Business and Management

A Case Study on TDCX:

The Significance of Motivation and
Performance Leadership on Employee Retention
Prepared by Group 6 (Reynamy Doria, Zin Min Tun, and Zulfadila Hira Permana)

Managing employee retention involves strategic actions to keep employees motivated and
focused so they remain employed and fully productive for the benefit of the company. It
has been one of the biggest challenges faced by Business Process Outsourcing (BPO)
companies where there is constant comings and goings of employees looking for better
opportunities. One company seems to have this figured out. TDCX (Transformative Digital
Customer Experience), a leading provider of BPO in Asia, has achieved since 2018 a
monthly average of a low 2-4% employee attrition rate. This case study will outline and
analyse the strategies implemented by TDCX in relation to the significance of employee
motivation and performance leadership on their employee retention management.
Table of Contents:

❖ Company Background

❖ Description of The Case

❖ Company Strategies Regarding Presented Case

❖ Strategies Analysis

❖ Further Recommendations

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 1. Company Background
TDCX was established in 1995 with the goal of providing outsourcing services to a variety of
sectors. They help to power the digital economy by partnering with the world's
fastest-growing and most-loved brands. They assist with the application of Artificial
Intelligence and Machine Learning to basic connections, allowing them to focus on more
sophisticated customer experience interactions.

It was a risky move for them because being first to market meant more barriers to break
down, but obstacles taught them perseverance and the importance of keeping their eyes
on the prize. Their drive and team energy have resulted in expansion in 11 strategic
locations, employing over 10,000 people, thanks to the trust that high-growth brands place
in them. TDCX is recognized as a digital economy facilitator, and they continue to be
innovative, inventive, and resourceful in order to create value through customer
experience. 1

TDCX has achieved since 2018 a monthly average of a low 2-4% attrition rate. “Best
Companies to Work for in Asia 2019.” TDCX, one of the leading business process
outsourcing service providers in the country, has been awarded the Best Companies to
Work For Award — their second consecutive win—during the HR Asia Awards 2020. It was
presented by HR Asia, Asia’s most authoritative publication for senior HR professionals,
where best practices and inner workings of companies are evaluated to understand what
distinguishes them from the rest. 2

1
https://www.tdcx.com/about
2
https://businessmirror.com.ph/2021/02/06/tdcx-phl-again-bags-best-companies-to-work-for-award/

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 2. Description of The Case
The Business Processing Outsourcing (BPO) industry has constantly been thriving globally,
especially in the Philippines. The sector contributed around 60 percent of the country’s
overall economic growth in 2018 and 2019; its human resource base has a 95 percent
literate population with above-average communication skills, and the outlook is rosy with
hopes that the industry will continue to attract investors if this growth is sustained.3

BPOs, however, usually face an unfortunately high employee turnover rate. This has led to
companies trying different approaches to take better care of their employees and give
them a better work-life balance. With these, studies have identified major and common
problems among BPO companies namely toxic workplace, health issues, technical
difficulties, threat of automation and these all boil down to a single major problem -
Employee Attrition.4

If there is one thing that best describes outsourcing companies, it is that they are dynamic.
This very dynamism, however, keeps employee retention too fluid. The constant comings
and goings of BPO employees looking for better opportunities keep the attrition rate high.
As a result, companies are forced to constantly spend time and finances on training newly
hired employees.

Despite the many challenges, the BPO industry in Asia is fighting to provide quality services.
Many BPO companies are shaping policies that aptly benefit employees. Healthcare and
paid vacations are just some of the incentives offered to lessen employee attrition and
health issues related to the working hours.

The BPO industry may be facing uncertainties and threats incessantly, but certainly local
companies are moving ahead of the curve to continue their stellar performance now and in

https://www.manilatimes.net/2021/01/08/public-square/behappier-how-tdcx-nurtures-its-company-
culture/824539/
4

https://www.yempo-solutions.com/outsourcing/the-challenges-of-the-philippine-bpo-industry-and-ho
w-these-are-being-resolved/

4
the foreseeable future. This report will analyze TDCX’s current implemented
motivation and performance leadership style to increase employee retention.

