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ATTRITION IN BPO INDUSTRY: A SURVEY REPORT Abstract The BPO industry is undoubtedly considered as one of the biggest fields

of employment in India and stands number two worldwide after Philippines. However, it is facing a phenomenal increase in attrition rate which is the biggest challenge. The current attrition rate is 55 %. (Source: 13 Oct, 2011, The Financial Express) as compared to the last year of 51%. Nasscom, in a report said that that the outsourcing industry is expected to face a shortage of 2, 62,000 professionals by 2012. This is owing to the fact that retaining manpower at mid and senior management levels, where there is a visible significant movement has become quiet challenging. The another interesting feature of this industry in that as the industry moves up and become a full scale BPO player, attrition rate will further decreases. In the study released by Associated Chambers of Commerce and Industry of India claimed that the high attrition is due to bad working hours and a perceived lack of long term growth. In this paper an attempt is being made to build a model which contributes to high attrition rate. 1. Introduction

HR professionals all over the world are breaking their heads to formulate Retention Strategies for employees working in Call-Center or Contact Center or BPO industry but nothing is working in their favor. No perks, no rewards, just nothing is working. Some of these factors are no growth opportunities, policies and procedures are not conducive, uneasy relationship with peers or managers, higher education etc. Fundamental changes are taking place in the work force and the workplace that promise to radically alter the way companies relate to their employees. Hiring and retaining good employees have become the chief concerns of nearly every company in every industry. Companies that understand what their employees want and need in the workplace and make a strategic decision to proactively fulfill those needs will become the dominant players in their respective markets. There is an emerging trend seen in the employees or new generation of workers that they want to strike a balance between their personal and professional life. Smart employer makes strategies to understand what their employee wants 2. Research Objectives
y y y

Assess the profile of employees who quit. Determine the reasons for employees leaving the organization. To find a solution to the recurring problem of employee turnover.

3. Theoretical Framework. The proposed theoretical framework is as under

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H3: The intention to leave will not be the same for different age group levels of employees. intention to leave increases H5:As stagnation increases. Research Hypotheses y y y y y y y y H1: Men are more intended to leave the organization. H7: More the autonomy less is the intention to leave. intention to leave increases. intention to leave increases 5. H4:As fair remuneration decreases. Methodology 2 .4. H2: The intention to leave will not be the same for different educational levels of each group of employees. H8:As the dissatisfaction is more. intention to leave increases H6: As the shifts is more inconvenient.

05 therefore the null hypothesis is retained. 6. H1: The intention to leave will not be the same for different age group levels of employees. the research hypothesis is substantiated and it can be concluded that the intention to leave differs among different educational levels.2) Research Hypothesis2: Ho: The intention to leave will be the same irrespective of the four educational levels of each group of employees. Conclusion: Since the p value (.006) is less than . (Refer table 3) Research Hypothesis 4: Ho: Fair remuneration and intention to leave are independent. intention to leave increases. This method is convenient as those respondents who are not easily approachable can be reached conveniently. H1: The intention to leave will not be the same for different educational levels of each group of employees.The data collection method used is Questionnaire as it is free from the bias of the interviewer.05 therefore. (Refer table 4) 3 . (Refer table 1.81>05%. it can be concluded there is relationship between the fair remuneration and intention to leave. Data Analysis Research Hypothesis1: Ho: There will no difference between men and women in their intentions to leave the organization H1: Men are more intended to leave the organization. H1: as fair remuneration decreases. Respondents are the employees of various BPO¶s and a sample size of 55 is collected by convenience sampling. Conclusion: The research hypothesis cannot be substantiated as the p value of the test statistics is 0. In this case the respondents have adequate time to think and reply.1 &1. It was mailed to the respondents who were expected to read & understand the questions and write down the reply in the space meant for the purpose. At 10% level of significance the research hypothesis can be substantiated and therefore. (Refer table 2) Research Hypothesis 3: Ho: The intention to leave will be the same irrespective of the four Age group levels of each group of employees. Conclusion: since p value is more than 0.

