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Volume-5, Issue-5, October-2015

International Journal of Engineering and Management Research
Page Number: 160-164

Employee Retention Strategies in BPO Industry: A Study with Reference

to Selected BPO Sector Organizations at Hyderabad
Dr. B. Nagaraju1, M. Ananda Rao2
1
Assistant Professor, Department of HRM, Acharya Nagarjuna, University, Guntur, INDIA
2
M.Ananda Rao, Research Scholar, Department of HRM, Acharya NagarjunaUniversity, Guntur, INDIA

ABSTRACT burnout exhibit its ugly side. No matter how it balances

Employee Retention refers to the techniques
employed by the management to help the employees stay with
the organization for a longer period of time. Employee
retention strategies go a long way in motivating the
employees so that they stick to the organization for the
maximum time and contribute effectively. Sincere efforts
must be taken to ensure growth and learning for the
employees in their current assignments and for them to enjoy
their work. Employee retention has become a major concern
for corporate in the current scenario. Individuals once being
trained have a tendency to move to other organizations for
better prospects. Lucrative salary, comfortable timings,
better ambience, growth prospects are some of the factors
which prompt an employee to look for a change. This paper is
focuses on the emerging employee retention practices of BPO
sector in Hyderabad. There are thousands of employees
working in Hyderabad BPO companies but the researcher
has selected 250 samples from selected companies through the
simple random sampling method. The researcher has find
that the Hyderabad BPO companies are adapting and
implementing the best employee retention techniques
effectively and employee are also feeling happy being the part
of the sector.
Keywords---- Employee Retention Strategies, Human
Resource Management, BPO Sector.
I. INTRODUCTION
BPO! One reads the word and myriad of well-
groomed youth on calls, fast money, and phenomenal life
styles seem to flash the mind in an instant. That’s just the
start. One reads it again, contemplates over it, gets into the
unveiled afflictions, and gives it a second thought and a
completely differing depiction ignites the mind. Lopsided
working hours, unimaginable attrition rate, stress and
between the pros and cons, the fact remains conspicuous,
loud and unchanged. BPO, Business Process Outsourcing,
is the mantra of employment, the buzz of present, and the
promise of future.
Employee retention is a formidable challenge to
the companies in modern days of competitive business
world where employees have abundant of opportunities
here in domestic market as well as in the foreign market
they tend to leave the organization due to many reasons,
since employees are an important resource in BPO sector
organization than any other resources the managers must
design better human resource policies to retain the key
employees in the organization.
II. REVIEW OF LITERATURE
The BPO industry operations in India have been
the pioneer of outsourcing in the global business scenario.
Foreign companies have been dependent on the Indian
BPO industry due to its English capabilities and quality
work carried out at low cost. In the past two decades, this
industry has evolved into a formidable force with
successful operations conducted in various domains.
(Steve 2013).
A recent study conducted by MET- LIFE
published in Business Standard weekend (4 October 2015)
reveals the following factors are important for an
employee who are considering to leave would stay.
• 62% Salary
• 55% Benefits increase
• 45% more contribution to retirement plan
• 37% advancement in opportunities
• 33% job security
It is also proved from the Hay Group study(2005)
of more than 500,000 employees in 300 companies found

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that employee would like to stay within the company • To know the job satisfaction level of the
when they were find the better salary, career growth, employee working in the industry.
training and development , exciting work and challenge. HYPOTHESIS
Researcher’s finds that human resource H 01 : There is no significant relationship between job
management practices in compensation & rewards, job satisfaction and salary
security, training & developments, supervisor support H 11 : There is significant relationship between job
culture, work environment and organization justice can satisfaction and salary
help to reduce absenteeism, employee retention and better H 02 : There is no significant relationship between job
quality work (Meyer and Allen, 1991; Solomon, 1992; satisfaction and career growth.
Snell and Dean, 1992; Arthur, 1994; Snell and Youndt, H 12 : There is significant relationship between job
1995; MacDuffie, 1995; Delaney and Huselid, 1996; satisfaction and career growth.
Ichniowski, Shaw and Prennushi, 1997). According to
Accenture (2001) study on high performance issue find IV. RESEARCH METHODOLOGY
that organization strategy regarding employee retention
primarily start from US, Europe, Asia than Australia. How employee retention depends upon number of
factors (lucrative salary, career development, supervisor
III. OBJECTIVES OF THE STUDY support, working environment and work-life balance). The
data is collected from the 250 employees working in
• A study on employee retention strategies in BPO Hyderabad city. Sample population is selected through
industry with special reference to Hyderabad city stratified simple random sampling technique. Data is
• To analyze the factors help full to retain the analyzed using the following statistical tolls to get the
employees. inference.
• To examine the employee response towards • Percentage Analysis
retention strategies. • Chi – Square Test
• Weighted average method

V. RESEARCH VARIABLE retention is the dependent variable, which is going to be

checked for a relationship with lucrative salary career
The variables that are being considered are development, job security, recognition and rewards and
described in the theoretical framework. Employee employee relations are independent variables.

