Attrition in IT may rise to 24% in Q4 and Cost of tech talent go up by 0.5-1% in FY23: UnearthInsight

Attrition in IT may rise to 24% in Q4 and Cost of tech talent go up by 0.5-1% in FY23: UnearthInsight

Attrition in the technology sector will rise further in the fourth quarter of this fiscal, according to a study by UnearthInsight, a cognitive intelligence platform.

What is attrition rate? 

A company's attrition rate is the rate at which people leave. In simple words, it is the number of people who have left the company(voluntary or involuntary), divided by the average number of employees over a period of time.

A simple formula for figuring out your employee attrition rate is dividing the number of full-time employees who have left per month (called "separations") by the average number of employees, and then multiplying that figure by 100.

From FY23, staff retention is expected to improve and attrition rates are likely to

decline to 16%-18%. 

"Attrition is expected to be in the 22-24% range in Q4 [January-March quarter]. It has been on the rise from 19.5% in Q2 and 22.3% in Q3. However, it is expected to come down to 16-18% in FY23," the report said. 

As per the study, the cost of technology talent is in the 56-57% range for tier 1 and tier 2 tech players and this is expected to go up by 0.5% to 1% in FY23.

#thehindu #UnearthInsight #Attrition #tecynologyHiring #Retention #attritionrate #whatisattrition