High Attrition Rate at Call Center Industry: an Hr Manager's View

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UNIVERSITY OF SANTO TOMAS
COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION

This Research Proposal is being presented to the Faculty of the Department of Human Resource Development & Management

Entitled:

High Turnover Rate and Employee Benefits

in Call Center Industries: The HR Manager’s View

By:

Buotan, Aldrin M.
Dimaculangan, Rey Karl A.
Flores, John Andrew S.
Malabanan, John Peter M.
Marquez, Gerard Ephraim L.
Tagunicar, Cedie N.

September 1, 2012
España, Manila

Introduction

Today’s best companies understand the real key to maintaining a world-class workforce is not just to hire the best employees, but to keep them once they are hired. Retaining progressive workforce has not been an easy task to every employer or organization and thus becomes a real challenge to cope up with the fast pace business world currently we are on and if this fails, surely high turnover rates will occur and will be prominent in an organization.

An employee turnover rate refers to the movement of employees out of an organization. It is often cited as one of the factors behind the failure of an employee productivity rate and is also one of the chief determinants of labour supply (Snell & Bohlander, 2010, Principles of Human Resource Management, 15th edition, United States, p,415).Competing organizations are constantly looking to steal top performers, and “poaching talent is becoming an increasingly common way for organizations to build themselves them up as a larger company to be able to expand and earn more profits, while at the same time tearing their competitors down (Noe et. al. 2010, Human Resource management: Gaining a Competitive Advantage, 7th edition, New York, p461). Turnover comes in good times and in bad, to good companies and to those that are struggling of every size. Losing a good and talented employee is never easy, and sometimes is predictable, but sometimes, it can be prevented, “you can’t run a service business when you are at war with your employees” (Greg Davdidowitch, Noe et. al, 2010, Human Resource Management: Gaining Competitive Advantage, 7th edition, New York).

Knowing the rate of turnover at a certain organization is the first step to understanding whether employees’ departs within the range of normal for a type of business and industry. Turnover is a key benchmark in assessing the health and stability of organizations. A high turnover rate suggests there may be something wrong with the basic structure of a company, its salary levels or even its benefits. Too high turnover rate can also mean that an organization is losing productivity and knowledge, including an understanding of products and processes. The consequences of the loss are both financial and in the morale of those who remain. Leading reasons that employees give for their departure: a better opportunity or increased responsibilities, higher pay or more benefits, or they are moving to a different location.

Benefits may one of the best reasons to reduce turnover rate and increase the retention in an industry. Employee benefits that is part of the total compensation package, other than pay for a worker, provided employees in whole or in part by employer payments, example of which are life insurance, pension, workers compensation and vacation (Milkovich, G & Newman, J1984, Compensation, New York, p.8). Employee benefits are compensations given to employees in addition to regular salaries or wages. Some benefits are legally required, e.g., social security benefits, Medicare, retirement benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and improve job performance (Labor and Employment Blawg… A work in progress, June 1, 2010, Philippine Labor Laws, < http://www.laborlaw.usc-law.org>, viewed: August 22, 2012). Aside from giving benefits...
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