A PROJECT REPORT

ON

Actionable Employee Retention Strategies to Retain talent

within the company

Submitted in partial fulfilment of the requirement for the award of

the Degree of
BACHELOR OF COMMERCE
Submitted to

OSMANIA UNIVERSITY
Hyderabad
Pooja Jain-201419401023
Shaik Mohammed Junaid – 201419401061
Fardeen Baig – 201419401062
Shailesh Jadhav– 201419401071
Under the guidance of
Zaker Ul Oman
(Assistant Professor in Commerce)
AVINASH DEGREE COLLEGE
(Affiliated to Osmania University)
Himayatnagar, Hyderabad
(2019-2022)
 AVINASH DEGREE COLLEGE
(Affiliated to Osmania University)
Himayatnagar, Hyderabad
Department of Commerce

Certificate

This is to certify that the Project Report titled “A study on Actionable Employee
Retention Stratigies to Retain talent within the company” is the bonafide work
done by:

Pooja Jain – 201419401023

Shaik Mohammed Junaid – 201419401061

Fardeen Baig – 201419401062

Shailesh Jadhav – 201419401070

submitted in partial fulfilment of requirements for the award of the degree of

[Link] (GENERALS) of Osmania University, Hyderabad during the academic
year 2019 - 2022.

Place: Himayatnagar , Hyderabad

Date:

Internal Guide External Examiner

Principal
 Declaration

We,

Pooja Jain – 201419401023

Shaik Mohammed Junaid – 201419401061

Fardeen Baig – 201419401062

Shailesh Jadhav – 201419401070

Hereby declare that the project work entitled, “A study on Actionable Employee
Retention Stratigies to Retain talent within the company” submitted to the
Department of Commerce, Avinash Degree College, Himayatnagar, Hyderabad
(Affiliated to Osmania University) is a bonafide record of original work done by
us under the guidance of Mr..Zaker Ul Oman (Asst. Professor) and this project
work is submitted in the partial fulfillment of the requirements for the award of
the degree of B. Com (Generals). This record has not been submitted to any other
University or Institute for the award of any degree or diploma.

Place: Hyderabad

Date:
 ABSTRACT

In this continuously changing contemporary economy, companies have to be able to anticipate

technological innovations and to compete with other companies worldwide. This need makes
important a company’s ability to evolve through its employees’ learning and through
continuous development. Securing and retaining skilled employees plays an important role in
this process, because employees’ knowledge and skills are central to companies’ ability to be
economically competitive. Given that employee retention is very important for the functioning
and competitiveness of a company, this study focuses on the organisational and personal factors
that influence employee retention. A special interest is taken in employees’ learning, because
this is seen as a retention supporting activity
Leadership skills and seniority have a positive relationship with employee retention and the
level of readiness and initiative regarding learning are negatively related to retention.

Employee Retention is the ability of the organisation to retain its employees.

Employees’ retention is emerging as a big
challenge to most of the organisations. Organizations use a diverse array of approaches to retain
their efficient employees, because high turnover rate increases the expense of recruiting and
training new employees and affect the profitability of the organization. The objective of this
study is to identify the best strategies which can be used in organizations across industries to
help in enhancing employee retention. Employee retention is beneficial for the organization as
well as the employee. Employees today are different. They are not the ones who don’t have
good opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next [Link] is the responsibility of the employer to retain their best
employees. If they don’t, they would be left with no good employees. A good employer should
know how to attract and retain its employees.

Employees comprise the most vital assets of the company. In a work place where employees
are not able to use their full potential and not heard and valued, they are likely to leave because
of stress and frustration. In a transparent environment while employees get a sense of
achievement and belongingness from a healthy work environment, the company is benefited
with a stronger, reliable work-force harbouring bright new ideas for its growth Blog Online
And Earn Money
 Acknowledgement
It gives us immense pleasure to submit the research entitled “A study on quality of worklife of
an employee”. Every piece of hard work acquires the combined efforts and talents of many
people. We would like to take this opportunity to thank Prof. Zaker Ul Oman, the respected
faculty of Avinash College of Commerce who extended their unparalleled help while doing
this project. They have enriched my knowledge and given us moral support for this report. We
are also highly grateful to them for showing us the right path and encouraging us to prepare for
this project.

A special word of thanks and gratitude goes to those people (respondents) who gave their
valuable time and related information about our project work. We are also very much thankful
to our parents and friends who have given us a lot of support and guidance throughout the term
of our research study.

We have received a lot of knowledge about how to do research work while doing this project
study which is definitely going to help us in our future career. However, we will be held
responsible for any short comings in this report.

We would like to thank all the other intellectuals, academicians, scholars, professionals, and a
large number of faculty and students, who came into contact during the research period and
directly or indirectly made academic or intellectual contributions towards the enrichment of
our project work.

Date:

Place: Hyderabad
CONTENT NAME

CHAPTER 1
1.1 Introduction

1.2 Needs and Importance

1.3 Objective
1.4 Methodology
1.5 Limitation
1.6 Executive Summary
CHAPTER 2
2 Literature Review
2.1 Employees Retention
2.2 Classification of Employee Retention

2.3 Significant of Employee Retention

2.4 The Three R’s of Employee Retention

2.5 Ten Ways to Retain Employees

2.6 Ten Factors that Effect Employee Retention

2.7 Employee Retention Strategies

CHAPTER 3
3.1 BPO Sector Industry
3.2 Challenges of an HR

3.3 Challenges for an HR Professional in BPO

3.4 BPO for HR Practice

3.5 Employees Benefits Provides by BPO

3.6 Findings at BPO

3.7 Recommendations

3.8 Findings
CHAPTER 4
4.1 Conclusion
CHAPTER 5
5.1 Bibliography
 CHAPTER – 1
INTRODUCTION
 INTRODUCTION
Employees have been important resources to any organization. Based on their critical character,
they can be termed the life-blood of an organization. Advancement in technology has caused
most organizations to be more and more technology driven. However, this situation does not
reduce the value of employees in an organization because technology requires human resources
to operate. With issues such as globalization, competition is becoming keener and keener in
most industries. This situation also affects the job market in the sense that organization demand
in human resources to remain competition in their respective industries is higher. To remain
more competitive, organizations need therefore not to only attract the best talents but also to
retain them on the job for a long term. The toughest challenge that organizations encounter
nowadays is not only how to manage the people but also how to keep them on the job as long
as possible and how to maintain them vigorous and ambitious. This study focuses on employee
retention.

It is impossible for an organization to survive if its top performers quit. It is essential for the
management to retain its valuable employees who think in favor of the organization and
contribute their level best. An organization needs employees who are loyal and work hard with
full dedication to achieve the organization’s objective.

