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The Problem and Its Background: Od-Fearing Eciprocating Ommitting To Excellence
The Problem and Its Background: Od-Fearing Eciprocating Ommitting To Excellence
CHAPTER I
1.1. Introduction
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
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
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.
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 2
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
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 3
employee can make a decision to pursue their career and stay for long period to
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 4
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
Teletech Customer Management, Deutsche Knowledge Services Pte. Ltd. and Sitel
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 5
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.
Figure 1
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 6
The study sought to determine the impact of BPO salary and benefits to the
BPO Company?
the company?
1.4. Hypothesis
benefits in terms of :
between:
This study aims to find out and confirm if BPO salary and benefits have a
to the employees of VXI Global Solutions Inc. in Munoz Quezon City. VXI is formerly
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 8
right compensation they must receive in their company, if they deserve to have an
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
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
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
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
1. APAC:
Asia Pacific
2. BPO :
handle business activities for them ranging from data processing, back office
3. Employee :
4. Employee Retention:
Power up ,Intensify
6. New Player :
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 10
7. Recruitment:
8. Revenue:
9. Robust :
Powerful, Strong
10. VXI:
Communication in the US and here in the Philippines VXI stands for Vision X
Incorporated.
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 11
CHAPTER II
Business Process Outsourcing (BPO) is one of the largest industry here in the
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.
the Philippine economy due to its contribution for the past decade. It fuels the
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 12
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
the company that don’t have work life balance and with low compensation rate,
In this chapter the researchers want to discuss the impact of BPO salary and
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
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
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
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
Lorette(2018).
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
the third party. Primarily, this action was related to the firms which dealt with
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
The Company must weigh the positives vs. negatives of using Business Process
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
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.
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 16
increase the salary they can get. And the demand on BPO employee will increase
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
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
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)
which are seen to impact on economic factors productivity and profits, technology
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
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
not being used strategically, within the organization to improve morale, reduce
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 18
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,
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
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,
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 19
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)
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
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
Payscale(2018)
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 20
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
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
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
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 21
a unhappy customer a happy one it will make you more the person they want to be
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
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
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,
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
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
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
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
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)
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
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)
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
retention.
In addition to that, it was specified in the review of related literature that the
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
Also, the pay satisfaction and attitudes towards benefits have significant
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
is not good, low salary wage and a lot of factors. It’s a matter of good relationship
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
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)
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
will they have a longer commitment to their job and be a part of the success of the
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 26
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
outlined that employee who has high level satisfaction on pay may have high level
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 27
employment maybe factors for the employee retention. The manager and leaders
Eberendu,Okere(2015)
CHAPTER III
RESEARCH METHODS
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 28
is the important part of the research. It confirms the reader how the actual
presented and measured the impact of the BPO salary and benefits to the
how the salary and benefits in BPO industry affect the employees, employere
the most number of respondents who answer the questions on the survey
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
The tables below present the 100 respondents from the VXI Global
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
their basis to be attracted in the job and their retention in the company.
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 30
Global Solutions.
Table 1
Male 61 61%
Female 39 39%
100 100%
above
100 100%
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
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 32
of VXI and we ask them to answer the questions honestly. The survey
questions that will reveal and measure the impact of BPO salary and benefits
The Likert Scale was use to make the survey will be answered easily. In
quantitative approach credible with the use of statistics for data interpretation.
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
impact of BPO salary and benefits to the employee and how the salary
first at the Office administration of VXI in Muñoz Quezon City. After wards the
employees to know the impact of salary to them, and to finally answer the
personnel and the reason why they stay in the BPO industry. The
Data were tabulated, scored and used the formula for weighted mean
and general weighted mean , rank and use also percentage to determine the
salary and benefits also how many percent were recruited as new
employee, recruitment and employee retention, and to compute for the level
employee retention.
Table 4
The response to the questions on the given variables were scale as per four
3 Agree 3.00-3.99
Table 5
Method used to measure the impact of BPO salary and Benefits to the
different Variables.
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
permitted by Sir. Telesforo Bernabe Jr. MBA. The researchers used the
company and the percentage of the retaining employee in VXI Company. The
weighted mean and general weighted mean formula were also used with the
retention. The T-test was also used to test the hypothesis if the impact of
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
measure the importance or impact of salary and benefits and if the criteria in
Table 6:
Table 7
Table 8
2. 3.36 Agree
3. 3.33 Agree
4. 3.39 Agree
5. 3.26 Agree
Table 9
Table 10
WM WM Question no. WM
1 3- 3.63 1- 3.44 4-3.39
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 40
5 1- 3.32 5- 3.26
6 4- 3.22
7 5- 2.72
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
from the table 11 will show the outcome of the answers and its
and the result will tell the significant factor to consider why the salary and benefits
Table 11
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
The results of this study were treated statistically by computing the following
measures:
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
weighted mean results of each question for every variables were ranked
researchers will prove if the salary and benefits have a great impact to the
4. To reveal which factors have the great impact why the employees,
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
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 44
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 45
increase
I am secured because I have health card 2 3.53 Agree
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).
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
know that BPO job offer much salary specially when the applicant have
Table 13
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
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
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
4.3 The statement of the problem to be proved with statistical result are
the following.
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 co- workers and employer have significant impact
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 48
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
Table 14
stay.
I receive salary increase, travel, movie and 5 3.26 Agree
employee.
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
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
“Salary and benefits may not be the top factors for the employee
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
exploiting their talents and supporting them may be one reason for the
benefits to the:
Table 15
Recruitment difference
Recruitment and -0.11 With significant
The T-test result did exceed in the critical value of 2.0 or the alpha value of
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 51
employee retention did not exceeds the critical value. The statistical results shows
that the variables have no significant relationships and with significant differences in
CHAPTER V
methodology used so that conclusions from the results may clearly analyze
This study was made to answer the general objective on what is the
2.What are the incentives and benefits that employee receive in BPO
Company.
the company.
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 52
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
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.
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
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
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 53
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
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
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
VXI with a weighted mean of 3.33, the fourth one is the salary itself is their
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 54
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
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
retention which shows that the impact of salary and benefits to the
impact of salary and benefits between the employee and the employee
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
that salary is one factor why an employee attract and stay in the BPO
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
2. The age of the people who want to work in BPO Company are mostly 20 to
3.There are 67% of VXI employee stay in their company from 1 year to 10
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.
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 56
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
5. The result of the test showed, people are applying in BPO Company
groceries which are all agreeable and satisfying to the employee of VXI
Company. However they are dis agree with the signing bonus because they
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.
salary and benefits and the employee retention, these are the results of the
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.
how the BPO Company can give the employees more comfort while
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..
GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 58
3. Have an extra incentives like the signing bonus upon acceptance in the
all newly hired players, for more people to be attracted to apply in VXI
uniforms not only in the HR department for more formal outlook of the
making the employees look informal knowing that BPO industry have a
high salary offered. The BPO employee with uniform looks decent and
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
only, then so be it, for the employees to have more time to rest for health
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APPENDICES:
CURRICULUM VITAE:
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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 65