Hoeadline in a newspaper in 2007: “Boom time ahead for India’s job-hoppers.”

Headline in a newspaper in 2012: “Global fears shackle India’s job-hoppers.”

Where have all the job-hoppers gone?

In the US, the latest report from the Bureau of Labour Statistics says that employees are now staying on in their jobs for 4.6 years compared with 4.4 years in 2010. This may seem a very small difference but, spread over a large population, it is significant.

In India, a survey by Assocham says that employee turnover rate in the outsourcing sector — notorious for high attrition — dropped from 55-60 per cent in 2010 to 15-29 per cent in 2011. This is, of course, a little dated. But anecdotal evidence is that the job-jumping brigade has got even more subdued. IT companies report that attrition is down. Indeed, many of the people are not jumping jobs but are being booted out. (A point of interest: a Ma Foi Randstad survey says that women are becoming increasingly more open to job-hopping than men.)

If you start looking at other surveys, you will find plenty of peculiarities. A Kelly Services India survey says that 68 per cent of Indian respondents are happy in their jobs. Yet, 30 per cent are frequently thinking about quitting and 60 per cent plan to look for a new job within a year.

“If you want to know why there is so much confusion about job-hopping in India, it’s because surveys map aspirations and intentions and not reality,” says Mumbai-based HR manager Shashi Rao. She contends that these people are hoping to leave but don’t. “If you want to get a better picture of ‘corporate’ loyalty, look at an annual report. (Until recently, companies used to provide the name, age, salary, qualifications and number of years in the company for all employees earning above a certain level.) You will be amazed to find the number of years people have spent with the same company,” she adds. A.M. Naik joined Larsen & Toubro on March 15, 1965. He is still going strong as chairman.

Another reason is that Indian employees are prone to be company men. A survey this column has discussed earlier shows that B-school grads in India — supposedly the elite — prefer joining the public sector. The reason: job security.

A third reason for the disparity in findings is that there is a huge variance across sectors. Folks in manufacturing like warming the same desk or walking the same shopfloor; in the IT and BPO sectors, the exit door is never too far away.

When it started out, the Indian IT sector succeeded because it paid its people a pittance compared to western companies. Many of their employees were sent “onsite” where the disparity encouraged them to jump ship. Back in India — because there was so much scope to increase wages and still make money — new companies entered the IT arena offering better packages. For BPO companies, this took place from nearly Day 1. A couple of years back, one BPO moved to a village to get people at bottom-barrel rates. There was much talk of social conscience and empowerment of the poor. Now, 20 other companies have made such geographical diversifications and nobody talks about inclusion of the deprived any more. In the villages, you never had job-hopping. The grocer’s assistant didn’t go to another grocer; there never was the need for more than one grocer. Job-hopping here is a consequence of globalisation and its trickle down effects within the country.

Finally, of course, job-hopping depends on time and place. To end with another survey, JobStreet.com recently polled employers in Malaysia. They define a job-hopper as one who leaves before completing one year. At the IIM, people appear for an interview in the morning and get an offer letter. They appear for another interview in the afternoon and get another offer letter. But evening, they have a third letter in the bag. They would have been hopping the entire placement season, but the rules don’t allow you to take up too many jobs until everybody is placed.

AGE ON THE MOVE?

A Kelly India survey finds that among the main workforce generations, Baby Boomers (49-66) are more likely to resign their current jobs followed by Gen X (aged 31-48) and Gen Y (19-30).

Baby Boomers — 65%

Gen X — 64%

Gen Y — 60%

The key reasons to consider job shifts: personal fulfilment, work-life balance and personal growth outweigh compensation and benefits when choosing one job over another.

The primary reasons for Indian employees to stay with the current employer:

Opportunities for advancement — 18%

Stability of the organisation — 14%

41% of the respondents said that promotion is their preferred way of being rewarded for good performance followed by 27% preferring a financial bonus.

Source: Kelly India