Attrition in Indian BPO

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The Business School
University Of Jammu
Abstract Presentation
Topic : Managing Attrition in Inian BPO Inustry
By : Ridhi Sharma
Under The Supervision Of

Prof. Keshav Sharma
&
Prof. Alka Sharma
Introuction
The statement by Grossman and Helpman (2002)
that we live in an age of outsourcing clearly
indicates that outsourcing has now become an
acknowledged, accepted and established
business strategy
!ne of the most familiar forms of outsourcing is "
#$usiness %rocess !utsourcing&
Cont………..

$usiness %rocess !utsourcing is an act of transferring
some of an organi'ation(s repeated non"core business
processes to an outside provider to achieve cost reductions.

Many global corporations across the world have
outsourced their non core business processes to low cost
destinations like India, Philippines, China, Vietnam, Ireland,
Mexico etc.

!or the "oreign clients who are looking "or o""shore
outsourcing providers, India has always been lucrative
destination# $ Price %ater$&ouse Coopers business solution
group '())*+
Cost ,i""erential
over -).
/ong term
labor arbitrage
/arge pool o" 0nglish
speaking, computer
savvy graduates.
%ool of 2) m graduates
,i""erential
1ime 2one
Benefits of
India as an
Outsourcing
Destination
Source: - Price Water-House
Coopers business solution
group (2005), Indo
American Chamber o
Commerece!
/iberali2ation
o" telecom
industry
I1 0nabled
sector 3
1op priority
in govt.
policy
Proven
4""shore
model
Performance of Indian BPO Industry
In recent years the Indian 5usiness Process 4utsourcing
industry has witnessed phenomenal growth "rom 6ust data
entry services, to provisions o" highly complex services like
"inance and accounting, customer interaction and support,
in"ormation technology services as well as knowledge
process outsourcing. In 6ust over a decade, the industry
has grown to reach nearly 789 :: billion in export
revenues, employing more than ;)),))) people, and
accounts "or a market share o" more than ** percent o" the
worldwide 5P4 market NASSCOM (2011
!urno"ers and #ro$t% of BPO Sector in India
 
