Turnover Rate in BPO Industry: Cause & Effect

High turnover rate in the BPO industry is one of the biggest issues. Though BPO is publicized in an exaggerated and often misleading manner, doggedness of high turnover rate in BPO industry is still significant. The reason behind such high turnover rate in BPO industry is the fact that it operates in the same way a production line do. Employees work in a stern time compliance and are expected to do top-drawer service ” each and every time” &/or achieve quota irrespective of pragmatic situations. Employees work in stiff adherence to productivity standards through continuous performance assessment and bombarded instantly in the event of deterioration. Its like the machines that are to continually produce and every defective unit found by constant examination is subject to be replaced in the first place.Irony is, it seems that BPO employees are more dispensable than the machines are! It’s frustrating as well as alarming that most of the BPO industry lacks an HRM system that addresses intrinsic human behavior that factors motivation,demoralization and morale of the employees. Besides, having a management team that has the ability to convey and enforce corporate philosophy and organizational policy and procedure throughout the organization is a must have practice though frequently ignored.

People working in the BPO industry is well aware about the pressure to keep up to the competition of securing job and who knows better than them -how stressful it is. Survival of the fittest as it works, yet those who survived still move to other opportunities to thrive and they can comprehend how valuable they are in the BPO industry. This is also a major reason why BPO firms belonging to SMEs usually face difficulty in keeping up with the fixed cost of operations just to retain effecient and productive employees. Unfortunately many SME BPO firms have the myopia to relate among Productivity, Effectiveness & Efficiency. The bottom line is, “The best people stay with the company that can provide them the best in terms of remuneration, organizational culture & environment, growth opportunity, job security and long term benefits.”


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