2022 witnessed unprecedented job turnover as businesses adjusted to a new post-pandemic reality with evolving employee preferences. Corporates, tech firms particularly, were forced to grapple with a dramatic uptick in resignations even during early 2022– a result of the Great Resignation phenomenon that was in full force in 2021.
The Great Resignation had a global impact and caused a sharp spike in attrition rates in India, leading to decrease in employment numbers and an increase in job-hopping. 2021 saw an average attrition rate of 25%, followed by a slightly reduced 20.3% rate in 2022.
The banking and financial services industry (BFSI), however, was on reasonably good footing in 2022. Despite the spillover effect of the Great Resignation that left many companies struggling to retain key personnel, the BFSI sector reduced its attrition rate from 34.2% in 2021 to around 16-20% by the end of 2022, primarily by improving their recruitment strategy.
But, what did the industry do right to reduce attrition so significantly?
The Decoding Jobs 2023 survey on the BFSI sector identified certain key trends and practices, such as automation in hiring, that contributed to the decrease in attrition rate in this sector in 2022. Let’s look at that and some more factors to understand how the BFSI industry limited employee exits.