&'(200) &'(200* &'(200+ &'(200, &'(200- &'(200. &'(2010/ 11
BPO
012orts 3
Domestic
<.= *.( ;.( >.* :(.* :=.?
#ro$t% year
to year 4asis
*). <?. <:. (=. :*.*=. :-$:?.
(&' indicates financia5 year6 (&igures in Bi55ion 7SD6
Source: Nationa5 Association of Soft$are and Ser"ice Com2anies/ &acts S%eet u2dated on &e4ruary 20126
8ervices Provided by Indian 5P4
Companies
1he Indian 5usiness Process 4utsourcing Industry cater
to global clientele with a wide spectrum o" services
ranging "rom 3
"
1ranscription
"
5illing,
"
@esearch,
"
,ocumentation,
"
/egal service,
"
Marketing service,
"
1echnological Assistance etc.
Challenges faced by BPO industry
" &uman 3 @esource centric industry,
as it involves the use o" broad skill
sets.
" ,irect interaction o" employees with
clientBs customer.
" Complete dependence on human 3
technology inter"ace puts a lot o"
challenges to human resource
pro"essionals o" this industry.
" 1he ma6or challenges being "aced
by the 5P4 industry in India is the
shortage o" competent managers
"or the middle and senior
management.
" &igh attrition rates among
operational level o" employees
Attrition 8 A 4ig c%a55enge to Indian Business Process Outsourcing Industry
•*n 20++ The ,ssociated -hamber of -ommerce and *ndustry of *ndia (,ssocham)
had analysed that *ndian $%! firms are witnessing a high attrition rate of .) percent
as the ma/ority of mid and senior level workers are fre0uently switching their /obs
•1isra and 2adav (2003) have opined that the annual attrition rate in *ndian
$usiness process outsourcing firms falls between 40 to 50 percent The authors
estimated that, on an average, an *ndian call centre employee works with the
company for ++ months whereas in 67 his counterpart works for 4 years
•*n the similar tune a survey conducted by Hewitt ,ssociates in 200) reported that
wages in *ndian $usiness %rocess !utsourcing sector have been growing by nearly
+) percent per year as companies have increased wages to mitigate problems of
attrition and absenteeism This survey has also reported that the annual attrition rate
in voice" based business process outsourcing industry is 4)890 percent and the
average tenure at a voice " based *ndian $usiness process outsourcing firm is +:
months
Cont………
•,ccording to the ;,<<-!1 20++ report #The *T=< 8 $%! industries are
struggling with the critical issue of ac0uiring and sustaining manpower in the
industry& The report says that the outsourcing industry is e>pected to face a
shortage of 2, .2,000 professionals by 20+2
•*n an article published in online outsourcing advisor named outsourcing centre
(200)) ?ebashish ?as of keane world'en reported that *ndia@s business %rocess
outsourcing industry is concentrated at hotspots like Gurgaon, $anglore and
1umbai, thus companies in these areas are forced to compete for same workers
which leads to wage inflation and high employee attrition
Purpose of the study
,ttrition in $usiness %rocess !utsourcing companies has a significant impact
on the organi'ations The *ndian $usiness %rocess !utsourcing industry,
which has established itself as low " cost destination, is losing its position as
the low 8 cost destination because of the rising people costs This has raised
doubts about whether the *ndian $usiness %rocess !utsourcing industry can
satisfy clients for the long term and sustain the considerable growth rate it is
currently e>periencing Therefore in the present study an attempt has been
made to understand the problem of employee attrition in *ndian $%! industry
*n conte>t of $usiness %rocess !utsourcing industry in *ndia it has been
analysed by many researchers (Assocham 2011; Misra and Yadav 2009;
NASSCOM 2011) that the problem of employee attrition is voluntary in nature
Therefore this research study is an attempt to understand the causes and
conse0uences of voluntary turnover
7nderstanding 9o5untary !urno"er
•,lthough there is no universally accepted account or framework for why people
choose to leave (1orrell, Aoan"-larke and Bilkinson 200+) yet it has been analy'ed that the
identification of variables associated with turnover intentions is considered an
effective strategy in reducing actual turnover levels (1aert' and campion +33:C 1obely +355C
Hom and Griffeth +33)C 1obely et al +35:C Dishbein and ,/'en, +359 )
•Turnover intention is an employee@s decision to leave an organi'ation (?ougherty ,
$luedorn and 7eon ,+3:) C 1obely +355)
•Turnover intention is a comple> phenomenon that depends on various factors ,
growing body of research on employee turnover behaviour indicates that /ob
satisfaction, organi'ation commitment, tenure, emotional e>haustion, dissatisfaction
with salary and promotional opportunities are constantly related to turnover
intentions and actual turnover (eg ,rnold E Deldman, +3:2C -otton E Tuttle, +3:.C Gerhart, +330C
1obley et al, +353C %rice E 1ueller, +3:.C Bai E Fobinson, +33:C<teel,2002)
Cont::6
•*n conte>t of $usiness %rocess !utsourcing firms it has been reported by ?ata0uest (2005)
=< survey that the main reasons of employee attrition in $usiness %rocess !utsourcing
industry are the lack of growth opportunities, higher education needs of employees,
dissatisfaction with work timings, no peaceful life, irate customer and working on holidays
• *n 200) a study conducted by Hill and ,ssociates has also found that mismatched
e>pectations, dissatisfaction with company@s policies and lack of growth opportunities and
never ending 0uest for a better /ob leads to the problem of attrition in *ndian $usiness %rocess
!utsourcing industry
•!ne of the significant studies on the problem of employee attrition in *ndian outsourcing
companies was conducted by ,nanthra/a (2002) The study suggested that the ma/or factors
responsible for employee attrition in outsourcing companies are "disliking the nature of work,
mismatch of *nterest, less interaction with end usersC changing policies of company, lack of
technical career advancement, lack of opportunity for constant up " gradation of skills, delay in
%romotion, no transparent appraisal, unsure Duture, and limited career growth

