BR GRP 4research Template GRC Chapter 1 5 Rev.2

GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 1
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
1.1. Introduction
Business Process Outsourcing (BPO) Company operate as sub-contracting
business entities that performs different job for a certain or different corporation. It
existence started here in the Philippines in 1992 initiated by Mr. Frank Hols. At first
majority of BPO employee happens to be an IT professionals who perform system
and computer design since they are knowledgeable in software and hardware
application. Other work from BPO Company includes various activities such as
payroll service, human resource (HR), and accounting and customer/call center
relations. Today BPO Companies are thriving like mushrooms in the field, not only in
the Philippines but also in other countries like India, China, Malaysia, Brazil,
Indonesia, Thailand, Mexico, Chile and Poland. Among other countries the
Philippines rank as 2nd place in the world best BPO hotspots because of the
communication skills and availability of the Filipinos, financial attractiveness as
compare with other countries our base salary here in the Philippines is cheaper than
the leading BPO hotspots, also another reason why foreign BPO Company enjoy
putting up their business here in our country is because the people are very positive
can face stress and divert it into a funny situation, making the BPO employee alive,
productive and always smiling. Still there are work related conflicts and struggles the
employee may encounter and eventually can affect the employee performance.
There are a lot of people would like to work in BPO Company because of the
high salary it offer, it is said to be higher than the salary bracket given by the
government and other private companies. The hiring process is very fast and easy,
even high school graduate can apply as BPO employee as long as the
communication skills of the applicant can pass their standard. The age limit is never
an issue the mere fact that if an applicant can work well in a flexible time schedule,
passed the examination and interviews, can perform very well in the computer, even
the age is 40 and above is still can be hire as BPO employee.
BPO employee are enjoying their work in their company, because of many
reasons, one of the very reason is the high salary and benefits the employee
received from the company, as well as they gain global exposure that can give them
career growth leading to more opportunities, and gain access in learning excellent
technology to a higher quality of performance in their field. And as part of their career
growth the BPO Company always give their employee trainings and seminars that
will enhance their skills, develop their leadership and soon enough for them be
assigned to guide the emerging new role players.
In the Philippines the BPO Company currently plays an important role in the
growth of our economy, because of many foreign investors pour their billions of
dollars and create hundreds of thousands of job that cause our economy to fuel up
and produce billions of revenue in our country. BPO Company helps our economy
grow and help many BPO employees as well. In terms of the salary and benefits, the
employee can make a decision to pursue their career and stay for long period to
serve in BPO Company.
BPO job is very in demand nowadays, and there are many people want to be
a part of this industry. The attractive salary, the infrastructure and exceptional work
environment can be the reason why there are many employees choose and stay in
this field of work. Several studies and articles regarding this industry are circulating
in the internet , searching and finding out what really the reason of many people why
they choose to work in BPO Company is something that makes this paper wants to
find out and how salary make an impact to the employee, recruitment and employee
retention in BPO Company. What percentage would be added to BPO salary five
years from now, because it says that for the next coming years the growth in BPO
Company is fueled to increase by 10% giving the Philippine economy the national
GDP of 12-13% by end of five years? Would it be beneficial for the BPO employee to
stay in their company and enjoy the salary and benefits they are receiving? Or we
are expecting more mass hiring for the coming years because many giants in BPO
Industry are booming, and in need of diverse and multitudes of employees offering
much higher salary for the next five years.
1.2 Conceptual Framework
The BPO industry started in foreign countries and shifted in India that gives a
big contribution in the Indian economy to grow. The high salary offered which enticed
a lot of Indian to work in BPO Company. The firms rapidly expand and leads to the
foreign investors to extend the BPO Company in other part of the world and came
here in the Philippines. Our economy grow with the contribution of the BPO industry,
the industry also create billions of revenue and hundreds of thousands of jobs with
promising salary and benefits to offer to their employees. The benefits in the BPO
Company varies from different company. The top BPO Companies in the Philippines
to date namely, Accenture, Convergys, JP Morgan, 24/7 Customers Philippines Inc.
TelePhilippines Inc. Sutherland Global Services, IBM Dakhs Business Process,
Teletech Customer Management, Deutsche Knowledge Services Pte. Ltd. and Sitel
Philippines Corporation( Abhishek,2018).
The top companies give competitive salary and benefits that really attracts the
people to work in BPO industry. Some common denominator of benefits that BPO
company awarded to their employees are life insurance, health card, performance
bonus, annual salary increase, meal and clothing allowances, other incentives such
as travel and movie perks, team building, seminars and a lot more . BPO Company
formulates different strategies to compel their employee to stay in the company.
Employee retention is one of the key for the success of the company because the
more employees that would stay in the company the lesser the effort of recruiting
new employee that is why somehow lessen the cost for another recruitment process.
Business Process Outsourcing in the Philippines started in 1992, and up to now the
industry is fast growing making multiple job opportunities to many professionals and
mid-level career executives that allow the employee to experience abundant life and
security, because the BPO Company not only give a job but also give a life to many
employees that up until now are working in the BPO industry. Some people work as
BPO employee as long as 10 years or more in service, their reason why varies from
their experiences and work life environment in their company. There are different
reasons why they stay or not. Salary, benefits, security, manager’s attitude, rules,
regulations, and teamwork make possible effect in employee retention. A simple tap
in the shoulder showing appreciation for a job well done and a good treatment in the
work place can be a quiet motivator to make an employee stay in the company.
1.2 Conceptual framework of the Study:
Input Process Out put
* Survey *Distribution and *Confirmation

questionnaires. retrieval of the of the best
*Related survey questions. possible reason
Literatures *Observation and impact of
*Articles, in studying the BPO Salary and
*Other secondary data benefits to the
secondary data and other Employee,
researches. recruitment and
*Analysis and employee
computation of retention.
data.
Figure 1
1.3 Statement of the Problem
The study sought to determine the impact of BPO salary and benefits to the
employee, recruitment and employee retention.
This research aim to answer the following statement of the problem:
1. How does salary and benefits have an impact to the employee?
2. What are the incentives and benefits that employees received in
BPO Company?
3. How incentives and benefits make an employee decide to stay in
the company?
4. Why do BPO employees stay in the company?
5. What is the impact of salary on recruitment?
1.4. Hypothesis
1.There is no significant relationship on the impact of BPO salary and
benefits in terms of :
1.1 Employee and Recruitment
1.2 Employee and Employee Retention
2. There is no significant difference on the impact of BPO salary and benefits
between:
1.1 Employee and Recruitment
1.2 Recruitment and Employee Retention

