Attrition rate and Indian Pharmaceutical Industry

Talent or human resource is a major asset for any company. Company Invest high amount of money for their recruitment, selection & training and what happens to company if these Talents or Employees leave the organization in short while seeking new opportunities.

Indian Pharmaceutical Industry is one of the fastest growing knowledge based sector with annual attrition rate of near about 30-35% compared to the global Pharmaceutical attrition rate of 10-12% per annum. Current statistics show that higher attrition rate problem mainly exists in Marketing and R&D departments."" Attrition rate in R&D is very high even higher then marketing, the reason may be shortage of skilled and experienced R&D professionals or increasing opportunities due to globalization and R&D outsourcing in India which have created a sudden demand for skilled research peoples.

 Major reasons for high attrition rate stated by employees are poor management, uninteresting job, lack of motivation, job lacking opportunity for future advancement, and inadequate salary or compensation plan. The immediate gain in salary package was found to be responsible for job change in 61 per cent of the cases.

 Leaving company by the employee not only leads to loss of money for the company in his training and development of knowledge but it also increase the threat of information security if employee moves to rival company and loss of the business ( from the customers the employee directly deals with) .