•,lso in 200: it has been reported by Hay Group -onsultancy that dissatisfaction with
remuneration is one of the reasons for high attrition rate in this industry The report pointed out
that the remuneration structure of *ndian $usiness process outsourcing firms is not as
competitive as they are in the rest of the *ndian market

!%eoretica5 Mode5 for !urno"er Intentions
$ased on the review of literature, a theoretical model for turnover intentions was
proposed
•*n this model some variables are regarded as pro>imal variables %ro>imal variables
have direct relationship with turnover intentions
•The %ro>imal variables areG Hob <atisfaction, !rganisation -ommitment (including
affective commitment and continuous commitment), and %ay satisfaction
•The variables having indirect relationship with turnover intentions are regarded as
distal variables
•The distal variables are the correlates of /ob satisfaction " !verall Hob, Bork
?emand, Bork =nvironment, Bork 8 Damily Aife -onflict, %eer <upport, and
!pportunity for %romotion
!%eoretica5 Mode5 for !urno"er Intentions
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1o examine the sources o" employee attrition in 5P4 sector.

1o study the relationship between turnover intentions and
6ob satis"action.

1o study the relationship between turnover intentions and
organi2ational commitment.

1o analyse the e""ect o" pay related variables on turnover
intentions.

1o "ind out the measures that can control employee attrition.
HYPOTHESES
<1 : Fob satis"action is negatively correlated with turnover intentions
<2 : 4rgani2ational commitment is negatively correlated with
turnover intentions.
<= : 8atis"action with Pay is negatively correlated with 1urnover
Intentions.
>esearc% Met%odo5ogy
•The present study has adopted a descriptive research design
•The ma/or purpose of this research has been the description of the state of
affairs or problems as they e>ists and are faced at present by $%!
employees as well as employers
•, systematic and organi'ed methodology has been formulated for the
research study
•, survey techni0ue has been used to obtain the re0uired information
•, 0uestionnaire has been designed to tap the demographic variables
including age, education, gender, marital status, and tenure of the
respondents
•*t also gathered information about the factors responsible for attrition, such
as the overall /ob satisfaction, pay satisfaction, organisation commitment
and turnover intentions of $%! employees
•<tatistical %ackage for the <ocial <ciences (<%<<) version ++0 was used
for the statistical analyses
Data Sources
Primary Data: The present study, which is e>ploratory in nature, has been
conducted on four $usiness process outsourcing companies operating in the ?elhi
;-F region vi' Genpact, *$1 ?aksh, -onvergys *ndia and H-A Technologies
(!%ese com2anies are c%osen from a 5ist of to2 20 BPO 0m25oyees on t%e 4asis of em25oyee strengt% and re"enue
generated6 Source / Nasscom 2010 Sur"ey
The respondents have consisted of employees working at entry level and first
level managers Fespondents were not contacted directly *n each $%! company,
team leaders were asked to distribute the 0uestionnaires to employees working at
entry level and first level of management
Secondary Data: Iarious manuals and publications, ie, survey reports,
Hournals, 1aga'ines, etc related to the topic were consulted The reports of
various advisory and consultancy firms of national and international repute have
also been consulted to get reliable information
QUESTIONNAIRE DESIGN AND DEE!OP"ENT
•The primary data was collected by using the field survey method Dor the purpose
a 0uestionnaire was developed, pretested and administered to the target
population under the study
•The initial 0uestionnaire was developed using five point Aikert scale ie +" being
strongly disagree and ) " being strongly agree *t consisted of si>ty four items which
were organised into five sections

<ection , consisted of nine items about demographic profile of respondents

<ection $ consisted of 40 items that would measure /ob satisfaction of
respondents

<ection - consisted of : items that would measure respondents@ satisfaction with
the remuneration package offered by the industry

<ection ? consisted of +2 items that would measure the organisation
commitment of respondents

