Bpo Attrition- the Problem and Its Solution Essay Example for Free

Bpo Attrition- the Problem and Its Solution EssayHuman Resources In Indian Business Process Outsourcing Organizations- Attrition. Is on that point both solution? Business Process Outsourcing (BPO) is likely to be the next big thing for run in this decade. The industry is very diverse, with several sub-segments, each displaying its own unique characteristics. The BPO players need to be gauzy in any facet of operations as the market is highly competitive at every level and re-defining itself every day. Being a People-Centric industry what are the the great unwashed issues that, the HR will take a leak to handle?What are the challenges faced by HR in dealing with them? HI Before this, virtuoso needs to re campaign an understanding ab show up BPOs and what businesses are Indian companies doing in this segment? BPO is based on the premise that whatever competencies are non very important for an organization (not their core competencies) outsource or ask somebody else who is bra iniac at doing it, to do it for the organization. In this way the organization can digest on its core competencies and not worry about on trivial issues, which are not st footstepgic in nature. only these days we even find organizations outsourcing their core competencies or the core business aspects to BPOs to gain the advantage of cost cutting and property issues. Typically, BPO would include call centers, problem solving in insurance policy sector to other sophisticated activities like research and other back office dealings. India has the advantage of first-class honours degree cost, highly qualified English speaking labour, thus most of the BPO ventures in India are call centers, although of late, companies are entering into high-end areas like research.But for some measure at least we can assume that most of the companies would be doing the call center kind of business. Most of these kinds of jobs get d unmatchable in the night in India to business relationship for th e 12-hour time lag between US and India. Over a period of time the biological calendar method of birth control of the employee changes, causing various kind of disorders like indigestion, fatigue, headaches etc. so the health of the employee is a major refer for the HR, more so because most of them are graduates in their early twenties.In addition the jobs are monotonous, very much nerve wracking. So it is a challenge for HR to adequately rotate the jobs of employees and provide them with enough time to refresh, so that they are able to deliver service of highest quality. Although many companies are targeting fresh graduates, they are not able to retain them. Attrition continues to be high 35%. HR has to ensure that a graceful career path is chalked out so that graduates progressively see this area as a potency career for them.Clients in US, UK and other European Countries are very quality conscious and as increasingly complex jobs get outsourced, it becomes important that HR ensures right quality heap are selected and the right quality of training is provided to them. This ensures that later they do not face embarrassing time from their clients. There has been enormous want in this sector for manpower and huge salaries are up for taking. The times are good for this industry, entirely one has to keep in mind that this industry is still in its way to figure out in the growth stage.One cannot predict the future so easily and the sour experience of package companies is still fresh in minds. So a little bit of caution is to be exercised in this matter and proper trends pass on to be forecast by the HR to ensure that they do not go the software way when ultimately the industry stabilizes. Attrition A major problem rocking the Industry. several(prenominal) Facts to Ponder about * 95% companies in the industry contract Attrition problems * The small-sized and medium-sized companies loose more people * Turn all over rates are as high as 30% in some reput ed BPOs and over all around 35% in the Industry. Employees move to smaller companies for exciting opportunities and greater identity and move to large companies for defined roles, clearer career paths and better HR systems. Loyalty towards their employer or towards the organization has slowly seems to have disappeared. Executives know that fast-moving markets require fast-moving organizations that are continually refreshed with new gift, and they have become quite adept to outside hiring. Even companies are quite comfortable with bringing in talent they remain understandably uncomfortable about seeing talent leave.The competition to headhunt employees with good performance ratings of other organizations is an open ploy. The mediators (so called Consultants) feign this job easy for the organizations by gaining the data bases of employees and they lure the employees by offering huge pay packages in conclusion making them to move from their job. One of the biggest assets of the BPO Industry is manpower. So, the biggest challenge in this industry is to attract and retain lettered manpower. Today, BPO companies are facing a shortage of knowledge workers because the rate at which they lose employees is almost ouble the rate at which they hire. A major proportion of the disturbance issue is attributed to the movement of manpower to the Companies who lure them by offering either better pay or higher designation. The average stay of an employee in bpo companies has dropped to one year. In such a scenario where companies are fighting to combat global business competition, and struggling to survive, employee turnover comes as a double blow. And the issue of managing employee separation often gets ignored.Just because a business is pendent on Communication skills, for instance, doesnt mean that it has to go to great lengths to retain its employees. If theres a large pool of people with good communication skills available, it might want to focus on recruitment rathe r than retention. Moreover, since new hires have lower salaries than long-term employees, the company is able to keep a lid on compensation levels. Cooperating with competitors is another(prenominal) way of dealing with retention. Because of the intensity of talent-war, companies instinctively view retention and recruitment as competitive exercises.But history shows that cooperation, even among competitors, can be one of the most effective ways of dealing with talent shortages. A New concept called Anti Poaching agreement between BPO organizations is on the Move. According to this agreement, the parties get in to the agreement will share their employee databases with each other and so will restrain employees to vend in to each other companies. Lets hope that this works good for the BPOs. Frequent job-hopping of employees is not good for any one, neither for the company nor for the employee in terms of Growth.