1.5. Scope and Delimitation of the Study
This study aims to find out and confirm if BPO salary and benefits have a
significant impact to the employee, recruitment and employee retention specifically
to the employees of VXI Global Solutions Inc. in Munoz Quezon City. VXI is formerly
known as Multi-Cultural Marketing created as customer contact center in 1998. It is
one of the fastest growing business services in the US with 28,000 employees in 42
sites worldwide.
The researchers use the descriptive quantitative design only to determine how many
percent of the employee have influenced by their salary and benefits in VXI Global
Solutions and how salary have affected the recruitment and employee retention.
The researchers only wants to determine the impact of the salary and benefits and
not what the employee related problems in the BPO Company. Furthermore not
focus on the problems encountered in the recruitment process and also not
concerned in the work environment stress related issues.
1.6 Significance of the Study
The researchers believe that it is important to know the serious impact of
BPO salary and benefits to the employee, recruitment and employee retention for
further knowledge of the BPO Company on how they will compensate and treat their
employee for the benefit also of the company. And for the employees to know the
right compensation they must receive in their company, if they deserve to have an
increase based on their performance or length of service.
Particularly, the result of the study will be beneficial to the following:
1. Students - This study will give the students an added information and
advance knowledge about the impact of BPO salary and benefits for the employees.
They will have already a basis, if they are going to decide to work in BPO Company.
2. Teachers - This study will provide the teachers basis on how they are
going to train students specially in English communication skills and technological
skills if the students would want to work in BPO industry.
3. Parents - The results of this study will be helpful to them because if
they have children working in BPO Company they would find out how they are going
to treat their children working in BPO industry and how to help them motivate their
children to fight stressors specially when on night shift, also give them proper care
when their children have work related problems.
4. BPO Management - The findings of this study will provide added
information for the management to redesign their policies and rules if the employee
retention in their company is getting low and always having a hard time in
recruitment selection and process.
5. BPO Employees – The results of this undertaking will offer background
information to the BPO employee to make necessary assessment of their own
performance and competencies for them to deserve a higher salary.

6. To the future Researchers- The outcome of this study will give the
future researchers necessary information for their future study, and to add significant
data and information to the pool of researches about BPO. They can use this paper
as one of their reference. The researchers suggest to change the design of their
research to experimental qualitative for more accurate result.
1.7. Definition of Terms
1. APAC:
Asia Pacific
2. BPO :
Business Process Outsourcing(the process of hiring another company to
handle business activities for them ranging from data processing, back office
support, recruitment, payroll, sales, customer service or technical support, to
telemarketing and the like.
3. Employee :
Any person working in a company of firm.
4. Employee Retention:
The ability of a company to keep their employees from being committed in
their work place.
5.. Fueled/Fuel up:
Power up ,Intensify
6. New Player :
Newly hired employee
7. Recruitment:
The action of searching for people to join in an organization.
8. Revenue:
Proceeds, earnings, income
9. Robust :
Powerful, Strong
10. VXI:
VXI stands for VME eXtensions for Instrumentation, message based
Communication in the US and here in the Philippines VXI stands for Vision X
Incorporated.
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
2.1 Research Literature about Business Process Out sourcing (BPO)
Business Process Outsourcing (BPO) is one of the largest industry here in the
Philippines. This industry is recognizing now as the center of the Philippines
economy. It has been helping the country's economic status and providing jobs to
a lot of people in the Philippines. BPO is also one of the fast growing industries
that many people would like to work on it. According to Tholons, In 2010, the
Philippines was declared the worlds BPO capital and in the latest figures. Manila
placed on the second spot in the list of top 100 outsourcing destinations.
Business Process Outsourcing (BPO) industry is now considered as the center of
the Philippine economy due to its contribution for the past decade. It fuels the
growth of the Philippine economy not only by generating billions of dollars in
revenue but also creating jobs for hundreds of thousands of Filipinos.
Filipinos are hardworking and now taking in to consideration the company they are
working into. Baby boomers and generation x are patient and very loyal to the
company even the salary they are getting sometimes not enough to earn a living.
Today’s new generation are diverse and can do multitasking, and they need to be
satisfied with their salary and work environment. Young employee now is easily
driven by their emotions when it comes to decision making specially the millennials
they tend to change company fast as they like, when they feel that they are
dissatisfied with the salary and with the policy of the management, no training and
development for their career growth. Employee retention is low in percentage to
the company that don’t have work life balance and with low compensation rate,
according to,Tiwari (2015).
In this chapter the researchers want to discuss the impact of BPO salary and
benefits to the employee, recruitment and employee retention, if salary is one
factor for recruitment and the reason why the employee stay in the company. The
researchers also wants to find out if salary and benefits have a great impact to the
employee, specially to the employee of VXI Global solutions Inc.
The Business outsourcing industry in the Philippines remains progressive
despite from economic downturn in Asia; it is because the Philippine contact center
industry remains positive from the foreign clients. The country has big opportunity
in the industry because of it rich potential workforce. There are two country in the
world that are quite known in terms of providing effective Business process
outsourcing service. India and the Philippines, these two country are battling hard
in the Global BPO industry. This two country has their own uniqueness that the
other one can do while the other cannot, But it seems that these past few years
Philippines is taking more advantage than India; according to the Phill Fresht, the
CEO of US-based HfS Research agency.“ Philippines has very strong skills in
voice and multi-language. Not only that but “Philippines has a very strong culture
for customer service delivery,” he added.”

It has also been reported that the previous investor in India have chosen to go to
the Philippines instead. This is because the accent that the Filipino have that
foreign investors prefer over India. Buenaventura, Michael(2016)
2.1.1 Research Literature on BPO Salary and Benefits
Salary and benefits are factors to be consider why an employee is motivated
to do his/her job well. Gardner et al(2004) Employee also feel secure when they
experience a lot of incentives in their company like for example dental health
benefit, life insurance, performance bonus, travel and movie perks, annual
increase, clothing and meal allowances. When an employee is satisfied with the
work environment and their salary most likely the employee stay for a longer
service in the company. BPO salary is said to be higher than the salary bracket
given by the government and other private companies, the minimum salary stated
by DOLE(Aug.2018) is only P512.00 per day in NCR, provincial rate is lower than
P512.00. and yet many employee are not satisfied with the salary and benefits
they are receiving so the employee tend to change company for a greener
pasture. That is why BPO Company grow so fast because of the high salary and
various benefit they offer to the employee. The number of people need to recruit to
join in the BPO Company is also increasing. We all know salary is important to the
employee for them to have an improve life, for themselves and for their family. Who
among us do not wished for a high income to have a comfortable life,

dissatisfaction in salary brings high turnover when it comes to employee.
Lorette(2018).
VXI Company specifically offered their employee a minimum salary of P12,000++
incentives, benefits, allowances up to P61,000 according to position plus bonuses,
and incentives. In Munoz area alone VXI Company there is about three sites, the
VXI Global Solutions Inc. The Panorama and the City Lands with thousands of
employees working there. It is very clear that most of the people now are working
in BPO Company not only in Manila but also in provinces, because it says that
currently the BPO companies are fuel up and now the leading contributor of our
country’s revenue .Isupport blog (2016)
BPO or Business Process Outsourcing is said to be a set of relevant
outsourcing which includes the process of contracting of responsibilities and
operations of a particular business process to the service provider who calls to be
the third party. Primarily, this action was related to the firms which dealt with
processing of manufacturing goods. For instance, Pepsi Company outsourced
colossal segments of its apt chain of supply throughout different countries.
Business Process Outsourcing (BPO) can be used and important to the growth of
an organization. BPO also can solve a problem within the company and help the
team to focus on the goal/objectives of the company. According to (Ray Mckenzie)
The Company must weigh the positives vs. negatives of using Business Process
Outsourcing Company and also have a strong manager to control specific

