Attrition rate in service sector touches 35% in H1: Assocham

Attrition rate in the services sector has gone as high as 35 per cent in the first six months of 2010-11 with banking segment topping the chart, a study by Assocham has found.

"In the post-crisis period, attrition level in the financial services sector has touched 30 per cent in the first six months of the current fiscal, followed by IT and ITeS sector 24 per cent," the study said.

The survey revealed that better pay packages, along with growth prospects were the main reasons for job change in majority of the cases.

It said that maximum rate of attrition is taking place among the middle-level employees with an average experience of two to four years, while the most stable group of employees were those with an experience of more than 12 years, as they feel more secured in their present jobs.

The Associated Chambers of Commerce and Industry of India (Assocham) has surveyed over 130 human resource heads.

The respondents said the cost associated with recruitment and training of new staff remain quite high.

Assocham Secretary General D S Rawat said many a times the work gets affected due to replacement time and unavailability of adequately skilled staff.

"As companies are going ahead with their expansion plans which were kept in abeyance, human resource heads require to hold the best talent and utilise their potential for the growth of the company," Rawat added.