As per today’s scenario we are aware that India is witnessing a boom in BPO industry. With India being one of the favorites for outsourced business, the business of BPO’s has increased to many folds. The business which was worth $4 billion in 2004 rose to $65 billion in 2010 as per the research conducted by McKinsey & Company. It has given ample employment opportunities to Indian people. But this also showed the negative side of the business. It has been said that it costs thrice as much to recruit a new employee than to keep an existing one. This can be very well understood by the current trends in BPO industry. It can be seen as a routine of any BPO firm where the hiring continues 24x7. All these costs of selecting and training people become a matter of concern for this kind of firms. A special team of HR people is dedicatedly meant for carrying out recruitment on regular basis. BPO’s not only recruit fresher from their own centers but they have also approached various consultancies to do them the favor on certain commission basis. The purpose of this research is focused on to find out why the employees are leaving the organization and all the possible reasons why the companies are not able to retain their employees.
Review of Literature:
High employee turnover rate is problem and because of this many industries have been suffering from losses in term of money and trained mind as well. Many research have been conducted on these topic to find out all reasons behind high employee turnover rate and suggested different ways to deal with but we know because of globalization over market is dynamic and because of dynamism working environment is more pressurized and factor of turnover changes rapidly. To take industry as a whole many researches, articles, journals and books have been published like Dail Fields, Myra E. Dingman, Paul M. Roman and Terry C. Blum (2005), in their research report ‘Exploring predictors of alternative job changes’ in their study they found that previous studies have evaluated that the variables that predict employee turnover vary considerably across situations. This lack of consistency may reflect limitations imposed by viewing turnover only as a decision to leave a current job. The variables that predict turnover may depend on the type of job change that an employee makes after leaving. This study explored which variables predicted leaving a job and moving to alternative types of job change. The results show that different variables predicted employee moves to a new type of job in the same organization, the same job in a different organization, and a different job in a different organization. This supports the concept that turnover may be better modeled as a decision not only to leave a job, but also to move to a different work situation.(www.highbeam.com) They have evaluated many reasons for job turnover rate and discussed solution but their study was not focused on any specific industry. Every industry has its own reasons of employee turnover so as a whole study is organized but in their study they concluded that the decisions to leave and move to alternative work situations do seem to be connected, and moves toward different destinations are influenced by different aspects of the current job situation but they ignored many variables of turnover. Deutsche Bank AG, DB Research (2005) in their research ‘Outsourcing to India: Crouching tiger set to pounce’ they focused their studies mainly on why India is best for outsourcing and found out many reasons like macroeconomic factors, off shore outsourcing, globally accepted talent pool, India’s comparative advantages in the ITO/BPO market, IT and its acceptance in Indian market and scarceness for talent in future they concluded that Employee turnover is already high (15-30% p.a.), and the pay for experts is rising by 12-15% per year.” The high rate of attrition among skilled specialists is an obstacle. In the call centre employee...
Please join StudyMode to read the full document