A study by the Enderun Research Department looked into the reasons behind the IT-BPM sector’s 50% attrition rate, unearthing some interesting data for HR managers and corporate executives to ponder over. The study found that attrition rates are highest amongst BPO employees hired within their first year of employment, but that the rate declines as employees stay longer in the industry.
Click here to read the full paper by the Enderun Research Department.
Chart: Attrition rate of BPO employees by year of experience
Naturally, a high attrition rate presents a multitude of problems for BPOs, particularly in a difficulty in providing consistent, high-quality services for years since there is a lack of experience in their respective teams.
Of course, the point of the study was to find the reasons why so many people come to the decision to leave their positions within the company. The study was able to find the most pressing concerns and reasons as to why employees leave, as well as categorize these reasons by importance to particular demographics. One of the most interesting findings touches on the views of employees when sorted by highest educational attainment:
Table 1: Factors driving attrition by educational level
Trends in industry entry rate
It’s not all doom and gloom, though, as the study also points out the factors that have been driving entry into the industry. Seeing as how the Philippine education system produces roughly half a million students each year, a significant number of these fresh graduates have gravitated toward the rapidly growing BPO industry in order to find jobs.
Once again, the study categorized its findings by importance to particular demographics; this time, we are looking at determining factors for industry entry sorted by gender:
Table 2: Factors driving industry entry by gender
The findings of this study offer no silver bullet to the attrition woes many BPO companies in the Philippines are experiencing, but it does highlight the need for changes to the way they operate and treat their employees. This is particularly true since many BPO workforce-focused studies are skewed towards a Western setting, which does not adequately reflect the Filipino culture of work and play. As such, taking an introspective look at policies, benefits, and the like from the lens of the Filipino employee can go a long way in reducing attrition, boosting morale, and increasing productivity and happiness among BPO employees.
Click here to read the full paper by the Enderun Research Department.
