Business Process Outsourcing:

Issue regarding Employee

Attrition

Submitted by:
Matthew Rouwie Ong
BSBA MM 2-1D

Submitted to:
Prof. Estelita Medina
The Problem: (What, Where, When, Why, How)

In today’s Business Process Outsourcing (BPO) arena one of the frequently spoken
subject has became the increasing “Employee Attrition” and many expensive reference materials
can be commonly seen in bookstores, libraries and via online sources. This research report has
been prepared in order to investigate and examine the “attrition rate for the BPO industry”

Attrition causes many losses in the aptitude and acquiring major losses in training the
employees. The attrition rate is much more than the UK based BPO companies in countries like
the Philippines. This is due to the fact that an employee in the Philippines doesn’t stay more than
11 months but those in the UK stay for at least 3 years before changing their job. High attrition
rates in call centers put a strain on all aspects of management. One employee walking out the
door can trigger a long chain of resignations or completely mess up the way a team would
execute its tasks. Attrition is a situation which employer face when employee left the
organisation due to job dissatisfaction, new opportunity in the market, retirement & natural cause
(death/illness).

Attrition refers to the shrinkage in the quantity or gradual reduction of employees as a

result of retirement, resignation, relocation, sickness or death. It has been proved that attrition is
normal and uncontrolled decline of the workforce due to above mentioned forces. It can be
considered as a way to reduce the size of the work force without management guidance.
Employee retention is critical to the long-term health and success of any association.

Attrition rate in the Philippine business process outsourcing (BPO) industry dramatically
improved as it dropped to an average of 50 percent from 70 percent, because of factors like
salary, training, government intervention and continuous education. The improvement may also
be due to the new career paths in BPO for young people.

Continuous education is required to upgrade skills and build capabilities in an industry

that considers people its biggest asset and challenge, according to Contact Center Association of
the Philippines (CCAP) president Benedict Hernandez. The BPO sector has expanded from its
traditional data entry, directory assistance and call center service offerings to middle and higher
value services such as analytics and infrastructure technology.

Causes of Attrition:
1. No Career Prospects
The job of a call center agent (to start off) can be compared to a telemarketing or a
telephone operator. Hence the scope to take up any other job (in case needed) or change of field
is ruled out, as the experience gained in a call center will not be an iota of importance. Many
others quit, as the chance to climb up the corporate ladder is bleak. Only a few very get promoted
to the cadre of team leader and as soon as promotions are announced the many of frustrated
employees quit.
2. Lack of Creativity
The work in the BPO company needs no new creativity which adds to the enthusiasm of
the employee. Voice Calls are the only thing which governs the activity of the BPO. Further BPO
company work does not provide any scope for skill up gradation for the employee. The employer
trains the employee to speak good English and nothing else which adds to the Drive attrition rate.
3. Monotony of work
The job remains same as to call clients and talk business. Same kind of lines repeated in
the calls from the login point to logout point. Employees are bored of the same talks all through
their working hours which lead to mental fatigue. Also the same kind of techniques and no
manual intervention, everything is done technologically which makes a person as a robot which
ultimately leads to fatigue.
4. Stressful Job
Also the nature of job in a typical BPO company is psychologically very stressful. The
working hours are artificially created which affect the natural rhythm of human body. The
symptoms of chronic fatigue, gastrointestinal problems, peptic ulcer, insomnia and even d The
daily targets fixed to achieve push employees to work harder and harder leading to stress.
5. Switching jobs for high salaries
Poaching of employees by other competitive BPOs for higher salaries drives them to
change jobs. The employees expect salary revision once in 4-6 months and if not they move to
other organizations because of the rapid growth of the industry. Some times due to personal
reasons like getting married (especially for the male employees) or falling in love or change of
place.
6. Drive towards Higher Education
Most of the employees with professional degrees like BE, MCA and others appear for
higher education or grooming them, for highly specialized courses quickly move out.

Possible Solutions: (Alternatives)

