Research Paper

Volume 2

February 2015

Issue 6

International Journal of Informative & Futuristic Research

ISSN (Online): 2347-1697

A Study On Employees Retention In

BPO Sector With Special Reference To
Coimbatore City
Paper ID

IJIFR/ V2/ E6/ 017

Page No.

1609-1615

Subject Area

Management
Studies

Key Words Outsourcing, Crunch, Retention, Reputed, Perception, Attrition

S. Mohan

Dr. P. R. Muthuswamy 2

Ph.D. Research Scholar

Assistant Professor & HOD of Management Studies
Dr. N.G.P. Arts and Science College, Coimbatore
Research Supervisor & Principal
Dr. N.G.P. Arts and Science College, Coimbatore

Abstract
India is considered as hub for outsourcing and we can find as many BPOs on the
Indian soil as compared to any other nations. Today, Indian BPO and ITES are
witnessing attrition at large-scale and retention has become a difficult task. We
can also term it as a talent crunch in the industry. The industry is feeling heat
and challenge to retain the talent in the organizations. The most critical and
delicate situation is to withhold the best talent in the organization. Many reputed
employers in the industry have undergone this crunch of talent retention. The
sector is contributing a lot to Indian economy and also creating employment
opportunity especially to the youth and hence the perception of youth towards
the sector is found to be positive. The BPO/ITES sector is always placed on top
whenever we take the word the attrition. Thus, an attempt has been made by the
researcher through this present research to study the Employees Retention in
BPO sector with Special Reference to Coimbatore City.
1. Introduction
Employee retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time. The corporate is facing a lot of problem in employee
retention on these days. Hiring knowledgeable people for the job is essential for an employer. But
retention is even more important than hiring. There is no dearth of opportunities for talented
persons. There are many organizations which are looking for such employees. If a person is not
satisfied by the job he's doing, he may switch over to some other more suitable jobs. In today's
environment it becomes very important for organizations to retain their employees.

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Copyright IJIFR 2015

1609

ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
2. Objectives Of The Study
To know the reasons for employee turnover in the BPO sector.
To find out the retention strategies adopted by the employers.
To study the importance given by employers for employee retention in current scenario.
To analyze the preference of employees towards BPO sector.
To suggest the ways for reducing employee turnover.
3. Research Methodology

Sample Size: 150 respondents

Sampling Method: Convenience sampling
Data Collection Method: Questionnaire
Tools for Analysis:

Percentage Analysis
Point analysis
Rank correlation
Chi-square
Table 3.1: Preference to Join BPO Sector

Factors

Total Score

Rank

Good working environment

564

10

Experience is not required

927

Benefits

745

Flexibility of time

764

Platform to express my computer skills

806

Transport facility

861

Salary

813

Attractive lifestyle

939

Good communication with minimum

qualification
Freedom

933

869

4. Interpretations
The above table-3.1 shows that Attractive life style is given the 1st preference by the respondents to
choose to work in BPO sector, 2nd reason why respondents prefer to join BPO sector is that it
requires only good communication with minimum qualification, 3rd reason to join BPO is no need
of experience, 4th rank is given to freedom, 5th rank is given to transport facilities. 6th rank is given
to Salary, platform to express computer skills is given 7th rank, 8th rank is given to flexibility of
time, 9th rank is given to the benefits and the least rank is given to good working environment.
In a nutshell, todays generation prefer to join BPO sector is because of the attractive life style
where it raises their standard of living.

S. Mohan , Dr. P. R. Muthuswamy :: A Study On Employees Retention In BPO

Sector With Special Reference To Coimbatore City

1610

ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
Table 4.1: Factors That Influence To Leave BPO Sector

Factors
Policies and procedures are not conducive
Less time to spent with family
Physical strains
Distance from place you reside
Improper training
Low morale of workforce
Lack of opportunities for advancement

Total Score
630
802
762
769
859
910
795

Rank
10
6
9
8
5
2
7

Too much criticism

Job is too stressful

934
895

1
4

Inter-politics

896

The above table-4.1 shows that the main reason why respondents leave BPO sector is because of
too much criticism, 2nd reason is low morale in the sector, inter politics is the 3rd reason, 4th rank is
job-stress, 5th reason is improper training, Less time to spend with family is given 6th rank, 7th rank
is given to lack of opportunities for advancement, 8th rank to Distance, 9th rank is to physical
strains and 10th rank is given to Policies and procedures are not conducive. In nutshell, the main
reason to leave BPO sector is too much criticism in the work place.
Table 4.2: Respondents Opinion towards Appreciation at Work

