1. Understanding the Root Causes of Turnover in the BPO Sector

Introduction to Turnover in the BPO Sector

In the repeatedly growing business process outsourcing (BPO) industry, human resource management (HRM) is essential for addressing staff turnover concerns. Turnover, or the step at which workers leave a company, is a major problem that BPO firms all over the world must deal with. Investigating this problem's deep and numerous core causes is crucial to finding a workable solution. High turnover rates in the BPO sector are well-known and have significant impacts on business operations and profitability. In 2023, the BPO business witnessed a global attrition rate of around 26%, with certain countries seeing even greater rates of turnover (Ahmed, 2024). Varied regions have varied turnover rates, and some have more severe retention issues than others. For instance, turnover rates have always been high in India, a significant position for BPO operations, including estimates fluctuating between 30% to 50% yearly (Holiday, 2021). Comparably, 30% to 40% employee turnover plagues the Philippines, another significant operator in the BPO sector (Ahmed, 2024).

Renowned international company WNS Global Services Pvt Ltd provides clients all over the world with business process management (BPM) and outsourcing solutions. WNS, which was founded in 1996 and has its headquarters in Mumbai, India, has developed into one of the top companies in the business process outsourcing (BPO) market, catering to customers in several industries, including retail, banking, and financial services, healthcare, and travel. WNS has more than 40 distribution facilities located across the world, including those in South Africa, India, the Philippines, Romania, Sri Lanka, South Africa, the United Kingdom, and the United States. WNS's vast network allows it to use a variety of talent pools and provide round-the-clock assistance, all while delivering smooth and effective services to its clients (WNS Global, 2022).

Employee turnover, or the step at which current workers leave an organization and are replaced by new recruits, is a serious problem that businesses in all sectors must deal with. Excessive turnover can be harmful to overall performance, morale, and productivity, yet some turnover is unavoidable and even helpful for organizational regeneration. We will examine the specifics of employee turnover in this conversation, bringing in opposing viewpoints and corroborating data from academic papers (Shweta & Main, 2022).

 For example, Deloitte research from 2022 indicated that BPO workers were more likely to indicate plans to leave their existing company if they believed their work was uninteresting and didn't provide many prospects for skill development. This emphasizes how crucial customized career development programs and work enrichment techniques are to lowering turnover rates (Deloitte, 2022).

On the one hand, some scholars contend that turnover is a natural consequence of working in an organization and is impacted by external variables including market circumstances and industry changes (Pascoe, et al., 2021). On the other hand, some argue that by implementing efficient HRM procedures and organizational changes, turnover may be controlled and minimized (Al-suraihi, et al., 2021).

Both voluntary and involuntary departures initiated by employers are included in the concept of employee turnover. Although involuntary turnover can be brought on by performance problems, layoffs, or organizational reorganization, voluntary turnover frequently happens as a result of things like work discontent, a lack of possibilities for career growth, or greater opportunities elsewhere (Vulpen, 2022)

Source - (Vulpen, 2022)

Some contend that human variables like preferences and career goals are the main causes of turnover, while others highlight the importance of organizational elements like workplace culture as well as leadership style (Pascoe, et al., 2021). The Job Characteristics Model, published up by Hackman and Oldham in 1976, states that job design components including autonomy, task identity, including skill variation have a major impact on turnover rates as well as job satisfaction (Mat Ali, et al., 2014). Critics counter that in the BPO environment, where standardized tasks and restricted autonomy are usual, these considerations might not apply.

The BPO industry's transient nature and reliance on entry-level positions, some argue that turnover is an inevitable aspect of the business (Mat Ali, et al., 2014). Conversely, others stress the significance of proactive HRM strategies in reducing turnover and promoting a stable workforce ( Hom, et al., 2017). Through conversing and exchanging knowledge with specialists in the field, HR managers can gain significant understanding of efficient retention strategies and adjust how they react to the changing BPO market.

Root Causes of Turnover

In the BPO industry, job dissatisfaction is a major contributor to employee turnover. It can be caused by a variety of causes, including repetitive tasks, a lack of prospects for career advancement, and insufficient management support. Employees have a variety of requirements that go beyond monetary pay, as demonstrated by Maslow's Hierarchy of requirements. These needs include the need for autonomy, acknowledgment, and personal development. Employees are more likely to look for work elsewhere if these demands are not satisfied (Mcleod, 2024).

Source - (Mcleod, 2024)

Furthermore, because of the high job expectations and extreme work pressure in the BPO sector, Burnout Syndrome which is characterized by emotional weariness, depersonalization, and decreased personal accomplishment is common (Pascoe, et al., 2021). Employee turnover intentions rise as a result, and work satisfaction declines.

