Attrition in Indian BPO Industry EXECUTIVE SUMMARY

Managing attrition is not a very easy task to do in the BPO industry. It is the route to their survival. Turnover is of considerable concern for managers because it disrupts normal operations and necessitates the costly selection and training of replacements, the costly hiring and training the new employee to regain the lost customer and supplier contacts. The employee retention is obviously one of the most important challenges in organization and avoids unwanted turnover. Staff attrition represents significant costs to most organizations. It is odd, therefore, that many organizations neither measure such costs nor have targets or plans to reduce them. Employee turnover or resign could disrupt normal operation necessities the costly selection and training of replacement. Reducing employee turnover required the management efforts of the companies The main objectives of the study are to understand the reasons leading to attrition, to identify the major problems faced by employees in the organization which lead to attrition. To understand the problems faced by the organization due to attrition and finally suggest ways and means to check attrition. In this study, I have made an endeavor to highlight attrition issue faced by BPO industry. We try to find out the various reasons for this problem, and have proposed some ways in which this issue can be addressed.

But then there's the real world. The aspirations of employees are not managed well. A good number of employees leave the sector because they feel that their longterm career growth prospects are better in some other sector. employees would love their jobs. The rapid growth of the sector left no space and time for players to take care of ³career issues´ of employees. do leave. average attrition rate in the Indian BPO industry is over 30%. is trying to contain its manpower issues . what does that entire turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest? Attrition issues in Indian BPOs are not salary oriented anymore. But the coming years are crucial because if the growth is not well managed. hate their coworkers. the industry. employees. the whole system will be hurt badly. or because their spouse gets a dream job in another state. want a change. work hard for their employers. BPOs are not prioritizing enough on solving perceptions on work and career growth-related issues in BPO. but due to perceived lack of long-term career growth in the sector. So. and flexible schedules so they could attend to personal or family needs when necessary. This industry will take at least three years to settle its issues. Initially. And never leave. according to international risk management and business intelligence firm Hill and Associates. which is expected to be major employment creator in the country. However. Currently. resignation or death" Defining Attrition rate: "the rate of shrinkage in size or number" Introduction: In the best of worlds. get paid well for their work. either because they want more money. have ample chances for advancement. like their coworkers. Hiring practices in the sector are wrong and there is a huge expectation and qualification mismatch. Currently. hate the working conditions. the BPO sector had focused on taking maximum advantage of lower costs here and later the focus shifted to quality improvement. And in the real world.Attrition in Indian BPO Industry INTRODUCTION Defining attrition: "A reduction in the number of employees through retirement.

• To suggest ways and means to check attrition. 2) I have taken a sample size of 100. . 1) I have designed the questionnaire and have taken the data by two methods: a) Direct Survey .Attrition in Indian BPO Industry OBJECTIVES • To understand the reasons for high attrition rate. b) Online Survey.Market Survey. 3) I have collected data’s from different BPOs of India. • To identify the major problems faced by employees in the organization which lead to attrition. • To understand the problems faced by the organization due to attrition. METHODOLOGY Source: Collecting primary data from employees from the nearby companies and use secondary data to the measures their effectiveness and guidelines of these industries under which they operate their daily activities.

I have assigned values for every scale respectively. we plot graph of all the questions 1 .10 according to their dimensions: 60 0 58 0 50 0 42 3 40 0 33 8 42 0 43 0 55 1 52 1 53 3 48 9 47 6 30 0 S rie e s1 S rie e s2 20 0 10 0 0 1 2 3 4 5 6 7 8 9 1 0 .g.1.Attrition in Indian BPO Industry DATA ANALYSIS For simple calculation. E. value of this dimension is: (51*6)+ (32*5) + (3*4) + (6*3) + (4*2) + (4*1) = 508 Similarly. we have following responses Strongly agree = 51 Somewhat agree = 32 Strongly disagree = 3 Somewhat disagree = 6 Neutral = 4 Don’t know = 4 Hence. Let say for question no. Just like in the questionnaire I have 6 scales of measurement with their weightage as follows: 1) Strongly agree (6) 3) Strongly disagree (4) 5) Neutral (2) 2) Somewhat Agree (5) 4) Somewhat Disagree (3) 6) don’t know (1) Then we count the total vote in each dimension and multiplied with the scale value.

