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Employee

turnover in BPO

Industry Charmi Thakkar10MBA111

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Overview

Introduction to the topic

About Industry

Objective of the research

Research Review Conclusion

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Introduction to the topic

Employee turnover refers to the movement of employees inand out of the organization

It is the rotation of workers

Calculated by dividing number of separations by total number

of employees Four types of employee turnover

Voluntary turnover

Non-voluntary turnover

Functional turnover

Disfunctional turnover

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ABOUT

INDUSTRY

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Overview of Industry

BPO started in India in 1990

25% Share In Indian IT industry

3.2% share in global BPO

More then 500 companies

Current attrition rate is 55%

Employee turnover of some major companies

Infosys BPO 28%

Wipro BPO 18%

TCS BPO 21-22%

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BPO Services

Customer Support Services

Technical Support Services

Telemarketing Services

Employee IT Help-desk Services

Insurance Processing

Policy Maintenance / Management

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OBJECTIVE To study the causes of high employee turnover in Indian

BPO Industry To study the impact of high employee turnover

To study the steps taken to reduce employee turnover

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RESEARCH METHODOLOGY

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To understand the topic different literatures have been

reviewed To carry out research secondary sources like HRM journals,

books and internet were used

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Talent Profile

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Why do people join BPO?

Did not get a better job

Find nothing better to do

Education level doesn't matter

Flexibility of time

Attractive life style

Transport facility

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RESEARCH REVIEW

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Causes of high employee

turnover in Indian BPO

Monetary reasons

Monotony

Shift timings

Working environment

Slow career growth

Limited training & development opportunity

Deficiencies in recruitment process

Career outlook

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Impact of high employee turnover

Inconsistent delivery of expected service levels

Loss of client-specific knowledge and

experience Potentially greater investment in training the

service provider staff

Cost associated with employee turnover

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Steps taken to reduce turnover

Major players like Infosys BPO, TCS and Wipro have training andeducation programmes for their employees.

Pure-play BPOs like 24/7 Customer provides degree and diploma

programmes via tie-ups with institutions.

Noida- based firm EXL Services had taken 125 flats in Noida, where

for a nominal rent, it housed young staffers.

EXL Services and Mumbai-based call center Epicenter were hiring

older people and part-timers to cope up with attrition.

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Cont..

Computer Sciences Corporation gave its employees a six-month

sabbatical to work with an NGO of their choice.

ICICI OneSource, the Bangalore-based call center, gave

scholarships of up to INR 50,000 to the employees who wanted

to enroll in distance learning programs.

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Conclusion

Nasscom predicts that by 2012 there will be a shortage of about

2, 62,000 professionals .

Industry Should devise retention strategies.

To avoid monotonous nature of job continuous feedback, job-

rotation and creativity in work should be introduced .

Proper stress management and career growth planning

Proper workforce planning

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References

Employee turnover and exit interviews edited by E MRUDULA, ICFAIUniversity Press.

Case studies on outsourcing trends vol.1

HRM review, IUP Publication, ICFAI University Press

The journal of Organizational behavior

http://www.nasscom.in/knowledge-professionals http://hraljournal.com/Page/5%20%20Chen,%20Ying-Chang.pdf

http://www.bpowatchindia.com/HR_outsourcing

http://www.bpoindia.org/research/attrition-rate-big-challenge.shtml

http://ftp.iza.org/dp2322.pdf

http://www.academicjournals.org/ajbm/pdf/pdf2010/18Aug/Chiboiwa%20et

%20al.pdf

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Cont..

http://www.tpi.net/pdf/papers/TPI_whitepaper_India.pdf

http://www.business-standard.com/india/news/attrition-rate55-in-indias-

bpo-sector/132152/on

http://www3.ntu.edu.sg/nbs/sabre/working_papers/12-99.pdf

http://www.kekobi.or.ke/index.php?option=com_content&view=article&id=73:facts-and-figures-a-case-study-of-indias-bpo-industry-&catid=3:newspaper-

articles&Itemid=14.

http://findarticles.com/p/search/?qt=employee+turnover

http://academicjournals.org/ajbm/PDF/pdf2010/29Dec/Zheng%20et%20al.p

dfemployee http://interesjournals.org/ER/pdf/2011/May/Wesonga%20et%20al.pdf

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