Early attrition: Cause of concern for human resources

The BPO industry in India has become a growth engine for the economy. It has achieved staggering growth in the last 10 years of its operation, adding 5 million jobs and USD 15 billion in its revenue.

5 million jobs naturally imply that 5 million people are working in some capacity or the other for the industry. This makes the job of HR all the more demanding, and important. Human resource is responsible not just for procuring the right kind of people for the right jobs, it also makes sure that these people stay with the company, and, during their stay contribute optimally to the company's development. Although, in a BPO, it is relatively simple to lay down the technical qualifications of the job, the channel through which people with such qualification can come to the company, and the manner in which these aspirants can be evaluated.

The job of the HR manager does not stop after recruitment and selection. The manager needs to make sure that the employees are working in accordance to the goals of the organisation. An employee gives his full commitment to the organisation only when he is satisfied with the organisation, and feels that the organisation values his work and commitment. Employee engagement is the most important asset of any organisation. With low level of employee engagement and motivation, there arises the problem of “early attrition”, which is a major threat to the organisations where human capital is the major resource. Though, a healthy attrition rate in any industry is necessary for new ideas and innovation to flow in as well as to facilitate the overall growth of the industry in terms of knowledge sharing. However, if employees are quitting within six months, shortly after their on-the-job training is satisfactorily completed, then the writing on the wall is clear. There is a problem. The least your HR policies should achieve is that they should give employees enough reasons to continue with the organisation, at least, till the time their career graph dictates that their professional growth is possible within their current organisation.

This case deals with the various nuances of this industry in the Indian environment.

The high attrition rate in the industry is primarily due to the restricted career options or growth opportunities for the youngsters. Fear of stagnation is a major factor that forces the employees to quit the industry. While some leave their career mid-way in pursuit of higher education, others are drawn in by the higher pay packages offered elsewhere. The new entrants into the BPO sector, who are consistently on the lookout for trained youngsters, offer higher remuneration. With the employees moving to other jobs in less than a year, the industry has to confront the gnawing problem of attrition.