Employee Retention Strategies in BPO Industry: A Study with Reference to Selected BPO Sector Organizations at Hyderabad
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1 Volume-5, Issue-5, October-2015 International Journal of Engineering and Management Research Page Number: Employee Retention Strategies in BPO Industry: A Study with Reference to Selected BPO Sector Organizations at Hyderabad Dr. B. Nagaraju 1, M. Ananda Rao 2 1 Assistant Professor, Department of HRM, Acharya Nagarjuna, University, Guntur, INDIA 2 M.Ananda Rao, Research Scholar, Department of HRM, Acharya NagarjunaUniversity, Guntur, INDIA ABSTRACT Employee Retention refers to the techniques employed by the management to help the employees stay with the organization for a longer period of time. Employee retention strategies go a long way in motivating the employees so that they stick to the organization for the maximum time and contribute effectively. Sincere efforts must be taken to ensure growth and learning for the employees in their current assignments and for them to enjoy their work. Employee retention has become a major concern for corporate in the current scenario. Individuals once being trained have a tendency to move to other organizations for better prospects. Lucrative salary, comfortable timings, better ambience, growth prospects are some of the factors which prompt an employee to look for a change. This paper is focuses on the emerging employee retention practices of BPO sector in Hyderabad. There are thousands of employees working in Hyderabad BPO companies but the researcher has selected 250 samples from selected companies through the simple random sampling method. The researcher has find that the Hyderabad BPO companies are adapting and implementing the best employee retention techniques effectively and employee are also feeling happy being the part of the sector. Keywords---- Employee Retention Strategies, Human Resource Management, BPO Sector. I. INTRODUCTION BPO! One reads the word and myriad of wellgroomed youth on calls, fast money, and phenomenal life styles seem to flash the mind in an instant. That s just the start. One reads it again, contemplates over it, gets into the unveiled afflictions, and gives it a second thought and a completely differing depiction ignites the mind. Lopsided working hours, unimaginable attrition rate, stress and burnout exhibit its ugly side. No matter how it balances between the pros and cons, the fact remains conspicuous, loud and unchanged. BPO, Business Process Outsourcing, is the mantra of employment, the buzz of present, and the promise of future. Employee retention is a formidable challenge to the companies in modern days of competitive business world where employees have abundant of opportunities here in domestic market as well as in the foreign market they tend to leave the organization due to many reasons, since employees are an important resource in BPO sector organization than any other resources the managers must design better human resource policies to retain the key employees in the organization. 160 Copyright Vandana Publications. All Rights Reserved. II. REVIEW OF LITERATURE The BPO industry operations in India have been the pioneer of outsourcing in the global business scenario. Foreign companies have been dependent on the Indian BPO industry due to its English capabilities and quality work carried out at low cost. In the past two decades, this industry has evolved into a formidable force with successful operations conducted in various domains. (Steve 2013). A recent study conducted by MET- LIFE published in Business Standard weekend (4 October 2015) reveals the following factors are important for an employee who are considering to leave would stay. 62% Salary 55% Benefits increase 45% more contribution to retirement plan 37% advancement in opportunities 33% job security It is also proved from the Hay Group study(2005) of more than 500,000 employees in 300 companies found
2 that employee would like to stay within the company when they were find the better salary, career growth, training and development, exciting work and challenge. Researcher s finds that human resource management practices in compensation & rewards, job security, training & developments, supervisor support culture, work environment and organization justice can help to reduce absenteeism, employee retention and better quality work (Meyer and Allen, 1991; Solomon, 1992; Snell and Dean, 1992; Arthur, 1994; Snell and Youndt, 1995; MacDuffie, 1995; Delaney and Huselid, 1996; Ichniowski, Shaw and Prennushi, 1997). According to Accenture (2001) study on high performance issue find that organization strategy regarding employee retention primarily start from US, Europe, Asia than Australia. III. OBJECTIVES OF THE STUDY A study on employee retention strategies in BPO industry with special reference to Hyderabad city To analyze the factors help full to retain the employees. To examine the employee response towards retention strategies. To know the job satisfaction level of the employee working in the industry. HYPOTHESIS H 01 : There is no significant relationship between job satisfaction and salary H 11 : There is significant relationship between job satisfaction and salary H 02 : There is no significant relationship between job satisfaction and career growth. H 12 : There is significant relationship between job satisfaction and career growth. IV. RESEARCH METHODOLOGY How employee retention depends upon number of factors (lucrative salary, career development, supervisor support, working environment and work-life balance). The data is collected from the 250 employees working in Hyderabad city. Sample population is selected through stratified simple random sampling technique. Data is analyzed using the following statistical tolls to get the inference. Percentage Analysis Chi Square Test Weighted average method V. RESEARCH VARIABLE The variables that are being considered are described in the theoretical framework. Employee retention is the dependent variable, which is going to be checked for a relationship with lucrative salary career development, job security, recognition and rewards and employee relations are independent variables. Demographical factors of the respondents Gender designation Gender Respondents % Designation Respondents % Male Executive Female Non-Executive Age Experience Age Respondents % Years of service Respondents % Less than Less than 5years years years years years years Above 40 years Above10years Copyright Vandana Publications. All Rights Reserved.