Demographical factors of the respondents

Gender designation

Gender Respondents % Designation Respondents %

Male 165 66 Executive 170 68

Female 85 34 Non-Executive 80 32

TOTAL 250 100 TOTAL 250 100

Age Experience

Age Respondents % Years of service Respondents %

Less than 84 34 Less than 5years 103 41
20 years
20-30 years 76 30 5-10years 72 29

30-40years 62 25 10-15 years 43 17

Above 40 28 11 Above10years 32 13
years

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TOTAL 250 100 TOTAL 250 100

Income of the respondents Qualification
Monthly Respondents % Qualification Respondents %
income(in
Rs)
Below 88 35 HSC 29 12
10000
10000- 63 25 Intermediate 55 22
15000
15001- 41 17 DIPLOMA 46 19
20000
20001- 33 13 U.G 97 38
25000
Above 25 10 P.G 23 09
25000
TOTAL 250 100 TOTAL 250 100

Source: (primary study)

The above table reveals the demographic factors of
the study. The majority of respondents are male i.e., 66%,
the maximum respondents belong to the age group below
20 years i.e., 34%, and the majority of respondents belongs
to non- executive level i.e., 66% and the majority of
respondents experience is below 5 years and the monthly
income earned by majority of respondents belongs to
below 10,000 i.e., 35% and the majority of the respondents
qualification belongs to graduation i.e., 38%.

RELATIONSHIP BETWEEN JOB SATISFACTION AND JOB SUPPORT (exciting and challenging work)
JOB Highly Satisfied Neutral Dissatisfied Highly Total
SATISFACTION satisfied dissatisfied

Salary
Highly satisfied 75 26 13 0 0 114
43.77 27.81 19.15 15.96 7.296
Satisfied 21 29 22 10 0 82
31.48 20 13.77 11.48 5.24
Neutral 0 0 7 20 10 37
14.2 9 6.2 5.18 2.36
Dissatisfied 0 6 0 5 0 11
4.22 2.68 1.84 1.54 0.7
Highly 0 0 0 0 6 6
dissatisfied
2.3 1.46 1 0.84 0.38
Total 96 61 42 35 16 250

From the above chi-square table it can be inferred by using chi-square calculated and tabular values the H 01 null
hypothesis rejected and alternative hypothesis accepted i.e., H 11 : There is significant relationship between job satisfaction and
job support and recognition.

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Factor Level of Degrees of Table Calculated result

significance freedom value value
There is no significant relation
between job satisfaction and salary 5% 16 26.296 264.19 rejected

RELATIONSHIP BETWEEN JOB SATISFACTION AND CAREER GROWTH

JOB Highly Satisfied Neutral Dissatisfied Highly Total

SATISFACTION satisfied dissatisfied

career growth
Highly satisfied 39 37 19 0 0 95
31.54 25.46 19.38 11.02 7.6
Satisfied 44 20 15 12 11 102
33.86 27.34 20.8 11.8 8.16
Neutral 0 10 17 0 0 27
8.96 7.23 5.50 3.13 2.16
Dissatisfied 0 0 0 17 0 17
5.64 4.55 3.46 1.97 1.36
Highly 0 0 0 0 9 09
dissatisfied 2.98 2.41 1.83 1.04 0.72
Total 83 67 51 29 20 250

From the above chi-square table it can be inferred accepted i.e., H 12 : There is significant relationship between
by using chi-square calculated and tabular values the H 02 job satisfaction and career growth and compensation.
null hypothesis rejected and alternative hypothesis

Factor Level of Degrees of Table Calculated result

significance freedom value value
There is no significant relation
between job satisfaction and career 5% 16 26.296 305.42 rejected
growth

FACTORS IMPORTANT TO STAY IN THE COMPANY USING WEIGHTED AVERAGE METHOD

S.NO FACTOR X W XW XW/∑W RANK
1 SALARY 70 5 350 23.33 1
2 RECOGNITION AND 35 4 140 9.3 2
REWARDS
3 EMPLOYEE RELATONS 34 3 102 6.8 4
4 CAREER GROWTH 62 2 124 8.2 3
5 JOB SECURITY 49 1 49 3.2 5
TOTAL 250 15 765 50.83

INFERENCE Employee career growth is the main factor which

The above table indicates the various factors are persuades employees to stay in the company.
capable of retain the employees in the organization.
According to the opinion given by the respondents, the
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VI. LIMITATIONS AND FUTURE
RESEARCH
The study is done on a general way without
concentrating on specific BPO variables. Future research
can be done on the employee retention dimensions on
specific BPO variables. Another limitation is that this
study includes only five dimensions of employee retention
in BPO industry in Hyderabad. A good area of research in
the future is to find out if there are more dimensions of
employee retention that influence the stay of BPO
employees. In this study only job related variables are
considered for the analysis. Future research can aim to find
out the relationship between the demographic variables of
the respondents such as age, sex, marital status, tenure,
education etc. and employee intention to stay along with
job related variables. The present study is confined to
lower and middle level BPO professionals. Future research
can study the influence of these dimensions on the stay of
top level BPO professionals.
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