The retention level of Indian organisations is weaker than their global peers, as 35 per cent of Indian workforce have a tenure of less than two years, says a survey.
According to the PwC Saratoga India survey, globally retention level in the western region is fairly strong, as just 15 per cent of workforce have a tenure of less than two years, while for the Asia Pacific region it stood at 30 per cent, still better than India.
Sector wise, banking and ITeS companies witnessed the highest voluntary employee turnover with the employee resignation rate in banks being 2.9 times more than that for engineering and manufacturing organisations, the survey that covered 58 Indian firms across different industries said.
"One of the key finding of the survey this year was that organisations which were better able to manage talent turnover gained more benefits from investments made in employee development," PwC India Executive Director & Head, People & Change practice Sankar Ramamurthy said.
Ramamurthy further noted that "with India being a developing economy, organisations that succeed in maximising their human capital contribution to business performance will stand to gain exponentially."
Meanwhile, to step up their retention levels, organisations have stepped up their learning and development efforts as well as ensured new hires became productive early.
Also, organisations became more aware of the need to source talent from within to aid in retention.
Organisations are also looking at improving the efficiencies of their HR functions. They are focusing on core HR activities and outsourced high volume, low skill work to effectively service business, the report added. PwC Saratoga is a leader in measurement and benchmarking of human capital performance, human resource and finance function transformation.