Employee retention is concerned with keeping or encouraging employees to remain in an

organization for a maximum period of time. Mita (2014) defined employee retention as “a
technique adopted by businesses to maintain an effective workforce and at the same time meet
operational requirements” Bidisha (2013) described it as “a process in which the employees
are encouraged to remain with the organization for the maximum period of time or until the
completion of the project”. According to Workforce Planning for Wisconsin State Government
(2015), employee retention is “a systematic effort to create and foster an environment that
encourages employees to remain employed by having policies and practices in place that
address their diverse needs”.
Employee Retention is defined as an organization’s ability to retain its employees. It can also
be called as a process, in which the resources are motivated and encouraged to stay in an
organization for a longer period of time for the sustainability of the organization.
The ultimate aim of Employee Retention is to make both the stakeholders, i.e., employees and
employer happier. It facilitates loyal employees sticking to the company for a longer duration,
which in turn will benefit both the stakeholders.
Employee retention is not just a matter that can be dealt with records and reports. It purely
depends upon how the employers understand the various concerns of the employees and how
they help them resolve their problem, when they are in need.
Every organization spends time and invests money in grooming new employees and make
them corporate-ready. The organization will be in complete loss, if such employees quit after
they are fully trained.
Worldwide, retention of skilled employees has been of serious concern to managers in the
face of ever increasing high rate of employee turnover. Today’s business environment has
become very competitive thus making skilled employees the major differentiating factor for
most organisations. Organisations - both public and private – rely on the expertise of their
employees in order to compete favourably and indeed gain competitive advantage in the
international market. However, recent studies have shown that retention of highly skilled
employees has become a difficult task for managers as this category of employees are being
attracted by more than one organisation at a time with various kinds of incentives. until
managers are able to identify and apply appropriate retention strategies that will help in
reducing the frequent turnover of key employees.

Effective employee retention is a systematic effort by employers to create and foster an

environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs. A strong retention strategy becomes a
powerful recruitment tool. Retention of key employees is critical to the long-term health and
success of any organization. It is a known fact that retaining your best employees ensures
customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective
succession planning and deeply imbedded organizational knowledge and learning. Employee
retention matters as organizational issues such as training time and investment; lost knowledge;
insecure employees and a costly candidate search are involved. Hence, failing to retain a key
employee is a costly proposition for an organization. Various estimates suggest that losing a
middle manager in most organizations' costs up to five times of his salary. Intelligent employers
always realize the importance of retaining the best talent. Retaining talent has never been so
important in the Indian scenario; however, things have changed in recent years. In prominent
Indian metros at least, there is no dearth of opportunities for the best in the business, or even
for the second or the third best. Retention of key employees and treating attrition troubles has
never been so important to companies. It is a fact that, retention of key employees is critical to
the long-term health and success of any organization. The performance of employees is often
linked directly to quality work, customer satisfaction, and increased product sales and even to
the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues
and reporting staff, effective succession planning and deeply embedded organizational
knowledge and learning. Employee retention matters, as, organizational issues such as training
time and investment, costly candidate search etc., are involved. Hence, failing to retain a key
employee is a costly proposition for any organization. Various estimates suggest that losing a
middle manager in most organizations, translates to a loss of up to five times his salary.
Employee retention strategies help organizations provide effective employee communication
to improve commitment and enhance workforce support for key corporate initiatives
 OBJECTIVES

The main objective of doing this study was to understand the nature
of work, employment. One of the biggest challenges companies are
facing is the attraction and retention of good employees and top
performers. The purpose of this project study was also to prove how
employee retention is essential in this day and age, and if the
organizations are not awake to the situation and immediate actions
are not taken to that effect, what repercussions lay ahead and how
they would affect the organization and the industry.

• To study about the employee retention in the organization.

• To ascertain the problems of the employees in the organization.
• To identify how retention strategy reduces employee turnover.

METHODOLOGY
The steps in which the project was carried out was by collecting the secondary data. This
collection of data was done by means of reading various materials such as books, journals, etc.;
looking for similar content online (i.e., on the Internet).

LIMITATIONS OF EMPLOYEE RETENTION

Employee retention has several benefits to an organization. It can reduce organizational costs
while improving work quality with the help of experienced employees. However, it can pose
some problems as well.

Let’s take a look at the problems employee retention can cause:

1. RETAINING LESS-QUALIFIED EMPLOYEES

Employee retention is one of the important policies for an organization. When these policies
are not monitored properly, it can cost organizations dearly.

Not all employees are ready to grow along with the organization. Therefore, these employees
become liable for organizations. They cannot add much value to the organization and can
adversely affect the organization.

A good retention policy can solve this problem. In this policy, managers can include certain
metrics to retain valuable employees.
2. GROUPISM

Retention can influence employees to overestimate their worth and shift power to the wrong
hands. As a result, the work quality and workflow impact a lot.

With overestimating the worth, it can create micro-groups between employees that can hamper
the balance in the workplace. It can make other employees feel insecure and shift employee
dynamics in the wrong direction.

It is important to clarify why an employee was retained in the first place. It will give them a
sense of self-worth and end groupism.

3. TOXICITY IN WORK ENVIRONMENT

Office culture is an important aspect of any organization. Without good retention policies, it
can hamper this culture.

In some instances, retention can demand more privileges than they deserve. It can create certain
problems and divide employees into several subgroups. It can initiate toxicity in the workplace
easily.

This problem can be solved by retaining employees who intend to add positive energy to the
workplace rather than introducing toxicity.

4. AFFECTING WORKPLACE PRODUCTIVITY

When organizations fail to develop proper policies for retaining employees, it can severely
impact the productivity of the workplace. It can give the employees a false sense of justification
for the wrong reasons and stop their growth.

Without proper professional development, the employees may lose their productivity. As a
result, the whole organization suffers to achieve success. It reduces the overall productivity of
the workplace.

Different recognition programs can help solve this problem. With these programs, employees
can clearly understand why they are appreciated in the workplace. It encourages them to keep
up the good work and increase productivity in the organization.
 EXECUTIVE SUMMARY

The issue of retention is stressful for most managers. Managing

high-performing employees can also be stressful at times. Combine the two and consider the
issue of retaining employees and have a recipe for mega-stress.

There is no single definition of employee retention that fits all

circumstances.

"Excellence results from dedication to daily progress. Making

something a little better everyday." - Robert Hall

"It is commitment, not authority that produces results."- William I Gore

The concept of employee retention developed as a response to

increasing voluntary employee turnover. Initially, employee retention dealt mostly with
employee "hygiene factors", primarily compensation and benefits. It soon became clear that
sustained employee retention called for a more holistic approach that dealt with employees'
"higher needs" such as acceptance, esteem, and self- fulfilment .

