Building relationships @ BPO India.

Singh, C.P. ; Lather, Anu Singh ; Goyal, D.P. 等

Emergence of BPO India

Business process outsourcing (BPO) has emerged as India's new sunshine sector and the country is now one of the prominent electronic housekeepers to the world, taking care of a host of routine activities for multinational firms. The boom in BPO activities has prompted policy planners to view this sector as one of the potential avenues to absorb the growing mass of educated unemployed. The escalating possibilities of job creation along with the scope to provide 'decent employment' enabled the BPO sector to be showcased as the premier industry of India. As per the NASSCOM (2005), BPO is the fastest-growing industry, which expanded at an impressive rate of 60 per cent during 2001-2 and about 40-50 per cent, thereafter. The spectacular growth of BPO sector in recent years placed India as the world leader in the business. According to the latest NASSCOM estimate, outsourcing centres in India currently employ 415,100 workers and it has the potential to generate direct employment for one million workers in the next five years.

Today, India is undoubtedly the most favoured IT/ BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple. India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as outsourcing destination. India produces the largest number of graduates in the world. Besides being technically sound, the workforce is proficient in English and works at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centres, many organizations worldwide are looking to BPO India.

Call centre activities based on customer care constitute more than one-third of the total employment and revenue in the BPO segment. The BPO sector, which is heavily dependent on people, is still a young and immature industry, both in terms of the people it recruits and the problems it faces. Employees working in BPO units/call centres are young, energetic, and dynamic and it is a first employment for over 90 per cent of them. It is widely publicised that BPO sector is a booming industry, and it provides excellent salary and benefits, international working environment, and quick growth. Candidates take up the job as it is a white-collar one with a perception that it is easy to do. They also assume that call centre jobs can be taken up once they have good communication skills, customer service skills, good knowledge of the English language, and telemarketing skills. Many are ignorant that these jobs are serious in nature, and there are different types of jobs to be handled and also challenges in facing international customers. An individual realizes the job pressure, the intensity of the job, and its effects on personal health, etc., only after spending a few months in real work situations.

Precious Human Resource

One speaker at the ITES-BPO Track at NASSCOM 2003 in Mumbai mentioned: 'It isn't IT-enabled services; one should actually call it HR-enabled services'. So much for the importance of HR in the BPO segment. The rapid growth of the industry in India witnessed the phenomenon of scant regard being paid to vital human resources in the BPO industry. The huge demands dictated that the industry recruited what was available, while the youth getting good money and a decent environment did not open their mouth. The fear of losing what they thought as a godsend kept them tight-lipped. Everybody thought that the offer was too good to be debated. Soon the honeymoon was over. Only when the problems started manifesting in the form of high turnover rates, did the HR managers and the employees realize that human issues need to be addressed in right earnestness.

Considering the Indian working conditions, the BPO sector employees are a privileged lot. The call centre employees called 'call center executives' work in air-conditioned atmosphere, doing little physical labour and earn five figure salaries. In addition to all this, they are pampered with additional benefits as listed below:

1. Subsidized food and transportation

2. Company-leased accommodation

3. Interest-free loans

4. Educational benefits for higher studies

5. Cellular phone / Laptop

6. Personal health care (regular medical check-ups)

7. Group medi-claim insurance scheme

8. Personal accident insurance scheme

9. Recreation, cafeteria, ATM, and concierge facilities

10. Corporate credit card

11. Performance-based incentives

12. Flexitime work schedule

13. Flexible salary benefits

14. Regular get-together and other cultural programmes

15. Wedding-day gift

16. Employee referral scheme.

Why People are Leaving?

Now, the actual question: Why people are leaving? What types of retention strategies are required? There is a need to carry out serious introspection that even after giving so much, why the turnover is still so high. The turnover rate in BPO industry (40-60 per cent) is considerably higher as compared to other industries (10-15 per cent). The rate of attrition in BPO India (35-40 per cent) is also much higher than in other countries like Canada (6 per cent). The cost of turnover in USA, at a very conservative estimate, is approx one year's salary for each vacant position/per employee turnover (Hillmer et al. 2004).

