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According to the study conducted by MASCOT and Everest India, the Indian BOP sector has been growing at more than 35 percent over the past three years and currently estimated at ISIS 26-29 billion ND could grow nearly five-fold to reach US$billion in size by 2012. A known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organizational knowledge and learning.
It is important since organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a diddle manager in most organizations costs up to five times of his salary. The IT enabled services (BOP) industry is being looked upon as the next big employment generator. It is, no doubt, one of the toughest task for an HER manager in this sector, to bridge the ever increasing demand and supply gap of professionals.
He has to find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the challenge of maintaining consistency in performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for an HER manager in India is, however, the high attrition rate which is approximately 30-35 percent at present. In this regard an earnest attempt has been made by taking 120 respondents from the BOP sector in NCR to study the various challenges.
The statistical tools like factor analysis, means are being used. It concluded that attrition is the most challenging factor for all HER managers. Key Words: BOP, Process Outsourcing, HER Challenges, Performance management, Talent retention. 1. INTRODUCTION Attrition is the biggest problem faced by Boos these days. Attrition rate in Boos is more than the attrition rate in any other sector. Information technology is altering the context within which HARM operates, providing both challenges and opportunities. It is very important to control this attrition rate.
Many retention schemes are applied in Boos for retention. A single tool like training alone is not sufficient for employee retention. The best results for employee retention can be achieved by applying different tools strategically. Let us now learn about various strategies which can boost successful employee retention in Boos. At the core of the change is network eccentricity or net eccentricity, which is the power of digital networks to distribute information instantly and on a global scale. The new electronic en;arks provide three main types of connectivity (I. E. Enter-organizational, intra-organizational, and extra-organizational) that blur organizational boundaries and yet offer potential for competitive advantage. At the same time, net eccentricity poses challenges to HARM in the form of issues with organizational relationships with employees via organizational identity and culture, managerial relationships tit employees in virtual work arrangements, and employee adjustment and retention. TO reach its potential, net eccentricity requires HARM to be a catalyst and leader in such areas as developing dynamic capabilities, conveying organizational culture, and knowledge management.
Net eccentricity also offers HARM the possibility of developing its own networked relationship with employees as a value-added means of enhancing employment relationships, and ultimately positively influencing both employee attitudes and behaviors. 2. OBJECTIVES OF RETENTION DISCIPLINE To bring stability in business and increase customer service process. Anchors has estimated that the Indian I TEST industry will gross over $5. 7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Mascot). ; Staff/employee satisfaction translates directly into money quite quickly in the BOP industry compared to other industries. To reduce the pressure on the recruiting process. ; Recent acquisition deals by domestic & overseas Boos make it even more critical to stabilize their back end operations to service new customers. 3. OUTSOURCING: THE CONCEPT Outsourcing refers to the delegation of non-core operations from internal reduction to an external entity specialized in the management of that operation. The decision to outsource is often made to lower the firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to efficiently use technology, resources, worldwide labor and capital.
Typically outsourced business segments include information technology, human resources, facilities and real estate management, and accounting. Many companies also outsource customer support; manufacturing and engineering to market have gained importance. 4. REASONS FOR HIGH ATTRITION RATES Before we proceed it’s important to understand the underlying reasons for high attrition rates, which are pretty steep and are around 40-50%. Currently it is about 35% in non-voice and 45% in voice call centers. About 80% of them look for better careers within the same industry.
Agents want to become team leaders. Team leaders want to become supervisors. Supervisors want the job of the CEO. Based on my discussions with the experts in the BOP industry, literature and data available, the following trends are seen: There are varied reasons for attrition and the major reasons ones being based on author’s sample study): ; Money ; 35% Night shifts ; 30% Monotonous/boring job ; 25%ethers 5. ATTRITION Attrition stands for a gradual reduction in work force without firing of personnel, as when workers resign or retire and is not replaced.
Business Dictionary states, Attrition is “Unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death”. As per the Longhand Dictionary of Contemporary English. Attrition happens “when people leave a company or course of study and are not replaced. ” As ere The American Heritage Dictionary of the English Language, “Attrition is a gradual, natural reduction in membership or personnel, as through retirement, resignation, or death. ” DRP. Paul Carr and DRP.
Michael Hartsfield In their article “Attrition as an HER Challenge” (The Alicia Journal: HARM Review, March 2008) state that Attrition can be conceptualized in many forms but the two prominent forms of attrition are: attrition due to employees leaving an organization; and employees retiring from an organization. 6. SUGGESTIONS ; First know the cost. This is the most basic and initial part of the retention recess. A good retention plan needs all the facts. The turnover cost includes cost Of selection process, hiring, induction, training, lost productivity, etc. Hire from known sources like employee referrals through trustworthy employees. ; Hire the right people. Retention starts with recruitment itself. Identify the characteristics of the people you want to hire who fit in organization’s culture. To retain employees, the people who are productive and are likely to stay for a longer time should be hired. ; Focus on employee orientation. It is the first impression that the employee sakes home with him. A proper welcome form the management will encourage the employee to stay with the organization. Individual development. Develop career plans for employees. Initiate internship and higher education programs to keep the learning and development moving. ; Training for managers. An important factor that keeps the employee in the organization is the manager. Employees need a manager who manages them well. A manager should be a good listener and motivator. Proper training should be given to the managers. ; Find the reason why employees are leaving. Conduct exit interviews with the employees after 3-4 months of leaving the job.
This is because most of the employees would not like to reveal the true reason of quitting the job as long as they are in the organization and are associated with the job. The exit interviews can be conducted online. Then the employees can talk straight- from-the-shoulder. ; Employee recognition. Star of the month, top performer, picture on bulletin boards, appreciation cards and certificates, etc, increase employee morale and confidence. This is a great way to retain employees of a call center. 7. CONCLUSION
It is HRS job, though not HRS job alone, to champion and shepherd effective human resource management practices at both the strategic and day-to-day levels. That is, to be effective, human resource management practices must be grounded in two ways. First, they must reflect accompanied commitments as to how it will manage and relate to its employees. Secondly, HER must implement these commitments so that the ideals of the enterprise and deeds of its agents are congruent. HER must play a key role in the development and execution of the Business Strategy of an Organization.
It should evolve from a ramifications support role to partnering in the organization’s business strategy. The HER must take initiative in “finding the right candidate” and building a “conducive work environment”, which will be beneficial for the organization. The need is for those individuals who can make a career out of this. All this can be the driving force for the companies to take necessary steps. HER managers need to put in efforts on the development of their employees, building innovative retention and motivational schemes (which was more money oriented so far) and making the environment livelier.