Each day, the competition is out to steal your most talented employees. The best defense is to
create a total work experience so attractive that your brightest star would never consider
leaving. The best managers understand that the contributions of excellent employees are what
make the difference between success and failure and they take actions to retain those people.
Nothing feels better than having a productive and happy workforce which is collectively
focused on the organization's success. The retention work should not only serve the company
but also satisfy the employee.
 CHAPTER – 2
EMPLOYEE RETENTION
 Literature review
4.1 Comfort Osaro (2016) This study investigates the relationship between talent management
and employee retention of oil firms in Rivers State. The objective of the study was to
investigate the influence of talent management and employee retention of oil firms in Rivers
State. The study adopted the survey research design. And conducted research on One hundred
& sixty-six (166) questionnaires were retrieved, and the hypotheses were tested using the
Spearman Rank Correlation. The result revealed that; there was a significant relationship
between talent management and employee retention. The study concluded management should
be concerned about developing their employee's capabilities & performance by providing them
the opportunities for career growth and development through proper guidance and feedback.
And Talent attraction significantly and positively predicts supportive management of oil firms
in Rivers State.

4.2 [Link] Mehta and Aarti Kurbetti and Ravneeta Dhankha (2014) This review paper
main objective is to identify the best practices and methods adopted by various organizations
across industries to help enhance commitment and employee retention. Focused about the
various HR practices that help employee retention and foster employee commitment in the
organization. They stressed employee retention is the top priority of organizations due to
increasing competition. They analyzed these HR Practices -compensation and benefits, hiring,
administration, organisation development, employee motivation, wellness, benefits, safety,
communication, performance management, and training, talent acquisition i.e. recruitment,
selection, training and development, reward management, performance appraisal etc.

4.3 Marie Rose Muir and Lin Li (2014) mainly identified a theoretical framework with two
levels of turnover collective and individual turnover. They probed into each level and
elaborated on the top factors in each domain. And focused the effects on turnover and retention
strategies are included for each factor. In their analysis they considered the following factors.
Advancement opportunities, Constituent attachments, Extrinsic Rewards, Flexible work
arrangements, Investments, Job satisfaction, Lack of alternative, Location, Non-work
influences, Organizational commitment, Organizational justice, Organizational prestige...etc

4.4 Muppuri. Nagabhaskar (2014) This theoretical paper investigated motivational factors
that influence employee retention and examined their impacts on both organizations and
employees. This paper argues the motivational factors that are crucial in influencing employee
retention are financial rewards, job characteristics, career development, recognition,
management and work-life balance. This research sought to identify factors that affect
employee retention and predict ways that the organization can improve on current practices.

4.5 N. Hemalatha and Dr. A. Savarimuthu, (2013) The main objectives of their study –
collected the opinion of the employee about the various aspect of the company. And identified
how the organization takes interest & develop approaches towards the retaining employee. It
is desirable state of existence involving retention strategies generally fall in to one of four
categories salary, working conditions, job enrichment and education. These four elements
together constitute. They concluded that majority 55 %t of the respondents felt that the
retention techniques of management are high to get good performance of company.

4.6 Bidisha Lahkar Das, Dr. Mukulesh Baruah (2013) This review paper mainly analysed
various research works that have been done in the area of employee retention. They highlighted
the various factors which affect retention initiatives in an organization. And explore the relation
between various factors and job satisfaction. They finally concluded still much scope remains
for more exploration in the field of employee retention and it by taking into consideration the
factors like compensation practices, leadership and supervision, career planning and
development, alternative work schedule, working conditions, flexible working hours etc.

4.7 Chandranshu Sinha and Ruchi Sinha(2012) This review selected comparative study
between two heavy engineering manufacturers in India. The data was collected from 100
employees holding middle level managerial positions in the two [Link] the analysis,
the Kaiser-Meyer-Olkin approach was used to determine the sufficiency of the sample size for
the component, while Bartlet test of sphericity was used to establish whether the correlation
matrix has meaningful difference with zero or not. Then, the explanatory factor analysis was
considered to analyse collected data. As regards this component, the following variables
formed the under three factors. 1 st factor:1. SuperiorSubordinate Relationship 2. Employee
Motivation 3. Organization Commitment 4. Communication. The 2nd factor was formed by
the following variables: 1. Skill Recognition 2. Learning and Working Climate 3. Cost
Effectiveness 4. Job Flexibility 5. Training 6. Career development. The 3rd factor was formed
by the following variables: 1. Benefits 2. Compensation 3. Cost Effectiveness.

4.8 Eric Ng Chee Hong , Lam Zheng Hao , Ramesh Kumar , Charles Ramendran, Vimala
Kadiresan (2012) In this study focused how employees regard importance of their
empowerment, equity of compensation, job design through training and expectancy toward
effective performance management on their retention. Quantitative data was collected using
the non probability self administered questionnaire that consist of questions with 5-points
Likert scales distributed to samples of 278 individuals. . The questionnaire would be distributed
to sampling amount of lecturers in University of Y to fill upand later be tested of the result
using SPSS software. By using a multiple regression analysis, it is found that, training and
development, appraisal system compensation are significant to employee retention except
employee empowerment.

4.9 Muhammad Irshad after 2009 The article described the relationship between human
resource practices and employees retention. The researchers identified elements of HR
practices that influence employee [Link] analysed Some of the recommendations they
suggested to management to manage employees towards successful attainment of
organizational goals are: [Link] in organizational culture,[Link] interview
system,[Link] over based HR Policies,4. Fair Appraisal System, [Link] talent
Recognition, [Link] hikes and promotions, [Link] Retraining, [Link] Counselling
[Link] Development Opportunities..etc
4.10 Eva Kyndt & Filip Dochy & Maya Michielsen and Bastiaan Moeyaert (2009) In this
paper mainly focused on the organisational and personal factors that influence employee
retention. They collected data from 349 employees, and 11 employees were interviewed. The
interviews are used to illustrate and contextualise the quantitative results. The results show a
large positive contribution of appreciation and stimulation of the employee to employee
retention. Their analysis mainly based on three areas. One is find out the relationship between
the perception of the learning and working climate, and employee retention, .second is identify
the relationship between being a high potential and employee retention. And third is find out
the relationship of the personal characteristics of level of education, number of children,
seniority, age, and gender to employee retention.

4.11 Toys .R (2008) analysed a comprehensive and valuable resources for all managers and
HR professionals who want to retain critical talent in their organizations. Calculation cost of
attritions and creating effective retention solution. Retention refers to the desire of organization
to hold on their good employees their measures. Retention is the other side of the recruitment
coin .how ever retaining qualified &motivated employee is a critical issue that will become
more important for the individual employee.

