Keep Them on Call
Content
PUBLICATION: The Hindu Business Line (e World)
DATE: July 05,2010
Keep ‘em on the call
In the BPO context too, salary increase counts but is not the only binding factor.
When it comes to attrition, there are not many big differences between the IT services and BPO businesses. However, there are variations in BPO where the highest attrition is in the 0-60 days whereas, in software applications it is highest in 24-36 months. In both businesses, 30-60 month retention is high till they meet an inflection point at six years and if they continue they stay on, says R. Elango, Chief Human Resource Officer, MphasiS, an HP company. At lower levels in BPO, the threshold levels for movements sometimes can be as low as Rs 750-1,000 a month. And also the work shift, nature of work, distance from work place have a great influence on the BPO workforce than in the application workforce. However, the fundamentals of respect, recognition, fair appraisals, learning and growth, coupled with fair supervision, remain unchanged, he says. With over 25 per cent attrition level it has always been a challenge retaining people in the BPO industry. There is an escalation in attrition, which was expected with the market opening up. This allows a lot for employees who until now were feeling ‗boxed in' and waiting to flee. This will settle down, not to 2009 recession or pre-2009 numbers but to healthy manageable numbers. Companies will have to focus on retention of critical resources rather than a broad-brush approach of controlling attrition. Wage increase holds people but beyond a point employees stay because they are respected, learning and growing, in the same order. Off course with opportunities galore, the capability–aspiration equation gets skewed, leading to dissatisfaction. Retention has to be a mix of engagement, education and empowerment. Sometimes it is fine for people to leave and come back because they realise the value of the culture, network and social equality they have built. Exit interview analysis shows compensation as a reason for quitting; rising to the top, growth opportunities (not necessarily dissatisfaction with the company) and supervisors dominate the top three reasons.
Staying on for the right reason Jagadish Ramamoorthi, founder and CEO, Allsec Technologies, a Chennai-based BPO company, does not see a correlation between better pay and attrition. Yes, the demand is going to go up but supply is also going to be there and ‗I do not see attrition being affected.' The company's attrition level continues to be around the 40 per cent mark, he says. Better pay is not an option. Allsec is working on specifics for this year. It continues to do a set of activities around career opportunities and that has always been the strategy. ―Our job is made easier as BPO is actually seen now as a career opportunity compared with the last few years when it was only seen as stop-gap arrangement. People have now realised that the opportunities to grow are immense in this sector for all types. Managerial, knowledge-based, transaction-oriented,‖ he says.. “If somebody stays in a company only for better pay then they are actually staying for the wrong reason and they are always vulnerable and suspect to deliver 100 per cent. They should and will stay only for career growth and opportunities to perform more challenging assignments, he says. Building career in one company According to Aashu Calapa, President HR and Country Manager, India, Firstsource, it is true that salary increases are back this year though they are still lower than what they used to be before the slowdown last year. The slowdown has left its mark on employees and there is an appreciation of the fact that it does help to build one's career in a company. “We think attrition rates will largely remain the same in the short term and come down in the longer term.” Firstsource's attrition rates vary across geographies. Its fourth quarter annualised attrition (post 180 days) was — Offshore (India and the Philippines) — 43.5 per cent compared with 43.7 per cent in the previous quarter; Onshore (the US and the UK) — 34.5 per cent compared with 34.1 per cent in the previous quarter; domestic attrition for the current quarter is not relevant due to significant downsizing in the Asia Business unit. Attrition for the previous quarter was 68.3 per cent, he says. According to Nasscom, remuneration definitely forms one of the most important and integral reasons that motivates an employee to be a part of the company and continue working for it in the longer run. However, it is not the only factor that encourages an employee to stick to the organisation. Compensation is not the only key lever of retention. Building a stronger ‗Employee Value Proposition' with factors such as career and growth opportunities, learning and development avenues, excellent performance management systems and timely rewards and recognition also play a decisive role for an employee to continue working in the organisation. Going forward, Nasscom sees attrition rates coming down by September when companies start hiring from campuses again. T.E. Raja Simhan http://www.thehindubusinessline.com/ew/2010/07/05/stories/2010070550020100.htm
DATE: July 05,2010
Keep ‘em on the call
In the BPO context too, salary increase counts but is not the only binding factor.