The Study

In order to find the answers and understand the problems of the workforce in the BPO industry, a field survey was carried out. Call centre executives constitute 65 per cent of the half a million workforce in this segment today and were justifiably the focus of this study. In general, samplings, survey procedures, follow-up efforts and data analyses in the study were conducted in accordance with well-documented and verified techniques. The survey was conducted among large (above fifty employees) and small BPO companies in India through personal interviews, tele-calling, and email over a period of six months from June to November 2006. A questionnaire was used to conduct the whole survey. There are a total of 784 BPO companies that are registered with NASSCOM, having 310,094 employees which formed the universe for the study. Out of this, fourteen companies were selected for the survey, most of which had multi-city presence. Smaller companies having less than fifty employees were also given due representation. A sample size of 265 was finalized and data collected accordingly. Three hundred responses were received and analysed using modern research techniques.

Relevant Deductions

Turnover

In order to ascertain, the primary cause of concern and to gauge the mood of call centre executives, certain questions were designed on this issue. From the responses it is seen that almost 65 per cent of the respondents are willing to leave the BPO job at the same salary and another 6 per cent are even ready to leave at lower wages. This shows the level of frustration with the industry. Only 2 per cent are the hardcore employees who are not willing to leave the BPO at any cost. Within the industry, a whopping 80 per cent are ready to dump their present company for greener pastures. Add to that another, 10 per cent that are even willing to leave the company at the same pay. This indicates that there are limited brand loyalties. This is also indicative of the motivation levels in the sector and a pointer to the disease that manifests itself in terms of high turnover. Tables 1 and 2 present data on willingness to leave BPO job altogether and to leave and willingness to switch present job with another in the BPO industry itself.

Reasons

In order to ascertain the major causes for such desire to quit, the respondents were asked to prioritize the various reasons that force them to quit BPO job. The findings are interesting and are presented in Table 3.

Indigenous Solutions

It is obvious from the study of the trends in the industry that the American style of management to 'Hire and Fire' has not worked in India. Hertzberg's theory categorized motivation into two factors: motivators and hygiene (Hertzberg et al. 1959). Motivators or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security, produce job dissatisfaction. Hertzberg's theory of motivation states that money beyond a point is only a hygiene factor and no longer a motivator for the employees. This fact has been amply proved in the BPO sector, where higher wages are not able to arrest the high turnover rate. Rather than looking towards West to seek answers to our problems of high attrition, there is a need to look inwards and find indigenous answers. Certain relevant indicators from the research study are as follows:

Manager Employee Relationship

The survey revealed that 20 per cent of the management consider their subordinates as workers, another 20 per cent consider them as subordinates, and about 50 per cent consider them as executives. It is only a miniscule 10 per cent, who consider them as strategic partners, which is the benchmark to develop relationships and have healthy team building. The companies that have realized this fact are able to arrest the tide of turnover. The responses are summarized and presented in Table 4.

Building Relationships

A question on relevance of building relationship and its role in helping in retention was asked. Most of the respondents (78 per cent) rightly believed that building relationships will help. Only 15 per cent still believe that monetary gains only matter. The opinion of the respondents are presented in Table 5.

Building Bonds of Fraternity

The survey amply demonstrate that suitable strategies which are indigenous in nature and best suited for the Indian work culture have to be planned and implemented. Today, BPO companies have realized the importance of building relationships with their employees, which last forever. It is seen in Indian context that we value the emotional and social affiliations more than monetary gains. We have ample examples where the employees have not left the company because of relationships that have been built over a period of time, even surrendering higher pay and perks. Though every management has its own ways to connect to its workers, a few innovative methods for the BPO industry are highlighted below.

