The data has been collected through a structured questionnaire survey. The study identified factors affecting high employee attrition in bpo industry using factor analysis. Pdf factors leading to employee attrition in bpo industry. I ensure that all the information is strictly for academic purpose and will be kept confidential. Github nandithasirigiriemployeeattritionrateinabpo.
Ironically, in the light of persistent high levels of attrition sustaining the manpower has been the most formidable challenge of the industry. To study and find ways of managing and reducing attrition rate in bpo industry. To prevent attrition in business process outsourcing, focus. Due to the lower cost of producing goods and services in other country, outsourcing has become a common business strategy for. The high attrition costs increases the costs to the organization considerably. What is the difference between employee turnover and. Attrition in bpos has terrible effects on the organization. Using the bpo concept, businesses were able to make the best possible use of available resources.
Pdf perspectives on employee attrition in the indian bpo. An empirical study on employee turnover intent and outcome in the bpo industry isbn. Since this sector is predominantly service oriented, it becomes very important for the hr practitioners to take. Attrition is a menace for bpo industry which causes monetary, effort as well as time loss to companies. Mar 11, 2019 open access bpo explored the various factors contributing to the frequent instances of attrition and turnover that plague contact centers worldwide. Attrition word is very dangerous now a day for any organization those are working like bpos, because staff attrition or turnover and absenteeism represents significant costs to most organizations. Calculation of attrition in bpo is same as in other industries, there is no difference as such. On the basis of their findings, the researchers offer numerous strategies for improving employee. Pdf causes of attrition in indian business process outsourcing. However, it is facing a phenomenal increase in attrition rate which is the biggest challenge.
A study on employee attrition with reference to indian. Business process outsourcing bpo, a shared future together darling, do you want to marry me. Voluntary turnover has become a problem for many organizations, regardless of the nature of job, in todayssociety. A study of one indian bpo enterprise revealed that many of the factors that contribute to attrition can be offset by an organizational focus on people. There are other major reasons also which lead to attrition in bpo industry. Although connected to each other and commonly interchanged, attrition and turnover have entirely different meanings. Employee attrition and retention in bpo industry management. To explore the solution of this major problem research methodology data collection. The project presents the application for logistic regression model to predict the risk in a bpo company based on the employee dataset by the organization. So the research work titled analyzing the causes of attrition in it industries opinion of employee and employer was undertaken. It industry faces the problem of high attrition, so the researcher interested to analyze the problem.
Data conversion of raw data into pdf, html, word or acrobat formats. Employee attrition is a major issue in the business process outsourcing sector. Significance of the study attrition is the biggest problem faced by bpos these days. Attrition includes all employees who leave the company, whether the leaving was voluntarily and involuntarily. Both attrition and turnover decrease the number of employees on staff, but attrition is typically voluntary or natural like retirement or resignation. And associated costs with high attrition rate which are borne by the employers. A large degree of employee turnover is highly detrimental to both the organization as well as the employees. In the itesbpo sector, however voluntary turnover is reaching alarming proportions. In addition, this article makes the case for junior level attrition to be taken seriously especially when studies have shown that such attrition happens. It is true that this is far less than the prevalent attrition rate in the us market around 70 percent, but the challenge continues to be greater considering the.
Attrition in bpo attrition is defined as a reduction in the number of employees through retirement, resignation or death and attrition rate is defined as the rate of shrinkage in size or number bpo india 2009. A reduction in the number of employees through retirement, resignation or death attrition is the ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees defining attrition rate. The attrition rate which goes as high as 5060% can be reduced to as low as 1015% considering the recruitment planning model. If the present attrition rate goes on the outsourcing industry is likely to face a shortage of 262,000 professionals by 2012.
This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. Retention strategy for itbpo industry vibha gupta iips davv indore india abstract. Introduction background of the study business process outsourcing bpo industry is one of the most dynamic and fastest growing sectors in the philippines. Jan 17, 2018 employee attrition is a major issue in the business process outsourcing sector.
To find out the causes of high rate of attrition in it sector in india. Attrition and turnover can both happen when an employee leaves a company. All this only encourages poaching by other companies who can offer a higher salary. The term healthy attrition or good attrition signifies the importance of less productive employees voluntarily leaving the organization. Keeping low attrition levels is a major challenge as the demand outstrips the supply of good agents by a big margin. Managing attrition in bpo industry how to stop attrition.
The key themes in this article are that while most attrition is harmful to the organization, involuntary attrition is often encouraged by them. He concluded that the factors namely lack of integration and goal setting, work atmosphere, dissatisfaction with rewards and hikes, dissatisfaction with salary and perks, food and relaxation and work and family conflict, affect employee attrition very significantly either at 1%. Employee attrition and retention in bpo industry the basic hypothesis of this research that employee motivation, employee satisfaction, employee involvement, and life interest and work compatibility lead to prolonged sustenance is an extension of. Attrition and turnover are sometimes used synonymously, when in fact they mean two different types of employee churn. The period of 20032006 witnessed the peak of growth in the bpo industry in india. Attrition in call centers international journal of engineering and. The factors impacting employee attrition in sri lankan bpo.
