BPO Industry: How To Manage Attrition In BPO Industry

BPO Industry in India is growing at a phenomenal pace. The worth of outsourcing to India is $5.2 billion in the year 2004-05, and it is increasing at the rate of 44% every year.

The attrition rates in Indian call centers is up to 80%, and average attrition rates in Indian call centers are around 30-40%.

How To Manage Attrition In BPO

Employee attrition is regarded as the biggest problem in BPO industry. If a good number of people are leaving the company, then there is something wrong. For a new college graduate, a call center job pays 2.5 times more when compared to other jobs. Even though there is high pay in the BPO Industry, the attrition rate is still increasing every year.

There are various costs associated with the attrition rate. The first cost is the training cost incurred because the employee left after training. BPO workers who are constantly changing jobs can cost the BPO Industry millions of dollars in Training and Recruitment.

Training cost includes various training materials provided and salary fo the trainer. Recruitment costs include the cost of advertisements like agency costs, employee referral costs, and job postings in the famous job sites.

Even low productivity costs occur because whenever an employee is learning the new job, he is not entirely productive. There many costs associated with the low productivity of the employee.

To manage attrition, we must first identify the main reasons for attrition. Some of the reasons for attrition are:

1) Improper work timings: Most of the BPO employees work during the night shift.

2) Family Pressure to take up a day job.

3) Health problems incurred due to an imbalance in life and job.

4) Peer pressure because of cut-throat competition.

5) Lack of growth options within the organization.

6) Career options like pursuing higher education

7) Low Salary when compared to other companies.

8) The high percentage of females in the workforce adds to high attrition rate because most women leave their jobs after marriage caused by social pressures due to odd working hours like night shifts in this industry.

9) Most fresh graduates take these BPO jobs to pass some time. But most of these graduates resign because they are not able to handle work pressure.

10) Attrition also happens due to less experienced middle and frontline management.

Some of the strategies to address the attrition in BPO Industry are as below:

1) Move the high achievers in the company higher up in the hierarchy to keep them motivated. These designations could be Team Leader, Supervisor and Center Manager.

2) Besides Induction and project training, a continuous training program should be launched for employees. Motivational training is also very necessary to keep them motivated.

3) Companies should consider the option of hiring a diverse workforce.Diversity turns innovation into success.

4) Age should not be a banner for training the employees.

5) Better Customer communication should be adopted by a mix of various media like e-mail, direct phone number, and fax to deliver proper communication.

6) Shift Rotation – To retain top performing employees, they can be offered a day shift job.

7) Flexible working hours

8) Monthly parties

9) Cash Incentives

10) Career guidance

11) Growth opportunities within the company like Promotion.

12) Work-life Balance

13) Rewards and Recognition Programs

14) Compensation and benefits

In BPO industry, if you can understand what motivates and de-motivates employees you resolve the attrition problem very easily.

Many managers believe that pay and benefits play a significant role in the attrition, but this cannot always be true because there could be other problems like family pressure and work-life balance. So it is very critical to dig down and find out the real reasons for leaving the company.

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