4.12 Bliss (2007) and Sutherland (2004) contend that organisations lost productivity, social
capital and suffer customer defection when a productive employee quits. Knowledge, skills
and contacts that a departing employee takes out of the organisation constitutes a huge loss.
These attributes are, in most cases, lost to a competitor organisation that may use this to gain
competitive advantage.

4.13 Hendricks (2006) notes that employees with scarce skills are in great demand by the
South African government and becoming difficult to source. When these categories of
employees are eventually sourced, they become even more difficult for government to retain.
It is not only, government that is finding it difficult retaining highly skilled employees.

4.14 Jane in the year (2004) has conducted the study on Trainer as retention Agent. The
findings suggested that a strategic focus on the importance of a strategic focus & delivered
training program should be made in order to enhance the organization s ability to attract &
retain the best employees leading to the success of the firm.
 EMPLOYEE RETENTION

Effective employee retention is a systematic effort by employers to

create and foster an environment that encourages current employees to remain employed, by
having policies and practices in place that address their diverse needs. A strong retention
strategy, therefore, becomes a powerful recruitment tool. Retention of key employees is critical
to the long-term health and success of any organization. It is a known fact that retaining the
best employees ensures customer satisfaction, increased product sales, satisfied colleagues and
reporting staff,effective succession planning, and deeply embedded organizational knowledge
and
learning. Employee retention matters as organizational issues such as training time and
investment, lost knowledge, insecure employees, and a costly candidate search are involved.
Hence, failing to retain a key employee is a costly proposition for an [Link]
estimates suggest that losing a middle manager in most organizations costs up to five times his
salary.
Intelligent employers always realize the importance of retaining the best talent.
Retaining talent has never been so important in the Indian scenario; however, things have
changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities
for the best in the business, or even for the second or third
best. Retention of key employees and treating attrition troubles has never been so important to
companies

It is a fact that, retention of key employees is critical to the long-term health and success of any
organization. The performance of employees is often linked directly to quality work, customer
satisfaction, and increased product sales and even to the image of a company. Whereas the
same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession
planning and deeply embedded organizational knowledge and learning. Employee retention
matters, as, organizational issues such as training time and investment, costly candidate search
etc., are involved. Hence, failing to retain a key employee is a costly proposition for any
organization. Various estimates suggest that losing a middle manager in most organizations,
translates to a loss of up to five times his salary. Employee retention strategies help
organizations provide effective employee communication to improve commitment and
enhance workforce support for key corporate initiatives
RETENTION INVOLVES FIVE BASIC THINGS

ENVIRONMENT: A motivated employee wants to contribute to work areas outside of his

specific job description. A suitable work environment is the need of an employee in an
organization as it will encourage commitment. Hopeless employees negatively upsetting the
desire level of work. A little amount of employees which are satisfied with their work not only
affect the performance but also the work environment affects the performance of employees
and performance of organization.

GROWTH: Growth is an integral part of every individual’s career. If an employee cannot

foresee his path of career development in his current organization, there are chances that he’ll
leave the organization as soon as he gets an opportunity. Grossman, J.(2002) stressed that Work
growth is the effect of employee performance in the organization as well as the result of
organizational provenance provided to employees by organization. The Growth and
productivity is the ultimate result of employee behavior such as performance, retention,
satisfaction of employees.

COMPENSATION: Compensation constitutes the largest part of the retention process. The
employees always have high expectations regarding their compensation packages.
Compensation includes: Salary and Wages, Bonus, Health Insurance, after retirement benefits.
Davies, Taylor, & Savery (2001) Compensation to top workers is given by every organization
but very few organizations uses it strategically. They said that “Salary and benefits policies are
not being used strategically, within the organization to improve morale, reduce turnover, and
achieve targets within an establishment”..

RELATIONSHIP: Sometimes the relationship with the management and the peers become
the reason for an employee to leave the organization. The management is often not able to
provide an employee a supportive work culture and environment in terms of personnel and
professional relationships. A supportive work culture helps grow employees professionally and
boosts employee’s satisfaction. There are times when an employee starts feeling bitterness
towards the management or peers, which leads to less satisfaction and eventually attrition

SUPPORT: Employees today are asking for a work place that helps them balance the demands
of their work and family lives, rather than forcing them to one over the other. Schemes like:
Special schemes for their children, Scholarship, Medical benefits, Training etc
 SIGNIFICANCE OF EMPLOYEE RETENTION

Retention is not only important just to reduce the turnover costs or the cost incurred by a
company to recruit and train. But the need of retaining employees is more important to retain
talented employees from getting poached. There are many factors which show the importance
of the employee retention. They may be the turnover cost which includes hundreds of thousands
of rupees to the company's expenses. In fact, it is difficult to calculate the turnover cost which
includes hiring costs, training costs and productivity loss, industry experts often quote 25% of
the average employee salary as a conservative estimate.

Company information loss is the next factor which shows the significance of retention. When
an employee leaves the organization, he takes with him the valuable information about the
organization, the customers, the current projects and also the past history of its competitors to
the new employer. Lot of time and money has been spent on an employee in expectation that
he works for organizations future return. When the employee leaves the organization the
investment is not realized.

Customer services are interrupted where customers and clients do business with a company in
part because of the people. The relationships between the customers and clients are developed
in such a way that encourages continued sponsorship and services of the business. When an
employee leaves the organization suddenly, the relationships that employee built for the
company are suffered and also could lead to loss of contact with potential customer. Turnover
causes to more turnovers because when an employee terminates from the organization the
effect is felt throughout the organization where co-workers are often required to pick up the
slack. The unspoken negativity from the one who has been terminated often intensifies for the
remaining staff.

Company goodwill also plays an important role in retaining the employees. The maintenance
of goodwill of a company is possible only if the attrition rates are low. By maintaining higher
employee retention rates the employer can motivate potentially talented employees to join the
organization by creating a secured environment.

The problem of regaining efficiency is also seen If an employee resigns. The good amount of
time is lost in hiring a new employee and then training him/her which indulges loss of the
company directly which many a time goes unnoticed. And even after recruiting a new employee
one cannot assure the same efficiency from the new employee as the training imparted to the
old employee according to the employers needs goes waste.
Employee Retention is not about managing retention. It is about managing people. If an
organization manages people well, employee retention will take care of itself. People want to
work for an organization which provides: Appreciation for the work done, Ample
opportunities, A friendly and cooperative environment, A feeling that the organization is
second home to employee. Employee retention has become a major goal of the organization.

THE 3 R’S TO RETAINING GREAT EMPLOYEES

What makes great employees great? It’s often a combination of experience, passion and belief
in the

company’s mission. No new hire is guaranteed to be great, and often younger employees take
time to grow into their greatness over time, and this all at the company’s expense.

