HR TRENDS IN BPO

HR trends in BPO Page 1 .

 Compensation management  Organizational Development. This implies that a batch of employees would be inducted every Monday. There are off-location and outstation drives. It is done for the new positions and the back-fills. There are two different kinds of hiring in this vertical. Laterals are talents who have worked in other companies in similar roles. The Entry-to-Exit HR Processes. Functions of HR in BPO sector  Human resource planning. HR trends in BPO Page 2 .What is Business Process Outsourcing? Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. BPO is typically categorized into back office outsourcing.  Performance appraisal system. which includes customer-related services such as contact center services. Talent Management The Employee Life cycle management which includes all activities strategizes to optimize the talent’s capability as part of the Talent Management. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Background verification and medical check-up is completed before the Induction begins. succession planning. BPO that is contracted outside a company's country is called offshore outsourcing. Any talent joining this sector for the first time are usually treated as a fresher.  Training & Development. This is promoted through print media and recruitment consultants.  Employees Satisfaction. which includes fresher and laterals. Sub-segments of BPO:  ITES-BPO (Information Technology Enabled Service)  KPO (Knowledge process outsourcing)  LPO (Legal process outsourcing) Talent Acquisition The HR Functions in a BPO starts with recruitment. Compensation and benefit would all be clubbed under this area. Here the volume hiring is done through walk-in where a large number of talents attend the interview as announced in the newspaper. which includes internal business functions such as human resources or finance and accounting.  Motivation  Employee engagement  Grievance Handling. Business requirement may weave ‘Every Monday – Induction’.  Recruitment & Selection. leadership development. and front office outsourcing. Recruitment drives are arranged to hire in large numbers.

Hiring. Induction. This is usually the time when the HR manager plays a critical role as he or she has to determine the fit between the role and the candidate and decide on the quantum of salary and benefits that is appropriate to the role and after examining the budgets for the same. the important task of fixing the salary and benefits of the successful candidates has to be done. The Appraisal Process and the Exit Interviews After these activities. he or she has to scour the market for potential recruits. HR trends in BPO Page 3 .Managing the Employee Lifecycle Entry to Exit: If we take each of these activities in turn. Once the request reaches the HR manager. The exit interviews offer valuable sources of insights into organizational behavior as the employees can vent their feelings on what works and what does not work in organizations. The development of a pool of job candidates in accordance with a human resource plan. In recent years. After the interview stage is over. Orientation. Training. Selecting. What this means is that the HR manager has to work closely with the line managers to get this done. Promotion and Layoff). The next step is the interview stage after the shortlists are done and this is an activity where the HR manager either delegates the task of assessing the potential recruits to the staffing team or does the job personally.  Employee remuneration and Benefits Administration  Performance Management. This is usually done on the last day of the employee’s stay in the organization and this process consist of a free and frank discussion on what the employee feels about the organization and why he or she is leaving the organization. the trend is more towards the latter where the HR manager in charge of the business unit evaluates the appraisals instead of participating in the process directly. Evaluation. and attracting capable applicants. identifying. This is done in a manner to determine the quantum of pay hike or bonuses keeping in mind the same principles that were discussed in the hiring activity. Usually. the HR manager does not personally do this and outsources this function to a placement consultancy. HR Process  Human resource planning (Recruitment.  Employee Relations Recruitment It is the process of locating. we find that hiring is done in conjunction with the line managers who put out their requirements periodically on the kind of recruits they want and the number of recruits they want. The last activity that the HR manager is involved in is conducting the exit interviews when employees leave the organizations. the HR manager is also involved in conducting the last stage of appraisals or evaluating the appraisals.

It is designed to provide new employees with the information needed to function comfortably and effectively in the organization. purpose operations.Steps in recruiting process:  Internal search  Advertisement of a job vacancy  Web based advertising  Preliminary contact with potential job candidates  Initial screening to create a pool of qualified applicants Methods External Recruitment & Internal Recruitment Selection The process of assessing candidates and appointing a post holder to ensure that the most appropriate candidates are hired. Selection Criteria  Completed job applications  Interviews  Background checks  Physical examination  Job offer Orientation Introduction of a new employee to his/her job and the organization. Training A process designed to maintain or improve current job performance. and products of services and contribution of employee’s job to the organization’s needs.  Presentation of organization’s policies. work rules. Most training is directed at upgrading and improving an employee’s abilities or skills. Three types of Orientations:  General information about daily work routine  Review of organizations history. and employee’s benefits. HR trends in BPO Page 4 .

 Professionalism  Corporate Etiquette  Assertive Communication at work  Business writing skills  Telephone Management skills  Personal Effectiveness  Self-Management-Basic skills  Personal Health  Achievement Motivation  Task execution excellence  Team working Professionalism: It includes understanding about the term. appropriate use of active and passive voice. about the email dominated business world. conflict management skills. Some of the important elements are: HR trends in BPO Page 5 . It collects information as to what the trainee learned during the program and how he proposes to implement it at the workplace. Core corporate attitude. Expectation and perception management and inculcating discipline. Telephone etiquette: It includes basic telephone etiquette. conversation building. motivation. The trainee is also given a “learning summary and action plan format” which is a means of feedback mechanism. standards of a professional. The program is a four day transition workshop which ends with a ‘Team player style survey’ which identifies each trainee’s style as a team player. benefits of assertiveness. skills and attitude requirements and understanding about the role and responsibility of a professional. Personal Effectiveness: It includes learning about various leadership styles. differences between a group and a team. accountability. in such cases it should take place outside the work setting. sentence combining and paragraphs and being consistent in writing. rapport building. Business writing skills: It includes basic e-mail etiquette. mental agility. Knowledge. effective listening and speaking skills. Assertive communication at work: It includes learning communication at the workplace. team meeting etiquette. reactiveness. stress management. people and dimensions of personal effectiveness. team communication. emotions. Self-Management-Basic skills: It includes about aspects of emotional health (EQ). health & stress. verbal and nonverbal indicators and applications. Corporate Etiquette: It includes learning about corporate dress sense. answering incoming calls.Training methods  Most training takes place on the job because this approach is simple and inexpensive  Some skill training is too complex to learn on the job. prioritization of tasks and task execution. All the employees have to complete all the mandatory courses within one month from the date of joining. Team working: It includes managing internal customer relationships.