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 3. Company Strategies Regarding Presented Case

People say that when it comes to keeping a company up, happy employees make
happy customers, and happy customers mean lots of business opportunities. This rings
especially true in the BPO industry where the business operations center around direct
engagement with customers. TDCX proudly claims that they embody happiness as their
corporate culture.

As one of the most progressive companies in the industry, TDCX focuses on creating
and cultivating a happy working environment. TDCX is known for its #BeHappier campaign,
an employee engagement practice launched in July 2019 that aims to raise morale and
satisfaction among its employees, thereby also increasing their productivity. These are
some strategies and programs done by TDCX to cultivating happy working environment:

A. People (employees) as the core strategies5

It is reflected in TDCX’s core of operations: their vision and mission. Their vision
stated that they want to be the preferred partner to not only high growth organisations
(clients), but also high performing individuals, which include their employees. Their
mission is also complementing this: to assist our partners and our people (employees) to
achieve higher success through innovative and high-performance solutions.

Furthermore, TDCX positions their employees as the core of the company culture
that is “putting our people first to ensure excellent customer experience.” TDCX strives to
build a positive culture for everyone to expand their potential. TDCX wants their
employees to experience life through work thus their offices (also called campuses) are
designed to accommodate 'play' while regular employee engagement programmes bring
'work-life balance' to reality.

B. Inviting and stimulating work place

Firstly, TDCX uses the term ‘campus’ instead of office or location for their working
area. We believe this is by design to replicate the learning as well as fun atmosphere of
going to campus. It sends a message to their employees that everyday they are going to a

5
https://www.tdcx.com/about

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 place to get new knowledge and skills and at the same time have a good time with their
colleagues.

In all of its campuses, TDCX veers away from the traditional cubicles dominating the
entire office floor plan. Instead, TDCX applied an open-office concept where the interiors
were designed to engage the senses and create memorable experiences for the
employees. The play of light, space and colors were intended to encourage sporadic breaks
from work or support socializing among co-workers. Carefully selected furniture and
aesthetic elements accord a relaxed environment for open communication and
collaboration, as well as space to concentrate and be productive.6 Employees also have
access to limited supply of drinks, snacks, and many other freebies. The campuses are
designed to feel like a hip cafe.

Singapore campus for example, “Welcome Home” signs are mounted around the
office, greeting employees at any point of their workday. Given that local employees have
to surmount personal challenges and heavy road traffic day in and day out, the office has
an opportunity to become that space where individuals are invited to fulfill a sense of
earned recognition, belongingness, and even relaxation.7

Last but not least, the rights of every employee at TDCX are safeguarded by internal
code of conduct that follows global standards, such as the United Nations’ Universal
Declaration of Human Rights. thereby creating a safe and happy workspace for everyone.
TDCX also fosters diversity and inclusion as well as uphold gender equality in the
workplace.

C. Adaptive employee engagement program

TDCX implements a wide range of employee engagement activities to nurture its

work-life balance culture, such as incentivized games, fun after-work activities, in-house
fitness sessions and seminars, outings and celebrations.

Pandemic does not seem to slow down these employee engagement programs at
TDCX. At the start of the lockdown, TDCX successfully transitioned and pivoted, allowing its
people to work remotely with the proper support and assistance. The skeletal workforce

6
https://www.chicmix.net/2020/02/happy-bpo-company-tdcx.html
7
https://orangemagazine.ph/2020/customers-attest-to-happy-culture-at-tdcx/

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operating at the office was given ample support as well. Employee engagement initiatives
like virtual games and wellness seminars were also conducted to keep their people
connected and motivated while ensuring their job security amid the pandemic.8

D. Competitive employee benefits

TDCX prides itself for offering their employees a competitive compensation and
remuneration package. According to a 2019 JobStreet study, TDCX Philippines’
compensation packages are 20% higher than the industry average. Apart from competitive
salary, other employee perks include, performance-driven bonuses, top-drawer healthcare
plan and annual health check-up, as well as relatively flexible time off.

