High Attrition Rate at Call Center Industry: an Hr Manager’s View

UNIVERSITY OF SANTO TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION This look into intent is being evidenceed to the Faculty of the Department of Human resourcefulness Development & focussing Entitled High Turnover Rate and Employee Benefits in Call middle Industries The HR Managers View By Buotan, Aldrin M. Dimaculangan, Rey Karl A. Flores, derriere Andrew S. Malabanan, John Peter M. Marquez, Gerard Ephraim L. Tagunicar, Cedie N. September 1, 2012 Espana, Manila IntroductionTodays best companies understand the veritable key to maintaining a world-class men is non just to make the best employees, but to keep them once they atomic turning 18 hired. Retaining progressive workforce has not been an easy task to all(prenominal) employer or organization and thence becomes a real challenge to cope up with the fast maltreat business world currently we atomic number 18 on and if this fails, surely last rickover reckon assess grade rush out occur and leave alon e be bounteous in an organization. An employee overthrow rate refers to the movement of employees out of an organization.It is very much cited as virtuoso of the factors behind the failure of an employee productiveness rate and is also one of the chief determinants of labour supply (Snell & Bohlander, 2010, Principles of Human alternative Management, 15th edition, unite States, p,415). Competing organizations argon constantly looking to steal top performers, and poaching talents is becoming an increasingly common way for organizations to build themselves them up as a larger company to be able to expand and prep ar much profits, while at the same metre tearing their competitors crush (Noe et. l. 2010, Human Resource management Gaining a Competitive Advantage, 7th edition, saucy York, p461). Turnover comes in good times and in bad, to good companies and to those that ar struggling of every size. Losing a good and talented employee is never easy, and sometimes is predictab le, but sometimes, it hobo be prevented, you cant run a service business when you argon at war with your employees (Greg Davdidowitch, Noe et. al, 2010, Human Resource Management Gaining Competitive Advantage, 7th edition, New York).Knowing the rate of derangement at a certain(p) organization is the first step to understanding whether employees departs inwardly the range of normal for a type of business and perseverance. Turnover is a key benchmark in assessing the health and stability of organizations. A spirited overturn rate suggests there whitethorn be something wrong with the raw material structure of a company, its salary levels or even its returns. Too racy turnover rate can also mean that an organization is losing productivity and knowledge, including an understanding of products and processes. The consequences of the loss are both financial and in the team spirit of those who remain.Leading reasons that employees micturate for their departure a better opportunit y or increase responsibilities, higher pay or more benefits, or they are contemptible to a contrary location. Benefits may one of the best reasons to reduce turnover rate and increase the retention in an attention. Employee benefits that is part of the total payment package, other than pay for a worker, provided employees in whole or in part by employer payments, example of which are life insurance, pension, workers compensation and spend (Milkovich, G & Newman, J1984, Compensation, New York, p. ). Employee benefits are compensations given to employees in addition to ceaseless salaries or wages. Some benefits are legally required, e. g. , social security benefits, Medicare, solitude benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and correct clientele performance (Labor and Employment B police forceg A work in progress, June 1, 2010, Phi lippine Labor Laws, http//www. laborlaw. usc-law. rg, viewed August 22, 2012). Aside from heavy(p) benefits mandate by law, there are other benefits that an industry can offer to reduce their turnover rate. Our hold allow for focus on how an industry uses its turnover rate in making decisions to cleanse their benefits program. The questioners keep elect the portend rivet industries in the Philippines to best suit their worst matter about employee turnover rate and benefits. at that place are certain reports and information that shows the high turnover rate over anticipate up touch on industries locally.Turnover rate in the countrys call tenderness has gotten so worse that it has hit 60 to 80 percent, according to the Call circle around Association of the Philippines (CCAP) (AURELIO A. PENA, Davao Today March 20, 2008, http//www. gmanetwork. com/ spick-and-spans/story/85640/news/specialreports/rp-call- sum of moneys-reel-from-world-s-highest-turnover, viewed 8/20/20 12). Globally, it is an accepted norm in the industry to have a 30 to 40 per cent turnover. Both Australia and India call shopping centres have turnover order of only six to 10 percent.Top government officials are appal that an emerging industry that has generated around 2 billion US dollars in annual revenues is reeling from a worsening turnover crisis. Labor accounts for between 65% and 75% of the ongoing costs of running a contact center. alone employee turnover is so high in the call center industry that much of that money is spent on double uped efforts to hire and recrudesce people who arent right in the first place, and/or are managed ineffectively, resulting in high turnover.Call center organizations have come to accept that a recurring percentage of their workforce will have to be replaced every year. Those replacements will have to be found, assessed and trained. And then the cycle will repeat again, as a percentage of those new hires will in turn leave. The average turnover is about 35% in the call center industry, which means in three years, an entire contact center constituent pool will have been turned over (Inova Solutions, July 5, 2011, Reducing factor Turnover in Contact Centers viewed 8/20/2012, http//blog. novasolutions. com/2011/). This studies shows that there are certainly high turnover rates on call center industries in the Philippines. A study conducted by Datacraft Asia in 2009 suggested that Asian call center agents are aware of the large get for their service, so they are confident that they can easily land a new job after they resign. Better salary offer from other call center outsourcing firms, tight and pouching schedules, stress from dealing with difficult customers and lack of holiday breaks are also causing many agents to leave their job.Also, allegations of labor autograph violations in small call centers are on the rise. Some agents who did not receive incentives or bonuses as promised during recruitment are bid ly to advise their contract (Eli, May 24 2011, Philippine call center outsourcing industry fights attrition rate, http//outsourceyourcallcenter. com, viewed 8/20/2012). Due to this high turnover rates that are