Employee turnover/resign is a major concern for your organization. 6 0 5 0 4 0 3 0 2 0 1 0 0 5 1 S n ly tro g Ag e re 3 2 Sm o e Wa ht Ag e re 4 Nu l e tra 3 6 4 Dn o ’t Ko nw S n ly D g e tro g isa re D g e isa re S rie e s1 S rie e s2 S rie e s3 Interpretation: Most of the respondents strongly agrees (51%) to the fact that employee turnover is a major concern for their organization as it brings down the morale and confidence of the whole team. Question2. High percentage of females in the work force adds to the high attrition rate. 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 2 5 S n ly tro g A re g e 3 7 Sm oe Wa ht A re g e 1 3 Nu l e tra 1 2 S n ly tro g D a re is g e 5 D a re is g e 8 Dn o ’t Ko nw S rie 1 e s S rie 2 e s S rie 3 e s Interpretation: Respondents believe that high percentage of females in the work force results in high attrition rate. leave their job soon after they get married or get any good job with good salary package.Attrition in Indian BPO Industry Now coming on to each question individually we have the following interpretations to be made: Question1. This is because they feel that female employees could not adjust themselves to the timings of the job. .

4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 3 4 S n ly tro g Ar e ge 2 3 Sm o e Wa ht 2 3 Nu l e tra 2 S og tr n ly D ar e is ge 4 D ar e is ge 1 1 Dn o ’t Ko nw Sr s eie 2 Sr s eie 1 Sr s eie 3 Interpretation: 34% of the respondents strongly feel that BPO firms should provide career growth and higher educational opportunities for their employees as a measure of retaining them. Question-4. .Attrition in Indian BPO Industry Question-3-Some attrition is always desirable and necessary for organizational growth and development. 3 5 3 0 2 5 2 0 1 5 1 0 5 0 2 1 S n ly tro g A re g e 2 8 Sm o e Wa ht 3 3 Nu l e tra 5 S n ly tro g D g e isa re 9 D g e isa re 4 Dn o ’t Ko nw S rie e s2 S rie e s1 S rie e s3 Interpretation: 28% of the respondents feel that some attrition is always desirable and necessary for organizational growth and development because some of the employees are there in organization those are less productive and hence become liability for the organization.B PO firms should provide career growth and higher educational opportunities for employees as measure of retaining them. So by removing them organization won’t be in problem rather they would be benefited as they need not to spend any more on them.

60 50 40 30 20 10 0 49 Strongly Agree 37 Some What 5 Neutral 3 4 2 Don’t Know Strongly Disagree Disagree Series2 Series1 Series3 .This would be a reason for the employee to stay at the organization as it gives them the scope. 3 5 3 0 2 5 2 0 1 5 1 0 5 0 2 7 S n ly tro g A re g e 3 1 Sm o e Wa ht 2 4 Nu l e tra 2 S n ly tro g D g e isa re 7 D g e isa re 9 Dn o ’t Ko nw S rie e s2 S rie e s1 S rie e s3 Interpretation: Most of the employees at think that they get sufficient promotional opportunities to enhance their position at the work place. Question-6-The work schedule is exploitative. This in turn motivates them to work more and prove their talent to the higher authorities. Attrition in Indian BPO Industry Question-5-An employee gets sufficient promotional opportunities to enhance his position.

6 0 5 0 4 0 3 0 2 0 1 0 0 5 2 S n ly tro g A re g e 3 5 Sm o e Wa ht 1 0 Nu l e tra 0 1 2 Dn o ’t Ko nw S rie 1 e s S rie 2 e s S rie 3 e s S n ly D a re tro g is g e D ar e is ge Interpretation: 52% of the respondents feel that the employees leave the job and seek for other one after finding less challenge in the BPO jobs which is of more repetitive kind.Interpretation: 49% of the respondents strongly agreed to the fact that the work schedule that they are into are very much exploitative which make them feel harassed and hence force them to quit the job. the employees find less challenge in it and hence seek for some other job. 5 0 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 S rie e s1 S rie e s2 S rie e s3 3 6 S n ly tro g A re g e 4 7 Sm o e Wa ht 7 5 4 1 Dn o ’t Ko nw N u l S n ly D g e e tra tro g isa re D g e isa re . Question-8-The families of BPO employees are not fully supportive for this industry. Attrition in Indian BPO Industry Question-7-As job becomes repetitive.