Dinally <ection = consisted of ) items measuring turnover intentions of
respondents
P>0/ !0S!IN# !<0 ?70S!IONNAI>0
%rior to the main stage of data gathering and analyses, a pilot study was
conducted by collecting data from 200 participants The results of the pilot
survey suggested some modification in the /ob satisfaction scale Therefore the
final 0uestionnaire was framed using a five point Aikert scale containing .4
statements, covering the following dimensions vis"J"vis G
•!verall /ob satisfaction 8 ) items
•Bork overload 8 9 items
•Bork environment 8 . items
•Bork to Damily Aife -onflict 8 . items
•%eer <upport 8 9 items
•!pportunity Dor %romotion 8 9 items
•%ay <atisfaction 8 : items
•!rganisation -ommitment (affective and continuous) +2 itemsC and
•Turnover *ntentions" ) items
SAMP@IN# P>OC0D7>0 ADOP!0D
The population for this study comprised of employees
working in select $%!s in the ;ational -apital Fegion, ;ew
?elhi , sample si'e of +200 was chosen for this study and
the Fespondents (+2K sampleC employee strength 2000"
2)00 in each $%! campus) were taken from each company
<imple random sampling techni0ue has been used to gather
data from the respondents, because of which respondents
from diverse age group, genderC marital status etc has been
selected, but were restricted only to entry and first level
managers, where the attrition is highest ,fter preliminary
e>amination, 30) 0uestionnaires were found to be complete
and valid for the study
Sam25e Design
Name of t%e ?uestionnaires Num4er of >es2onse >ateA Percentage
organisation distri4uted >es2ondents organisation

IBM DaBs% <)) (*) ?<.<<. (;.-(

Con"ergys <)) (*) ?<.<<. (;.-(
India

<C@ <)) ()* -?.<<. ((.-*
!ec%no5ogies

#en2act <)) ()) --.--. ((.::


!ota5 :()) >)* ;*.=:. :))
C<AP!0> P@AN
*n Chater ! an overview of $usiness %rocess !utsourcing *ndustry in *ndia has been
presented, this is followed by the role played by the !utsourcing industry in making
*ndia a knowledge base economy as well as its contribution in increasing *ndia@s e>port
revenues and Gross ?omestic products thereby generating employment opportunities
for *ndian youth Bith this background information the flip side of $usiness %rocess
!utsourcing industry that is the problem of employee attrition has been discussed and
finally an attempt has been made to understand the concept of employee attrition
Therefore this chapter is e>clusively devoted to the concept of employee attrition, its
conse0uences, and various factors responsible for it
Chater !! focuses on detailed review of literature Iarious research studies on
employee turnover, /ob satisfaction, pay satisfaction and organisation commitment are
discussed in this chapter The different sources for the review of literature are as
followsG
•Fesearch %apers and ,rticles in Hournals
•%ublished $ooks
•*ndustry Feports
•Thesis and ?issertations
•!ther 1iscellaneous ,rticles
Cont::6
*n the Chater !!!, detailed discussion on the methodology adopted for the study has been
presented which is followed by formulation of research ob/ectives and hypotheses for the study,
research area, sampling techni0ues, 0uestionnaire design and pilot survey , theoretical model
for employee turnover has also been discussed in this chapter Dinally the chapter highlights the
various statistical tools used for analysis and interpretation of the data of the study
Chater !" discusses the characteristic features of the $usiness %rocess !utsourcing *ndustry
and the profile of the select companies study *n particular this chapter discusses the
characteristic features of $%! industry in conte>t of human element involved in it *t attempts to
e>plore the work culture and the work environment of outsourcing industry and the various
human"resource challenges faced by the mangers of this industry
Chater " is about data analysis and interpretation which is presented in seven sections (a)
?ata %urification Fesults (b) ?emographic profile of respondents (c) =mployment History of
respondents (d) ?escriptive statistics (e) -orrelation analyses (f) Fegression results (g)
1ediated regression analysis The main tools that were used areG Dactor ,nalysis, Feliability
,nalysis using chronbach@s alphaC -orrelation ,nalysisC Fegression ,nalysis, $aron and 7enny@s
Ainear =0uation 1odel to test 1ediation =ffect and <obel Test
Dinally Chater "! the last chapter of the study gives the summary of the research findings and
highlights conclusion and suggestion emerging from discussion