currently in call center industries, there are certain solutions pertaining to benefits and motivation that could help to lower down the high turnover on call center industries.Government mandated benefits such as Social certification System (SSS) contributions, Philippine Health Insurance (Phil Health) contributions, Home Development usual Fund (Pag-ibig Fund) contributions, 13th month pay, service incentive leave, meal and equalizer periods, overtime pay, special holiday/rest day rates, and night shift differentials and company benefits such as holiday bonus, mid-year bonus, and paid holiday and pass leaves (Honey Amabelle D. Young, March 8, 2012, Employee Benefits in the Philippines, weblog, viewed August 22, 2012, asyoutsource. om/blog/). With these benefits, call cen ter industries will surely lower down their turnover rate and could save more money on costly training and development programs. Other companies give a little more than the minimum benefits required by law in order to be competitive or at to the lowest degree be at par with community or industry practices. There are also employers who give more benefits than required out of favor for employees who are loyal to the company. Managers of call center face many challenges.They are responsible for operations that are capital intensive, with a high demand for continual investment to keep up with rapid developments in technology. They are also responsible, in many cases, for large numbers of staff often working with different shifts. Human resources manager in call center industries plays a vital role in valuing employees to reduce high turnover rate and improve their company retention capability. HR managers have the shuttlecocks eye view on what is happening on personnel office relate d issued on an industry.Their views on issues such as turnover rates and giving benefits to their employees are important points to consider because they are the one who would wee certain solutions to such problems for the more efficient and smoother run of a call center industry. As HR students and future HR managers, the searchers would like to understand and to get the views and insights of HR managers on this phenomenon and find out if there are improvements to employee benefits to lower this turnover rates.As HR students, the lookers would like to spearhead this study in order to analyze and make realistic solutions that could help the call center industries on this growing phenomenon. The researchers will conduct a semi-structured converse to the HR Manager of call center industries here in the Philippines. The hobby central questions will guide the interviewers 1. ) How do Human Resources Managers view on the high turnover rate on call center industries? 2. ) What new be nefits are implemented to reduce turnover rate and what changes in employee benefits were introduced to improve employee retention?Our study will focus on how a call center industry uses its turnover rate in making decisions to improve their benefits program rates in call center industries. Methodology Research Design The research design that the researchers adapted in this study is phenomenological research design, particularly the transcendental or psychological phenomenology. This design aims to get the meaning of as this is a qualitative analysis of narrative information, methods to analyze its data must be quite different from more traditional or quantitative methods of research (Janet Waters, Psychology Capillano University, viewed August, 25, 2012, http//www2. apilanou. ca). This type of research design is the intimately effective in terms of expressing the essence of how high turn-over rate shapes the organizations benefit system. Data conference Procedure The researcher s has join forcesed Human Resource Managers from different Call Centers Companies, both Local(PacificHub) and International(HSBC and PhilAm Life) Companies, who have an adequate years of become in dealing with the prevalent High Turn-Over rate in their previous and present employers.The subjects group age ranges from late 20s to the late 40s with the average years of experience of 3 to 10 years from the same employers. The researcher adopts a person-centered and holistic perspective. It helps to generate an in-depth account that will help the researcher a image of reality regarding their lived experience to answer the researcher inquiry about the subject. The researchers will conduct their interview by setting a date time for each manager during the collection of data or their answers regarding the interview.The Researchers will bear on to the process of meeting the manager and Data Collection. Each session may last up to 2 hours, depending on the interviewees length of views a nd insights on their experiences also known as Extended Interview. Story telling will be conducted also to ask the emotions of the HR Manager and his/her intellectual remembering and consciousness about the turnover rate in call center industries. The Researcher has chosen Call Canter Companies that has attrition rate of 30 to 40 % to be able to qualify as a accredited source of information about the topic. Data ExploitationDuring the interview, the main concern of the researchers was to get the view of HR manager in the high turnover rate and the benefits given? The questionnaire for HR mangers shall include their robotfoto (Kelchtermans & Ballet 2002), basis on the rate of employee turnover in the last 3 years, number of employees employed and the employee benefits or other discretionary benefits given. The researchers will be using an interview to tuck the participants descriptions of their experience, or the participants written or oral self-report, or even their artistic ex pressions (e. . art, narratives, or poetry, essays). The phenomenon of high turnover rate is the main subject of this research and how the HR managers have experienced it in call center industries. This research is going to be conducted by taking interview Interview is the detach method for collecting of data and giving a questionnaire to the Human Resource managers with full knowledge in the call center industry chosen by the researchers, to find out their view on the high turnover rate and benefits given to their employees.The HR Managers are chosen by their number of years in service in the industry. After the researchers gather the necessity data for their research, they will, and then follow the Collaizis Procedure, reading and re-reading of the interview and analyzing or extraction of the information to significant statements or quotes and coming up with the categories (Cool Analysis) and combines the statements into themes (Warm Analysis).The researchers will develop phenom enal referents of the persons interviewed. After this procedure, the researchers can gather the data by the use of data analytic tools in data reduction such as Repertory or Kelly Grid in order to categorized and give themes to the insights/referents of the manager. Study site Data Gathering Procedure