E. Learning and development opportunities

TDCX believes that everyone is entitled to grow, therefore they made learning and
development available at every level through coaching sessions, training programs, and
career development plans. Recently, they also added online learning platforms to their
learning and engagement tools. For instance, TDCX just launched LinkedIn Learning Camp
to support employees’ professional growth.
Through its ranging employee development program, TDCX has engraved the
mindset of co-innovators in their employees. They are given the chance to lead projects
and come up with innovative solutions. There was one instance in 2018, when the
Philippines' campus faced challenges in terms of call volume unpredictability, as well as
multiple and simultaneous processes and tools changes. However, they managed to turn
the tide, even ending the year exceeding service delivery expectations. TDCX employees
collaborated with clients in their exploration of better ways to do things, constantly
participating in pilot projects that allow customers to test and try new ideas for feasibility
and long-term gain. When diverse talents are harnessed to the extent that employees
become co-innovators and heroes who help improve processes, the lives of stakeholders
become richer and a lot easier.9

https://businessmirror.com.ph/2021/02/06/tdcx-phl-again-bags-best-companies-to-work-for-award/
9
https://orangemagazine.ph/2020/customers-attest-to-happy-culture-at-tdcx/

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 F. Social and environmental contribution opportunities

TDCX committed to bringing positive transformation to empower their people, to

uplift communities, and to promote environmental sustainability through their CSR
commitments. 10
In numerous CSR programs, TDCX also includes their employees to
participate in making positive social and environmental contributions.

With the help of partner organizations, TDCX employees make donations of time,
money, and skills to support inclusive education. For instance, TDCX Malaysia worked with
the Malaysian Association for the Blind to record audiobooks for the library. TDCX also
enforces an eco-friendly approach in their operations, including carbon emissions
offsetting and investing in environmentally responsible business (responsible sourcing for
merchandise, water efficiency internal policies, waste reduction and recycling policies, and
banning of single use plastics). Furthermore, TDCX actively encourages their employees to
take part in environmental preservation programs, such as beach cleanup to help protect
the coastal environment and tree planting activity at swamp areas.

G. Employee recognition program

TDCX understands the invaluable efforts of their employees and the importance of
acknowledging it regularly. Therefore, to complement their rewards scheme, the firm
establishes designated page in their website to give recognition their well-performing
employees in different campuses, called TDCX superstars11. On top of that, they are also
linked to TDCX’s other outreach platforms, like Facebook and LinkedIn. TDCX touched upon
more personal information as well, such as hobbies and life aspirations in addition to their
superstars work-related achievements. It creates a sense of higher level connection, more
than just employer-employee and service provider-clients relationship.

10
TDCX 2021 CSR Report
(https://www.tdcx.com/static/CSR%20Deck_040821-942ea87a6f3b51fa2cb2437783dfbc68.pdf)
11
https://www.tdcx.com/superstars

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 H. Participatory leadership

One example, in 2017, TDCX Philippines held its first Townhall where its CEO,
Laurent Junique, and Country Director, Ricart Valvekens spoke about the overall strategic
direction for the Philippines. The Townhall brought together the company’s leaders to
discuss key learnings and insights from the past quarters as well as what each department
will contribute to the company’s growth and expansion to reach 5,000 employees in the
next few years. 12

12
https://www.tdcx.com/th-en/news/tdcx-philippines-surpasses-1000-employees/

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 4. Strategies Analysis
The many awards and recognition in the realm of employee management, the high Employee Satisfaction score, as
well as low attrition percentage have proven that the strategies implemented are successful in managing employee retention.
One factor that comes into play is the ability of TDCX through various strategies and programs to motivate their employees to
contribute their inputs to the company, to focus these inputs in the direction of high performance, and to ensure that the
employees receive the outcomes they deserve. These strategies can be analyzed through several theories, among others

- Need Theories
A need is a necessity for survival and well-being. The basic premise of need theories is that people are motivated to
obtain outcomes at work that will satisfy their needs. Managers at TDCX must have determined the different needs their
employees are trying to satisfy at work and ensure that they receive the outcomes that help to satisfy those needs when they
perform at a high level and help the organization achieve its goals.