&AC!O> ANA@'SIS
!or measuring the dimensionality o" the items o" the 6ob satis"action, the
collected data was sub6ected to "actor analysis.
•Bart5ettCs !est of S2%ericity indicated a high Chi$ sIuare value o" :;-)*.*=
with =)- degrees o" "reedom at signi"icance level o" .)))
• !urther, a high CM4 value o" ).?<- 'J.-+ "or the data, con"irmed the
appropriateness "or the use o" "actor analysis and identi"ication o" relevant
"actors.
•Varimax @otation results indicate that (> statements related to 6ob satis"action
could be minimi2ed into six "actors K overall 6ob satis"actionL work overloadL work
environmentL work to "amily li"e con"lictL peer support and opportunity "or
promotion
•1he total cumulative variance explained by the six "actors is -*.?( percent.
>0@IABI@I!' 3 9A@IDI!' ANA@'SIS
 
#e$ia%i$ity GThe data was sub/ected to reliability analysis using -hronbach@s
,lpha method The alpha values of all the scales are above 05, therefore the
measurement scale is deemed to be reliable for use
"a$idity: *n the present study the face and content validity of the data has been
confirmed through internal checkups and e>tensive discussion with the e>perts
The higher 7aiser 1eyer 8 !lkin values of multi dimensional scales such as /ob
satisfaction (542) and variance e>plained as .):2 K gave re0uired ade0uacy of
the data, there by proving the construct validity respectively Durther, convergent
validity of the data has been proved by correlation matri> between master
statement and the rest of statements
OB;0C!I90S O& !<0 S!7D' AND !<0I> AC<I090M0N!
O4Decti"e 1: 1o examine the sources o" employee attrition in 5P4
sector.
The first ob/ective was 0ualitative in natureC therefore the relevant
literature was e>plored to achieve the desired Iarious research
papers and previous works of different authors were analysed and on
the basis of e>tensive literature review a theoretical model for
employee turnover has been developed
Corre5ation Ana5ysis
Correlation bet.een ,urno/er Intentions and Pro0imal (ariables
•!urno"er Intentions 3 ;o4 Satisfaction
!rom the results o" correlation analysis it is "ound that 6ob satis"action
has a signi"icant negative correlation with turnover intentions 'r M $.=*;NN,
p O ).):+.
1he negative correlation between these two variables indicated that
higher the 6ob satis"action o" a person the lower is his intentions to Iuit.
1he obtained "indings are in con"ormity with "indings o" '1ett and Meyer
:>><+L '/ee and Mowday :>>;+L 'Porters and stress, :>;<+ who "ound a
signi"icant negative correlation between Fob satis"action and 1urnover
Intentions.
Cont……….
!urno"er Intentions 3 OrganiEation Commitment
It has been observed that a""ective commitment has a signi"icant negative
correlation with turnover intentions 'r M $.<>(NN, pO).):+, and continuous
commitment has also been "ound to be negatively related to turnover
intentions 'r M $.<<=NN, pO).):+.
1hese results indicate that the employees who are less committed to
their organisation have a tendency to develop turnover intentions. 1hese
"indings are in con"ormity with the "indings o" 'Mowday , Porter and
8teers' :>?(+ and 'Meyer Paunoen, Gellately, and Go""in and Fackson,
:>?>+ who have "ound that committed employees are more likely to
remain with the organi2ation.
Cont……….
!urno"er Intentions 3 Pay Satisfaction
Again it has been observed that there exists a signi"icant negative
correlation between pay satis"action and turnover intentions 'r M $.=(:NN,
p O).):+.
1he negative correlation between these two variables indicates that the
pay satis"action plays a signi"icant role in shaping turnover intentions,
higher the pay satis"action lower are the turnover intentions o" the
employee working in organisation. 1he obtained "indings are in
con"ormity with "indings o" '&oppockBs :><*L &ay group ())? who "ound
a signi"icant negative correlation between pay satis"action and 1urnover
Intentions.
1he possible reasons "or this would be unstructured remuneration