These are the root causes of employee turnover in WNS Global Pvt Ltd BPO industry;

Job Stress and Burnout

• WNS workers frequently work in high-pressure, fast-paced settings where they have to fulfill strict deadlines, meet ambitious goals, and do repetitive activities. Constant pressure can result in workplace stress and burnout, which in turn may drive workers to look for other alternatives.
• Research has indicated a robust association between workplace stress and the inclination to leave among WNS workers (Bridger, et al., 2013).

 Limited Career Advancement Opportunities

• A lot of WNS positions are thought to be dead-end positions with few chances for professional advancement (Shaito, 2019). Employee discontent and attrition may result from unclear career routes and possibilities for professional growth.
• Studies show that judgments about employee turnover in the BPO industry are heavily influenced by perceptions of professional growth chances.

 Monotonous Work

• Employees may experience emotions of boredom, disengagement, and lower work satisfaction as a result of the repetitive nature of WNS activities. Turnover can occur when the same duties are performed repeatedly without an opportunity for skill growth or diversity.
• Research has indicated a negative correlation between work monotony and staff retention within the business process outsourcing sector (Kamalaveni, et al., 2019).

Unsatisfactory Compensation and Benefits

• In the BPO industry, pay is a key factor in luring and keeping personnel. When compensation and benefits fall short of industry norms or the cost of living, workers may decide to look for better possibilities elsewhere.
• According to research, employee turnover intentions in the BPO industry are influenced by perceptions of remuneration packages' fairness and competitiveness (Cole & Castro, 2023).

·      Lack of Recognition and Appreciation

• The reason workers in the BPO industry frequently believe their contributions are not respected or acknowledged. A lack of acknowledgment and gratitude from managers and supervisors can undermine motivation and morale, which increases employee turnover.
• Research has demonstrated that in BPO companies, staff retention and recognition are positively correlated (Cole & Castro, 2023).

Organizations may successfully address these concerns by developing focused strategies and interventions based on a knowledge of the core reasons for turnover in the WNS, BPO industry. Proactive actions may reduce turnover and increase staff retention in the BPO sector. These actions range from putting stress management programs into place to improving career development possibilities and cultivating an environment of gratitude.

To sum up, turnover in the business process outsourcing (BPO) industry is a complex problem impacted by both internal and external variables. Through the use of HRM theories, varied views, and real-world examples, firms may formulate all-encompassing strategies aimed at addressing the underlying reasons behind employee turnover and fostering a devoted and enthusiastic staff. In the end, proactive HRM procedures play a critical role in reducing turnover issues and promoting long-term expansion in the fast-paced WNS Global Services Pvt Ltd, BPO sector.

References

Hom, P. W., Lee, T., Shaw, J. D. & Hausknecht, J. P., 2017. One Hundred Years of Employee Turnover Theory and Research. [Online]
Available at: https://www.researchgate.net/publication/312958817_One_Hundred_Years_of_Employee_Turnover_Theory_and_Research
[Accessed 31 March 2024].

Ahmed, M. E., 2024. BPO Industry Insights In 2023: Globalization And International Trade. [Online]
Available at: https://www.skytechbpo.com/bpo-industry-insights-2023/
[Accessed 31 March 2024].

Al-suraihi, W. A., Siti, A., Al-Suraihi, A. & Ibrahim, I., 2021. Employee Turnover: Causes, Importance and Retention Strategies. [Online]
Available at: https://www.researchgate.net/publication/352390912_Employee_Turnover_Causes_Importance_and_Retention_Strategies
[Accessed 31 March 2024].

Bridger, R. S., Day, A. J. & Morton, K., 2013. Occupational stress and employee turnover. [Online]
Available at: https://www.researchgate.net/publication/256763246_Occupational_stress_and_employee_turnover
[Accessed 31 March 2024].

Cole, P. & Castro, R. C., 2023. JOB SATISFACTION AND TURNOVER INTENTION OF BPO WORKERS: THE MEDIATING EFFECT OF SERVICE PERFORMANCE. [Online]
Available at: https://www.researchgate.net/publication/371532885_JOB_SATISFACTION_AND_TURNOVER_INTENTION_OF_BPO_WORKERS_THE_MEDIATING_EFFECT_OF_SERVICE_PERFORMANCE
[Accessed 1 April 2024].

Deloitte, 2022. Employee Turnover at Deloitte. [Online]
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Holiday, M., 2021. Employee Retention vs. Turnover: Key Differences & Why It Matters. [Online]
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[Accessed 30 March 2024].

Kamalaveni , M. S., Ramesh, S. & Vetrivel, T., 2019. A REVIEW OF LITERATURE ON EMPLOYEE RETENTION. [Online]
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WNS Global. (2022). Retention Strategies. Retrieved from https://www.wns.com/about-wns/global-presence/india