Tackle attrition head-on

BANGALORE: The tremendous turnover rate is undeniably one of the main problems faced by the BPO industry globally. HR specialists at the Nasscom summit brainstormed on various approaches to handle this bugbear- either declare war on attrition and tackle it head on, or adopt a more scientific analytical approach.

Unisys VP-HR Deborah Nanton chose the more aggressive war-like approach to manage attrition. With attrition rates ranging between 30 percent -60 percent in the industry, and hiring expected to grow ten-fold in the next few years, she suggested that companies should actively go in for programs that support corporate value. She pointed out that hierarchical system at work in Indian companies stifled two-way communication in the company. "Pay cheques alone are not enough to retain employees. Management also needs to consider other aspects like secure career, benefits, perks and communication," she added.

According to Nanton, the attrition battle could be won by focusing on retention, making work a fun place, having education and ongoing learning for the workforce and treating applicants and employees in the same way as one treats customers.



She also urged companies to go in for a diverse workforce, which does not only mean race, gender diversity, but also include age, experience and perspectives. Diversity in turn results in innovation and success, she said. The 80:20 rule also applies to recruitment, she quipped, since studies showed that 80 percent of the company’s profit comes from the efforts of 20 percent of the employees. So BPOs need to focus on roles, which have the most important impact.

Contrasting Nanton’s battlefield approach, contact solutions director of staffing solutions company Addeco UK, Kelly Bains elaborated on a scientific and numerical strategy. According to him, the cost of attrition is 1.5 times the annual salary. "Try the temporary to permanent model or try before you buy approach," he said. He echoed Nanton's view that age should not a barrier for training employees and could in fact bring in more stability to the company. He also suggested the use of technology to avoid cumbersome basic manual screening.

Referring specifically to the Indian industry, he advised companies not to lay too much emphasis on accents and voice. "The reality is that many big customers are coming to India. Everybody has to stop pretending about this and tell the truth," he contended.

Yet, R Shankar of Mercer Consulting presented another view. He believed that the industry should work at "professionalizing" the BPO sector. The challenge is make the sector attractive and professional for employees, he said.

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