When you look at the greatest organizations in the present day, we see that the answer lies in
three simple words: respect, recognition, and reward. These retention strategies can either
enhance or hinder employee satisfaction.
RESPECT
Respect may be the most important aspect of retaining great employees. Respect for employees
lies at the heart of every great company culture. Companies must respect an employee’s ideas,
beliefs and hopes in all scenarios and situations. Every human being feels the need to be
respected in their beliefs and the freedom to express themselves in the way they want. It is not
enough to say that you respect current employees, you must show it and allow them to be
themselves. It’s important to continue to communicate new employee’s value to the company
as well. You’ll want to maintain a positive mindset towards your business after the recruitment
process to make job satisfaction more likely.
Respect means not only listening to talented employees’ ideas for the company but also putting
those ideas to work. If you carefully consider feedback from employees and work with them
to develop those ideas, they will feel that their ideas matter and that those ideas have made a
positive contribution to the company. Remember to listen to both positive feedback and notes
of constructive criticism. If employees feel like their contribution is respected, they will know
that their impact at the company is larger than the work that they perform on a day-to-day basis.
Valuing employee input goes a long way in improving employee engagement.

RECOGNITION
Recognition of employee accomplishments, both in and out of the work environment, can
impact work satisfaction and provide social proof that employees contributed in a meaningful
way to the organization. The best companies don’t just recognize employees at the end of the
year, rather they find ways to recognize employees on a regular basis. One-on-one recognition
only goes so far, which is why many organizations are using technology like digital screens to
display employee or team accomplishments across corporate campuses, or are sending
company-wide emails. This allows for individual employees to be recognized on a company-
wide basis.
Recognizing an employee’s effort, and seeing others being recognized, motivates all team
members to work harder and gain that social acceptance. There is a great feeling that we all
have when we are recognized or congratulated for doing a good job; even if it is something
small, we feel more confident and know that we are a contributing member to the company’s
larger mission.

REWARD
Reward is the last step to retaining your best employees. This employee retention strategy is a
big one and if you can’t compete with your competitors, employee turnover is likely. Rewards
are the cream on top for your employees. A reward is not only a motivating factor for working
harder, but it is also a way to show employees that the organization relies on their efforts for
success. When employees contribute to that success they should be rewarded in a monetary
form in addition to social recognition. Monetary rewards are a way to personally recognize
employees on an individual level and show that their efforts are not for nothing.
Rewards should come more than once a year, and they don’t necessarily need to be significant
in size. Consistent rewards can be small gifts for successfully completing certain tasks or
projects, like providing a $10 Starbucks gift card to employees who have to come in early to
work on a project due later in the week. These little rewards display that the company is more
human than a corporation, showing that employees are cared for and are more than cogs in a
wheel used to drive company results. Investments in professional development and growth
opportunities that advance your employee’s career goals are also worthwhile rewards for hard
work. Individual departments can be given budgets for smaller rewards on a consistent basis,
while larger company rewards are reserved for special situations or as voted on by other
employees.
The three R’s may not guarantee employee retention, but keeping these top of mind will create
a company culture that is more human and employees will find it personally rewarding to work
hard for the organization. They will feel that their ideas are contributing to something bigger
than themselves by receiving social acceptance for their work and benefiting from monetary
rewards for their innovative thinking and hard work. The benefit is a win-win for the company
and employees alike
 TEN WAYS TO RETAIN EMPLOYEES
[Link] A VALUE-DRIVEN CULTURE

If you want to reduce employee attrition, it’s important to build your company culture around
fundamental humanistic values like trust, transparency, and happiness: These values should be
actively worked into day-to-day operations, rather than simply imagined by leadership.

[Link] ONBOARDING PROCESS

Day 1 is super important for every employee. It’s critical that new hires get positive vibes,
respect, and clarity from their employer, right from the beginning. An effective onboarding
process might include a company overview presentation, an in-depth team introduction, a team
lunch, and a CEO meet-and-greet. The idea is for the employee to be integrated as quickly as
possible, so they can feel connected and committed to their role.

3. PLAY WITH THEIR STRENGTHS

It’s important to recognize an employee’s strengths and give them the opportunities to use
them. Playing to strengths is far superior to the negative reinforcement that comes with
cracking down on weaknesses, or staying mute altogether. Matching work to strengths drives
better performance, better engagement, and significantly improves the employee-manager
relationship.

[Link] EMPLOYEES’ HARD WORK

It may seem an elementary point, but it really is imperative to recognize the hard work of your
employees. When employees receive due praise, they feel valued and engaged—in other words,
they care about the work they do for your company. Going beyond monetary rewards, you
might consider throwing high-performing employees a party, recognizing them at a meeting or
presentation in front of the company, and/or sending them to a one-on-one lunch with the
company boss

[Link] TRUST BY GIVING EXTRA RESPONSIBILITIES

Giving employees extra responsibilities can increase their engagement and emotional
involvement in your organization, driving retention.

Famed digital agency Big Spaceship offers food for thought. Employees at Big Spaceship are
encouraged to operate more-or-less autonomously, as experts in their own domain. This drives
them to own their responsibilities and challenge themselves, ultimately contributing to better
teamwork and more concern for company bottom-line.

6. ORGANIZE TEAM-BUILDING ACTIVITIES

While there’s certainly no shortage of ill-conceived team-building activities, well-done team-

building can indeed break down barriers between new and current employees, improving
collaboration. Socially cohesive teams work better, which has knock-on effects for job
satisfaction, and individual team members are more likely to feel attached to their jobs on a
deeper level.

You might consider team-building activities as simple as going out to a bar or restaurant, taking
a group cooking class, karaoke, an escape room, or something community-oriented like offsite
group volunteer work or starting a neighborhood garden.

[Link] YOUR VALUES, MISSION WITH EMPLOYEES

Too often employees work in a vacuum, with no idea of where the company is ultimately
headed. You should have a sense of mission that’s clear and accessible, with values that
indicate a social conscience and sense of broader, positive purpose in the world.

Sharing your company’s vision, and involving employees directly in its realization, provides a
sense of direction. It also results in better performance and collaboration.

8. OFFER SUPPORT AND SECURITY

When employees feel secure, they’ll stick around. Fostering an atmosphere where employees
are comfortable and respected is a big part of this. Support might take the form of a
compassionate fund that helps employees facing emergency situations, or generous paid
maternal and paternal leave.