relationship. Business Process Outsourcing is a great option for the organization in
order to increase their productivity and profit and also to have a better quality.
There are so many pros and cons related to the BPO services but still the
organization choose to have this type of services in their company. Business
Process Outsourcing (BPO) can cost saving to the company that outsource their
back office works in this case the company will produce much work. According to
(Prachi Juneja) BPO represents a win-win situation for the companies that
outsource their work and for the firms that are vendors and partners. Hence, it is
the case that the BPO phenomenon has resulted in net gains for both parties in the
exchange at the same time BPO sector has had a positive and negative impact on
the workforce and it is the job of the industry leaders to ensure that the positives
outnumber the negatives and see it to that there is a healthy balance between
work and personal lives for the employees. BPO companies act as a buffer against
unemployment and at the same time BPO provides the young professional
graduates a chance to move on their next level and to reach their potential for the
coming future. In this case BPO gives much more benefits in economic.
As the IT BPO industry grows, the average salary is expected to increase
over the coming years. This is due to the need for services that have become
popular choice for companies. Most Filipinos are college graduates and are sharp
in the English word. The next paycheck of a company's personnel is based solely
on what company they are in. The longer the company takes it is more likely to
increase the salary they can get. And the demand on BPO employee will increase
not only in manila but also in provinces. Joson, Sarah,(2014)
However some study shows that compensation has a moderate connection to
job satisfaction that leads to excel in the employee work performance and
retention. Salary satisfaction can help individual or the family meet their basic
needs and have a decent life. Maslow hierarchy of needs says that if the
physiological need, security, love needs, self-esteem and self- actualization
attained by the person, may become more satisfied and motivated to perform well
his/her life as well as intrinsic factors that can make a person fully committed to
his/her work place. David, Jhonson(2005)
BPO salary is available for good benefits, enough salary sometimes thinking
of switching to another company case is fun with the benefits they get, the salaries
they give, no matter how difficult they were or the salary of the BPO company
provided to their workers. Sometimes the workers have a different job, but they do
not miss out on what they have right from the BPO company they have. There is a
great benefit that makes their worker happy and comfortable because of the
adequate benefits that come from them. Someone else thinks that not all
companies provide good benefits. The workers are looking for more than just good
salaries, but they are always looking for benefits for them. Finance Manila(2011)
BPO Company does have economic paramount importance to address factors
which are seen to impact on economic factors productivity and profits, technology
development of new products/services and social factors customers. Our economy

benefit to the growing numbers of BPO company rising in our country, and the
continuous operation of the BPO Industry give our country more profit from the
taxes that receive from the Industry. (Bartram, Robertson and Callinan, 200 as
cited in Patterson et al., 2009).
2.1.2 Research Literature on the Impact of BPO salary and benefits to the
employee.
Employee motivates to work lively and productively when they are well
compensated, According to Savery et al(2001), ““Salary and benefits policies are
not being used strategically, within the organization to improve morale, reduce
turnover, and achieve targets within an establishment”, meaning employee need to
be paid well so that they will improve their morale and reduce turnover also they
can achieve targets if they are satisfied with their salary, as well as the work life
balance in the company. Satisfied employees are needed to achieve goals and
success in the company. Milkovich and Newman (2004) have clearly stated that
among all types of reward, monetary pay is considered one of the most important
and significant factor in retention. In a research by Moncraz, Zhao and Kay (2009)
it was concluded that although compensation was not one of the top factors
influencing non-management turnover but compensation can act as a critical factor
in reducing managerial turnover and increasing commitment. The researchers
agree that if the employee are satisfied with their salary and well paid also getting
right benefits and incentives, performance of the employee will increase and the
reason for them to stay and always be productive and motivated, may cause to
meet their physiological needs, their belongingness self-esteem, security and self-
actualization. The researchers believe that BPO management are doing their part
to give their employee work satisfaction, work life balance and proper work
environment as well as high salary and benefits for both management and
employee achieve their goals of winning situation. They are referring to what you
can add to business. They also make adjustments to make it faster and more
intelligent to reduce costs, some of which benefits are, refers to the core business,
lowering a business's costs and effective source of resources
Kittleson,Carpo(2018)
BPO Company is fast flourishing in the Philippines, China and India this what
the research called the APAC region. According to the article written by neo IT.com
(2006), the salaries of the ITO, BPO voice and non-voice employees in the APAC
region are based on their competencies, technological skills and length of service.
The increase demand in BPO employee can make the BPO Company increase
their offer to attract many applicant to enter to their industry. The salary offered to
the employee in the APAC region on the three level of experience is above the
level offered by other industries, enough to compensate their professions and
English skills and the amount is up to $20,000 plus annually according to level of
entry. Regarding the job hunters in the Philippines BPO Company place as the
leading organization that workers want to be hired in. Salary is not just the factor
why BPO employee enjoy working in the BPO Company, the work life balance,
other benefits, creative perks, employee engagement and awesome work culture
are also the reason why people wished to be in the BPO Company.(Eniego,2016)
2.1.3 Research Literature on the Impact Of BPO salary and benefit to
recruitment.
Philippines now been the second hotspot in BPO industry and will continue to
increase its mass recruitment for the next five years , because of the increasing
numbers of BPO Companies are now expanding and building many sites for the
BPO industry, millions of job will be expected to create in the Philippines and the
role of BPO company in our economic growth is very significant. In the 2007 the
Philippines have 70% of its worker in the contact center, so many employee and
applicant since the minimum qualification only is college degree, good English
communication skills and computer literate. Fresh graduate are welcome to apply
even without work experience regardless of what course as long as willing to be
trained. Today even High school student with English proficiency can also apply to
work as BPO employee with attractive salary. At present BPO companies have
overwhelming number of applicants and expected to increase more for the next
five years. Salary is also a factor why there are many applicants in BPO company.
Imagine a salary rate of 91.18/hour, this is higher than other companies and in the
government salary bracket it is really enticing to be a part of BPO industry.
Payscale(2018)
Since we’re living in a 21st century technology is evolving so as outsourcing
industry. Many people choose to work in BPO Company because of its many
benefits like High salary, much opportunity and also in this industry employee can
enhance their Communication skills.
In this case they tackle about the benefits of outsourcing the business processes.
So some of them are cost advantage, increased efficiency, focus on core areas,
save on infrastructure and technology, time zone advantage, fast and better. They
serve the best of their applicant, to help the company of the applicant to grow and
to be successful also to give them the best quality service in the lower price,
because they said their company is a reliable and trustworthy outsourcing partner
for variety business.
It is indicated that they are reviewing the applicants before they accept or
hired the applicant. Because they make sure that there is quality and have enough
capabilities to provide positions. Coz their established themselves as a trusted
BPO company in the Philippines. In recruiting, Many BPO companies will run some
interviews to the candidates who applying to the job they will ask a bunch of
question and examined the applicant in the same day. Some of the companies
conduct an interview with a group of applicants because it is more economical and
practical to do. A typical BPO interview process will include; Typing ability and
accuracy, Numerical test, Telephone call role, and listening skill. If you were able to
show confidence while having an interview in a story telling way on how you turned
a unhappy customer a happy one it will make you more the person they want to be
in that particular job.
Those who work in the country's business outsourcing (BPO) industry are
happy with their work. Nevertheless, they say that their job in the industry is not
long-term due to health and social challenges. They think that it's time to get a job
because of the benefits and others want to leave because of their health. Some
survey questions cover issues such as health and welfare, happiness, and
problems that need to be addressed by the local government Joson, Sarah(2014)
2.1.4 Research Literature on the impact of BPO salary and benefits to the
employee retention.
Employees before the millennials are said to be loyal and contented with their
work, focus in their job assignments and most of them are silent and do not
complain about their work and the policies of the management. Today the
employees are different, if they are not comfortable to the work environment, salary
and even their relationship with their co-workers they are not hesitant to quit their
job. Walker, ( 2001) Once said that recognition from their boss, co-employee, team
leaders and customers make the employee loyal to the company. Also another
author believe that training and development makes them career grow in their
company and followed by entrusting them some decisions for which the employee
feel that the company recognize their presence and opinion the appreciation from
their bosses could also one factor of employee retention. Silbert(2005)

