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Home » Causes and solutions for attrition in Indian remote teams

Causes and solutions for attrition in Indian remote teams

remote work, Team expansion

Just as the age-old adage reminds us that every rose possesses its thorn, the realm of remote work also boasts its own array of advantages and disadvantages. In the wake of the pandemic, remote work has undeniably surged in popularity, yet it hasn’t been devoid of its drawbacks. 

Pertinent reports reveal that a staggering 86% of remote-working professionals now grapple with emotional exhaustion, primarily stemming from the absence of clear time boundaries in this dynamic setup. Furthermore, according to our survey conducted with a total of 122 participants, it is evident that employee engagement holds the utmost importance in sustaining work-life balance within the remote work setup.  

In today’s ever-evolving landscape of remote work arrangements, establishing a solid footing becomes all the more crucial. Team expansion in a foreign country, particularly in a nation as diverse as India, can understandably appear to be challenging. Navigating the intricacies of cultural and political diversity while striving to build and manage an efficient team can be a daunting task, to say the least. 

Consequently, the chance of high attrition rates looms large for organizations of varying sizes and across different industries. Hiring freelancers or independent contractors raises even more skepticism, as they lack accountability and official ties to any operational entity, making it easier for them to switch between jobs. 

In this blog, we shall delve deep into the underlying factors driving these elevated attrition rates within the remote teams in India working for international organizations, while also exploring potential strategies to effectively combat this pressing issue. 

remote work, Team expansion

Factors causing high attrition rates for remote work in India 

The expense associated with recruiting, onboarding, and training fresh personnel is considerable and can strain resources when employees depart prematurely. Furthermore, it detrimentally impacts the organization’s reputation and serves as a significant demotivator for remaining employees, hindering their effectiveness. Key factors contributing to these unfavorable circumstances include:

  • Limited Career Growth Opportunities: Indians are known for their ambition and the desire for quick recognition of their achievements. They seek a sense of ownership in their tasks or projects to expedite their ascent up the hierarchical ladder. However, in a remote working environment where establishing a clear hierarchy can be a challenging and time-consuming endeavor, employees may find it difficult to maintain their momentum and enthusiasm for their work.
  • Job Insecurity: Job Insecurity in India is a pressing concern, with data from the ‘Household Survey on India’s Citizen Environment & Consumer Economy’ (ICE 360° survey) revealing that 60% of Indian families rely on a sole breadwinner. In such financial conundrums, job stability becomes paramount, limiting job seeker’s ability to explore overseas opportunities.
  • Moonlighting: Moonlighting has emerged as a notable issue in India over the past few years, drawing increasing attention. Backing this statement with research, it has been found that 73% of employees within a sample of five diverse organizations engage in multiple job roles simultaneously. It is worth noting that 61% of these individuals acknowledge the ethical dilemma posed by this practice. This multifaceted employment scenario often leads to a significant decline in dedication and enthusiasm for any one job, ultimately culminating in reduced productivity levels within the employees. 
  • Cultural Expectations: The Indian workforce is profoundly shaped by the rich heritage and distinctive history of the nation, even within their professional environments. Unlike certain Western perspectives, Indian culture places a significant emphasis on face-to-face interactions and nurturing relationships. This emphasis instills a sense of companionship among working professionals in India. Often, when working remotely for foreign organizations, the workflow may not align with these deeply ingrained cultural norms, resulting in job dissatisfaction and increased attrition rates. 
  • Economic boom: India has consistently drawn organizations from around the world seeking to tap into the vast pool of highly qualified and exceptionally skilled Indian talent. In recent years, however, the job market within the country has experienced a significant surge in opportunities and an increased demand for skilled professionals. Domestic organizations are now offering substantial compensation packages to secure top-tier talent, intensifying both global and local competition for foreign enterprises. 
  • Poor network connectivity in India: When assembling a team in India, it’s crucial to acknowledge that the country’s technological landscape is advancing rapidly. However, it’s worth noting that despite India’s digital growth, not all regions enjoy seamless access to technology. 

Research shows that 52% of the population in India have inconsistent and unreliable home internet connections, most of it targeting to tier 3 cities. Hence, any employee belonging from such part of the country can potentially get frustrated leading to reduced productivity, and eventual disengagement from the organization. 

How EOR can help you mitigate these problems? 

Monitoring the daily operations of a remote team and promptly addressing their needs can pose a formidable challenge for any international organization. Such difficulties can eventually result in ineffective leadership and a dearth of adequate recognition within the team. 

Employing an Employer of Record (EOR) can serve as a robust solution to not only maintain team cohesion but also facilitate seamless business expansion in India. Utilizing cutting-edge technology, an EOR offers an array of tech-enabled solutions designed to empower your organization, including: 

remote work, Team expansion
  • Optimized Onboarding and Training: We streamline and enhance the onboarding process, ensuring that new employees are seamlessly integrated into your organization and provided with effective training.
  • Efficient Payroll and Compliance: Our solutions simplify the complexities of payroll management and compliance, saving your company time and reducing the risk of errors. This in turn helps you build trust and confidence within your employees. 
  • Elevated Employee Benefits: We enhance your employee benefits programs like healthcare, internet reimbursements, meal vouchers, and paid holidays to mention a few. This helps you attract and retain top talent while fostering a positive workplace culture.
  • Improved Employee Relations: Our services aim to strengthen the bond between your organization and its employees by various means like lucrative reward systems, enabling you to recognize and appreciate your employees and create a positive work culture in the organization. 
  • IT infrastructure and logistic support: For any organization, factors such as uninterrupted access to technology and speedy IT facilities are crucial to keep up with the market trends. Likewise, proficiently managing an organization’s inventories enhances customer experience and fosters a positive brand reputation. An EOR effortlessly enables you to oversee these critical aspects from abroad and makes it a cakewalk, what would otherwise be a challenging job.  
  • Data-Driven Decision-Making: Remunance empowers your company to make informed decisions by providing access to valuable data and analytics, enabling you to steer your organization toward greater success.

Remunance as your 101 guidance  

Remunance prides itself on an unwavering commitment to exceptional service, marked by a strict policy of “prompt response and delivery”, as well as comprehensive “360° support services”. Within our dedicated team, a devoted expert is always on hand to swiftly address your concerns, ensuring a response within two working days or less.

Our reputation for honesty and transparent exchange of information in an ethical and respectful manner while handling any business deals has positioned Remunance to the forefront of the global market, boasting an extensive clientele that spans across 16 countries. 

At Remunance, we don’t just offer services; we deliver tailored solutions that empower your organization to thrive in this ever-evolving business landscape. 

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