Dear kbagri,
There are no minimum limits for attrition. Management would always love to have a 0% attrition rate in the corporate world. In India, the average attrition rate in the BPO sector is approximately 30-35 percent. This rate is lower than the prevalent attrition rate in the US market (around 70 percent), but the challenge remains significant due to the recent growth of the industry in the country. The US BPO sector has been established for around three decades. Keeping attrition levels low is a major challenge as the demand for good agents far exceeds the supply. Additionally, the salary growth plan for each employee is not well defined, leading to poaching by other companies offering higher salaries.
The much-hyped "work for fun" tag associated with the industry has backfired, as many individuals (mostly fresh graduates) view it as a part-time job. Upon joining the sector and understanding its demands, individuals are surprised by the long working hours, which eventually leads to job monotony. The high attrition rate is primarily due to individuals struggling with the pressures of work.
The job's toughness and demanding hours are not adequately communicated. Apart from induction and project training, little investment has been made in developing a continuous training program for agents. Motivational training is also lacking in this industry. However, HR managers are expected to address these issues and help individuals adapt to the real world. New entrants should be made aware of the realistic situation from day one, with training sessions held at night to help them adjust early on.
The high percentage of females in the workforce (30-35 percent of the total) contributes to the high attrition rate. Many women leave their jobs post-marriage or due to social pressures arising from irregular working hours. This turnover results in significant losses for companies that invest heavily in training.
If an individual leaves after training, it costs the company about Rs 60,000. For a 300-seater call centre facing 30 percent attrition, this amounts to Rs 60 lakh per annum. Experts believe that these challenges could hinder the industry's growth. The responsibility lies in finding the right candidates and fostering a conducive work environment beneficial to the organization. The industry needs individuals willing to build a career in this field.
These challenges have prompted companies to take necessary steps both internally and externally. Internally, most HR managers focus on employee development, creating innovative retention and motivational schemes (beyond just monetary incentives), and fostering a livelier work environment. Externally, efforts are made to raise awareness through seminars and campus recruitment drives.