Based on Maslow’s Hierarchy of Needs, we can identify which TDCX strategies are targeted to which needs of their
employees they are trying to satisfy in order to motivate them to perform at a high level. We would also analyse the pros and
cons of each strategy implemented.

Needs TDCX Strategies to Pros Cons

Satisfy the Needs

Self-actualization - Learning and development
(to realize one’s full program
potential) - Participatory leadership allows
employees to give direct input
and feedback as well lead project
- Provide greatest - Relatively high cost with
motivation when the hard to quantify
highest level of needs are measure of success
met
- Increase in knowledge
and skill will increase
employees performance

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 and in turn will boost the
company’s performance
as well
- Improve trust between
employees and senior
management

Esteem - Performance-driven bonuses - Increase in company - Without proper

(to feel good about performance fueled by monitoring, this could
one’s capabilities) employees’ motivation to get trigger performance
bonuses manipulation and
- Increase employees morale unhealthy competition
- Employee recognition program - Reinforce employer (TDCX) among employees
(superstar) on website and social brand
media platform

- Positive social and environmental - Encourage prosocially - Susceptible of only

contribution opportunity motivated behaviour publicity stunts without
clear goals and
measurement

Belongingness - Open-concept office to boost - Create sense of unity and - Quite big investment for
(social interaction) employee interaction foster collaboration the sake of hip office
- Employee engagement activities despite hierarchical - High possibility to
position distract employee’s focus
- Undesirable by a more
introverted employees

Safety - Healthcare plan and annual - Create a safe and and

(security, stability, check up comfortable working
safe environment) environment so that
- Code of conduct implementation employees can focus on - Requires constant
that upholds human rights, their work monitoring and
diversity and inclusion, as well as evaluation in CoC

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 gender equality implementation

Physiological - Competitive salary to fulfill basic - Fulfill minimum

(basic needs to necessities corporate obligations;
survive, e.g. food, preventing from strikes
shelter) - Complimentary drinks and snack - Relatively low in cost but
can provide high benefits
in terms of company
image as trendy

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 5. Further Recommendations

● Establish and publish monitoring and evaluation tools and results especially in
employee engagement program, learning and development program, and CSR
program.

There is limited information that we can gather about how TDCX monitors their
employee’s engagement level, knowledge and skills improvement, as well as the
impact assessment of their CSR programs. These datas are crucial to support and
hold their accountability upon the claims that they made.

● Stock options with accompanying vesting periods. Offering stock options to

employees who have worked for the company for a long time not only encourages
them to stay, but it also discourages them from leaving. The likelihood of an
employee departing reduces once he or she has formed a financial interest in the
organization.13

● Upgrading the provision of HMO through adding Employee Assistance Program for
Mental Health. EAPs can help employers reduce absenteeism, workers'
compensation claims, health care costs, accidents and grievances. In addition, they
can address safety and security issues, improve employee productivity and
engagement, and reduce costs related to employee turnover.14

● Offering Tuition reimbursement as an employee benefit. Companies that offer

tuition reimbursement typically agree to pay a set amount or percentage of their
employees’ tuition and other education expenses for a degree or study program.15

13
https://www.investopedia.com/terms/e/eso.asp
14

https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingemployeeassi
stanceprograms
15
https://myscholly.com/50-companies-with-amazing-tuition-reimbursement-programs

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