Salary and benefits may not be the top factors for the employee retention,
many studies and researches says that, sense of belongingness, the feeling of
being valued, promotion, intrinsic rewards are also the reason for the higher
possibility to the employee to commit and be loyal to their company. Other factors
like work life balance, good relationship with the people around the work place,
employee involvement in decision making, exploiting their talents and supporting
them may be one reason for the employee to stay in their job .Noah(2008)
Call center or BPO is reportedly to have a highest rate of attrition but many
employee choose to retain in their organization because of many factors; one of
these is employee satisfaction this is the main reason why employee retain to their
company, many BPO company make a big effort to incentive program so that the
employee will feel valued and stay in company. Hernandez,(2015)
In this article the most basic and initial is part of the retention. In their study
the employee retention begins in the recruitment, they identify the employee who will
stay in the company. Also gives the employees program that will cause to stay them
in a company. And they need the great managers,
for positions, the BPO services team will study your needs and reach the right
candidate for the job, thus ensuring the perfect match between job and job
seekers. BPO has helped many companies realize the benefits of the Recruitment
outsourcing process. Outsourcing throughout the recruitment process or even
some of the recruitment processes is shown to increase productivity and save
time. In addition to this, the process of soliciting outsourcing helps reduce

complexity, cost and risk of operation. When it's done right, it proves to be a
strategic advantage by recruiting the right talent for the organization. Joson, Sarah
(2014)
According the study conducted by International Journal of Recent Advances of
Organizational Behavior in Decision Sciences (IJRAOB) stated that female who
have stayed in the company for five to eight years are most likely the ones who will
leave because of marital status, familiarity with what they do and the males are the
ones who will stay longer in the company specially if the employee are satisfied
with the work they are in to. There are many factors to consider why the
employees are staying in the company, one is salary and benefits, second is the
work environment, third is the employee and employer relationship, more trainings
and seminars to enhance their career, fourth is the employee belongingness,
making the employee valued and listening to their opinions, trusting them and
appreciated their effort also the reason why employee stay. Ducut, Melissa et
al(2017)
The research related to Sutherland Global Services Workforce Turnover
indicates that the management supervision was the top reason why most of the
employees resigned. This study raises and recommends solutions to this problem
based on the findings of the researcher’s study that will surely resolve the common
issues of many establishments. It was specified in the result of their study that the
importance of harmonious employee-employer relationship, pleasant workplace
atmosphere, reasonable compensation, work-life balance and accessibility of the

workplace are factors that need to be considered when it comes to employee
retention.
In addition to that, it was specified in the review of related literature that the
main factors affecting to workforce turnover are; demographic factors, job
satisfaction, pay satisfaction, work-life and supervision issues. The demographic
factor variables that have been found to have stable relationship with retention and
turnover intentions are age, gender, residence, tenure, civil status and education. It
was highlighted that the job satisfaction is the feelings or general attitude of the
employees toward their jobs. Job satisfaction may arise from many different
sources, for example salary and benefits, role ambiguity, autonomy, quality of
supervision, quality of social relationship and level of support in the workplace.
Also, the pay satisfaction and attitudes towards benefits have significant
relationships with organizationally important outcomes such as absenteeism,
turnover intentions, and perceived organizational attractiveness for job seekers,
organizational commitment and job performance.
In line of the above, I’m agreed with the researchers that those factors are the
common factors of the employees’ turnover. Every employee have our own work
life issues, reasons and capability. Of course no employee will stay in one
establishment if the management supervision is poor, the stability of the company
is not good, low salary wage and a lot of factors. It’s a matter of good relationship
between employer and employee. Shu-chi Lin, Jung-Nuung Chang , (2010).

The research related to “Empirical Review of Motivation as a Constituent to
Employees’ Retention” initiates that Motivation is the greatest factor that will retain
the employees of every establishment. Motivated employees are most likely the
personnel that can handle challenging workplace tasks, are less likely to engage
themselves in conflicts, and are most likely to work for a single organization for a
long time without considering to move in search for better employment terms.
However, the retention of the employees will also affect the factor of their working
environment. How they are being care with the management by the proper
program created by HR and Management by giving bonuses, skill enhancement
and personal development. How the management and colleagues appreciate and
praise their work either small or big things. And lastly, if the employees are
enjoying their work with passion and integrity. Eberendu, Okere (2015)
Synthesis and Relevance of the Related Literatures and Studies
The researchers believe that the related studies and information gathered on
different variables may add to the researchers point of view to search other
relevant data, to support this dissertation and come up to a more exciting output to
be able to share the result of this study for the people who significantly need some
knowledge on how to make an employee be comfortable in their company and how
will they have a longer commitment to their job and be a part of the success of the
organization. In the BPO Industry employees are diverse and need to be listen to
in order to have a decrease turnover so that company may not be always having
an effort and hard time recruiting and choosing the best BPO employee to join the
company achieve their common goals. Wage satisfaction and attitudes towards
benefits have significant relationships with organizationally crucial outcomes such
as frequent absenteeism, turnover intentions, recognized organizational
attractiveness for job seekers, organizational faithfulness and job performance,
suggested pay as well as benefits satisfaction as a turnover predictor and she
outlined that employee who has high level satisfaction on pay may have high level
of self-esteem and enhance their commitment to the organization. Studies
examined that longitudinal wage data and discovered that younger workers are
more likely to seek for other jobs when dissatisfied with wages. Ducut ,Melissa et
Al(2017). Employees with good communication with their managers have more
possibility to stay in the company, open communication and honest conversation is
important to maintain good relationship between the boss and the subordinate,
being open with the leader of the company can often understand the real situation
of the employee in their status in their work or even personal matters that can
affect employee performance that can lead to better or worst output in the goals of
the organization. Sometimes the reason why the employee is leaving because of
the bad attitude of the leader, no matter how big the salary is , employees are
leaving if they are not feeling comfortable with the managers or leaders in their
work place. Money or salary not always the reason of the employee why they stay
or leave, it is the satisfaction in their job or the under employment or over
employment maybe factors for the employee retention. The manager and leaders
sometimes the reason of the employee retention or attrition.
Eberendu,Okere(2015)
CHAPTER III
RESEARCH METHODS
This chapter presents the methods of research used, data gathering
instruments, data gathering procedure and statistical treatment of the data. It
is the important part of the research. It confirms the reader how the actual
work was done and price of the effort done in research.
3.1. Research Design
The design of this study was descriptive, quantitative design which
presented and measured the impact of the BPO salary and benefits to the
different variables. Thre researchers use the descriptive design to explain
how the salary and benefits in BPO industry affect the employees, employere
recruitment and employee retention, Also descriptive research is often used
as a pre-cursor to quantitative research designs, the general overview giving
some valuable pointers as to what variables are worth testing quantitatively.
Shuttlewort(2008)Descriptive design can be use to observe and desribe the
subject without affecting it in anyway.Quantitative design seeks to establish
a cause-effect relationship between two or more variables.
Descriptive quantitative research , however also attempts to determine
the most number of respondents who answer the questions on the survey
questionnaires using likert scale method.