[Link] ADDITIONAL BENEFITS

Offering health insurance is key to retaining employees; it’s also well worth offering life
insurance and a retirement savings plan. Apart from these life essentials, you might want to
consider adding employee benefits like unlimited vacation days and tuition reimbursement or
assistance, and perks like gym membership and spa gift cards

10. UPGRADE OFFICE EQUIPMENT

Old computers and software slow down work in more ways than one; they show your company
isn’t really interested in staying up-to-date, or enabling you to do your best work with the least
friction. Investing in new tech, and new digital tools, shows that you’re committed to the future
ahead; that you care about your employees and their work productivity.
TEN FACTORS THAT EFFECT EMPLOYEE RETENTION

1. Setting Employees Up for Success

A key factor influencing retention is ensuring every employee is set up for success in their
roles. Placing employees in talent-fulfilling positions will motivate the employee and can
benefit the organization with higher quality work and an increase in retention. Happy
employees become ambassadors for your organization, promoting your product and your
reputation as an employer to bring in new talent.

2. Work-life Balance & Personal Well-being

More and more, employees are expressing concern for “flextime,” allowing them the flexibility
to manage their working hours rather than operating on the traditional 9-5 model. Flexibility
will enable employees to focus on work-life balance while still getting their work done. Trust
in your employees can set you apart from competitors when employee turnover and the job
market supply are high.

3. Greater Stability and Job Security

Structural elements such as brand reputation, market positioning, company purpose, and
growth strategy strongly influence an employee’s decision to stay with a company. If
employees see value in staying at your organization long-term, they are less likely to search for
new opportunities. Communicate—and demonstrate—the long-term value your organization
offers so that employees can envision your company as part of their career trajectory.
4. Significant Increase in Income
With recruitment getting increasingly challenging, organizations are looking for ways to
incentivize their employees to stay loyal. As one might expect, employees react positively to
companies that reward quality work and company loyalty with salary increases. Establish a
clearly defined growth track and reward system to discuss with potential employees upfront
during interviews and periodically at goal-setting meetings.

5. GREAT COMPANY BRAND REPUTATION AND CULTURE

How your organization is viewed externally is often referred to as employer and industry
reputation and can significantly impact recruitment and retention. The industry reputation
describes how well a company is positioned within its market and the quality of its value
proposition. Employer reputation measures the quality of a given company as an employer.
[Link]
Flexibility is a business buzzword at the moment, and with good reason. As many as 89% of
British workers believe they could be more productive with higher levels of flexibility. While
remote working takes the helm, employees are also crying out for flexibility around
appointments, life events, and more.
As flexible working arrangements become the norm, employers who don’t consider this are
sure to start feeling hot under the collar. Modern workers simply won’t stick with the traditional
restrictions of the 9-5 and are sure to start looking elsewhere if that’s all you offer.

[Link]
People leave managers just as often as they leave jobs. According to a Totaljobs study, 49% of
UK employees have left a job because of a poor relationship with their manager.
Poor management in the form of lousy structuring or unnecessary strictness can destroy
everything from productivity to workplace wellbeing. More pressingly, it can cost employee
retention in a significant way.

8. Recognition
Linking with poor management style, a lack of recognition can have a significant impact on
employee turnover. No one enjoys feeling underappreciated, after all, and an ongoing lack of
recognition is sure to see employees seeking the attention they deserve elsewhere. Shockingly,
however, around 65% of workers feel unappreciated in their current roles. That’s something
you need to address if you’re to stand a chance at improving retention anytime soon.
Even if a lack of recognition doesn’t immediately cost your best employees, failure to take care
of this will lead to low morale and faltering productivity. That then leaves the doors wide open
for companies that offer notable recognition procedures and processes.

[Link] INSECURITY
You may assume that payment is a vital factor influencing employee retention, but that isn’t
altogether accurate. Unlike other issues mentioned, studies show that the compensation you
offer can only help retention when paired with other critical components. Despite that, financial
insecurity is most definitely behind many high turnovers.
It’s not difficult to work out that an employee who’s worried about money isn’t going to be as
productive or happy at work as they should be. If another company came along offering a better
salary, said team member is liable to jump ship without a second thought.

[Link] AND TRAINING

A report from SHRM (Society for Human Resource Management) shows that recruitment
practices themselves strongly influence employee turnover. In fact, a failure to consider
retention at this early stage could see you missing out on the best employees from the start.
 Even once an employee is on your team, a failure to implement training can also threaten
retention. Sadly, only a fifth of employees report receiving this workplace benefit in the last
five years.

EMPLOYEE RETENTION STRATEGIES

HOW TO REDUCE EMPLOYEE TURNOVER

There’s no singular way to ensure your employees stick around, which is why learning a variety
of effective employee retention strategies is the first logical step for any company exploring
how to reduce employee turnover and retain its key members in the long term. When it comes
to taking full advantage of the most effective employee retention strategies, Josh Sweeney,
Founder of EpicCulture states:

“I think if you know what motivates them and are able to act on that knowledge, you have the
ability to solve many downstream issues.”

A recent study showed that the average employee turnover in the United States alone was at
a record high of 19.3%. In dollar terms, this is something that companies need to think seriously
about so they can avoid the losses associated with a high turnover rate.

6 EFFECTIVE EMPLOYEE RETENTION STRATEGIES

In order for employee retention strategies to be effective, you not only need to understand what
causes employees to leave, but more importantly you need the ability to critically analyze your
own company, identify potential areas of weakness, and the willingness to proactively
strengthen those areas.

Below are six effective employee retention strategies you need to consider as you explore how
to reduce employee turnover and retain key employees within your company. Use these six
employee retention strategies to evaluate the current state of your company and consider what
specific actions you can take in each of these areas to start reducing employee turnover.

1. HIRE THE RIGHT EMPLOYEES

Employee retention begins from the moment you say “You’re hired!”

You should have a thorough hiring process for screening and interviewing new candidates.
This ensures your prospective employees understand your company goals, team mentality,
culture, and expectations. It also gives them an opportunity to meet other team members and
to internalize their thoughts on points such as:
• Can they see themselves fitting into your existing team?
• Can they see themselves contributing to and helping to grow your business?
• Will they feel heard and valued in your company?
• Do their core values align with yours?
• Do they understand the importance their role will have in your business?
“Retention is about cultivating an environment where people can do their best work. This
means a healthy dose of ownership and autonomy, hiring people that make their teammates
better, and giving everyone opportunities to advance in their craft. As a company we also want
Help Scout to represent values that our teammates are proud to be a part of.” – Nick Francis,
CEO of Help Scout

Hiring the wrong employee is costly in terms of time and dollars for any company. Ill-fitting
employees are more likely to leave an organization after a short period of time, and they will
have to be replaced by new employees as you continually hire new ones, which isn’t good for
your bottom line – or the morale of other team members. If you can consistently hire the right
employees from the start, you will almost certainly reduce employee turnover in the process.

