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High employee attrition rate–A challenge in the subsidiary operation

The employee attrition rate in India’s IT industry is signficantly high. Even the off-shore subsidiary operations of foreign players are facing the crisis of retaining employees. It produces a great threat to the productivity of the off-shore operations. This happens because there is a considerable amount of both time and capital spent on training the employees of the subisidiary.

Companies usually turn to increasing the compensation for employees to retain them. This however is no longer helpful in solving the problem as the skilled work force has career opportunities which alot of them give preference to.

Employee attrition rate can be never be totally eradicated. It can only be decreased. The business model on which a subsidiary operation runs is significant is achieving this. Outsourcing more high end responsibilities that offers challenging tasks to the employees goes a long way in helping.

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