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Attrition Rates in Call Centres and Managing Attrition Rate by Best HRM Practices - Essay Example

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Call Centers have grown remarkably during the last decade (1990). As the popularity of the ever-increasing Call Centers have grown,…
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Attrition Rates in Call Centres and Managing Attrition Rate by Best HRM Practices
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Attrition Rates in Call Centres and Managing Attrition Rate by Best HRM Practices

Download file to see previous pages... ers resign or retire and are not replaced (Dictionary.com, 2010) Attrition rate is higher at the junior level, and the retention rate after probation period of 6 months varies from 80 - 85 per cent. Factors causing attrition could be categorized as the factors inherent to the industry, social factors, factors relating to phase of the industry and other general factors related to all industries.
A research through questionnaire survey has been conducted to supplement literature review for establishing the causes for high level of attrition in Call Centers and discuss the role of HRM in managing attrition with reference to the findings. BPO is a fast growing industry in the emerging economy like India and the contribution of BPO to its economic development is significant. Budhdwar et al. (2009, p.353) quotes, “… it is estimated that India controls 44 per cent of world outsourcing business (NASSCOM, 2005a)”. According to Business Maps of India.com (2010) “The growth in the contribution of BPOs to Gross Domestic Product has shown a steady rise from 1.2% to 5.4%”.  It further states “Service Sector of Indian Economy contributes to around 55 percent of Indias GDP during 2006-07 ...  the service sector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent growth in 2005-06”. Chatterjee writes, “The annual contract value added up to $ 290 million in September quarter 2010 as against $129 million in the corresponding period previous year, according to global research firm Everest.” The service industries in general are on faster growth track in the developed countries. Kollewe (2010) writes “The dominant service sector expanded at its fastest pace in more than three years in February, data released this morning showed. … A sub-index measuring new business in services increased to 57.5 from 53.4, the highest since September 2007. Encouragingly, job prospects improved in the service sector, with the employment reading ...Download file to see next pagesRead More
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