Outsourcing - Measures to stem attrition in BPOs

Outsourcing - Measures to stem attrition in BPOs outsourcing

Measures to stem attrition in BPOs


When to use it?

Attrition is perhaps the single largest problem facing the BPO industry today. Attempts are being made to check the number of people leaving the industry. A great deal more needs to be done.

Provident fund:

This is composed of contribution from the both the employer as well as the employee. The employee is required to contribute a portion of his Basic Pay and Daily Allowance to this Fund. As the amount of money accumulates over a period, the employee can use it for his personal use like wedding expenses or the purchase of a house.


The employer contributes a certain amount to this fund. The employee is entitled to the amount at the time of retirement. This can be utilized to pay off long standing home loans, higher education of offspring, or to meet the wedding expenses of offspring.

Group Insurance Plan:

A Group Insurance Plan is available for an employee (or his or her dependents). It may be availed when hospitalization becomes necessary due to illness, disease, pregnancy in case of women employees or the wives of male employees. Dependents include spouses of the employees, non-earning parents and children.

Enabling tax-savings by flexible compensation:

The BPO employee may receive a good pay but if that were going to be taken away in the form of income tax, it would do him no good. There is need for striking a balance between the monthly income of the employee, his annual benefits in money terms and tax payable by him. Normally, the salary of the employee consists of his Basic Pay, Daily allowance, and Conveyance Allowance while House Rent Allowance, Leave Travel Allowance Medical Reimbursements, and Special Allowance categorized under Flexible Benefit Plan.

Provide Flexible work schedules:

Most BPO employees complain that their work timings are rigid and leave very little time for their personal commitments. In view of this, a flexible time pattern is desirable. Flexible working time schedules helps them to cope with situations arising out personal ill health or the ill health of a dependent , for maternity or for undergoing higher education.

Employee Referral System:

This scheme encourages employees to recommend people they know for working in the organization.

Personal Accident Insurance scheme:

Many employees working in establishments like the JFWTC (John F. Welch Technology Centre) are covered by the Scheme. This covers hospitalization expenses due to accidents resulting in total or partial disability or death.

Food and Transportation:

To ease their hardship, BPO employees are provided transportation facilities from their residences to the place of work. Good quality meals are also provided at subsidized prices.


Some companies provide shared accommodations. Outstation employees can avail this feature. Some BPO companies also under take the payment of electricity, water, and society charges that the employees incur.

Regular medical check-up:

Employee health is of prime concern for BPOs. Any employee above the age of forty is entitled to a wide-ranging annual personal health check up.

Incentives for achievers:

Good performance never goes unnoticed in most BPOs. Incentives are specified for those employees that perform well. Speed, accuracy, and productivity are considered for the calculation of incentives. The incentive may be as high as 22% of the total pay of the employee.

Educational benefits:

BPO employees are allowed to take up educational courses especially if they supplement their existing skills and knowledge. The expenses (like tuition and examination fees and purchase of subject books) are borne by the companies.

Other benefits:

All fun and no play can make Jack a dull boy. To help employees unwind, BPOs provide recreation facilities like pool tables, swimming pools, gyms, and chess and carom tables. Get-togethers are arranged, cultural and sports programs by employees staged so they can show case their talents. Gifts are given at the time of festivals or on personal landmarks such as weddings and birthdays.

Provision of corporate credit card to employees, making loans available for education, weddings, medical emergencies, etc, stock option schemes for\employees, maternity leave, and paid off are some of the other regular features of BPOs.

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