40% Indian Employees Will Resign After Getting Salary Increment! These Industries Most Vulnerable To This Trend
A survey has found that four out of every 10 employees want to leave their current organization post-increment.
The survey conducted by Naman HR, a management-consulting firm, has many findings.
Aptly titled the Great Resignation Survey, more than 500 organizations across various industries were covered.
It sought to understand the factors behind rising voluntary attrition in the labor market.
Majority of the workers considering resignation work in service (37%), manufacturing (31%), and IT (27%) sectors.
Gender-wise, six out of every 10 male workers are inclined to resign in the coming months.
A major reason for voluntarily quitting is slow salary growth.
Reasons behind quitting
Only 15% of employees surveyed say that their decision to leave is triggered by the discomfort with their reporting manager.
The main reasons people quit are salary growth (54.8%), work-life imbalance (41.4%), lack of growth opportunities (33.3%), and lack of recognition (28.1%).
There is a trend towards entrepreneurship here.
More than one in 10 workers wanted to start their own business after leaving their jobs.
35% of employees (30-45 years old) want to be entrepreneurs soon after quitting their jobs.
However, it is not just the people leaving their jobs that have entrepreneurial ambitions.
44% of workers (20-29 years old) who are not thinking of resigning anytime soon have also shown an aspiration to start their own business.
They want to get their hands dirty in the corporate world, know the ins and outs before starting their own business.
Workers from the manufacturing and service sector are the ones looking to become entrepreneurs soon.
Compensation the most important
Every third worker wants a threshold salary increase of 40% and above.
It has been observed that compared with previous years, compensation is rising in importance in relation to other factors.
Many employees over the last few years have been frustrated by stagnant wage growth.
Younger employees may want substantial salary hikes more as they pay off college loans and try to build savings to buy a house and start a family.
What companies should do
Companies have to step up their game if they want to prevent people from leaving in droves.
They can start by offering a flexible work schedule and good work-life balance, fair and regular pay increase, appreciation from higher authorities, and better compensation and benefits.
Where companies should start
Samir Parikh, founder, Naman HR sums up the biggest takeaway from this.
Companies need to realize that commensurate compensation is the foremost thing an employee wants.
Other important needs include flexible work options and career growth opportunities.