2. TRANSPARENT COMMUNICATION

Fostering healthy, transparent communication in your company is vital to ensure your

employees feel heard and happy. It’s not enough to ensure your doors are open for your team,
you need to think about how to actively open those doors and invite your people inside.

Taking a proactive approach to internal communications ensures your employees have the
chance to air any concerns, requests, or questions that they might have at any time. This can
help break down organizational silos in the workplace and avoid any employee problems
festering in the background until it’s too late to address them.

Regular meetings and reviews provide opportunities to set goals for teams and individuals, get
feedback, counter any issues, and most importantly celebrate the successes and achievements
of your company. Companies that take steps to proactively build a work environment that
encourages open, honest, and healthy communication often discover doing so reduces their
employee turnover as well.

3. INCENTIVES AND BENEFITS

Incentives (not to be confused with bribery) continue to be an effective method of retaining

employees. Work perks, travel, retreats, performance bonuses, equity compensation, and other
company benefits can ensure employees fall in love with your company over the long term.

While it might seem like an extra expense for some businesses, the benefits of retaining key
employees far outweigh the cost of spending that little bit more of the annual budget to keep
them around. You don’t have to spend thousands – even tiny perks are better than none at all.
Giving your employees the chance to learn and grow alongside your company helps them to
feel valued and respected. Building in opportunities for ongoing training, and providing the
tools and equipment for employees to perform at their peak can also go a long way towards
reducing employee turnover.

4. ENCOURAGEMENT AND RECOGNITION

Lack of encouragement and recognition can cause employees to feel disheartened and
frustrated in their roles. It’s important to celebrate wins and achievements on a regular basis –
not only for individual employees but for your team as a whole.

Stagnation in the workplace is also a driving factor behind employee turnover. Nobody wants
to feel stuck or bored in their jobs – and we’ve all been there at some point. Encouraging your
employees to engage in multiple tasks, even if those tasks are outside their own team or core
roles, can add some much-needed variety to a workday and ultimately reduce employee
turnover.

Allowing employees to operate with a degree of autonomy instead of a strict list of what they
can and can’t do, works towards increasing trust and engagement with your company, leading
to a greater sense of job fulfillment.

Collaborations with other team members and other departments can also help your employees
feel like they are learning and contributing to the growth and success of your company,
meaning they achieve more and drive greater results.

5. REMOTE WORKING (TELECOMMUTING)

Remote work isn’t a trend. It’s a growing phenomenon, and it’s here to stay. If you’re a
company that’s resisting this trend, it could be working against you in terms of employee
retention.

Buffer’s latest State of Remote Work study revealed that 99% of employees value flexible
schedules and want to work remotely (at least some of the time) for the rest of their career.

A further 60% of employees said that if they could, they would leave their current job for a
full-time remote position at the same pay rate. If you’re a company that’s stubbornly tied to
conventional ways of working, these are sobering statistics.

Remote employees bring with them their own set of challenges – in particular, creating trust
and social connections across borders. You need to ensure your employees are doing the work
you’re paying them for, and implementing processes so that people don’t feel isolated from the
rest of the team. Building a healthy work culture is essential.

6. BUILDING A STRONG COMPANY CULTURE

Zack Onisko, CEO of Dribbble, has achieved a zero percent employee attrition rate for the
company, despite the added challenges of growing a fully remote team. Building a strong,
inclusive company culture that promotes team building is at the heart of this success.

When you’re working remotely, it’s even more important that your employees remain
productive and motivated. Creating a solid work culture that fosters employee happiness, and
helps people stay connected and focused on company goals, wherever they are on the globe, is
a top priority.

“It’s a given that you have to offer competitive compensation that reflects market trends and
an individual’s contributions to the company. When you take money off the table, though, it’s
a strong culture that attracts great people and keeps them engaged and contributing over many
years.

For us, especially because of the types of products we create, that culture is rooted in serving
the customer and everyone rallying around what we can do to make him or her successful.”

HIRE RIGHT
EMPLOYEE
S

ENCOURAGEMENT
EMPLOYEE TRANSPARENT
AND RECONGNITION
RETENTION COMMUNICATIO
N
STRATEGIES

INCENTIVES
AND
BENEFITS
 CHAPTER-3
BPO-SECTOR INDUSTRY
BUSINESS PROCESS OUTSOURCING (BPO)

Business process outsourcing (BPO) is a method of subcontracting various

business-related operations to third-party vendors.
Although BPO originally applied solely to manufacturing entities, such as soft drink
manufacturers that outsourced large segments of their supply chains, BPO now applies to the
outsourcing of services, as well.

• Business process outsourcing (BPO) utilizes third-party vendors or subcontractors to

carry out certain parts of their business operations.
• BPO began with large manufacturing companies to aid with supply chain management,
but today BPO has grown to include all sorts of sectors, including services companies.
• BPO will be considered "offshore outsourcing" if the vendor or subcontractor is located
in a different country; for instance, in the case of customer support.

UNDERSTANDING BUSINESS PROCESS OUTSOURCING (BPO)

Many businesses, from small startups to large companies, opt to outsource processes, as new
and innovative services are increasingly available in today's ever-changing, highly competitive
business climate.

Broadly speaking, companies adopt BPO practices in the two main areas of back-office and
front office operations. Back office BPO refers to a company contracting its core business
support operations such as accounting, payment processing, IT services, human resources,
regulatory compliance, and quality assurance to outside professionals who ensure the business
runs smoothly.

By contrast, front office BPO tasks commonly include customer-related services such as tech
support, sales, and marketing.

SPECIAL CONSIDERATIONS
The breadth of a business' BPO options depends on whether it contracts its operations within
or outside the borders of its home country. BPO is deemed "offshore outsourcing" if the
contract is sent to another country where there is political stability, lower labor costs, and/or
tax savings. A U.S. company using an offshore BPO vendor in Singapore is one such example
of offshore outsourcing.

BPO is referred to as "nearshore outsourcing" if the job is contracted to a neighboring country.

Such would be the case if a U.S. company partnered with a BPO vendor located in Canada.
A third option, known as "onshore outsourcing" or "domestic sourcing," occurs when BPO is
contracted within the company’s own country, even if its vendor partners are located in
different cities or states.

BPO is often referred to as information technology-enabled services (ITES) because it relies

on technology/infrastructure that enables external companies to efficiently perform their roles.

• Business process outsourcing is on the climb, evidenced by the fact that in 2017, the
estimated global market size of outsourced services was 88.9 billion U.S. dollars, which
was up $12 billion from the previous year.