Descriptive quantitative research design also attempts to resolute the
reasons why the BPO employee affected by their salary and benefits, its
impact too in recruitment of new players in BPO industry and why they are
staying in their company, asking them questions in the survey on what do the
impact of salary and benefits for them to stay in the BPO Company.
The researchers use the survey questionnaire as the form of data
gathering and collecting information to seek the answers from the problems
that the researchers wants to prove about if really the salary and benefits
alone can make the employee be motivated to do their job in BPO industry?
and is it truly the salary and benefits be the reason for the BPO employees
enter and stay in the company ?
3.2. Participants of the Study
The tables below present the 100 respondents from the VXI Global
Solutions Incorporated , with the computed weighted mean and general
weighted mean to determine the highest and the lowest ranking on impact of
the BPO salary and benefits to the employees, recruitment and employee
retention . Knowing which answer is the best describe the effect the salary to
the three variables and its ranking from the strongly agree employees to the
strongly dis-agree employees from the questions that serve as their thinking
or answer on the effectiveness of the salary and benefits in BPO industry as
their basis to be attracted in the job and their retention in the company.
3.2.1 Demographic Profile Of BPO employee in terms of gender in VXI
Global Solutions.
Table 1
Gender No. of Respondents Percentage
Male 61 61%
Female 39 39%
100 100%
3.2.2 Demographic Profile in terms of the age of the employee
who are working in VXI

Table 2
Age No.of Respondents percentage

20-30 years old 89 89%
31 y/o and 11 11%
above
100 100%
3.2.3 Demographic Profile of BPO employee in VXI in terms of their
length of service in their company.
Table 3 shows that there are 18% of the employee surveyed in VXI
Company with a tenure of 3-10 years and 49% for the tenure of 1 to 2 years,
the newly hired players with 6 months to 11 months got 33 %. If we are going
to analyze the data almost 67% of VXI employee stayed in the company from
a year up to ten years which means there is a high percentage rate of
employee retention in VXI Global Solutions, and 33 % of the respondents is
still a big number for newly recruit workers.

Table 3
Tenure No. of Respondents Percentage

3-10 years 18 18%
1-2 years 49 49%
6-11months 33 33%
100 100%
3.3. Setting of the Study
The researchers conduct a survey to VXI BPO company in order to
test the level and seek the employees response to the questions being ask if
they are really satisfied on their monthly salary, contented with their benefits
and if the salary and benefits are the main reason why employee stay and
attracted to work in BPO Industry.
3.4. Research Instruments
Survey questionnaires was used to gather information to VXI Global
Solutions Inc. The questionnaires was divided into two sections the personal
data which consist of name, age and tenure and the other division is the
survey proper which contains the questions about the impact of BPO salary
and benefit to measure the relationship of the variables to the Salary and
benefits of BPO Company. Questionnaires were distributed to the employee
of VXI and we ask them to answer the questions honestly. The survey
questions construct in likert scale format each variables compose of several
questions that will reveal and measure the impact of BPO salary and benefits
to the different variables.
The Likert Scale was use to make the survey will be answered easily. In
addition this research instrument allowed the researcher to carry-out the
quantitative approach credible with the use of statistics for data interpretation.
3.4.1 Survey questionnaires development.
The survey questions were made and develop after series of research
about the salary and benefits of BPO employees in the Philippines and
outside the country by simply reading some of the related literature and
studies about BPO industry, which we all know that BPO job is not new in our
country and across the miles. There are many articles, studies and journals
which we can find the impact and significance of salary and benefits to the
employee, recruitment and employee retention that the researcher also want
to prove if the citations of other researchers is still the same in our present
economic situation. The researchers questionnaires are made to measure the
impact of BPO salary and benefits to the employee and how the salary
influence the recruitment of the new applicants as well as to measure the

impact of salary and benefits to the retention of BPO employee to their
company in current situation.
3.5 Data Gathering Procedure
Permission to conduct survey at VXI Global Solutions where settled
first at the Office administration of VXI in Muñoz Quezon City. After wards the
researchers proceed to the distribution of the questionnaires to VXI
employees to know the impact of salary to them, and to finally answer the
impact of BPO salary and benefits to the attraction or recruitment of new
personnel and the reason why they stay in the BPO industry. The
questionnaires are scored, tallied and tabulated.
3.6 Statistical Treatment of data
The information gathered were tabulated and processed manually with
the help of computer to make the interpretation of the results accurately
presented. Matrix tables were made to neatly organize, summarize, and
analyze the gathered data to easily determine the relationship of variables
and their difference.

Data were tabulated, scored and used the formula for weighted mean
and general weighted mean , rank and use also percentage to determine the
number of percentage of the employees who stay in the company because of
salary and benefits also how many percent were recruited as new
employees. The T- Test also one statistical treatment used to determine if
there is a significant relationships and differences between Salary and
employee, recruitment and employee retention, and to compute for the level
of significance of the salary and benefits to the employee, recruitment and
employee retention.
Table 4
The response to the questions on the given variables were scale as per four
point Likert system and given weight as follows:

Range Quantitative Description

4 Strongly Agree-In criterion there is significant impact
3 Agree – There is moderate significant impact in criterion
2 Dis-Agree-There is a little significant impact in criterion
1 Strongly Dis-Agree -There is no significant impact in criterion
RATE VERBAL INTERPRETATION RANGE
4 Strongly Agree 4.00
3 Agree 3.00-3.99
2 Dis- agree 2.00-2.99
1 Strongly dis- agree 1.00-1.99
Table 5
A Likert-Type for the Criteria in the Evaluation of the Test Instrument

3.7 Establishing the Reliability of the Instruments and Treatment
Method used to measure the impact of BPO salary and Benefits to the
different Variables.
To establish the reliability of instruments and the treatments used in
measuring the impact of the salary and benefits to the employee of VXI
Global Solutions INC. first the researchers ask the approval of the Professor
to give permission letter to the administration of VXI Company and sent to
their HR Department to conduct survey to their employees. The researchers
have given a chance to conduct survey and distributed 100 survey
questionnaires to VXI Global Solutions Inc.
The reliability of the treatments to measure the impact of BPO salary
and benefits to the employee, recruitment and employee retention was
permitted by Sir. Telesforo Bernabe Jr. MBA. The researchers used the
percentage formula to know what is the percentage of the recruitment in VXI
company and the percentage of the retaining employee in VXI Company. The
weighted mean and general weighted mean formula were also used with the
permission of Engr. Mike Bernabe to prove if the criteria in the survey

questionnaires have an impact to the employee, recruitment and employee
retention. The T-test was also used to test the hypothesis if the impact of
salary and benefits have relationship and differences to the employee,
recruitment and employee retention.
The results of the treatments shows that , in terms of demographic
profile like age, there is a higher percentage for the age ranges from 20-30
years old with 89% result, who are working in VXI Global Solutions and in
terms of gender there are mostly male employee working in VXI. The length
of service or tenure happens to be the highest percent result is 49% for those
employees who are already one to two years in service and for the new
players or newly recruited there is 33% result and for the employee who has
the most number of years in service is about 18% result.
The weighted mean and the general weighted mean is used to
measure the importance or impact of salary and benefits and if the criteria in
different variables are related or have difference to measure the answers of
the respondents to prove the significance of salary and benefits to the
employee, recruitment and employee retention.
Table 6:
Weighted Mean Impact of BPO salary and Benefits to the:

1.1 employee Verbal Interpretation/WM

1. 3.32 Agree
2. 3.45 Agree
3. 3.63 Agree
4. 3.22 Agree
5. 2.72 Dis-agree
6. 3.53 Agree
7. 3.42 Agree
Table 7
Weighted Mean Impact of BPO salary and Benefits to the
1.2 Recruitment Verbal Interpretation/WM

1. 3.44 Agree
2. 3.07 Agree
3. 2.73 Dis-agree
4. 3.30 Agree
Table 8
Weighted Mean Impact of BPO salary and Benefits to the
1.3 Employee retention Verbal Interpretation/WM

1. 3.32 Agree
2. 3.36 Agree
3. 3.33 Agree
4. 3.39 Agree
5. 3.26 Agree
Table 9
The General weighted mean result
Variables Verbal Interpretation/GWM

Employee 3.33- Agree
Recruitment 3.15 – Agree
Employee Retention 3.26- Agree
Table 10
Ranking from the highest significant impact to the least impact of
the criteria of different variables
Ranking Employee Recruitment Employee
Question no. Question no. Retention
WM WM Question no. WM
1 3- 3.63 1- 3.44 4-3.39
2 6- 3.53 4- 3.30 2-3.36
3 2- 3.45 2- 3.07 3-3.33
4 7- 3.42 3- 2.73 1- 3.32
5 1- 3.32 5- 3.26
6 4- 3.22
7 5- 2.72
3.8 Summary of the Test Characteristics
The Table 11 shows the summary of the test and treatments from
the start of survey questions up to the end and with the treatment of the
results using different methods to know the impact of salary and benefits
to the employee, recruitment and employee retention. The information
from the table 11 will show the outcome of the answers and its
explanation on the impact of salary and benefits to the three variables

and the result will tell the significant factor to consider why the salary and benefits
have relation to employee and difference in recruitment and employee retention.
Table 11
Summary of The Test and treatments Characteristics
Variables Gen.WM T-Test Verbal
Interptretation
Employee and 3.33 0.18 Agree
Recruitment
Recruitment and 3.15 -0.11 Agree
Employee
Retention
Employee and 3.26 0.07 Agree
Employee
Retention
3.9 Statistical Analysis
The results of this study were treated statistically by computing the following
measures:
1. The description of the respondents in terms of their demographic profile to
determine the percentage of the VXI employee in terms of their Age,
gender and tenure or the length of their service in the company.

2. The test and treatments used to measure the impact of salary and benefits
to the employee, recruitment and employee retention were treated with the
weighted mean, general weighted mean and the T-test. This statistical
treatment will prove the relationships and differences of the criteria with
the given variables .
3. To determine the significance of the criteria to the given variables the
weighted mean results of each question for every variables were ranked
from the greatest significance to the least significance so that the
researchers will prove if the salary and benefits have a great impact to the
different variables or there is no significant impact in the salary and
benefits for the employee, recruitment and employee retention.
4. To reveal which factors have the great impact why the employees,
recruitment and employee stay in BPO Company, is the salary and
benefits really the cause or there are other factors to consider. The
researchers wants to find out what is the greatest factor why the employee
in BPO industry attracts and stay in their work place. The survey
questionnaires and the computation used will give the answers to the
researchers query.
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter includes the presentation of the gathered data, analysis and
interpretation of the result that are statistically computed to examine the impact of
BPO salary and benefits to the employee , recruitment and employee retention
particularly on the employees of VXI Global Solutions Inc. This chapter incorporate
the statistical test result for each of the five study questions. The descriptive and
quantitative statistical results , as well as the interpretation of the data gathered are
organized according to the given questions addressed.
4.1 The statements of the problem to be answered with statistical
results will represent the problems:
1.1 How does salary and benefits have an impact to the employee?
1.2 What are the incentives and benefits that employees receive in BPO
Company?
Table 12 shows the ranking of the questions addressed and the mean result
for the impact of BPO salary to the employees. Which answers what are the
incentives and benefits of BPO Company that have an impact to the employee a
how does the salary and benefits strongly affected the employees in VXI Global
Solutions Inc.
The survey question number three which stated there “I am excited to receive
annual salary increase” got the highest result of answer with the weighted mean of
3.63 with the verbal interpretation result “ Agree”, which only shows that an
employee in BPO Company always anticipate the salary increase annually which
also shows that they are willing to wait for their salary increase and patiently wait for
it annually. It also shows that a BPO employees want to stay more in the company
because if not the annual increase will not be in the highest rank . The citation of
Milkovich and Newman (2004)can be found in page 17, have clearly stated that
among all types of reward, monetary pay is considered one of the most important
and significant factor in retention. And the least factor to consider is the number five
questions which is the question about the clothing allowance, which means they do
not give weight to the material things which they can buy if the employees are well
compensated. Considering that weighted mean result in that question got 2.72 and it
falls under the verbal interpretation of “ dis agree” which means they do not
anticipate or think about the clothing allowance , all the result with the verbal
interpretation “agree” shows that the employee are all fond of the monetary rewards
and benefits, .Gift certificates although not convertible to cash but still like cash that
the employee can use it to buy their needs. And among incentives and benefits
which rank high are the commissions based on performance and the health card
with insurance.
Table 12
Questions on the Impact of BPO salary Rank Weighted Verbal
and benefits to the employee mean interpretation

I am excited to receive annual salary 1 3.63 Agree
increase
I am secured because I have health card 2 3.53 Agree
and life insurance.

I am motivated to work in BPO Company 3 3.45 Agree
because there is a performance
bonus/commission.
My salary helps me and my family to have 4 3.42 Agree
a decent life.
I am satisfied with my average monthly 5 3.32 Agree
salary
I am satisfied for the gift certificates that I 6 3.22 Agree
received.
I am contented with my clothing allowance. 7 2.72 Dis-agree
The researchers believe the journals written about the benefits and salary that
the employee received have a significant impact to the employee, it says the work
life balance, other benefits, creative perks, employee engagement and awesome
work culture are also the reason why people wished to be in the BPO Company.
(Eniego,2016).
4.2 The statement of the problem to be answered with statistical result
are the following :
4.2.1 What is the impact of salary and benefits on recruitment.

The table 13 explain the impact of salary and benefits on
recruitment. The data gathered and the most answers of the
respondents comes from the question number one it says there that “ I
choose BPO job because the company offer higher salary. “ means
most applicants are seeking higher salary when they apply at a certain
company, since BPO industry offer higher salary than the other
government offices and private company. That is also the reason why
there are many applicant preferred to work in BPO Company and we
know that BPO job offer much salary specially when the applicant have
already experienced in BPO.
Table 13
Questions on the impact of salary and Rank Weighted Verbal
benefits on recruitment Mean Interpr
etation
I choose BPO job because the company offer 1 3.44 Agree
higher salary.
I choose to work in BPO Company because 2 3.30 Agree
there are life insurance benefits and grocery
incentives as well as salary that will give me and
my family improve life.

I like the idea of referring applicants because I 3 3.07 Agree
can receive cash reward.