Sense of Belonging

Once the bonds of fraternity with the executives are so strong that they all feel the sense of belonging to the organization, the task of forging relationship is accomplished. This is easier said than done. Its an arduous task but creating a motivated and dedicated task force was never so easy anyway. Once the employee feels that he belongs to the organization and it is his, he will do no wrong. It may take years of concerted effort to reach this state of relationship but it is worth it, and more so in the BPO world, where human resource is so precious. Needless to add, it is an ongoing process to stay connected to your people and not a one-time requirement.

Inculcate Indian Value Culture

Call centre executives are joining the BPO industry at a young age and for most of them, it is the first vocation. It is imperative that we groom these youngsters into mature people. We need to teach them the Indian values of work culture during the initial training. The same has to be reinforced in daily routine and imbibed as part of 'on the job training'. The young employees will always remember the concern shown by the company in teaching them the basics of work culture and would always like to align by such good companies in future. These methods are successfully tried out by Zavata Healthcare, Hyderabad.

Encourage Family Ties

The BPO job with atypical work hours and tiring routine often isolates the employees from their families. They are not able to participate in family activities and feel left out. This social isolation further generates stress in their minds. If the employees are advised by concerning management to find time to talk to their parents, spouse, and friends, it helps. When a person is stressed, he needs company and a near one, in whom he can confide. At this time, the family plays a crucial role and hence family ties should be encouraged. Talking their hearts out and taking part in family events will make the stressed employees relaxed and happy, which eventually leads to improvement in efficiency.

Personal Touch

Most companies in the BPO sector are going to the root cause of the problem of attrition. Traditional HR practices need to be given a facelift to devise means to impart a better employee bonding. Some good companies are trying to achieve personal touch that will make an indifferent employee care about his work and help the employer and the employee get along very well. Management wants to ensure that the employees should feel secure and have faith in the management. They should also have the confidence to speak out their personal problems before seniors. Managers pay surprise visits to their homes and also attend family functions like weddings. A small genuine concern by the management can buy the employee forever. Even though security is provided, the vice-president of Zavata Healthcare, Hyderabad, insists on female employees to give him a call / SMS/ email, after safe arrival at home during night hours. Such small concerns about security bring a sense of care and belonging in the employees for everlasting relationship. BPO companies have today become aware of developing relationships with the employees in order to keep their folks together and convey the message 'We Care'.

Connect with Families

BPO companies are now believing in connecting with their human resource--the real force behind every success. Since the call centre executives are young lads from educated families, the companies are going a step further and gaining the confidence of the families of their employees. As parents, there is always some anxiety when the ward picks up the first assignment. The anxiety is compounded further in the case of a girl's parents. Parents are very caring today and want to know how and where their next generation is working. Since BPO is a recent industry, most of the previous-generation people like parents and guardians are not aware of this type of job. Also inquisitive parents want to know about security arrangements because of the atypical work hours. Apprehensions about health and the food that is provided are natural because of many articles that come out about health hazards in BPO sector.

In order to set all the fears to rest and reassure the anxious parents, the BPO companies invite the parents of new employees to the campus and brief them about the nature of job and company profile and explain how the company cares for their children. The parents are taken on company tour and given first-hand experience of the company. That has greatly helped to gain confidence of the parents and in turn ensure continuous and dedicated performance from the employees. Parents and spouses of married employees' are also permanent invitees to the social functions and celebrations. Such measures where family ties are developed between the company management and the employees family have been immensely beneficial to the BPO companies. This is the right approach that the companies need to follow to create a sense of belonging and family bonding forever.

Social Welfare

It is interesting to note that social welfare is a method of stress relief. We all feel that we should pay back to the society and fulfil our social obligation. We want to do something for the poor, underprivileged, senior citizens, and physically challenged people. In case some collective activity is organized during off days to fulfil these dreams, people feel happy and relaxed. Certain BPO companies are increasingly using this method of stress relief, which also cements the bond of fraternity quite successfully. Social service to orphanage, old age homes, terminally ill patients, and other such places are regularly arranged and participants feel very happy at the end of such activities.