families of BPO employees are not supportive of the fact that they work in BPO industry with late night shifts. They also feel that there is little respect and recognition present in their job as they have to listen abuses from different customers at work every day and have very less scope of innovation. 1 8 63 4 2 22 S o g A re 6 tr n ly g e 3 S o g D a re 4 tr n ly is g e S m W a A r e2 o e h t ge 2 D a re 8 is g e Nu l 2 e tra Dn K o 1 o ’t n w Interpretation: This is in fact true and I have already discussed earlier that training of employees lead to increase in attrition. The reason that they gave is after completion of training process.Interpretation: According to the respondents. Attrition in Indian BPO Industry Question-9-Training of employees lead to increase in attrition. employee gain some knowledge and become eligible for some other higher post and hence quit the organization. 3 5 18 7 39 28 S o g A re 2 tr n ly g e 8 S o g D a re 1 tr n ly is g e 8 S m W a A r e3 o e h t ge 9 D a re 5 is g e Nu l 7 e tra Dn K o 3 o ’t n w . Question-10-Bad selection leads to attrition. Moreover 63% of respondents also agreed to this point.

Attrition in Indian BPO Industry Question-11-What do you think. Maximum of them also quit their job for stress from overwork and lack of good working condition. maximum respondents ranked the parameters as per the following according to their preference: . the respondents ranked the parameters as per the following according to their preference: • • • • • • • • • • No flexible work schedules Stress from overwork and work-life imbalance Lack of good working condition The mismatch between job and person Monetary Factors Organization is more concerned towards business The job or work place was not accepted Very few supporting colleagues Loss of trust and confidence in senior leaders Too little coaching and feedback Interpretation: By going through this rating we can learn that employees leave BPO sector for no flexible work schedules in the organization. When asked to rate on the factors on which the organization are most concerned when an employee quits. poor selection of candidates leads to high attrition because if you don’t select the right candidate for the given job then surely there would be a mismatch and he\she would finally leave the job. Question12. Some of them also feel mismatch between the job as they find no challenges in it.Interpretation: According to 39% of respondents. At the time of recruitment. the HR professionals should be very particular in choosing the right candidate. the reasons for an employee leaving the organization? When asked about the reasons for an employee leaving an organization.What would be the major concerns for an organization after the employee quits.

Offer performance feedback and praise god efforts and results.• • • • • • Cost of training the employee Time spent in orientation Replacing qualified employees Loss of productivity Cost of overtime or temporary help Recruiting costs & interviewing costs Attrition in Indian BPO Industry Interpretation: According to respondent’s organization are more concerned about the cost and time that they have put in the employee on training. Awarding employees with recognition if an employee has done something valuable. Don’t wait till the last moment. Listen to employee ideas. Attention to these aspects could be taken care of at the recruitment stage itself. Nurture and celebrate organization tradition like Diwali. Keeping in touch with the employees and help them when in need. never ridicule them. Forum clubs and associations. SUGGESTIONS Few suggestions that could help in retaining employees are as follows:• • • • • • • • • Starting from the recruitment process: it is better not to recruit those people who will be the most difficult to retain. . Then they would be more worried about replacing them with the right candidate which would prove asset to the organization. Holi and Christmas etc. An employee would work tirelessly for the company if he is being made aware that he is an important part of the team. Cooperate with competitors.

. Effective human resource management must be practiced at both strategic and day-to-day levels. The HR strategy should evolve from a transactional support role to partnering in the organizations business strategy. creatively. Why an Employee leaves a company is the question asked by most of the employers. Attrition rate is increasing day by day and it’s especially the software industry which is affected the most. Companies even hire Private HR professionals to study the company's work and find out why an employee is dissatisfied. So make sure the work place is a happy one. which every employee would love to spend time. Human resources department along with senior management must take steps to make sure of this. Employee attrition is a very big problem not only in India but outside India too. HR must take steps to be aware of employee problems and try to solve them. HR management practices must reflect company policy as to how it will manage and relate to its employees. happiness can be contagious.• Conducting in and out (exit) interviews properly and in scheduled way. Attrition in Indian BPO Industry CONCLUSION As they say.

