Speaking from my experience in IT industry, I m working in a MNC where attrition is around 20+ , in order to cope up with this lot of freshers were introduced and laterals in the mid level , earlier freshers need to go through atleast 6-8 months of training and then will be inducted into a production projects ( again there will be project specific screening and interview) . But now it got completely changed and freshers are directly inducted into projects and then given training . Now mid levels employees ( 5-12 year experience ) has to put extra effort to tarin them and manage projects . If attrition is happening in these mid levels then it will have severe impact on the coming quarters ( again no company would give breakup in attrition) . Normally in junior level (1-3 years ) attrition will be high as they pursue for higher education or move to other companies . Mastek has got highest level of attrition in mid level IT and considering they got around 5000+ employees is worrying me as an invester . Pay package for laterals are around 60-100% higher than the existing one and companies has to give salary correction multiple times to existing employees make it some what even (my company has give 3 salary hike in last year ). Usually companies define a median salary range for all levels. Also some companies maintain a ratio of total salary /(number of years of exp* 100000) this should be in range of 1-2. Due to lateral hiring this ratio will see wide fluctuations. overall how margins will be impacted is yet to see .
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