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Hospitality and aviation sectors are witnessing the highest attrition rates among employees, making retention of critical manpower resources a key challenge.
According to a study by MyHiringClub.com, the average attrition rate in aviation and hospitality in the fourth quarter of 2011-12 was 22 per cent across sectors, a rate that has increased by 8 per cent from the year-ago period.
In comparison, attrition rates in IT and ITeS sectors had fallen from 24 per cent in the fourth quarter of 2010-11 to 18 per cent in the same period in 2011-12.
Similarly, in the auto sector, attrition rates fell to 10 per cent in January-March quarter from 11 per cent in the corresponding period in 2010-11.
Poor pay masters, delay in salaries
“At the entry and mid-management level, attrition rates in aviation and hospitality industry have doubled over the last three years. This is happening due to perceptions of being poor pay masters, delay in salaries, job insecurities and little concern for employee welfare.
“Profitability of these sectors is also a major reason for high attrition,” MoneyCrest Management Director, Mr Ravi Gupta, said.
Echoing similar views, Sat-n-Merc Manpower Consultant Director, Mr Prachi Kumar, said: “factors such as attractive and definite pay package with incentives and working conditions seem to be more moderate and regulated in areas of aviation, hospitality, retail and animation.”
Quality workforce
The hospitality industry has failed to retain good professionals, Mr Kumar said, adding that one of the greatest challenges plaguing the sector is the unavailability of quality workforce at different skill levels.
MyHiringClub.com CEO, Mr Rajesh Kumar, said: “Now these days organisations from these sectors had either freezed their hiring activity or are hiring very less number of employees.
“Also employers are facing very high attrition because of their credibility. In the last six months, issues with aviation industry are driving the high attrition rate.”
The survey is conducted among over 7,000 employees and nearly 250 employers in April.
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