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HR Zone » Human Resource Management » Retention Strategies In ITES-BPO Industry

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Retention Strategies In ITES-BPO Industry
Ramesh
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Posted 23-09-2008Reply

HR professionals all over the world, working is Call-Centre or Contact Centre or BPO industry are breaking their heads to formulate Retention Strategies but nothing is working in their favour. The average attrition rate in this sector is still 35-40%. No perks, no rewardsâ€Â¦just nothing is working.



Before proceeding further, lets see why people are leaving? Why there is high attrition rate.



Why people are moving?



When there are so many benefits associated with BPO industryâ€Â¦. when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? After taking exit-interviews and analyzing the trend I am able to list out following reasons for a BPO professional to change his/her job.

â€Â¢ No growth opportunity/lack of promotion

â€Â¢ For higher Salary

â€Â¢ For Higher education

â€Â¢ Misguidance by the company

â€Â¢ Policies and procedures are not conducive

â€Â¢ No personal life

â€Â¢ Physical strains

â€Â¢ Uneasy relationship with peers or managers

Lets also see as what are the various benefitsâ€Â¦that have been extended to people working in this sector.



Employee Benefits Provided By Majority Of the BPO Companies



A part from the legal and mandatory benefits such as provident-fund and gratuity, below is a list of other benefitsâ€Â¦BPO professionals are entitled to the following:

1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months

2. Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents.

3. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized.

4. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.

6. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc

7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset.

8. Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year.

9. Loans: Many BPO companies provide loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location.

10. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools.

11. Performance based incentives: In many BPO companies they have plans for, performance based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary.

12. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program

13. Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective compensation structure by balancing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special Allowance

14. Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges.

15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level in the organization.

16. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

Ramalinga Reddy
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  Rated 0 | Posted 23-09-2008

Hi
I feel if the day HR guys understand their role and accountability without thinking like the BPO employees.. this would get solved...
Regards,
GR

Parnita
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1 Posts
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  Rated 0 | Posted 12-09-2010

Hello All

This is Parnita Jain here pursuing my MBA from Dayalbagh Educational Institute. Currently I am in the final semester of MBA and is working on a project "A study of Retention Strategies in IT Sector". For the completion of this project I have to do a primary survey. Can you please help me in making the questionnaire for the same. I would be highly obliged to all for their help.

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