Employee Retention by Siva

8/8/2019 Employee Retention by Siva

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EMPLOYEE RETENTIONON

BPO Industry


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Definition

Employee retention is a process in which

theemployees areencouraged to remain

with theorganization for the maximum period

oftimeor until thecompletion of the project.

Employee retention is beneficial for the

organization as well as theemployee.


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Retention involves five major things

Compensation

Growth

Environment

Relationship

Support


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Benefits ofretention in an

organization The Cost ofTurnover

Loss ofCompany Knowledge

Interruption ofCustomer Service Turnover leads to more turnovers

Goodwill of the company

Regaining efficiency


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1.The Cost ofTurnover

Thecost ofemployee turnover addshundreds of thousands ofmoney to acompany's expenses.

Whileit is difficult tofully calculate thecost of turnover (including hiring costs,training costs and productivity loss),

industry experts often quote 25% of theaverageemployee salary as aconservativeestimate.


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2.Loss of Company Knowledge

When an employee leaves, he takes with

him valuable knowledge about the

company, customers, current projectsand past history (sometimes to

competitors). Often much time and

money has been spent on theemployee

in expectation ofa future return. Whentheemployee leaves, theinvestment is

not realized.


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3.Interruption of Customer

ServiceCustomers and clients do business with a

company in part becauseofthe people.

Relationships are developed thatencouragecontinued sponsorship of the

business. When an employee leaves, the

relationships that employee built for the

company are severed, which could leadto potential customer loss.


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4. Turnover leads to more

turnoversWhen an employee terminates, theeffect

is felt throughout theorganization. Co-

workers areoften required to pick up the

slack. The unspoken negativity often

intensifies for the remaining staff.


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5.Goodwill of the company

The goodwill ofa company is maintained

when the attrition rates are low. Higher

retention rates motivate potential

employees tojoin theorganization.


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6.Regaining efficiency

Ifan employee resigns, then good amount

oftimeis lost in hiring a new employee

and then training him/her and this goes

to the loss of thecompany directly which

many a times goes unnoticed. And even

after this you cannot assure us of the

sameefficiency from the new employee


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Employee Retention Strategies

1. Hire the right peoplein thefirst place.

2. Empower theemployees: Give theemployees theauthority to get things done.

3. Makeemployees realize that they are the most

valuable asset of theorganization.4. Havefaith in them, trust them and respect them.

5. Provide them information and knowledge.


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Employee Retention Strategies

1. Hire the right peoplein thefirst place.

2. Empower theemployees: Give theemployees theauthority to get things done.

3. Makeemployees realize that they are the most

valuable asset of theorganization.4. Havefaith in them, trust them and respect them.

5. Provide them information and knowledge.


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6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where theemployees want towork and havefun.


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BPO Industry

BPO as expanded sounds as Business ProcessOutsourcing and can be aptly defined as the act of utilizing theservices of a third party by a company in order to perform its

back office operations that might be payroll administration,

customer help desks/ call centers, tele- marketing, accounting,billing; the list is endless.

Wipro BPO,

HCL BPO,

ICICI OneSource,

EXL Services Holding HCL-Tech BPO

ISeva


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HR professionals all over the world, working is Call-Centeror Contact Centeror BPO industry are breaking theirheads toformulate Retention Strategies but nothing isworking in theirfavor. The average attrition ratein thissectoris still 35-40%. No perks, no rewardsjustnothing is working.


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Why people are moving?

No growth opportunity/lack of promotion

For higher Salary

For Higher education

Misguidance by the company

Policies and procedures are not conducive No personal life

Physical strains

Uneasy relationship with peers or managers


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What troubles employees ?

An Employeeexpect from Employer to :

Provideinduction

Create a good work environment

Motivate them to workTrain them

Provide a suitablecompensation package

Implement reward strategies

Counsel them

Hold affableexit interviews


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Benefits Provided By Majority Of

the BPO Companies Group Medi-claim Insurance Scheme Personal Accident Insurance Scheme

Subsidized Food and Transportation

Company Leased Accommodation

Recreation, Cafeteria, ATM and Conciergefacilities

Corporate Credit Card Cellular Phone / Laptop

Personal Health Care (Regular medicalcheck-ups)


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Loans

Educational Benefits

Performance based incentives

Flexi-time Flexible Salary Benefits

Regular Get together and otherculturalprograms

Wedding Day Gift Employee Referral Scheme

Employee Stock Option Plan


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Design on Retention Strategies

Retention

Strategies

Design

Corporate

image

Saleable

features

Turnover

Continuous

Development

Information

use

Cultural

Profile


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RETENTION STRATEGIES

THERETENTION

STRATEGIES

Training

Work-life

Effective

mentoring

ChallengesAutonomy

Good

Relationships

Good

Monitory

package


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Training Programmes

Organisations should design training

programmes that match employee

competencies with current trends. Forexample.Price Waterhouse, Hewlett Packard and Ernst &

Young introduced a new online training and

counseling programme that significantly brought

down the turnover rate. IBM set up a careercentre wherecareer development programmes

wereemphasised.


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Effective mentoring

Another reason for turnoveris lack of

effective mentoring skills. Employees getdemotivated in the absenceofproper

mentors.


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Challenges

Employer should help employees to prove

their worth and bring out their talent

potentials, and avoid cost point.


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Autonomy

Giving employees responsible tasks, while

giving them thefreedom to work in theirown style and motivates them to stay on.


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Good Relationships

Healthy relationships among the line

members and staffmembers inspireemployees to stay on in any organisation


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Good monitory package

Compensation plays an important rolein

attracting, motivating and retaining employees.

Loss ofhuman capital, lower productivity and

dismal performance levels are the negativeconsequences ofhigh turnover.

Creative retention strategies therefore have to

beemphasised. This is the responsibility of

management and every employeeofthe

organisation has to view it as a calculated

organisational challenge.


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Relevanceofretention strategies in

the Indian BPO industry

To bring stability in business and increase

customer service process.

Staff/employee satisfaction translates directly

into money quite quickly in the BPO industrycompared tootherindustries.

To reduce the pressureon the recruiting

process.

Recent acquisition deals both domestic &

overseas by BPOs makes it even morecritical to

stabilize their back-end operations to service

new customers.


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Major reasons for attrition rate

are Money - 10% Night shifts - 35%

Monotonous/boring job - 30% Others - 25%


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Frequent employeecomplaints

centeron these areas lack ofclarity about expectations, lack ofclarity about benefits pertaining to

performance-based incentives,

lack offeedback about performance,

failure to provide a framework withinwhich theemployee perceives hecan

succeed


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Main retention strategies

Communications - Getting Your People to Care

Set clear expectations

How often do you appraise your employees/team-members?

What are your expectations from your employees/team-members? Whatare the parameters to measure their performance? Have youcommunicated to them?

What will be the consequences, if they fail?

What will be the rewards, if they exceed the expected level?

Proper Rewarding

70% of your employees are less motivated today than they usedto be.

80% of your employees could perform significantly better if theywanted to.

50% of your employees only put enough effort into their work tokeep their job.


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Conclusion

The process ofretention is not as easy at

it seems

There are so many tactics and strategiesused in retention ofemployees by the

organizations

The basic purposeof these strategies is to

increaseemployee satisfaction, boost

employee morale hence achieve retention.

Documents

Employee Retention by Siva