Satisfaction Level
No. of Respondents(f)
Points(x)
fx
Value
Strongly Agree
18
4
72
0.48
Agree
62
3
186
1.24
Disagree
63
2
126
0.84
Strongly Disagree
7
1
7
0.05
150
Total
2.61
Mean value
2.5
The above table- 4.2 shows that the respondents agree that they are appreciated at work. It is
clearly known that from the table, that the calculated value 2.61 is greater than normal mean value.
Table 4.3: Respondents Opinion towards Working Condition

Satisfaction Level
No.of Respondents(f)
Points(x)
fx
Value
Strongly Agree
32
4
128
0.85
Agree
53
3
159
1.06
Disagree
32
2
64
0.43
Strongly Disagree
33
1
33
0.22
150
Total
2.56
Mean value
2.5
The above table-4.3 shows that the calculated scale value 2.56 is slightly greater than normal mean
value. Hence respondents agree that their job has good working condition.

S. Mohan , Dr. P. R. Muthuswamy :: A Study On Employees Retention In BPO

Sector With Special Reference To Coimbatore City

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ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
Table 4.4: Relationship Between Age And Satisfaction Level Hypothesis

Age

High

Medium

Low

Total

Below 25

64

38

17

119

26-30

12

26

31-34

Above 35

73

53

24

150

Total

There is no significant relationship between the age and respondents satisfaction level
Chisquare test (2)

(O E ) 2
E

Degrees of Freedom
:6
2
Calculated Value
: 7.37
Table-value
: 12.592
The above table- 4.4 indicates that calculated value (7.37) is lesser than the table value
(12.592) at 5% level of significance. Therefore framed null hypothesis is accepted. Hence there is
no significant relationship between the age and satisfaction level.
Table 4.5: Relationship Between Monthly Income And Satisfaction Level

Hypothesis: There is no significant relationship between the monthly income and satisfaction
level.
Monthly income

High

Medium

Low

Total

Below 8000

12

18

8001-12000

15

23

42

12001-15000

13

28

17

58

Above 15000

11

13

32

TOTAL

41

68

41

150

Chisquare test (2)

(O E ) 2
E

Degrees of Freedom
:6
2
Calculated Value
: 22.32673
Table-value
: 12.592
The above table- 4.5 indicates that calculated value (22.32673) is greater than the table
value (12.592) at 5% level of significance. Therefore framed null hypothesis is rejected. Hence
there is significant relationship between the monthly income and satisfaction level.

5. Findings
The majority of respondents 52% working in BPO sector is female.
58% of the respondents are unmarried.
36.66% of the respondents earns between Rs.12000-Rs.15000 per month.

S. Mohan , Dr. P. R. Muthuswamy :: A Study On Employees Retention In BPO

Sector With Special Reference To Coimbatore City

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ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
81% of the respondents say that they dont have overtime in their sector.
55% of the respondents face mental pressure at BPO sector.
Majority of todays generation prefer to join BPO sector is because of the attractive life style
where it raises their standard of living
Majority of the respondents say, the main reason to leave BPO sector is too much criticism in
the work place.
Majority of the respondents agree that the pay meet their needs.
Majority of the respondents agree that there is an opportunity for promotion.
Majority of the respondents agree that they feel secure in job.
Majority of the respondents agree that their supervisors keep them well informed on their
work.
Majority of the respondents agree that their job is interesting to them.
Majority of the respondents agree that they are appreciated at work.
Majority of the respondents agree that their job has good working condition.
Majority of the respondents are not satisfied with the leave facilities provided by the
organization.
Majority of the respondents agree that employer shows sense of loyalty to them.
Majority of the respondents agree that they have the ability to grow in their job.
It is found that there is no significant relationship between the gender and satisfaction level.
It is found that there is no significant relationship between the age and satisfaction level.
There is a significant relationship between the educational qualification and satisfaction level.
There is a significant relationship between monthly income and satisfaction level.

