Attrition in the manufacturing and services industries saw an increase of 0.46 per cent from 7.81 per cent in Q2 to 8.27 per cent in Q3, according to a report by TeamLease Services.
The IT industry in the services sector saw higher average attrition (+27.19 per cent) compared to the healthcare and pharmaceutical industry in the manufacturing sector (+15.67 per cent).
In the manufacturing sector, the healthcare and pharmaceutical industries saw double-digit attrition at 15.67 per cent compared to manufacturing, engineering, and infrastructure at 7.51 per cent, agriculture, and agrochemicals at 6.55 per cent, power and energy at 5.63 per cent, construction and real estate at 4.19 per cent and fast-moving consumer durables at 4.03 per cent. The sectors with the lowest attrition include textile and electric vehicles and infrastructure industries at 1.22 per cent and 2.63 per cent, respectively. Other industries in the manufacturing sector recorded negative attrition during the October-December quarter.
“Attrition has increased for a number of reasons, including a high demand for skills in technology, risk, assurance and areas such as ESG (environmental, social, and governance). In the post-Covid era, the war for talent became more intense, and the impact was high on the manufacturing segment,” said Balasubramanian A, Vice-President, and business head at TeamLease Services.
Service sector
The key industries that witnessed higher attrition were information technology at 27.19 per cent, educational services at 18.02 per cent, e-commerce and allied start-ups at 15.13 per cent, knowledge process outsourcing at 13.79 per cent and telecommunications at 12.05 per cent.
The remaining four industries namely travel and hospitality, logistics, consulting, and media and entertainment saw low attrition rates of below 5 per cent during the October-December quarter.
“Influenced by upcoming appraisals, economic turmoil in the ecosystem, and increased migration between allied industries, attrition has increased significantly,” said Ajoy Thomas, Vice-President and business head at TeamLease Services.