Wednesday, September 13, 2006

India Inc's Attrition Rate Benefiting Whom?

High attrition rates in the IT and BPO sector, even in the BFSI sector, in the India Inc. is common killjoy, for the managment, who have yet to get an offer. It is bleeding the industry, and corporate HR's wake up in the middle of the night with nightmares that the most unlikely people are leaving.

Attrition management has become a key challenge in HR management today. New incentives, both menetary and non-monetary, get devised every day.

But who is laughing all the way to the bank, other than the consultants, who have become stickier than credit card tele-callers, not that anybody is complaining. Oh! yes, recruiting firms are talking of increasing their headcount and such like. There even are ancillary industries, like risk management. "Risk management in recruitment!" I asked when I heard that my friend was a risk analyst with a recruitment firm. Yes, the wrong recruitment has become of the major risk to be mitigated at all cost. Hmm!!!

So Recruiting firms are booming with high attrition rates, but then it is obvious.
One very unlikely industry that is gaining heavily from this attrition thing is the Clinical Test Labs like SRL Ranbaxy.

SRL Ranbaxy have tied up with several corporates, and coupled with huge intakes, the frequent job change results in a very good turnover for clinical labs. The other day, I had gone to one SRL ranbaxy for a check-up. By the time I was done at 11 o'clock, there were about 90 entries in the register. I did a quick scan of the register by chatting up with the security. Out of 90, only about 20 had written "test" meaning they had come for personal check-up and the rest have written the names of various companies who had sent them for medical check-up. i am sure, some people who had come from companies had also written test. So it means almost 80% customers of this particular SRL Ranbaxy centre are corporate.

No wonder, the CEO of SRL Ranbaxy J. S. Puri said that he plans to achieve a target of a revenue of 500 crores by 2008 from the current 100 Crore.

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Anonymous Maverick said...

I agree with you on your opinion that the External agencies, like consultants,consultancies and even clinical labs, benefit more from this attrition.

26/9/06 11:56 AM  

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