system as it has been "ound that the bene"its package o""ered to 5P4
employees mainly "ocuses on retirement bene"its, which is a discontent
since most o" the workers in outsourcing companies are in their twenties
'&ay Group consultancy ())?+.
!urno"er Intentions 3 Dista5 9aria45es
•It has been "ound that there exist a signi"icant negative correlation between 6ob
satis"action and work overload 'r M $.((?NN, pO).):+ and a signi"icant positive
relationship 'r M .<;:NN, p O ).):between turnover intentions and work overload. 1hese
"indings are in con"ormity with the "indings o" '8pector and @ex :>>?+ who "ound that
work overload contributes to employee 6ob dissatis"action which leads to an increase in
turnover intention..
•Also It has observed that there exists a signi"icant negative correlation with 6ob
satis"action 'r M $ .<*<NN, pO ).):+ and work to "amily li"e con"lict and a signi"icant
positive correlation between turnover intentions and work to "amily li"e con"lict 'r M .
<>=NN, pO).):+. 1hese "indings are also supported by the work o" 'Googins, :>>:+ who
stated that another "actor associated with Iuality o" working li"e and turnover is work
"amily con"lict#.
•!urther it has also been "ound that there exists a signi"icant positive relationship
between 6ob satis"action and opportunity "or promotion 'r M .(*; NN, pO ).)*+ and a
signi"icant negative relationship between turnover intentions and opportunity "or
promotion 'r M $.<(<NN, pO ).):+. 1hese "indings indicate that the turnover intentions o"
employees are high when they perceive that the organisation is not providing internal
promotion opportunities to them.
•The result of correlation analysis does not indicate any significant relationship between turnover intentions and
work environment (r L "02:) and turnover intentions and peer support (r L "04)) respectively, Therefore these
variables are not supported as distal variables for turnover intentions
O4Decti"e2: !o study t%e re5ations%i2 4et$een turno"er intentions and Do4 satisfaction
@egression analysis was undertaken with turnover intentions as dependent
variable and 6ob satis"action predictor variables. 1he results o" regression
analysis points out that 6ob satis"action 'P M $.=*<, p M ).))+ has a signi"icant
negative correlation with turnover intentions. 1he @
( value o" .()= indicated that 6ob satis"action could
explain ().?. variation in turnover intentions o" employees.
=.<:? .)<< :<:.-)> .)))
$.(<) .):* $.=*< $:*.(;= .)))
'Constant+
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Model
:
5 8td. 0rror
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nts
t 8ig.
Cont……..
%ith respect to distal variables it has been "ound that work overload, work to
"amily li"e con"lict and opportunity "or promotion signi"icantly contribute towards
@
( value. 5ased on @( value o" .(?< it is in"erred that these three variables could explain (?.<. variation in turnover intentions o"
employees.
<.))? .)?* <*.<>; .)))
.:(* .):= .(-- >.)<- .)))
.:=- .):= .<:< :).?(: .)))
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t 8ig.
Coefficients
a
,ependent VariableK 1I
a.
1he regression eIuation can be stated as
1I M <.))Q .:( %, Q .:=- %!/C 3 ?.( P@4
%here 1I M 1urnover Intentions
%, M %ork ,emand
%!/C M %ork to !amily /i"e Con"lict and P@4 M 4pportunity "or Promotion
O4Decti"e=: !o study t%e re5ations%i2 4et$een turno"er intentions and organiEationa5
commitment6
, regression was run with turnover intentions as dependent variable and affective
commitment and continuous commitment as predictor variables The results of
regression analysis indicated that affective commitment (M L "40., p N 00)) and
continuous commitment (M L "+25, p N 00)) has a significant negative correlation
with turnover intentions The F
2 value of +. indicated that organisation commitment could e>plain +.K variation in
turnover intentions of employees ,lthough the impact is not very high but is significant in nature

