Attrition Hits the Cement Industry

Any fast growing industry has its own flip side and attrition is one of them. The same is true for the Indian cement industry.

Capacity expansion of existing companies and entrance of new players have added fuel to the job market. This is the dream time for professional working in the cement industry. The professionals are happy with the emerged situation as they are in position to demand good compensation and benefits but the employers are facing problem to retain and attract good talent. Attrition in cement industry has increased in recent times. The attrition in junior level employees is high in comparison with the middle and senior level employees. The attrition rate at Ambuja Cements is up to 15 per cent and at UltraTech Cement attrition is around 15-18 per cent. The situation is almost same with other cement manufacturers in India.

The 189-million tonne domestic cement industry is gearing up to tackle attrition in the industry. Ambuja Cements to put a check on the high attrition has increased compensation packages and are even inducting graduate engineers and diploma-holding engineers as trainees. UltraTech Cement has introduced deferred compensation schemes and improved salary packages. Moreover, to beat the attrition and talent crunch in the industry, In the last two years, Ambuja Cements hired over 300 engineers from regional colleges across the country and allocated them to different units.

Reference: http://www.business-standard.com Cement firms gear up to tackle attrition, Chandan Kishore Kant / Mumbai May 13, 2008