Attrition in indian bpo free download as powerpoint presentation. An empirical study on employee turnover intent and. Attrition is a major problem for all bpos the hindu. Causes of attrition in indian business process outsourcing industry abstract indian bpos have been in news for certain contradictory issues. Empirical study on addressing high employee attrition in bpo. Voluntary turnover has become a problem for many organizations, regardless of the nature of job. Attrition issues and retention challenges of employees brijesh kishore goswami, sushmita jha abstract in todays fiercely competitive business landscape, success hinges much on the retention of employees. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
To prevent attrition in business process outsourcing. A reduction in the number of employees through retirement, voluntaryinvoluntary resignation or death is called attrition. Employee turnover is defined as the replacement of a worker with another worker, and it usually occurs as a result of attrition. Jan 22, 2008 the us bpo sector is estimated to be somewhere around three decades old. How to calculate attrition in the bpo industry quora. Arent we all pestered by the problem of attrition in our bpos. Top entry level salaries by job function prevalence of. Several employment opportunities opened up for the indian qualified youth, as there was a new growing market that had just got created for them. Pdf employee attrition and employee retentionchallenges. Managers and employees please provide following information for my ph.
The bpo industry has flourished well in india and its growth can be significantly attributed to abundant availability of suitable manpower. Attrition in indian bpo turnover employment outsourcing. Pdf the growth of the bpo industry in india can be largely attributed to the abundance of requisite manpower. Bpo attrition causes, suggestions and a model citehr. Prior research has examined the costs of an employees. Issn 22295518 attrition issues and retention challenges. The websters dictionary defines the term attrition as the process or state of being gradually worn down. Iloilo city business process outsourcing organizations. Increasing roteofattrition in bpo organizations which deal in them, itis called business process outsourcing bpo. There are as many as three newly registered companies every week during the early part of first quarter of 2018. Perspectives on employee attrition in the indian bpo industry. Attrition of employees in a limited measure is desirable for influx of new ideas in any type of organization. A study on employee attrition with reference to indian bpo. Employee attrition and retention in bpo industry the basic hypothesis of this research that employee motivation, employee satisfaction, employee involvement, and life interest and work compatibility lead to prolonged sustenance is an extension of this model with minor modifications in it.
Attrition word is very dangerous now a day for any organization those are working like bpo s, because staff. A study on employee attrition in bpo industries in india. An empirical study on employee turnover intent and outcome in. This article discusses the various aspects of attrition in contemporary organizations. Attrition definition of attrition by merriamwebster. Present study throws light on reasons for attrition in bpo industry and suggestions to minimize this problem. The growth of bpo industry is mainly depending on the cost effectiveness and quality of the manpower. This is a chronic issue that impacts productivity and efficiency of a bpo depending on the scale of attrition. Empirical study on addressing high employee attrition in. While there are opportunities aplenty in the market, youngsters are more impatient and want to become managers. This paper seeks the factors that are leading the employees for attrition in the bpo industry with respect to india and the measures to reduce the attrition rate. To study the impact of attrition on the organization productivity.
Batty dorance jeen principal, windstor institute of management studies, bangalore abstract employee turnover has always been a matter of concern for organizations. Tweetlikesharelinkedin employee churn is the best way to describe both employee turnover and attrition rates. Attrition rates are considered to be beneficial in some ways. Business process outsourcing bpo a shared future together. When a welltrained and welladapted employee leaves the organization for any of the reason, it creates an empty space in an organization i. Basing on performance statistics and employment figures of real call centers, the research found that turnover rates vary by industry, company size, employee role, and employee age. In india, the average attrition rate in the bpo sector is approximately 3035 percent. Analysis of the latest statistics of the bpo industry. The business process outsourcing bpo industry in the country is facing the challenge of finding quality human resources given the current attrition rate of around 50 percent. It becomes very important to study this questionable nature of largescale attrition, as india houses a large no of itesbpos.
This study was conducted in bpo companies at bhubaneswar. Business process outsourcing philippines 2017 key insights. Attrition definition is sorrow for ones sins that arises from a motive other than that of the love of god. Data was collected from the employees of different organisations through questionnaire containing 21 questions. Conceptually, the term employeelabor turnover underwent a change during the last quarter of the 20th century. Open access bpo explored the various factors contributing to the frequent instances of attrition and turnover that plague contact centers worldwide. The reason for the high rate of attrition in the bpo sector particularly call centre segment range from lack of comfort of enrichment potential in terms of career growth. And also the attrition related to three different levels of qualifications like post graduate, graduate. Divide the number of employees who left the company during the year by the average number of employees employed by the company during the year to arrive at an employee attrition rate. Managing attrition in organizations management study guide.
Comparative position of attrition in bpos across the globe. What is the difference between employee turnover and employee. There is need to develop a concurrent strategic method, an innovative development paradigm that can be utilized to curb the everincreasing attrition rate in the bpo industry. Attrition rate in bpos is more than the attrition rate in any other sector. 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. Bpo survey philippines at a glance historical attrition rates our powerful, integrated products and solutions take the complexity out of pay and benefit planning so you can attract, retain and engage key talent to grow your business. Essay on bpo attrition the problem and its solution.
Further, the salary growth plan for each employee is not well defined. Study of employee attrition in business process outsourcing. The present study aimed at addressing high employee attrition in the above sector by identifying the critical factors which causes high attrition. Accordingly the attrition process sometimes starts after a person is employed in an organization and ends when he quits or retires. Attrition is also called total turnover or wastage rate 3. Turnover attrition and turnover are sometimes used synonymously, when in fact they mean. The project is to develop a model for employee attrition risk assessment using multiple logistic regression analysis using sas and python. The costs of this turnover not only have an impact on organizations but also would affect the morale.
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