=.=(( .)=* >;.--) .)))
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a
,ependent VariableK 1I a.
O4Decti"e ): !o ana5yse t%e effect of remuneration on turno"er intentions
1he results o" regression analysis between turnover intentions and pay satis"action
indicated that pay satis"action 'P M $.=-;, p O).)*+ has a signi"icant negative
correlation with turnover intentions. 1he @
( value o" .(:; indicated that pay satis"action could explain (:.;.
variation in turnover intentions o" employees.
=.;-( .)*> ?).?<> .)))
$.<(> .)(: $.=-; $:*.?-( .)))
'Constant+
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:
5 8td. 0rror
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a
,ependent VariableK 1I
a.
>egression of !urno"er Intentions $it% 2ro1ima5 "aria45es
!urther the proximal variables that are 6ob satis"action, organisation commitment
and pay satis"action are regressed with turnover intentions. 1he r sIuare value o" .
<>= indicated that these three variables could together explain <>.=. variation in
turnover intentions o" employees.
*.:-) .)*? ?>.)=? .)))
$.:;= .):= $.<=< $:(.?)> .)))
$?.(0$)( .):? $.:-- $=.-)< .)))
$<.:0$)( .):- $.);) $:.>?: .)=?
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:
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7nstandardi2ed
Coe""icients
5eta
8tandardi
2ed
Coe""icie
nts
t 8ig.
Coefficients
a
,ependent VariableK 1I a.
1he regression eIuation can be stated as
1I M *.:- $ .:;-<F8 3 ?.: AC 3 <.:CC $ .((> P8
%here 1I M 1urnover Intentions, F8 M Fob 8atis"action, Ps M Pay 8atis"action, AC M A""ective commitment, CC M Continuous Commitment
VA/I,I1E 4! &EP41&0808 10810,
<
1: ;o4 Satisfaction is negati"e5y corre5ated $it% turno"er intentions6
1he @ sIuare value o" .() shows that 6ob satis"action has a signi"icant e""ect on
turnover intentions i.e. ().? . variation in turnover intention can be attributed to 6ob
satis"action. !urther !# value o" (<?.(-: 'pO).):+ suggest that 6ob satis"action has
signi"icant impact on turnover intentions. Moreover correlation coe""icient between 6ob
satis"action and turnover intentions has been measured to 'r M $.=*;NN, p O ).):+
indicates a signi"icant negative correlation between the two.
Also, the P coe""icients o" the correlates o" 6ob satis"action 'i.e. work overload P M .
:(*, p O ).)*+, work to "amily li"e con"lict P M .:=-, p O ).)*+ and opportunity "or
promotion 'P M $ ?.(, p O ).)*+ prove that 6ob satis"action and its correlates have a
signi"icant impact on turnover intentions
&ence, "rom the results presented above, it can be in"erred that <1 stands validated.
Cont::6
H
2: Organisation Commitment is negatively correlated with turnover intentions!
4rganisation commitment has been analysed on two dimensions that are a""ective commitment and
continuous commitment. 1he correlation coe""icient between a""ective commitment and turnover intentions
'r M $.<>(NN, pO).):+, and continuous commitment and turnover intentions 'r M $.<<=NN, pO).):+,+ indicates
that there exist a signi"icant negative correlation between turnover intentions and organisation
commitment. !urther the P coe""icient o" a""ective commitment 'PM $.:*:, PO).)*+ and continuous
commitment 'PM $*.-, PO).)*+ has indicated a negative correlation between organisation commitment and
turnover intentions.
&ence, <2 "rom the results presented above, it can be in"erred that <2 stands validated accepted.
<=: Satisfaction $it% remuneration is negati"e5y corre5ated $it% turno"er intentions.
1he correlation coe""icient between pay satis"action and turnover intentions has been measured to be 'r M
$.=-;NN, p O).):+ indicating a signi"icant negative correlation between the two. Also ! value o" (*:.-)
'pO).):+ suggest that pay satis"action has signi"icant impact on turnover intentions. !urther P coe""icient
' P M $.=-;O p,).)*+ o" pay satis"action indicated high negative impact on turnover intentions
&ence, "rom the results presented above, it can be in"erred that <= stands validated accepted.
Mediated effect of organisation commitment on 2ay satisfaction and turno"er
intentions6
In the present study an attempt has been made to clari"y the relationship between
pay satis"action and turnover intentions by analy2ing the role o" organisation
