Attrition - Why?

For software providers operating in China, understanding the reasons why people leave a company is critical to understanding how to attract and retain the best talent.

Over the years there have been a number of interesting surveys conducted. In a FESCO (Foreign Enterprise Service Group) survey conducted in 2005 and released in 2006, interviews with over 100 companies revealed that key reasons for leaving included: 29% better career development; 29% unknown other reasons; 18% family, health and other personal reasons; 15% unsatisfied with current salary and benefits and 9% further studies.(8)

This can be compared to the 2005 Hewitt Hi-tech & Semi Conductor Industry Study, where the top three reasons cited for departure were pay, processes and career opportunities.(9) The just released 2006 Hewitt Survey reveals some interesting new additions; 13% citing equally role stagnation and work life balance, and 10% people managers and 6% lack of recognition. Although remaining at the top of the list are pay (22%-external inequity of compensation) and limited growth opportunities (19%).(10)

The key insight from this research is the speed of change in the attitudes of these young Chinese and perhaps more significantly, the increasing importance that 'lifestyle' is playing in selecting jobs.

More consideration should therefore be given to understanding the motivations and attitudes of today's young Chinese consumers. In the same way as consumer marketing companies undertake in-depth consumer research to ensure maximum product appeal, so too should the software outsourcing industry try and understand its talent pool more.