I receive signing bonus in my company. 4 2.73 Dis-
agree
The study stated that,” Today BPO companies have overwhelming number of
applicants and expected to increase more for the next five years. Salary is also a
factor why there are many applicants in BPO company. Imagine a salary rate of
91.18/hour, this is higher than other companies and in the government salary
bracket it is really enticing to be a part of BPO industry”. Payscale(2018)can be
found in page 19. The article from Payscale have relationship or same result on the
data gathered on the survey and the most respondents answered that they prefer to
work in BPO Company because of the high salary offered.
4.3 The statement of the problem to be proved with statistical result are
the following.
4.3.1. How incentives and benefits make an employee decide to stay
in the company?
4.3.2 Why do BPO employees stay in the company?
The data gathered and showed in table 14 explain the reason why the
employee stay in the company and how the impact of salary and benefits have no
significant relation to employee retention. The question with the highest score result
from the respondents is the questions says that “Our team buildings helps to
connect the employee and employer relationship.” Which means that not only salary
but good relationships with the coworkers and employer have significant impact
why the employee stay in the company. While the question garnered the lowest
score from the respondents is the questions that says” I receive salary increase,
travel, movie and other incentives as a reward for being loyal employee.” This shows
that although BPO company offer high salary but that is not the main reason why an
employee stay or retain in the company, still there are more significant factors to
consider why an employee stay in the company. And the survey says, the
relationship in the company, second the training and developments are also factors
why an employee stay, because employee also want to have a career growth that
will enhance their skill and knowledge to be more productive and feel confident in
their field. The third significant factor why an employee stay in the company is the
intrinsic reward like certificates and promotion, which shows that an employer
appreciate the employees effort and performance on what the employee can do to
the company. As we examine the questions still all of the questions seems agreeable
to the respondents but there is only one questions that stands out to be the most
significant factor to be consider and the reason why an employee stay.
Table 14
Questions on the impact of salary and Rank Weighted Verbal
benefits to the employee retention Mean Interpretation

Our team buildings help to connect the 1 3.39 Agree
employee and employer relationship.

Trainings and developments are significant 2 3.36 Agree
for my career growth in the company.

The certificate and promotions I received are 3 3.33 Agree
beneficial for me to stay in the company.

The salary and benefits are the reason why I 4 3.32 Agree
stay.
I receive salary increase, travel, movie and 5 3.26 Agree
other incentives as a reward for being a loyal
employee.
According to the citation of Eberendu, Okere(2015,can be found in pages 25
and 27) ,However, the retention of the employees will also the effect of their
working environment. How they are being care of the management with the proper
program created by HR and Management by giving bonuses, skill enhancement and
personal development. How the management and colleagues appreciate and praise
their work either small or big things. And lastly, if the employees are enjoying their
work with passion and integrity. In employee retention mostly intrinsic reward is the
most significant factor why the employee stay in the company, but still salary and
benefits is one important factor why an employee commit in their company for longer
period of time. This how the related literature tells:
“Salary and benefits may not be the top factors for the employee
retention, many studies and researches says that, sense of belongingness,
the feeling of being valued, promotion, intrinsic rewards are also the reason
for the higher possibility to the employee to commit and be loyal to their
company. Other factors like work life balance, good relationship with the
people around the work place, employee involvement in decision making,

exploiting their talents and supporting them may be one reason for the
employee to stay in their job”. Noah(2008)can be found on page 22.
4.4 There is no significant relationship on the impact of BPO salary
and benefits to the:
4.4.1 Employee and Recruitment
4.4.2 Employee and Employee Retention
4.5 There is no significant difference on the impact of BPO salary and
benefits to the:
4.5.1 Employee and recruitment
4.5.2 Recruitment and employee Retention
Table 15
Variables T-test Result Level of Significance

Employee and 0.18 There is no relationship/
Recruitment difference
Recruitment and -0.11 With significant
Employee Retention difference

Employee and 0.07 With significant
Employee Retention difference
The T-test result did exceed in the critical value of 2.0 or the alpha value of
5% (o.o5) to show null hypothesis if there is no relationships and no difference to
the salary and benefits on the employee and recruitment and recruitment and
employee retention. But for the null hypothesis if there is no difference between
employee and recruitment and there is no difference between recruitment and
employee retention did not exceeds the critical value. The statistical results shows
that the variables have no significant relationships and with significant differences in
salary and benefits on the employee , recruitment and employee retention.
CHAPTER V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of the test results of different
methodology used so that conclusions from the results may clearly analyze
and state recommendations .
This study was made to answer the general objective on what is the
impact of BPO salary and benefits to the employee, recruitment and
employee retention and was specifically determined the following questions:
1.How does salary and benefits have an impact to the employee.
2.What are the incentives and benefits that employee receive in BPO
Company.
3.How incentives and benefits makes an employee decide to stay in
the company.
4.Why do BPO employee stay in the company.
5.What is the impact of salary on recruitment.
5.1 Summary of Findings
1. The profile of the respondents with the variables of age, gender and
tenure determined that age, gender have an effect to the people who
enter in the BPO Company and variable tenure determined that an
employee stay in the company for some reason like salary and benefits is
not the top reason but it is the employee and employer relation.
2. Impact of BPO salary and benefits to the employee:
The impact of BPO salary and benefits to the employee attained from the
different survey questions, the salary benefits from annual salary increase
garnered the highest result with the weighted mean of 3.63, second is the
health card and insurance benefit with 3.53 weighted mean, third is the
performance bonus and commission have a weighted mean of 3.45, the
salary that gives the employee decent life garnered 3.42 weighted mean , the
satisfaction on their monthly salary have weighted mean of 3.32, the incentive
of gift certificates have 3.22 weighted mean, all of the six questions
determines that VXI Global Solutions Inc. employee agree that salary and
benefits can affect their work in BPO Company because they are being
motivated and they lives change for the better . Only one question that the
VXI employee dis agree with, if they are contented with their clothing
allowance in their company, the weighted mean for that is 2.72, which only
shows the VXI employees are not satisfied .
3. The impact of BPO salary and benefits to the recruitment:
The result gathered for the impact of salary and benefits to the employee
are acquire from the survey questions with a top result is about the BPO
Company offered high salary that is why the people want to be in the BPO
industry with the weighted mean of3.44, the second one with the weighted
mean of 3.30 comes from the life insurance benefits and grocery
incentives. The third question got 3.07 weighted mean is the referral cash
rewards. The three questions are all agreeable to the VXI employee. And
the last but not the least is the questions if they have signing bonus have
2.73 weighted mean which tell us that they are dis agree because they
said that they don’t have signing bonuses.
4.The impact of BPO salary and benefits to the employee retention is
determined and have a statistical results which are all agreeable to the
VXI employees. The top scorer comes from the team buildings helps them
connect with the employee and employer relationships with the weighted
mean of 3.39 next is the trainings and development are significant for their
career growth with the weighted mean of 3.36, third comes from the
question the certificates and promotions are beneficial the employee of
VXI with a weighted mean of 3.33, the fourth one is the salary itself is their
reason why the BPO employee stay in their company have a weighted
mean of3.32 and the last question with a weighted mean of 3.26 is from
the question with an incentive of salary increase, travel perks and movie
tickets are agreeable to the VXI employee and also the reason for the
employee to stay.
5. The computed value from the impact of salary and benefits to the
employee, recruitment and employee retention have a general weighted
mean of 3.33 for employee, 3.15 for the recruitment and 3.26 for the
employee retention and the T-test result are 0.18 for relationship of
employee and recruitment, -0.11 for the difference in recruitment and
employee retention , 0.07 for the difference of employee and employee
retention which shows that the impact of salary and benefits to the
employee and recruitment have no significant relationships and the
impact of salary and benefits between the employee and the employee
retention also have no significant relationships because, the result of T-
test is in the critical value of 2.0 or 0.05 (5%). And for the difference, on
the impact of salary and benefits to the employee and recruitment that
there is significant difference between the two variables because the result
of the survey stated that the high salary and the different benefits ,
incentives offered by BPO Company is not the main and only reason why
there are many people wish to be in the BPO industry. The impact of
salary and benefits also do have significant difference between the