job description and job specifications. The critical deliverables are responsiveness. Turnaround time and acknowledgement. The process not only includes the employees but can also be for a department. Performance appraisal should be based on job analysis. It is also meant to ensure that the organizational goals are met with efficiency.  Ethical Leadership  Total customer experience  Environmental. motivate and reward workers. Leadership & Managerial programs: It is developed through Centre’s of Excellence. to give a professional tone to the letter. Customer Orientation: It includes learning about customer expectations and experience. types. Safety and security  Customer experience standards  Standards of personal conduct Business writing skills: It includes learning to write a standard business letter. The keys to achieving critical deliverables are: v First impression v Empathy v Apology v Probe v Personalization Communication skills: It includes learning about process of communication and comprehension. mediums of communication and the impact of effective communication. use of phrases. Employee Performance Management Performance management is a process used within organizations to establish and evaluate an individual’s job performance to achieve goals and objectives. all towards enhancing or adding value to them. use of correct words and language. HR trends in BPO Page 6 . in consultation with expert trainers which drives home the point that an overall development of personality coupled with technical skills is a winning combination for the employees. writing a salutation. opening and closing of letters. It is meant to help the organization train. product. using of positive tone and positive phrasing. E-mail Etiquette: It includes learning about composition of an e-mail. Health. and service or customer process. Performance Appraisal A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made.

funding of education. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises.). vacation (paid and non-paid). non-wage compensation provided to employees in addition to their normal wages or salaries.  The process involves deciding upon salaries and wages. as well as flexible and alternative work arrangements. These types of benefits may include group insurance (health. retirement benefits. better salaries and bonuses.  Benefits of a fair. tuition reimbursement.Compensation & Benefits Employee benefits are optional. day-care. Incentives. life etc. sick leave. vision. effective and appropriate compensation system. HR trends in BPO Page 7 . disability income protection. dental.  Helps attracts and retain high performance employees  Impacts on the strategies performance of the firm. Fringe Benefits and Perquisites etc.

Often the job opportunities are marketed so well that a new job is preferred over an existing job. The MIS system is required to be robust as the data provided would be upgraded at a very short interval.Examples of different type of remuneration and benefits.  Basic Salary  Bonus payments and pay for performance  Allowances like representation allowance. …  Different types of sales commission payments  Company Car. Managing attrition: The attrition remains the greatest concern. The difference might lie in the way incentives are drawn. The employee life-cycle runs shorter as the talent either fails to see a career path within the company or fails to adjust with the organization culture. Most of the BPO have different structures for monthly and quarterly payments compared to other knowledge sectors where reimbursement would be higher and the incentives are rolled at the end of the year with bonus and hikes. housing allowance. child allowance. Company Mobile Phone. COLA (cost of living adjustment) allowance. The employee turnover ratio remains highest in this sector. Company Laptop  Mobile phone credits  Holiday pay and holiday credit administration  Retirement and pre-retirement benefits Payroll and MIS (Management Information System): This is similar to the processes that are being run at any sector. lunch allowance. HR trends in BPO Page 8 .

organize meetings. Functions: a. offering a compensation package relevant to the job- profiles. brown-bags and town halls. more importantly hiring talents who are better inclined to the job and aligned with the organizational goals are the chief way to manage attrition.A minor discrepancy in the behavior with the leaders or the change in alignment of the career path drawn with respect to the individual’s ambition can prompt a talent to change their jobs. These initiatives are on the transactional level. The events are planned. The difference between the HR in a BPO and in any other sector will remain in its alignment towards the robust talent base and dynamic business models. Facilitate rewards & recognition. Active involvement in employee retention especially excellent performers. HR initiatives by working closely with Delivery Managers and Project Leads. Employee Relations . Whereas preparing the employee for career progression through cross vertical roles and horizontal shifts are on the transformation level. Employee profile management. h. d. Managing ramp-up and ramp-down at a shorter notice with minimum deviations to the balance within the company. counselling & ensure problem resolution. e. i. focus group meetings. The employees are encouraged to use open-door policy to get their questions answered. Creating better career path within the company. Facilitate regular employee feedback. Managing the overall HR processes ensuring both internal customer and higher employee satisfaction. Coordinate services provided by the Employee Assistance Program c. the individual staff member. they are tactic and strategic. b. f. Independent counselling to resolve work related problems. It further offers them visibility to the top management in the firm.HR Employee relations may be defined as those policies and practices which are concerned with the management and regulation of relationships between the organization. makes HR unique. and groups of staff within the working environment. Administer Employee Recognition Programs and Service Award Other HR Initiatives: Mostly the HR Initiatives are centered on increasing employability and employee engagement. This increases the employability and builds a longer career path within the company. monthly magazines. HR trends in BPO Page 9 . Identifying the early-warning signs and keeping a realistic view to the employee life cycle would help HR to pre-wire attrition. g. Few initiatives remain perpetual such as building trust through open communication including intranet. Conduct training on a variety of Human Resources and Employment Topics j. A monthly event is planned with fun activities.