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Great Resignation to intensify in FY23 as attrition of seniors likely to outpace juniors

A significant 61% of employees in India are willing to accept a lower salary or forgo pay rise and/or promotion for better work-life balance, overall well-being and happiness, says recruitment firm Michael Page

April 19, 2022 / 01:33 PM IST

The talent war in India and elsewhere is only going to hot up in FY23 and voluntary attrition among seniors will be higher than juniors. And this will not be confined to tech or tech enabled sectors alone, but will play out on a more diverse canvas.

There has been a wave of resignations in India as just over one-third of respondents (38%) have only been at their current jobs for not more than two years, fresh survey findings by global recruitment firm Michael Page showed on April 19.

“Our research also found that a significant 86% of respondents will be looking for new career prospects over the next six months,” Michael Page said in a new study carried out in India and a dozen other countries.

At least 81% of the entry level personnel are looking to resign in the next six months, and this is one of the modest numbers in the employee hierarchy.

While 89% of the managers are looking for a job change, and planning to resign, 85% are at executive and business operation level. Similarly, 84% of senior management personnel are planning to resign during the same timeframe. And at least 79% in the C-suite and specialist roles are planning to switch over the next two quarters.

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And the senior level attrition in FY23 also gets reinforced from the fact that the survey shows it’s the baby boomers generation or those born between 1946 and 1964 who are looking to change jobs the most (89 percent). In contrast 83 percent of millennials (born between 1981 and 1996) are planning a switch over the next few months.

But, why are so many people planning resignations? “With the pandemic forcing home life and work life into the same physical space, a spotlight has been placed on how people view not only their work, but their lives more holistically. Employees are re-evaluating what constitutes quality work, and they want it to be purposeful,” Michael Page said.

“According to our findings, a significant 61% of respondents in India are willing to accept a lower salary or forgo pay rise and/or promotion for better work-life balance, overall well-being and happiness,” it added.

Across Asia and Australia, the study said sectors like public sector, energy, manufacturing, industrials, leisure, travel, retail, technology, FMCG, insurance and media will be impacted the most. It means, unlike last fiscal, this year’s great resignation story will be wider and more secular in terms of its scope beyond technology and the allied sunrise sectors.

Reasons for churn

While there is much talk about companies’ work arrangements, only 11% of people who have resigned or plan to resign report this as the key reason for resignation. At least 48% look at career progression, 48% also believe that change of role and even industry is driving their decisions among other factors.

And at least 38 percent are unhappy with their present compensation and cite this as a primary motivator.

There is a sizable portion of employees, the survey data showed, willing to sacrifice salary, bonus or promotion for greater well-being, mental health and happiness. This is 61% in India.

But Indian employees have shown least willingness to sacrifice salary and other benefits compared with others in the region. Employees working in companies based in the Philippines (73 percent), Hong Kong and Thailand (69% each) are willing to sacrifice more. Only employees in mainland China (59 percent) are willing to sacrifice salary, bonus or promotion for greater well-being, mental health and happiness.

 
Prashant K Nanda is an Associate Editor at Moneycontrol .
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