recruitment and employee retention because both have agreeable result
that salary is one factor why an employee attract and stay in the BPO
Company, but not the main and top factor.
5.2 Conclusions
Based on the data gathered and results determined the following conclusions
are described:
1.The data results showed that the highest percentage who apply and be part
of the BPO employee mostly are men with 61%
2. The age of the people who want to work in BPO Company are mostly 20 to
30 age bracket with 89% result in the statistical formula applied
3.There are 67% of VXI employee stay in their company from 1 year to 10
years in service with a reason of employee and employer relationships are
the best for them to experience, for them to serve more and be a part of BPO
Company and also there is a 33% of VXI employee who are newly recruited
who have been serving from six to 11 months, which is quite big percentage
for a newly recruit employee, with their reason of having high salary offered in
BPO Company the reason why they apply to be an employee. These are the
result of the test applied using the survey questions and the percentage test.
4. The information gathered and the test result proved that annual salary
increase is the best choice for the VXI employee as their satisfaction in
working in BPO Company, also their health benefits, life insurance, gift
certificates performance bonuses, commissions are all significant for the BPO
employee of VXI Global Solutions Inc. The clothing allowance didn’t satisfy
them because it is not for all employee of VXI.
5. The result of the test showed, people are applying in BPO Company
because of high salary, referral cash incentives, insurance benefits and
groceries which are all agreeable and satisfying to the employee of VXI
Company. However they are dis agree with the signing bonus because they
don’t have one.
6. The VXI employees are satisfied with their company because they have
team buildings which improve their employee and employer relationships, the
trainings and development for their career growth the certificates and
promotions, salary increase, travel and movie perks which excites them to
work and stay in their company. The salary is one factor for the VXI employee
to stay in their company but not the main reason, because the VXI employee
most valued the feelings in their workplace, have the most weight for them to
be happy, motivated and commit to their company and serve for more years.
The results are based on the methods used to prove the gathered data.
7.There is no significant relationship in terms of BPO salary and benefits and
the recruitment , also there is no significant relationships in terms of BPO

salary and benefits and the employee retention, these are the results of the
statistical test applied.
8. There is no significant relationships between BPO salary / benefits to the
employee , recruitment and employee retention, but there is significant
difference between recruitment and the employee retention that is according
to the result of the statistical test applied.
5.3 Recommendations
The following recommendations are set to give more satisfying result for the
employees of VXI Global Solutions Inc., to the newly recruit and give their
employees more exciting benefits and incentives for a longer employee and
employer relationships.
1. The Company may give their employees a regular survey or feedback on
how the BPO Company can give the employees more comfort while
working in their company.
2. If the BPO Company already have a regular feedback form and still many
employees are not satisfied with the company policies, the best move is to
redesign their policies and regulations. Have an open meeting with their
valued employees together with the top management to come up with the
best result that would nebefit both parties and to meet common goals..
3. Have an extra incentives like the signing bonus upon acceptance in the
company, because other BPO company already have a signing bonus to
all newly hired players, for more people to be attracted to apply in VXI
Global solutions Inc.
4. Make sure to give every employee a clothing allowance or at least
uniforms not only in the HR department for more formal outlook of the
BPO employees, because mostly BPO industry don’t have uniforms ,
making the employees look informal knowing that BPO industry have a
high salary offered. The BPO employee with uniform looks decent and
other companies may not look down to them.
5. Make a new working schedule scheme for the employees, especially
those who always have a grave yard shift. Give them flexible hour of work
with their flexible days. Example if an employee work for five days with
eight hours of work meaning 40 hours in a week schedule, the
researchers recommend a flexible hours like if an employee can finish
his/her work schedule of 40 hours in a week schedule in three to four days
only, then so be it, for the employees to have more time to rest for health
purposes, more time for the family and personal matters.

REFERENCES
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Impact and the art motivation.
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Employee Retention: A Review of Literature
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Callinan., B. R. (2009).
Health and well being Benefit.
ardner et al. (2004). Were of the view that pay is considered as a motivator as
well as employee retention technique.

Castro ,Alyssa Mae, and Roperto Jr Deluna, 30 March 2013,
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muenchen.de/51678/1/MPRA_paper_51678.pdf
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Factors Affecting Employee Retention - Semantic Scholar
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over-outsourcing-and-bpo.htm, Prachi Juneja
Peppiatt,Kieran(May4,2017)
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Newman, M. a. (2004).
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recognition from bosses, team members, coworkers and customer.
APPENDICES:
CURRICULUM VITAE:

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 1

THE PROBLEM AND ITS BACKGROUND

Business Process Outsourcing (BPO) Company operate as sub-contracting

majority of BPO employee happens to be an IT professionals who perform system

communication skills and availability of the Filipinos, financial attractiveness as

the age is 40 and above is still can be hire as BPO employee.

assigned to guide the emerging new role players.

serve in BPO Company.

much higher salary for the next five years.

1.2 Conceptual Framework

to date namely, Accenture, Convergys, JP Morgan, 24/7 Customers Philippines Inc.

TelePhilippines Inc. Sutherland Global Services, IBM Dakhs Business Process,

Philippines Corporation( Abhishek,2018).

formulates different strategies to compel their employee to stay in the company.

1.2 Conceptual framework of the Study:

Input Process Out put

* Survey *Distribution and *Confirmation

1.3 Statement of the Problem

employee, recruitment and employee retention.

This research aim to answer the following statement of the problem:

1. How does salary and benefits have an impact to the employee?

2. What are the incentives and benefits that employees received in

3. How incentives and benefits make an employee decide to stay in

4. Why do BPO employees stay in the company?

5. What is the impact of salary on recruitment?

1.There is no significant relationship on the impact of BPO salary and

1.1 Employee and Recruitment

1.2 Employee and Employee Retention

2. There is no significant difference on the impact of BPO salary and benefits

1.1 Employee and Recruitment

1.2 Recruitment and Employee Retention

1.5. Scope and Delimitation of the Study

significant impact to the employee, recruitment and employee retention specifically

known as Multi-Cultural Marketing created as customer contact center in 1998. It is

concerned in the work environment stress related issues.

1.6 Significance of the Study

The researchers believe that it is important to know the serious impact of

increase based on their performance or length of service.

Particularly, the result of the study will be beneficial to the following:

going to train students specially in English communication skills and technological

skills if the students would want to work in BPO industry.

3. Parents - The results of this study will be helpful to them because if

when their children have work related problems.

4. BPO Management - The findings of this study will provide added

recruitment selection and process.

5. BPO Employees – The results of this undertaking will offer background

information to the BPO employee to make necessary assessment of their own

performance and competencies for them to deserve a higher salary.

research to experimental qualitative for more accurate result.

1.7. Definition of Terms

Business Process Outsourcing(the process of hiring another company to

support, recruitment, payroll, sales, customer service or technical support, to

telemarketing and the like.

Any person working in a company of firm.

The ability of a company to keep their employees from being committed in

their work place.

5.. Fueled/Fuel up:

Newly hired employee

The action of searching for people to join in an organization.

Proceeds, earnings, income

VXI stands for VME eXtensions for Instrumentation, message based

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Research Literature about Business Process Out sourcing (BPO)

* Survey Distribution and Confirmation