000) is less than . (Refer table 5) Research Hypothesis 6: Ho: Inconvenient shifts and intention to leave are independent. intention to leave increases. Conclusion: Since p value (0. (Refer table 6) Conclusion: Since p value (0. intention to leave increases. (Refer table 7) Research Hypothesis8: Ho: Job dissatisfaction and intention to leave are independent. H1: More the autonomy less is the intention to leave. (Refer table 8) Research Hypotheses Summary: 4 . (Refer table 6) Research Hypothesis 7: Ho: Autonomy and intention to leave are independent.000) is less than .05. therefore the alternate hypothesis can be substantiated and it can be concluded that as stagnation increases intention to leave increases. Conclusion: Since p value (. intention to leave increases. H1: As the dissatisfaction is more. Conclusion: Since p value (. therefore the alternate hypothesis can be substantiated and it can be concluded that as dissatisfaction increases intention to leave increases.886) is more than level of significance (5%) therefore the null hypothesis is retained.Research Hypothesis 5: Ho: Stagnation and intention to leave are independent H1: As stagnation increases.05.868) is more than level of significance (5%) therefore the null hypothesis is retained. H1: As the shifts are more inconvenient.

8. intention to leave increases As the shifts is more inconvenient. Bibliography: 5 . One of the best ways to curb attrition is to develop a synergy between the work and the employee's innate talents. Stagnation. Result Not Substantiated Substantiated Not Substantiated Substantiated Substantiated Not Substantiated 7 8 More the autonomy Less is the intention to Not Substantiated leave. For instance. these strategies are already being implemented by many leading BPO houses. so they need to them for long term growth of the company. educational levels. intention to leave increases As stagnation increases. For BPOs their employees are the most important assets. 1 2 3 4 5 6 Hypothesis Men are more intended to leave the organization. The intention to leave will not be the same for different educational levels of each group of employees. 7.Sr. and job dissatisfaction are the most influential factors for attrition. The best way to retain employees is to encourage the employees to enhance their skills and grow. The companies will also need to evolve HR programmes and development initiatives for this. remuneration. The intention to leave will not be the same for different age group levels of employees. No. As fair remuneration decreases. intention to Substantiated leave increases. As the dissatisfaction is more. In fact. Unisys Global Services has set up the Unisys University that allows the employees to evolve their skill sets while working within the company. intention to leave increases. Conclusion and Recommendation: Of the various hypothesis tested.

)dedis-2( .- 42. Tamara J ³Workforce Crisis´.a 55 374.59. 72.giS . 31. Sekaran Uma´ Research Methods for Business´. .2 Table1. Morison Robert. 42. Harvard Business School Press. 2002. 31.14. 4.giS 163. )deliat-2( . 833.08( sllec 02 . 1 61 61 fd 515. 2002.bpoindia. April. 72.32 sesaC dilaV fo N noitaicossA raeniL-yb-raeniL oitaR doohilekiL erauqS-ihC nosraeP 256. 5. Erickson. F 137.org/research Table2 Table1.27. ³Retaining Top Employees´. 431.31 a678.14.1 9.32. 131. www.pmysA eulaV stseT erauqS-ihC 1. 12th Edition.52. Harvard Business School Press. Appendix 6 .giS 140.1335. 290. Tata McGraw-Hill.669. Hiring and Keeping the Best People. 3. Willy India. Mckeown J Leslie. Sherman. The Financial Times 7. ND. 52. Arthur.05 35 845. 682. demussa ton secnairav lauqE demussa secnairav lauqE demussa ton secnairav lauqE demussa secnairav lauqE evael ot noitnetnI tnednopser eht fo redneg reppU rewoL ecnereffiD eht fo lavretnI ecnedifnoC %59 snaeM fo ytilauqE rof tset-t secnairaV fo ytilauqE rof tseT s'eneveL tseT selpmaS tnednepednI . 27.dtS 32.94 35 fd 269. India¶s BPO sector sees Surge in Attrition´. 021. si tnuoc detcepxe muminim ehT . W.ecnereffiD naeM 143. 6. 2006.1t 148. ³Managing Human Resources´ Amazon Publication. ecnereffiD rorrE . 2011.20. Dychtwald Ken. 2.225.5 naht ssel tnuoc detcepxe evah )%0.69.

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