6. Suggestions
The Employee turnover is relatively starts at the initial period of three months. Therefore,
it is strongly recommended that:
1) The organizations should provide handholding, care and support to the newly joined employees.
This support will help the organizations to improve employee retention and avoid the cost of
recruiting the new employees time and again.
2) Similarly, the organizations should conduct motivational programs and give the employees
necessary tools, time and training and they can also have a knowledge sharing session where the
employees gets a chance to express their ideas.
3) As Educational Qualifications are reported to be significantly related with reduction in the
retention of the employees at the Call Center/Tech Support level, it is recommended that the
organizations in the BPO sector should not hire highly qualified candidates for these positions as
they are less likely to be a part of the organization for a longer time period.
4) Since fair and competitive salaries as well as performance related incentives have been reported
as highly significant factors of employee retention, the organizations should constantly monitor the
salary structures and performance oriented incentives offered by the competing organizations in
the same region so as to maintain parity with the competitors, thus reducing the chances of high
employee turnover.
5) As no single factor can be considered detrimental for attaining high rate of employee retention,
it is recommended that the organizations should look for variety of effective and suitable employee

S. Mohan , Dr. P. R. Muthuswamy :: A Study On Employees Retention In BPO

Sector With Special Reference To Coimbatore City

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ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
retention strategies and practices so that their combined effect can enable the organizations in the
BPO sector to retain their employees.
6) It is observed that majority of employees working in BPO sector is female therefore the
organizations should employ the Women HRs to attain the female workforce. It is recommended
that the organizations should provide fair and equitable treatment as well as Security at the Work
Place to the women employees so we can retain the women employees leaving the organization.
7) It is suggested that the organizations should make sure that employees know that their work is
important for the organization. Feeling valued by their employer is key to high employee
motivation and morale. Recognize their strengths, identify their weakness and help them to
improve their unskilled areas.
8) Offer excellent career growth prospects. Encourage and groom employees to take up higher
positions. If they dont get opportunity for growth within the organization, they will look
elsewhere for it.
9) Work life balance initiatives are important. Innovative and practical employee policies
pertaining to flexible working hours and schemes, granting compassionate and urgency leave,
providing health care for self, family and dependents, etc..,. are important for most people. Work
life balance policies would have a positive impact on retaining skilled employees, as well as on
attracting high caliber recruits.
10) It is crystal clear todays generation are seeking jobs in BPO sector is to lead an attractive life
style. Therefore the organization should try to hold back the employees by providing them extra
benefits which would make them feel their standard of living is increasing.

7. Conclusion
Coimbatore has all the potential to be the next IT hub of the country. It might not replace Chennai
or Bangalore but will definitely emerge as a preferred alternative. Taking a critical look, the city
needs to put its basic infrastructure in place and offer better connectivity to attract more players.
Though today retention has become key tool for success but retention in BPO sector in Coimbatore
has become a tough job for the sector as attrition is on the rise due to various reasons employer
should concern the people. Retention has become a key challenge for the BPO industry and how it
has to be managed in keeping a static workforce in the organization for a longer version of the
game. With retention on the card the company can save investment on recruitment and can turn it
as cost effectiveness. As the opportunities are wide for the employees of BPO, the attrition rate is
very high; unless the organization takes necessary steps to retain the employees the rate of attrition
cannot be minimized. So it is in the hands of the organization to safeguard the valuable employees.
Research says that most of the employees leave an organization out of frustration and too much
criticism with their superiors or other team members. In some cases low salary, lack of growth
prospects and motivation compel an employee to look for a change. The management must try its
level best to retain those employees who are really important for the system and are known to be
effective contributors. It is the responsibility of the line managers as well as the management to
ensure that the employees are satisfied with their roles and responsibilities and the job is offering
them a new challenge and learning every day. In the present scenario, identification of employee
retention has become a crucial element. In this study it is found that most of the employees in
BPOs are retained due to the following factors such as competitive compensation, Encouragement
and Recognition, well equipped and safety environment, infrastructure, potential talent and the

S. Mohan , Dr. P. R. Muthuswamy :: A Study On Employees Retention In BPO

Sector With Special Reference To Coimbatore City

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ISSN (Online): 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 2, Issue - 6, February 2015
18th Edition, Page No: 1609-1615
prospective roles. If organization is going to practice these factors, the employee retention is
possible.

References
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[4] Gering, J. & Conner, J. (2002). A Strategic Approach to Employee Retention, Healthy Finance
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Websites:
[1] www.retention.naukrihub.com
[2] www.employeeretentionstrategies.com
[3] www.highretention.com

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