Niva Overseas
Introduction
The high employee attrition rate is a challenge that
Business Process Outsourcing (BPO) industry is struggling to deal with. Many
BPOs have employee retention as one of their top priorities. After all, it is
easier and cheaper to retain an employee than to constantly train new ones.
BPOs have tried a number of methods to reduce employee
attrition. Some of these have been successful while others have not. In this
article, we will take a look at some of the best practices for reducing
employee attrition in BPOs.
Definition of Attrition
Attrition is the
reduction in staff that a company experiences due to employees leaving the
company. Resignations, retirements, and deaths are the three main types of
attrition. Attrition can also be classified as voluntary or involuntary.
Voluntary attrition is when employees leave the company of their own accord.
This can be for a variety of reasons, such as pursuing another opportunity, or
dissatisfaction with their current position. Involuntary attrition is when
employees are let go by the company, usually due to performance issues.
Types of Attrition
There are two main
types of attrition: 1. Voluntary Attrition: This is when employees leave the
company of their own accord. This can be for a variety of reasons, such as
pursuing another opportunity, or dissatisfaction with their current position.
2. Involuntary Attrition: This is when employees are let go by the company,
usually due to performance issues.
Causes of Attrition
There are a number of
reasons why employees may choose to leave a company. These can be broadly
classified into three categories: 1. Personal Reasons: These include reasons
such as marriage, pregnancy, health problems, etc. that may require an employee
to relocate or take extended leave. 2. Professional Reasons: These include
reasons such as dissatisfaction with the company, or a better job offer from
another company. 3. Family Reasons: These include reasons such as caregivers
needing to take care of elderly parents or young children.
Measuring Attrition
There are a number of
ways to measure attrition. The most common method is to calculate the turnover
rate. This is the percentage of employees that have left the company over a
certain period of time. Another common method is to calculate the voluntary
turnover rate. This is the percentage of employees that have left the company
of their own accord over a certain period of time.
Reducing Employee Attrition - Tips and Best Practices
There are a number of
things that companies can do to reduce employee attrition. Some of the most
effective methods are: 1. Offer Competitive Salaries: This is one of the most
effective ways to reduce attrition. Employees are more likely to stay with a
company if they feel that they are being paid fairly. 2. Offer Employee
Benefits: Employees are also more likely to stay with a company if they feel
that they are being given good benefits. These can include health insurance,
transportation allowances, etc. 3. Provide Training and Development
Opportunities: Employees are more likely to stay with a company if they feel
that they are being given opportunities to develop their skills and careers. 4.
Improve Work-Life Balance: Employees are more likely to stay with a company if
they feel that they have a good work-life balance. This can be achieved by
offering flexible work hours, telecommuting options, etc. 5. Enhance
Communication: Employees are more likely to stay with a company if they feel
that they are being kept in the loop about what is going on in the company.
This can be achieved by having regular meetings, sending out newsletters, etc.
Conclusion
Reducing employee
attrition is a challenge that many companies face. There are a number of things
that companies can do to reduce attrition, such as offering competitive
salaries, providing training and development opportunities, and improving
work-life balance. By implementing these measures, companies can reduce
attrition and improve retention.
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