Outsourcing has been always considered as an effective method for cutting down costs and improving business operations. However, BPO industry hiring costs have reached an all time high since many outsourcing companies have been forced to increase salaries in a bid to bring down attrition rates.
In addition, retention of talented and skilled professionals is a crucial factor that will decide the progress and development of companies. To this end, many BPO companies have been pulling out all stops including offers of high pay packages to highly experienced and proficient experts in their respective fields.
For instance, the BPO industry in India is going through a tumultuous phase of high increases in costs. Some managements claim that BPO industry hiring costs are peaking due to the mindset of employees. The workers are purportedly seeking hikes in wages since they have become insensitive to the slowdown of the global economy and are getting spoilt.
At the same time, employees are of the view that increase in costs of living leaves them with no choice other than to look for high-paying jobs or demand a rise in wages. Hence they have been forced to look elsewhere for other opportunities based on pay packages, thereby leading to high attrition rates.
Factors linked to BPO industry hiring costs
At the other end of the spectrum lies the harsh reality that BPO companies are fast falling prey to monotony. Many enterprises hesitate to take risks and fail to explore venues outside their areas of specialty. As a result, clients move on to other service providers who can provide them with the extra research and innovative capabilities that they usually seek.
The rise in BPO industry hiring costs and high attrition rates further add to this problem. Hence companies have been focused on implementing steps towards curbing attrition rates and keeping up the motivation of employees.
Retention of employees is an effective method for improving profitability, which serves as a further driving force for accomplishing the goals set by companies. BPO industry hiring costs can be brought down to a reasonable level if employees are given due appreciation for their achievements. Attrition rates can be reduced by motivating and rewarding workers at the right time and directing them to new fulfilling roles in their career. Enterprises should investigate complaints and grievances from employees, and they should analyze exit interviews and learn from them. Moreover, counseling can be used as an effective strategy for preventing high attrition rates.
It has been estimated that in addition to career and financial factors, emotional, physical, and mental issues persuade employees to quit their jobs in BPO companies. All these factors must be taken into consideration and they must be analyzed before a resourceful strategy is put in place for moderating attrition rates and reducing costs in the BPO industry.