Volume : 6, Issue : 1, January - 2017

Attrition and Retention at BPO Companies in Coimbatore: An Analytical Study

M. Annapoorani, Dr. S. Sandhya Menon

Abstract :

<p>&nbsp;<span style="text-align: justify;">The</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">escalating</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">rate of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Attrition</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">BPOs</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">has</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">dreadful</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">effects</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">on</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the organizational</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">performance.</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">The elevated</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">attrition</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">rate</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">raises</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the </span><span style="text-align: justify;">&nbsp;</span><span style="text-align: justify;">costs</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the organization</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">noticeably, in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">spite</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">its</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">incessant</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">development,</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">industry</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">faces</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">some inconvenience</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">or</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">issues</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">which</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">are</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">peculiar</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">this</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">industry.</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">The</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">most</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">significant problems</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">are</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">cultural</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">and</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">human</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">issues </span><span style="text-align: justify;">&nbsp;</span><span style="text-align: justify;">which</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">make</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">human</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">resources managers</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">difficult</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">solving</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">issues</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">related</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">same.</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">If</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">situation</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">continues, </span><span style="text-align: justify;">&nbsp;</span><span style="text-align: justify;">then</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">it</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">may</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">lead</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">huge</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">attrition</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">this</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">sector.</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">According</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">an</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">industry</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">specific analysis</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Associated</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Chamber</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Commerce</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">and</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Industry</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">India</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">(ASSOCHAM), the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">BPO</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">industry</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">is</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">facing</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">serious</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">challenge as the attrition rate in India‘s BPO sector has raised phenomenally at the rate of 55 percent with a significant visible movement in mid and senior management levels. The</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">reasons</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">for</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">huge</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">attrition</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">are</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">many</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">like</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">people</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">related</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">problems</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">include</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">stress, shortage</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">required</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">skills,</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">hike</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">salary,</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">Lack</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">of</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">career</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">growth</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">opportunities</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the company, Irregular working hours, Health problems due to imbalance in work timings, Pressure from peers &amp; family, To pursue higher education, Monotony of the job etc. The BPO</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">industries</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">need to develop a suitable</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">strategy</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">solve</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">these</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">problems</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">and</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">retain</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">talents. The foremost objective of this research is to identify the root causes of attrition in BPOs, analyzing the level of employee satisfaction, motivation, involvement</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">and</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">commitment,</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">also</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">find</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">out</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">ways</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">to</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">manage</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">attrition</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">in</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the companies. In this study, the view of 60 employees of 4 BPO Companies in Coimbatore was taken</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">for</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">analysis.</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">The</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">tool</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">used</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">for</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">collecting</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">the</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">data</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">was</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">a</span><span style="text-align: justify;">&nbsp; </span><span style="text-align: justify;">structured questionnaire. For the analysis, Rank correlation and percentage method were used.</span></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><span lang="EN-IN"><o:p></o:p></span></p>