commitment in this relation. 1he reason "or this mediation hypothesis is the
assumption that the way a worker is satis"ied by the remuneration package will
contribute in generating a bond with the organisation, which in turn lead to lower
turnover intentions. 4rganisation commitment is one o" the important 6ob related
attitudes which is developed as a result o" employees satis"action with the returns
which they receive in the "orm o" remuneration paid by the organisation
Cont:::6
1o "ind out the mediated e""ect o" organisation commitment on pay satis"action
and turn over intentions 5aron and CennyBs ':>?-+
linear eIuation method has been "ollowed.
1he results o" 5aron and CennyBs ':>?-+ linear eIuation method indicated that pay satis"action has a negative impact on turnover
intentions 'P M $.=-; PO.)*+ on controlling organi2ation commitment. %hereas on introducing organi2ation commitment it is "ound that
there is an increase in regression coe""icient o" pay satis"action "rom $.=-; to $.<(>. !urther the results o" the sobel test value i.e ' S M
$:(.(=?***)>L p M ).))+ indicates that the association between the Independent Variable 'pay 8atis"action+ and the ,ependent Variable
'turnover intentions+ has been signi"icantly reduced by the inclusion o" the mediator 'organi2ation commitment+ in the model.
MAF4@ !ID,IDG8 AD, 87GG081I4D8
•1he "indings o" the present study indicated that 6ob satis"action, organisation
commitment and pay satis"action are signi"icantly correlated with turnover
intentions o" the employees. 1hese three proximal variables could together explain
<>.-. variation in turnover intentions o" employees. 4ut o" these three variables
6ob satis"action 'P M $.<=-, p O).)*+ and pay satis"action 'P M $.<(= p O).)*+ are
identi"ied as the ma6or contributor to 1urnover Intention o" employees.
•1hree distal variables 3 %ork overload, work to "amily li"e con"lict and opportunity
"or promotion are also signi"icantly correlated with turnover intentions o" the
employees. 1hese three distal variables could together explain (?.<. variation in
turnover intentions o" employees. 1he variable work to "amily li"e con"lict 'P M .<:<,
p O).)*+ is identi"ied as the ma6or contributor in turnover intentions.
•4rganisation commitment could explain :-. variation in turnover intentions o"
employees. 5oth the dimensions o" organi2ational commitment 3 a""ective
commitment 'P M $.<)-, p O ).)*+ and continuous commitment 'P M $.:(;, p O ).)*+
have a signi"icant negative relationship with turnover intentions.
Cont:::
•Pay satis"action alone could explain (:.;. variation in turnover intentions o"
employees. It has a signi"icant negative correlation with turnover intentions 'P M
$.=-;, p M ).))+.
•1he two commitment dimensions, a""ective commitment, and continuous
commitment, "ully mediated the e""ect o" a pay satis"action construct. 1his
"inding is consistent with theory that would predict that the appraisal o"
compensation elements may convey "eelings o" satis"action that are known to be
critical "actors in the development o" a""ective bond between the individual and
the organi2ation.
• 1he "inding o" a mediation e""ect through continuous commitment is also
theoretically meaning"ul since perceived sacri"ice re"lects the cost associated
with leaving that could be "ostered in case the individual appraises hisTher
compensation package to be un"avourable.
@IMI!A!IONS O& !<0 S!7D'
•1he present study is limited to only "our 5usiness Process 4utsourcing "irms in
Dorthern India due to paucity o" time and "inancial resources available at the
individual level.
•@espondents especially the &uman resource managers had been reluctant in
disclosing the secondary data like exit interview responses, employee "eedback
record.
•1he study is heavily dependent on primary data, which is very time consuming.
•1he researcher was not provided direct access to respondentsL it was not
possible to conduct in$depth interviews that probed employee behaviours and
5P4 experiences more "ully.
•1he research design o" this study was cross sectional and it is thus not
possible to in"er a causal relationship. 7ndertaking research at one period in
time can only re"lect that period in time.
THANK YOU

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