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of movements from blue-chip public sector companies to the private sector in the country and even abroad. Various studies have shown that the average attrition rate across public sector companies is around 4% every year and they constitute the cream of the companies.

Various private sector companies also woo senior civil servants with long years of experience in project management. Besides in-depth liasioning skills, they have core competence in implementing huge infrastructure projects and they are being wooed in areas like Special Economic Zones, rural retail and infrastructure. Many civil servants have moved to companies like Reliance Industries, Citigroup, Adani and McKinsey.

The sectors that are primarily losing talent to private sector are the Army, pure and applied scientific research, infrastructure, banking, insurance and oil and gas.

For example, in the past two years Oil and Natural Gas Corporation has lost about 400 mid-level managers to the private sector. Most of them were geoscientists and engineers with 10-15 years of experience.

So will the revised pay structure help in checking the attrition of government employees to some extent? Goel of UCO Bank feels that the proposed revision in the salary structure will still not help to stop people from moving to the private sector. “Those employees who are moving are in the much higher pay bracket and the private sector will anyway pay more to attract them,” he reasons.

Rupa Rege Nitsure, chief economist, Bank of Baroda, feels that salary is not the only reason for increasing attrition from the government sector. “Employees prefer jobs that give them the opportunity to use their skills and abilities, challenging assignments and a transparent feedback system. Unless the government establishes a system that motivates competent officials and ensures that better performers are fairly rewarded, the risk of attrition will remain,” she says.