Attrition Rate Control

Effective ways to control High Attrition Rate in IT Industry 100%

Attrition Rate Control
Happy Employees = Reduce Attrition Rate

Attrition rate of an organization is often referred to “Churn Rate”. It is rate at which how quickly employee is switching Job. “Low Attrition rate” indicates that people are staying with your organization for a longer period of time. “High Attrition Rate” indicates that employees are switching job very quickly..

20% or higher attrition rate is considered to be High Attrition rate which a bad sign for an company. Any thing lower than 20% is considered to be fair rate.


Attrition Rate (%) =No. of employees that left workspace / Avg. number of employees

Let us understand what causes HIGH Attrition Rate in a company.

There are various factors that causes high attrition rate in an organization. This can include unfriendly work environment, Unhappiness about employee benefits and Remuneration, Low Pay scale, Less career growth opportunities, Work and personal life disbalance, poor job fit ment, Poor learning opportunities, Micro managing etc. Any reason where employee is unhappy results “Job Switching”. Which ultimately increases Attrition Rate of a Company. There are various external factors which causes turnover of employee such as accidental events like War, Natural calamities, International Trade restrictions, etc.

Can Attrition rate be more than 100% ?

Yes definitely!! you can absolutely get attrition rates of more than 100%. But remember that turnover numbers can vary substantially month to month.

Average Attrition rate in IT industry in 2021 was 16.3%

Source —

In recent events in India, Top IT companies like TCS, Wipro, Infosys have reported average of 25% + of attrition rate which is much of a concern for an organization.

What can reduce Employee Attrition Rate?

Give Your company Steady Growth

Improve Employee training programs

Apart from recruitment process, you company must focus on how you train employee, especially newly hired. Your motive for training employee is to enhance their knowledge of the products or services that you r company offer and be able to understand work process. See to it that your training programs are very interesting and focused to help prepare your employees to do their jobs efficiently and confidently.

Set up great work environment for everyone

Employees love the company when the culture around their desk is fun. 9 hours of their day they spend near that desk and if that is something they are unhappy with, there are high chances they will find better place to work.

Reward and recognition

Everyone likes when they are rewarded for their work. Appreciate your employee when they do some great things for company apart from regular assigned work. Believe me they will love it.

Corporate Politics

Either higher authorities are unaware or they pretend to be blind but this is “Dark Truth” which causes most employee to switch their job. Either it is senior, Old employee or so called “Favorite Employee”. These are the best reason an “New Employee” doesn’t get credited for their work. Which eventually demotivates them to showcase their creativity.

“Right to Speak” -Proper Communication

Set up a right communication channel where employees can provide their inputs and share their views. 90% of time, in big companies this is ignored. Employees can hardly reach to right authority directly, which makes them feel unheard. Even there are various seniors in to carry message to high authority it is highly possible word are changed and sometimes their meaning too. Improving this communication flaw you can make feel employee important and happy.

Great Learning and Growth Opportunity

According to survey, 63 out of 100 employee leave their job because of low career growth opportunity. A real life example of my friend, she works in a big company “XYZ” but being a Gold Medalist in software engineering she is working on same part of project where she just need to provide support or some updates. Which in result made her skills limited and in highly competitive market she is still considered to be fresher because of lack of knowledge.

“Never do that to any employee”. Give them opportunity to learn new skills, enhance their skills.

Work life Balance

“Personal life is as important as professional life” This is way too hard for any organization to understand. Build a work culture where employee can manage their personal and professional like together.

Pay Scale

If not you someone else will, Your organization must be updated with market and Avg. pay scale of employee. Salary is as important as benefits, employee’s work money and actually they are sometimes bound too. So when you do not give what they deserve you will definitely loose them. You can call it hypocrisy of Employer, during yearly increment they become stingy and when that same employee resigns they offer better PayScale in order to change mind of employee and stay with organization. Wouldn’t it be helpful for employer to offer better increment and prevent this circumstances in first place. 7 out of 10 employee refuses pay hike when that is offered after resignation.

These are some ways how your company or organization can prevent Attrition.

What is Safe Attrition Rate?

Rate below 10% is considered to be safe. whereas anywhere between 10%-20% is considered to be fair rate. And anything above 20% is considered very High and it is an indicator there is something wrong with organization.

Top 5 Consequences of High Attrition rate.

  1. Loss of valuable resources, Knowledge, and experience
  2. Loss of belief in the team’s competence
  3. Increase in Hiring Cost, Training cost, and employment cost
  4. Loss of Annual Gross Profits Margins
  5. Loss of brand Value.

Due to recent world event’s like Russia — Ukraine War, Global inflation in Western countries, Supply chain disruption etc. IT sector companies are very much affected. One of the reason for high attrition rate is “Layoffs” as well. Due to these events companies are forced to switch their mode to cost cutting, eventually “Layoffs”

Apart from Internal changes the best way to control attrition rate is “C2C Hiring”

Although majority of big organization do some C2C contract hiring, but there is right way to do it.

What is C2C Contract Hiring?

C2C -Corporation to Corporation Contract. Where Company “A” hires Company “B” as their extended team or talent partner. Benefit of C2C is it is cost efficient compared to in-house hiring. It usually cost 40% less than in-house hiring.

Top 4 Benefits of C2C contract.

  1. Hire as per need for limited duration (it is very efficient for any organization especially startup to limit their overhead costs)
  2. 0% Attrition as company “B” is entitled to replace left employee with similar experience and training.
  3. Cost Efficient — Avg. rate of Software Engineer with 4+ years of experience is USD55/Hr. Where as if you hire employee with same experience on C2C contract it would cost you anywhere in between USD30 to USD40. (*Only if you hire outside United states). One of the best company to provide dedicated resources on C2C is Techforce Global.
  4. Hire as many as resources in limited time frame.

Below are some references where you can find c2c contract resources.

Hire dedicated Java Developer on C2C

Hire dedicated Mobile App Developer on C2C

Hire Dedicated Developer Team for Project


Identifying issues within an organization must be first step toward improvement of Attrition rate of company. Accept and Improve the area where your organization is lacking behind and causing employee to switch their jobs. Finally improve your Attrition rate with Extended Teams and several C2C contracts.

Leave a Comment

Your email address will not be published.