Change of Place problem 5. Trainers cost 4.HR department does the recruiting of new employees and then send them for training so that they can understand work and work culture and become better professionals. Opportunities for growth in new company 4. There are various costs which are borne by the company at the start when the employee is under training period. Higher Pay Package in another company 2. A survey has found out that there are various reasons for Employee Attrition1. Good working Conditions 3. Cost of lodging of the new employee 3. The facts and figures are not made public as it may tarnish the image of the company in front of its own employees and its loyal customers. Every Company calculates Employee Attrition in Indian BPO Industry attrition rate and takes measures to reduce it. Materials to be supplied during training process . An employee leaves his present job for another job to get better pay package and good working conditions. Cost of venue where training will be conducted 5. Brand Image of the new company. Costs such as1. Employee attrition costs a lot to the company. Conveyance Cost 2. A better Boss in new company 6. Each and every company faces employee turnover problem whether big or small.

During this time an employee is not fruitful for the company. What should a company do to hold on the talent? There are various companies like TATA's and Reliance who do a lot to reduce attrition rate. An employee can be productive if and only if his personal life is balanced. Bonus and extra facilities. Every company takes measures to hold the talented workforce by means of perks. Free overseas tour once in a year when a target is achieved. Flexible working conditions have been given to employees who have problem working 10AM . Few Companies are getting more and more work savvy and just want to get their work done by hook or by crook. The mentality needs to be changed. If an employee leaves the company when he starts working. . Attrition rate cannot become completely obsolete but it can surely be minimized. Companies should conduct various seminars on how to balance personal and professional life. company suffers a big loss in terms of money as well as workforce. Private hospitals for employees where they can get their regular health check up done without spending much money. Increments. Make employees a part of your work culture family and see the difference. Target for completion of a work should be there but that should not hamper an employee’s personal life. No one wants to lose good brains to their competitors.5PM. Attrition in Indian BPO Industry Now the question is how to reduce employee attrition.A company has a training period of 3 to 6 months.

Ravi David Ullah student of marketing studying in St Xavier’s College am conducting a survey on ‘ATTRITION IN THE BPO INDUSTRY´. Employee turnover/resign is a major concern for your organization.Attrition in Indian BPO Industry APPENDIX Questionnaire Dear Respondent.  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  don’t know 2. High percentage of females in the workforce adds to the high attrition rate. I assure you that the details will be kept confidential and used for academics purpose only. Thank you in advance for sparing your valuable time and corporation in this endeavor. I. Please tick the one which is applicable for you: 1.  Strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree .

An employee gets sufficient promotional opportunities to enhance his position. Neutral  don’t know 3.  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  don’t know 4.  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  don’t know 6. BPO firms should provide career growth and higher educational opportunities for employees as measure of retaining them.  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  don’t know 5. Some attrition is always desirable and necessary for organizational growth and development.  strongly agree  Somewhat Disagree  Somewhat Agree . The work schedule is exploitative.

 strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  Don’t know 8. Bad selection leads to attrition.  Strongly agree  Somewhat Disagree .  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  don’t know 9. The families of BPO employees are not fully supportive for this industry. the employees find less challenge in it and hence seek for some other job. Strongly agree  strongly agree  Somewhat Disagree  Somewhat Agree  Strongly Disagree  Neutral  Don’t know 10. As job becomes repetitive. Strongly Disagree  Neutral  don’t know 7. Training of employees leads to increase in attrition.

the reasons for an employee leaving the organization? (Rate the following from 1 to 10. e) Time spent in orientation …. 1 being the top most priority and 10 being the least) a) Monetary factors …. Somewhat Agree  Strongly Disagree  Neutral  don’t know 11. i) Stress from overwork and work-life imbalance …. What do you think. c) Cost of overtime or temporary help …. PERSONAL INFORMATION: Name: ___________________________________________________ Age: ___________________________________________________ Sex: . d) Very few supportive colleagues …. b) Lack of good working condition …. h) Too little coaching and feedback …. d) Recruiting & Interviewing costs …. f) The job or workplace was not expected …. c) No flexible work schedules …. b) Replacing qualified employees …. What would be the major concerns for an organization after the employee quits. 1 being the top most priority and 8 being the least) a) Loss of productivity …. j) Loss of trust and confidence in senior leaders …. (Rate the following from 1 to 8. e) Organization is more concern towards business …. 12. g) The mismatch between job and person …. f) Cost of training the employee ….

___________________________________________________ Ph no: ___________________________________________________ Thank You .

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