Employee Turnover Rate to reach 192 Billion by 2018: Study

In association with the Centre for Economics and Business Research (CEBR), the Hay Group has revealed that the 49 million more employees have decided to switch jobs in the coming five years in its research report. As far as India is concerned, it encounters highest attrition rate with a predicted employee turnover of 26.9 per cent (in the organized sector) in 2013. Average employee turnover rates over the next five years are predicted to rise from 20.6 to 23.4 per cent, and the number of global departures in 2018 will stand at 192 million.
 
Mohinish Sinha, Leadership and Talent practice leader, Hay Group India, said, India’s economic growth is set to pick up, and this will be warmly welcomed by businesses. But 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 labor markets begin to pick up.
 
Mark Royal, Senior Principal at Hay Group, stated, The turbulent labour market associated with the economic downturn has held down turnover rates in many firms. But as the economy recovers and global employment becomes less volatile, dissatisfied workers are a significant flight risk for organizations across the world.
 
The study finds that global firms will face an imminent threat of rising employee turnover, as a result of expected improvement in economic and labour market conditions in the next five years. Globally, the number of workers taking flight is expected to reach 161.7 million in 2014 – a 12.9- per cent increase in people leaving compared to 2012.