UNDERSTANDING THE FACTORS CONTRIBUTING TOWARDS HIGH ATTRITION IN THE BPO INDUSTRY AND PROPOSING A RETENTION MODEL

Abstract

This study is with regards to understand what are the reasons for attrition in BPO sector. The attrition rate in the BPOs is extremely high and is estimated to be around 48% in voice-based processes and 26% in non-voice based BPO processes. There has been 100% attrition rate showcased in some BPOs which is quiet alarming. This study has been conducted and it was identified that factors related to personal problems, job related and environmental related factors, lack of growth opportunities, lack of work life balance, policies and procedures not being conducive, poaching by competing BPO companies are some of the various reasons that has contributed towards employee attrition in ITES industry. Hence, it is necessary to identify such problems and try to propose ways through which the BPOs can reduce the attrition rate. A survey method has been considered wherein a sample of 200 respondents was studied. The questionnaire consisting of questions relating to their personal profile, to analyse what degree of personality they exhibit and see if there is any influence of that has led to attrition and have been handed to them for response. After collecting these responses, using statistical technique an in-depth analysis has been carried out and been able to identify substantial reasons for high attrition rate. Thereafter, the study has also made recommendations to reduce attrition rate in BPOs in Bengaluru.