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Abstract
Globally competitive organizations will depend on the uniqueness of their human resources and the systems for managing human resources effectively to become successful. The issue of employee attrition/turnover has been found to be making huge economic impact on the Business Process Outsourcing organizations located in the states of Karnataka and Kerala. The present study aimed at assessing the nature and state of high employee attrition in BPO sector. It also focused on identifying the variation in factors which causes high attrition in the national and multinational BPO companies of the above sector. The data havebeen collected through a structured questionnaire survey. In each combination of global position (national/multinational) and attrition factor, suitable hypotheses were framed and testing (t-test) of the hypotheses were done and the results are discussed. It is found that the attrition factors, lack of integration and goal setting, dissatisfaction with rewards and hikes, dissatisfaction with salary and perks, maximum number of hours worked, affect employee attrition very significantly among the national and multinational BPO employees.
Key Words: Business Process Outsourcing, Employee Attrition, National and Multinational
Introduction
Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organization.
It is an important corporate asset and the overall performance of companies depends upon the way it is put in use.
A firm's resources propel it towards its goals, just as an engine propels an automobile towards its destination. Every organization is comprised of people. Acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they maintain their commitment to the organization are essential to achieving organizational objectives (John Bratton and Jeffrey Gold, 2008). Business Process Outsourcing, commonly known as BPO, is one of the most booming sectors in the Indian industry. Since its inception, the Indian BPO industry has grown within a couple of years, at a constant annual rate of 40-50 per cent.
India is at the forefront of the rapidly evolving Business Process Outsourcing (BPO) market and is well established as a 'destination of choice' among global outsourcers. The number of people directly employed in BPO sector stood at 1.6 million in 2006-07 and it is projected to be 5 million by 2012. BPO revenues in...