A successful employee retention strategy requires you to think about things from the
team's point of view. No two employees are exactly alike, of course; each has unique desires and
goals. But all of them want to feel appreciated by their employer and treated fairly. They want to
be challenged and excited by their work. And they want to be paid at or above market rates with
good benefits.
All of these concerns are important, but managers serious about retention do more than
just the bare minimum. You should consider every area of the employer-employee relationship in
developing your organization’s plan for keeping workers happy. Here are 14 areas where
strategic initiatives can boost employee retention:
1. Onboarding and orientation — Every new hire should be set up for success from the very
start. Your onboarding process should teach new staff members not only about the job but also
the company culture and how they can contribute and thrive. Don’t shortcut this important
first step: The training and support you provide from Day One can set the tone for the
employee's entire tenure at the company.
2. Mentorship programs — Pairing a new employee with a mentor is a great component to add
to your continuing onboarding process. Mentors can offer guidance and be a sounding board
for newcomers, welcoming them into the company. And it’s a win-win: New team members
learn the ropes from experienced employees, and, in return, new hires offer a fresh viewpoint
to your mentors. Employees’ work supervisors shouldn’t double as mentors, however.
3. Employee compensation — It's absolutely essential in this competitive labor market for
companies to offer attractive compensation packages. That includes salaries, of course, but
also bonuses, paid time off, health benefits and retirement plans. Every employee should have
a full understanding of the benefits they receive from your organization from the beginning. 
4. Perks — Whether it’s paid time off for volunteering, occasional catered lunches or free snacks
and coffee every day, perks can make your workplace stand out and boost employee morale.
Some companies negotiate group discounts on big-ticket purchases, from cars and homes to
smartphones and home security systems.
5. Wellness offerings — Keeping employees fit, mentally, physically and financially, is just
good business. Of employers polled for a Robert Half survey, 74% said they have
mental wellness offerings of some sort, such as stress management programs. Sixty-five
percent of employers offer financial wellness resources, such as retirement planning or credit
counseling. And 63% said they provide gym access, incentives for engaging in healthy
behavior or other physical wellness options.
6. Communication and feedback — Keeping open lines of communication is a formal way of
describing a practice that’s essential for employee retention. Your direct reports should feel
they can come to you with ideas, questions and concerns, and they expect you to be honest
and open with them about improvements they need to make in their performance. Make sure
you connect with each staff member on a regular basis — don't let performance issues build
up pending the annual review. 
7. Annual performance reviews — Even if you’ve met with employees throughout the year to
check on their job satisfaction, never skip a regular big-picture conversation. This is when
you’ll discuss short- and long-term goals and talk about their future with the company. While
you should never make promises you can’t keep, you can talk through potential advancement
scenarios together.
8. Training and development — Make it a priority to invest in your workers' professional
development and seek opportunities for them to grow. Some companies pay fees and travel for
employees to attend conferences or industry events each year, provide tuition reimbursement,
or pay for continuing education training. 
9. Recognition and rewards systems — Every person wants to feel appreciated for the work
they do. Make it a habit to thank your direct reports when they go the extra mile, whether it's
with a sincere email, a gift card or an extra day off. When you show your appreciation to
employees, explain how their hard work helps the  organization. Some companies set up
formal rewards systems that incentivize great ideas and innovation, but you can institute
recognition programs even on a small team with a small budget.
10. Work-life balance — What message is your company culture sending? Be careful to avoid
having a culture that encourages and rewards around-the-clock availability. Expecting staff to
regularly work long hours and be at your beck and call is not conducive to employee retention.
A healthy work-life balance is essential to job satisfaction, and people need to know that their
managers understand they have lives outside of work. Encourage staff to take their vacation
time, and if late nights are necessary to wrap up a project, see if you can offer late arrivals or
an extra day off to compensate.

Best Solution: (Action)

Establish clear communication channels

It is important that call center agents have clearly defined expectations, that they receive
feedback based on these expectations and that they know who to talk with when they have an
issue or concern. Agents should also be involved in business decisions, informed about company
goals and strategies and be polled about their experience working in the company. Agents can be
a key source of new ideas and can drive new changes, if they are fully involved in the process
and their voices are heard. Establishing clear communication channels and including agents in
decision making processes will make them feel more empowered and more invested in your
company.

Conclusion and Recommendation:

Effective communication, encouraging workplace friendships, and establishing listening
skills for both employee and manager are some of the social efforts you can make to reduce
employee turnover. Not only does good communication help the flow of the workplace, it also
gives employees the feeling that they are included and relevant to the operation. Workplace
friendships can be both a motivator for more effective teamwork as well as an emotional tie
between employee and organization. Listening skills are a necessary aspect of communication,
and all parties should be expected to give the attention and respect that coworkers or managers
deserve.
Allowing employee involvement in decision making, recognizing and celebrating
success, and encouraging personal growth through training and education are some mental
efforts you can make. Involving employees in decision making processes not only helps them
feel included, it also sharpens that skill for them so that they may make more effective decisions
in the future. Recognizing and celebrating success is one of the most effective ways to ensure
positive behavior continues. It also puts employees in a positive mindset as they go throughout
their day. Encouraging personal growth helps your employees become more knowledgeable and
thereby valuable, while the opportunities provided by your organization serve as a sort of
incentive—the longer they stay, the more they can learn and grow.

For the BPO Companies,

Your people deserve more attention. They deserve to be part of an organization that lets
them exercise their resourcefulness and encourages them to reach their fullest potential. So train
them well and provide them opportunities to learn more. The reward for investing on your
employees development is passion, loyalty, and a pure desire to grow along with your
organization. Also, let them know that the role they play in the company is an important one. Let
every single employee feel that they re part of the team by communicating with them on a
personal level. But never be complacent. Enhancing employee engagement is a never-ending
process. You should engrave it into your organization s culture by making it an everyday
practice. The results may not be instantaneous, but you ll soon notice lower attrition, happier
employees, and a much better performance.

References:
http://www.123employee.com/articles/these-are-the-problems-of-business-process-outsourcing-
bpo-firms.html

https://www.openaccessbpo.com/blog/the-painful-truth-about-call-center-attrition/

https://www.roberthalf.com/blog/management-tips/effective-employee-retention-strategies

https://www.sourcefit.com/philippines-outsourcing-news/philippine-outsourcing-industry-
attrition-rate-drops-to-50/

https://www.talkdesk.com/blog/10-steps-to-help-reduce-agent-attrition-in-call-centers/

https://talexes.com/blog/alternative-ways-to-reduce-employee-turnover/