3 Income of the respondents Qualification Monthly Respondents % Qualification Respondents % income(in Rs) Below Above HSC Intermediate DIPLOMA U.G P.G Source: (primary study) The above table reveals the demographic factors of the study. The majority of respondents are male i.e., 66%, the maximum respondents belong to the age group below 20 years i.e., 34%, and the majority of respondents belongs to non- executive level i.e., 66% and the majority of respondents experience is below 5 years and the monthly income earned by majority of respondents belongs to below 10,000 i.e., 35% and the majority of the respondents qualification belongs to graduation i.e., 38%. RELATIONSHIP BETWEEN JOB SATISFACTION AND JOB SUPPORT (exciting and challenging work) JOB SATISFACTION satisfied Satisfied Neutral Dissatisfied Total Salary satisfied Satisfied Neutral Dissatisfied Total From the above chi-square table it can be inferred by using chi-square calculated and tabular s the H 01 null hypothesis rejected and alternative hypothesis accepted i.e., H 11 : There is significant relationship between job satisfaction and job support and recognition. 162 Copyright Vandana Publications. All Rights Reserved.
4 Factor Level of significance Degrees of freedom Table Calculated result There is no significant relation between job satisfaction and salary 5% rejected RELATIONSHIP BETWEEN JOB SATISFACTION AND CAREER GROWTH JOB SATISFACTION satisfied Satisfied Neutral Dissatisfied Total career growth satisfied Satisfied Neutral Dissatisfied Total From the above chi-square table it can be inferred by using chi-square calculated and tabular s the H 02 null hypothesis rejected and alternative hypothesis accepted i.e., H 12 : There is significant relationship between job satisfaction and career growth and compensation. Factor There is no significant relation between job satisfaction and career growth Level of significance Degrees of freedom Table Calculated result 5% rejected FACTORS IMPORTANT TO STAY IN THE COMPANY USING WEIGHTED AVERAGE METHOD S.NO FACTOR X W XW XW/ W RANK 1 SALARY RECOGNITION AND REWARDS 3 EMPLOYEE RELATONS CAREER GROWTH JOB SECURITY TOTAL INFERENCE The above table indicates the various factors are capable of retain the employees in the organization. According to the opinion given by the respondents, the Employee career growth is the main factor which persuades employees to stay in the company. 163 Copyright Vandana Publications. All Rights Reserved.
5 VI. LIMITATIONS AND FUTURE RESEARCH The study is done on a general way without concentrating on specific BPO variables. Future research can be done on the employee retention dimensions on specific BPO variables. Another limitation is that this study includes only five dimensions of employee retention in BPO industry in Hyderabad. A good area of research in the future is to find out if there are more dimensions of employee retention that influence the stay of BPO employees. In this study only job related variables are considered for the analysis. Future research can aim to find out the relationship between the demographic variables of the respondents such as age, sex, marital status, tenure, education etc. and employee intention to stay along with job related variables. The present study is confined to lower and middle level BPO professionals. Future research can study the influence of these dimensions on the stay of top level BPO professionals. REFERENCE [1] Business standard weekend news paper 4 th October [2] Aggarawal, N. M. & Thite, M. (2003). International Journal of Human Resources Development and Management, [3] Vol.3, Issue 3, pp: [4] Bhatnagar, J. (2008). Managing Capabilities for Talent Engagement and Pipeline Development, Industrial and [5] Commerce Training, Vol.40, Issue 1, pp: [6] Bhatnagar, J. (2007). Talent Management Strategy of Employee Engagement in Indian ITES Employees: Key to Retention, Employee Relations, Vol. 29, Issue 6, pp: [7] Budhwar, P. S.; Varma, A.; Singh, V. & Dhar, R. (2006). HRM Systems of Indian Call Centres: An Exploratory [8] Study, International Journal of Human Resource Management, Vol.17, Issue 5, pp: [9] www. Google.com 164 Copyright Vandana Publications. All Rights Reserved.
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