave for more favourable jobs.
The study predicts that the emerging markets in Asia-Pacific region , whose economic prospects re brighter, will see the highest turnover.
The study has identified five factors which are seen as consistent predictors of employee engagement and commitment — confidence in leadership, an opportunity for career development, autonomy, supportive work environment, and appropriate compensation.
In the Asia-Pacific, including India, over 60 per cent of employees are supportive of the goals of their organisations, and have confidence in their senior management. Three in every four Indian employees also feel that they have adequate authority and are supported in their innovative and creative endeavours.
However, compensation seems to be a thorn in their sides, as over half of all Indian employees (55 per cent) expressed concerns about the fairness of their compensation and about half (48 per cent) questioned the extent to which benefits meet their needs.
One in every three (37 per cent) employees also expressed a lack of confidence in being able to achieve their career objectives with their current employers.