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Managing Attrition in BPO

- by Anirban Majumdar & Kamal Poddar *

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The two studies suggest the main reasons of attrition as lack of career growth opportunities, expectations mismatch, stress levels and greater salaries from rivals. However, a host of intertwined factors is contributing to the prevailing attrition.
Attrition does not happen for one or two reasons. The way the industry is projected and the speed at which the companies are expanding have a major part in attrition.

Managing Attrition

There can not be a single cure for the present scenario of attrition due to the various factors that may or may not be present in causing employee turnover in a BPO. Stated below are a number of initiatives / measures that the management of a BPO can look at. The starting point should be first to determine the driving factors behind attrition in the organization and then choose the stated measures accordingly.

Proper Hiring

There is need for a higher degree of due diligence at the hiring stage. At the hiring stage itself, companies need to make the prospective employee aware of what the job exactly entails, what are the performance standards expected, the career path for the candidate, etc. The recruiter needs to check the background and other factors particular to the candidate that might be a potential source of early exit.

However, under the tight labor scenario and resource crunch, it is very difficult for companies to be very selective. One solution can be to look beyond the present workforce alternatives. Sections like housewives, students, physically-handicapped people and retired persons can be explored. In fact, Datamatics Technologies Limited (DTL) has already implemented a unique model wherein it employs part-time workers whom the company dubs 'knowledge associate'. These associates could be housewives, students or retired folk. By hiring part-time workers, the company is able to manage fluctuations in customer projects.

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* Contributed by -
Anirban Majumdar & Kamal Poddar,
Indian Institute of Management,
Kozhikode, Kerala.


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