The great resignation : New crisis 😞
You must have heard about the great depression of the year 1929. After that many big recessions also happened. But now the problem that has come is very different and strange. And its name is - 'The Great Resignation'. Which for India's big organisations has become a great problem. Whereas for the employees, it is a very big opportunity. So in today's video, we will talk about what is this 'Great Resignation'. And what can be its impact on the companies and the employees? And how some companies, are finding various ways to tackle this. There were two main reasons behind 'The Great Resignation'. About which we will discuss later in this video. >News: Do you like your job? Does going to work make you happy? Or would you rather be at home with your family or do something else? 41% of the world's working population is planning to switch this year. We are in the middle of the great resignation. The term was coined by Anthony Klotz He calls the trend a pandemic Epiphany. >Prasad: Namaskar! I am Prasad. And I welcome you all in today's episode. And today we will talk about the great resignation. These are some figures which will tell you, how fast this great resignation is moving forward. Attrition Rate tells us that in this particular period, what percentage of a company's employees have left the company. October to December 2020, The TCS attrition rate was 7.60%. Which went up in the next nine months to become 11.90%. The condition of other companies is even worse. The Infosys attrition rate from October to December 2020 was 10% Which in the next nine months got double and has gone more than 20% And some other figures are also somewhat like that. But these problems are not just limited to these companies. In many startups also, the attrition rate is growing very fast. This whole thing started in March 2020. When corona virus started spreading in India And because of that, many people started losing their jobs. March and April 2020, just within these two months, around 12.2 Crore people lost their jobs in India. After that, the people were stressed about the future. But after that the economy started recovering and the people also started getting their jobs again. Slowly the situation became that today the people have a lot of opportunities. And hence the balance between the supply and demand is off. And therefore the people are continuously switching their jobs. For better opportunities and a lot of time, for better salaries. And on top of this trend is the Technology Industry. And this war is also related to that. The Great Resignation has two main reasons behind it. First one is the fast growing startup ecosystem. India is seeing a rapid growth in the startup ecosystem. And hence the funding of startups is also growing in India. In the year 2020, there were in total, 8 unicorn startups in India. That is, in the year 2020, 8 startups in India became a Unicorn. This means their valuation was more than 1 Billion $ or Rs 7500 Crore While in 2021, 43 startups in India attained unicorn status. That means the speed is increasing very fast. And therefore the startups are also getting good funding opportunities. After which their next job is to grow their companies. And in this, the major requirement is coming from the Tech sector. And so, the Tech war has already begun. In between October - December 2020, the startups have received a funding of 2.8 Billion dollars. And in the next 9 months, this figure has reached 10.9 Billion dollars. And therefore a lot of tech-job requirements started coming. The second main reason behind it, is Covid 19 Covid-19 forced almost all companies to go online. Because of which, India's IT outsourcing companies, like TCS, Infosys, HCLT, started getting big contracts from the North America. Due to these big contracts, there was a hike in demand for people. On one hand, there's war between the startups for IT talent Now added to it are the IT outsourcing companies. With this tech crunch, India's IT employees are directly getting benefitted. But since the problems are anew, the solutions are also new. And hence many startups are coming up with new solutions. Slice which is a credit card provider company, they have come with an altogether new solution. They are giving many of their tech employees a 3-day work policy. That come and join us, and you have to work only 3 days a week. And for the rest four days, you can do whatever you want. Although, the idea of reducing the working days Was first introduced by Henry Ford. In the 1920s, there used to be six working days. And at that time, Henry Ford applied the 5-days-work in his company. After that many companies applied this formula. And today we see, maximum companies providing 5 days work policy. But after this tech crunch, a lot of companies are offering 4 days And the companies like Slice are offering 3 working days. Some companies are going even higher than this. BharatPe, which is a fintech company, they in order to attract tech-employees they are giving them BMW Bikes. They are also giving them various options in these bikes. And they have not stopped just here. Last year the T20 world cup that happened, the company had taken their team to Dubai to watch the matches. Meesho, which is a socio-commerce company they in November month, declared an off for 10 days. So that all the employees can refresh themselves, And can take rest for a few days. And this way, different companies are using different ideas So that they can attract the Tech-talent. The Big IT companies of India like TCS and Infosys, say that they are trying to find a solution for the same. And one of their solutions is hiring more and more people. So that, even if 20-25% leave the job, even then they will not face much problems. In the last 9 months itself, the top 5 IT companies of India, have hired 1.7 lac employees. And in the next financial year, they are planning to hire with the same speed.
In fact, when the other companies go there for hire, they also focus that before TCS and Infosys come to the campus, they should do their hiring because if they get late, they will be left with nothing. And now they have become even more aggressive. And this is benefitting some Ed-tech companies Like Stoa school and Masai school. These are some developing platforms, which are imparting practical knowledge to people. So that the people are directly applicable to the jobs which is in high demand in the market. Last year Microsoft did a very interesting survey. In their survey, they looked for people in India whose intention is to switch their jobs. And they found that 62% of the people who were a part of the survey, They said they intend to switch their jobs. Whereas the global average is 41%. This clearly shows that the job switching mindset in India, that is a bit different from the other countries. And the reasons behind this fact are somewhat like this. A report from Deloitte says, the average hike that the people in India have received in the financial year 2021, that is 8.6%. While on the other hand, to deal with the growing inflation in India, According to me, this amount is not sufficient. And therefore, a lot of people in India have developed this mentality, that they should switch their jobs every year. So that we can easily get a hike of around 20% to 30% each year. Because most of the companies in India, are giving the hike at the time of joining, But after that, they reduce the hike for the employees. And the solution to this, which the Indian IT employees have found out is Resignation or you can call it reshuffle. It means switching from one company to another in the same industry. So for a conclusion, we can say that a few years back when the employees used to stay in a company for 5 to 10 years, The companies used to think that the employee has stayed well enough with the organization. And these people are our loyal employees. But in today's date, if some tech-employees, stay in a company for two or three years, the companies are very satisfied with that too. Although, 'The Great Resignation', that has come, is surely creating problems for the companies. But this is indeed very good for our economy. Opportunities are increasing at a great speed, Because of which, a lot of people are getting jobs. A lot of people from other industries are jumping into the tech industry. A lot of friends of mine, who are from accounting and manufacturing Industries and are slowly switching to the IT industry. But you have to keep one thing in mind here. That the trends keep coming and going. But you must choose something which you can do uniquely, and something that you enjoy doing. Also, something which gives you a good monetary value. As far as tech-industry is concerned, this trend is going to stay for the coming years. But this shortage is going to remain for a few years only. And after that, things will start getting normal. As soon as more and more tech talent joins in, this gap will slowly get filled up. And this problem also will get sorted in some time. According to the data, you have to understand an important thing. Switching jobs quickly can get you better salaries, But staying for a long term in a company, gives you rewards in terms of position in the company. Recently a lot of companies are giving their employees a good yearly hike and good positions also. Parag Agrawal of Twitter, Satya Nadella of Microsoft And Sunder Pichai of Google. These people joined the company a long time back, Started working at a basic level And slowly and steadily, they have reached the CEO level. So everything has some pros and cons. And you have to bear those in mind while making a decision. Had you been there, in place of these IT employees What would you have done? Please tell us in the comments below.
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