MUMBAI: Indian corporates are seeing workforce attrition and hiring skilled people as a challenge for the future. Corporates are also seeing uncertainty over export demand a constraint to adding capacity.
Senior industry officials at the SBI Economic Conclave said they were facing high attrition. The private financial sector is already seeing a high turnover in front-line jobs, with many private banks reporting 20-25% churn.
“In manufacturing, getting certain special skills like digital or sustainability-related is difficult. We are also finding it difficult to get diploma holders. Today, if there is a project, the contractors have to hire 30% more workers as there is an attrition risk,” said JSW Steel joint MD & CFO Seshagiri Rao.
L&T CFO R Shankar Raman said, “We are finding that in the technology services company that we run, the attrition is still big at 20-25% and it is no joke to keep adding a huge number of people to be at the same place. ” He added that there was a premium on talent in technology, which he felt was unsustainable because it results in the individual becoming more important in the organisation. “We employ close to 10,000 people in the coastal road project, many come from faroff lands. As inclusivity improves employment opportunities, some of the migrations will stop, and we are looking for alternate solutions. ”
According to Crisil Ratings MD Gurpreet Chhatwal, the biggest opportunity and risk that Crisil sees in various industries is that of vocational skilling of people.