Why Are Call Centres Facing High Attrition Rates? Exploring Market Competition and Other Factors

Dear All,

Kindly let me know the reasons for the high level of attrition in Call Centres. Is it due to the competition in the market or are there other factors at play?

Regards,
Raghunath

The reasons for high attrition rates in BPO are as follows:

Job Factors:
1) 24/7 shift hours
2) Monotonous job tasks
3) Intensity of calls
4) Lack of continuous learning opportunities
5) Unpredictable week offs
6) Limited growth prospects
7) High performance targets

Managerial Factors:
1) Ineffective policies
2) Lack of recognition for achievements
3) Absence of standardized candidate selection criteria
4) Low salary packages
5) Delays in implementing necessary changes
6) Inconsistent performance appraisals
7) Late salary payments
8) Inadequate training programs
9) Insufficient recreational facilities
10) Unjustified deductions in salary
11) Unfair treatment of employees

Personal Factors:
1) Difficulty in balancing work and studies
2) Lack of personal time
3) Absence of celebrations for Indian festivals leading to a sense of deprivation

Health Issues:
1) Sleep disorders
2) Digestive problems
3) Depression
4) Stomach ailments
5) Vision issues
6) Ear problems

Every individual is different. Their emotions, desires, and problems vary. To reduce the attrition rate, HR professionals need to sit and work on the basis first.

Through the analysis, it can be concluded that the major reasons for the attrition rate are monotonous jobs, lack of growth opportunities, night shifts, unspecified eligibility criteria, irregular appraisals, absence of educational benefits, and health issues such as sleeping disorders and depression.

Upon closer analysis, it is evident that motivational factors are more important than hygiene factors in retaining employees. The major tools identified to retain employees include educational benefits, fixed days off, retention bonuses, scholarships for higher studies, company accommodations, a variety of rewards, employee freedom, and the ability to criticize and offer ideas.

Well described, Durga.

The other reasons could be:
- The market is cluttered with call centers that are ready to pay higher salaries.
- No specific skill set is required, except for communication skills.
- Lack of a proper exit policy.
- HRs are not really concerned about reference checks.
- Stability is not considered a serious concern.
- Salary package structure, composition of CTC.
- Career stagnation.
- Lack of lateral opportunities within the organization.

Hi,

I am working in one of the domestic call centres. Ours is a day shift job. Neither do the CCEs face night shifts nor health problems. They also have their fixed week offs. However, the attrition rate is very high. Every month, we need to place ads in the newspaper to fill the positions, which adds to high costs. Is there a way through which we can at least minimize the attrition?

Thank you.

Hi,

I work in the HR Department of a BPO. The major reasons for attrition are:

1. Lack of seriousness in the job as the staff is not mature enough (Absconding)
2. Better prospects and opportunities elsewhere
3. Shifts/Health Issues/Studies
4. BPOs are perceived as short-term career opportunities

Thank you.

Hi,

I completely agree with Carol. One aspect that we all don't consider is that BPO is a good place to make some good money, but from a career point of view, it's a stuck-up job. Even with raises and good appraisals, it is something that you have to continue doing day in and day out. Hence, the problem arises when an employee is not challenged each day, so it becomes sort of boring. Since the majority of the employees are in their post-teens or pre-20s, they look for adventure once they have enough money. I am sure a change in roles or projects will help to bring down the attrition rate a bit.

Another problem is the employees not understanding the value of teamwork. More training courses, of course, BPO-related, and giving the employees the liberty to study or enrolling them in programs will also help to cut down the attrition ratio.

These are a couple of things that come to my mind. Anything more will be posted later.

Thanks & Regards,
AJ