When it comes to attrition, there are not many big differences between the IT services and BPO businesses. However, there are variations in BPO where the highest attrition is in the 0-60 days whereas, in software applications it is highest in 24-36 months. In both businesses, 30-60 month retention is high till they meet an inflection point at six years and if they continue they stay on, says R. Elango, Chief Human Resource Officer, MphasiS, an HP company. At lower levels in BPO, the threshold levels for movements sometimes can be as low as Rs 750-1,000 a month. And also the work shift, nature of work, distance from work place have a great influence on the BPO workforce than in the application workforce. However, the fundamentals of respect, recognition, fair appraisals, learning and growth, coupled with fair supervision, remain unchanged, he says. With over 25 per cent attrition level it has always been a challenge retaining people in the BPO industry. There is an escalation in attrition, which was expected with the market opening up. This allows a lot for employees who until now were feeling ‗boxed in' and waiting to flee. This will settle down, not to 2009 recession or pre-2009 numbers but to healthy manageable numbers. Companies will have to focus on retention of critical resources rather than a broad-brush approach of controlling attrition. Wage increase holds people but beyond a point employees stay because they are respected, learning and growing, in the same order. Off course with opportunities galore, the capability–aspiration equation gets skewed, leading to dissatisfaction. Retention has to be a mix of engagement, education and empowerment. Sometimes it is fine for people to leave and come back because they realise the value of the culture, network and social equality they have built. Exit interview analysis shows compensation as a reason for quitting; rising to the top, growth opportunities (not necessarily dissatisfaction with the company) and supervisors dominate the top three reasons.
Staying on for the right reason Jagadish Ramamoorthi, founder and CEO, Allsec Technologies, a Chennai-based BPO company, does not see a correlation between better pay and attrition. Yes, the demand is going to go up but supply is also going to be there and ‗I do not see attrition being affected.' The company's attrition level continues to be around the 40 per cent mark, he says. Better pay is not an option. Allsec is working on specifics for this year. It continues to do a set of activities around career opportunities and that has always been the strategy. ―Our job is made easier as BPO is actually seen now as a career opportunity compared with the last few years when it was only seen as stop-gap arrangement. People have now realised that the opportunities to grow are immense in this sector for all types. Managerial, knowledge-based, transaction-oriented,‖ he says.. “If somebody stays in a company only for better pay then they are actually staying for the wrong reason and they are always vulnerable and suspect to deliver 100 per cent. They should and will stay only for career growth and opportunities to perform more challenging assignments, he says. Building career in one company According to Aashu Calapa, President HR and Country Manager, India, Firstsource, it is true that salary increases are back this year though they are still lower than what they used to be before the slowdown last year. The slowdown has left its mark on employees and there is an appreciation of the fact that it does help to build one's career in a company. “We think attrition rates will largely remain the same in the short term and come down in the longer term.” Firstsource's attrition rates vary across geographies. Its fourth quarter annualised attrition (post 180 days) was — Offshore (India and the Philippines) — 43.5 per cent compared with 43.7 per cent in the previous quarter; Onshore (the US and the UK) — 34.5 per cent compared with 34.1 per cent in the previous quarter; domestic attrition for the current quarter is not relevant due to significant downsizing in the Asia Business unit. Attrition for the previous quarter was 68.3 per cent, he says. According to Nasscom, remuneration definitely forms one of the most important and integral reasons that motivates an employee to be a part of the company and continue working for it in the longer run. However, it is not the only factor that encourages an employee to stick to the organisation. Compensation is not the only key lever of retention. Building a stronger ‗Employee Value Proposition' with factors such as career and growth opportunities, learning and development avenues, excellent performance management systems and timely rewards and recognition also play a decisive role for an employee to continue working in the organisation. Going forward, Nasscom sees attrition rates coming down by September when companies start hiring from campuses again. T.E. Raja Simhan http://www.thehindubusinessline.com/ew/2010/07/05/stories/2010070550020100.htm