Karma Yatra

A recent practice of connecting well to the executives in the BPO industry is the Karma Yatra. In this employee relationship management process, every employee is seen as a Karma Yatri, being the centre of Karma Triangle, formed by Karma (work), Karma Bhoomi (society), and Karma Niwas (Home). Karma Yatra is a series of step-by-step process of fun-filled competitions based on randomly formed teams from amongst employees, irrespective of rank hierarchy. Teams so formed participate in various brainstorming sessions and exercises that exude energy and get the creative juices flowing. Subsequently, spouses and family members are also included. The event held over a prolonged period of time creates special bonding.

Conclusion

BPO India is at a nascent stage. It needs to draw parallels and examples from other industry practices as well as develop indeginuos employee relation initiatives. The HR practices followed by BPO industry in the Western countries needs to be evaluated in the Indian context. Building relationship between the organization and the work force with a view to creating a sense of belonging is the ultimate in retention strategy because we Indians value our emotional bonds and affiliations more than anything else in life.

References

Herzberg, F., B. Mausner, and B.B. Synderman, (1959), The motivation to work, New York: Wiley.

Hillmer, Steve, Barbara Hillmer, McRoberts Gale, (2004), 'The Real Cost of Turnover--Lessons from a Call Center', Human Resource Planning, 1, January.

NASSCOM, (2005), 'The IT Industry in India', Strategic Review Report, 2005 and 2006.

Websites:

www.nasscom.org

www.gartner.com

www.outsourcing.com

www.bpoIndia.org

C. P. Singh * Anu Singh Lather ** D. P. Goyal ***

* Research Scholar, University School of Management Studies, GGS Indraprastha University, Delhi (India). Email: cps1957@rediffmail.com

** Professor and Dean, University School of Management Studies, GGS Indraprastha University, Delhi (India). Email: asms.dean@gmail.com

*** Director, Institute of Management Education, Ghaziabad (India). Email: director@ime.in

Table 1: Willingness to leave your BPO job altogether

Options Frequency Percentage Cumulative
 Percentage

At the same 195 65.0 65.0
pay scale

Even at lower 18 6.0 71.0
pay scale

On promotion 81 27.0 98.0
and pay hike

Not likely 6 2.0 100.0

Total 300 100.0

Table 2: Willingness to switch present job with another
in the BPO industry itself

Options Frequency Percentage Cumulative
 Percentage

At the same 30 10.0 10.0
pay scale

Even at lower 6 2.0 12.0
pay scale

On promotion 240 80.0 92.0
and pay hike

Not likely 24 8.0 100.0

Total 300 100.0

Table 3: Reasons for desire to quit

Options Frequency Percentage Cumulative
 Percentage

Atypical work 21 7.0 7.0
hours

Higher pay 42 14.0 21.0
elsewhere.

Limited career 36 12.0 33.0
growth

Stressful life 135 45.0 78.0

Monotonous 24 8.0 86.0
work

Lack of 24 8.0 94.0
creativity

Strenuous work 9 3.0 97.0

Strict control 9 3.0 100.0

Total 300 100.0

Table 4: How manger consider the employees

Options Frequency Percentage Cumulative
 Percentage

Workers 60 20.0 20.0

Executives 150 50.0 70.0

Strategic 30 10.0 80.0
partners

Subordinates 60 20.0 100.0

Total 300 100.0

Table 5: Relevance of building relationship and its role
in helping in retention

Options Frequency Percentage Cumulative
 Percentage

I strongly agree 96 32.0 32.0

It will be a good 135 45.0 77.0
idea and need
to be tried out

Our company 24 8.0 85.0
already
believes in it
In this world, 45 15.0 100.0
nothing matters
but money

Total 300 100.0