THE ATTRACTION OF BUSINESS PROCESS OUTSOURCING

1. Companies are often drawn to BPO because it affords them greater operational
flexibility. By outsourcing non-core and administrative functions, companies can
reallocate time and resources to core competencies like customer relations and product
leadership, which ultimately results in advantages over competing businesses in their
industry.

2. BPO offers businesses access to innovative technological resources that they might not
otherwise have exposure to. BPO partners and companies constantly strive to improve
their processes by adopting the most recent technologies and practices.

3. Since the U.S. corporate income tax is among the highest in the developed world,
American companies benefit from outsourcing operations to countries with lower
income taxes and cheaper labor forces as viable cost reduction measures.

4. BPO also offers companies the benefits of quick and accurate reporting, improved
productivity, and the ability to swiftly reassign its resources, when necessary.

5. The BPO sector in India is estimated to have reached a 54 per cent growth in revenue
2. The demand for Indian BPO services has been growing at an annual growth rate of
50% 3. The BPO industry in India has provided jobs for over 74,400 Indians. This
number is continuing to grow on a yearly basis. The Indian BPO sector is soon to
employ over 1.1 million Indians 4. 70% of India’s BPO industry’s revenue is from
contact centers, 20% from data entry work and the remaining 10% from information
technology related work 5. Indian BPOs handle 56% of the world’s business process
outsourcing.
BUSINESS PROCESS OUTSOURCING INDUSTRY OF INDIA

1. A BPO service provider usually administers and manages a particular business process
for another company. In India, Business Process Outsourcing (BPO) is the fastest-
growing segment of the Information Technology Enabled Services (ITES) industry.
The factors which are responsible for the growth of the BPO industry in India are
economy of scale, business risk mitigation, cost advantage, utilization improvement,
and superior competency. Various industries have started implementing outsourcing
such as information technology, engineering, business sector, etc. According to the
National Association of Software and Service Companies (NASSCOM) the major
reasons behind India’s success in ITES/BPO industry are abundant skilled and
English - speaking manpower also India’s unique geographic location and the
investor-friendly tax structure made the BPO industry in India more popular. India
has been the leading competitor with various outsourcing businesses across the world
for an attractive wage margin.

• SOME FACTS ABOUT THE INDIAN BPO INDUSTRY

India’s BPO handles 56% of the world’s business process outsourcing.

The demand for Indian BPO services has been growing at an annual growth rate of 50%.

70% of India’s BPO industry’s revenue is from contact centers, 20% from data entry work,
and the remaining 10% from information technology-related work.

The BPO sector in India is estimated to have reached 54% growth in revenue.

The BPO industry in India has provided jobs for over 74,400 Indians. The Indian BPO sector
is soon to employ over 1.1 million Indians.

BUSINESS PROCESS INDUSTRY TREND GLOBALLY

India as a Global Outsourcing Hub:
More than 82% of American companies grade India as their first choice for software
outsourcing. A large number of multinational companies are outsourcing their business process
to Indian BPO companies. India’s share of the global offshore outsourcing market for software
and back-office services is 46%. Low training costs in India allow professionals to be
continually updated on emerging technologies which is a critical success factor.

TOP 10 BPO COMPANIES IN INDIA

India is the world’s favorite outsourcing destination due to the following reasons:

• Established telecom infrastructure.

• Innovation and creativity along with intelligent solutions.
• Highly qualifies and shilled manpower.
• Cost efficiency with quality.
• India’s conducive business environment.
• Biggest pool of IT brains with 120,000 trained IT professionals added to the industry
early.
• Every year approximately 2.1 million graduates pass out of India’s colleges.
• India has the largest English speaking population.
• Cultural compatibility and friendly customer relationships.
SERVICES OFFERED BY INDIAN BPO COMPANIES

• CUSTOMER SUPPORT SERVICES:

BPO companies provide 24x7 customer services via chat, email, and /or phone. In any
business ‘ Customer is King’ and no company can approach customer service function as
noncore, expensive and unproductive service in a business. A happy, satisfied customer will
bring is more customers. An effective and active customer support service will strengthen the
client and customer relationship. It will give them a positive feeling about the brand.
Companies also get an opportunity to upsell additional services and products to the customers
through this service. Companies offer such professional, polite, and affable customer support
outsourcing service to any business across the Globe.

Technical Support Services

Technical support services can be delivered over varied communication channels like email,
chat, phone calls, or using specified software. There are various technical services which are
provided by companies like installation, product support, running support, troubleshooting,
usage support, and problem resolution for computer software, hardware, peripherals, and
internet infrastructure.

Telemarketing Services
India has taken 40% of the global BPO market. Companies interacting with potential
customers and creating interest in the customer's services/ products.

The telemarketing services include:

• Cold Calling Services

• Real Estate Cold
• B2B Cold Calling Services
• B2C Cold Calling Services
• Lead Generation Services
• Appointment Setting Services
• Database Selling Services
• Customer Satisfaction Surveys
• Teleprospecting Services
• Cold Canvassing Services
• B2B Telesales Services
• Product Promotions
• Research Surveys and Polling
• Telephone and Web-Based Business Development
• Up-Selling/Cross-Selling Campaigns
• Seminar Population
IT HELP DESK SERVICES

IT help desk services helps businesses provide high-quality troubleshooting services to

customers. There are a lot of qualified and skilled support engineers which are well equipped
to provide industry-leading support for all levels of technical problem resolution.

Some of the services are listed below:

• Level 1 and 2 multi-channel support

• System problem resolutions
• Technical problem resolution
• Office productivity tools support
• Answering product usage queries
• Performing remote diagnostics

Insurance Processing
By the potential of Business Process Outsourcing (BPO) insurance companies have minimized
expenditure along with streamlining back-office operations. Outsourcing also facilitates the
insurance company to carry out daily operations by forming a foundation of profitability and
growth. It helps in reducing costs, survive any economic uncertainty, and most importantly set
a stage for future expansion and growth.

SERVICES ARE AS FOLLOWS:

• New business acquisition and promotion

• Claims processing
• Policy maintenance
• Policy management

DATA ENTRY AND DATA PROCESSING

Data entry helps companies outsource their data entry jobs with control over applications or
remote server. Companies have strong firewalls for all PCs and the latest updated anti-virus
software to keep client’s data safe and secure also have high bandwidth internet lines(with
backup) to provide quality online typing.

In any business, there are huge numbers of data with valuable information. The data which are
generated needs to be processed to exact findings, trends, and other business-critical
information. That’s why the data must be processed, analyzed, and use the results to improve
the business. This data processing service can be performed manually or automatically. There
are automated tools available that process the data as per the requirement and processed data
can then be used for analysis and further action.
The services which are done under this service are data entry from paper, books, images, e-
books, yellow pages, websites, business cards, printed documents, software applications,
receipts, bills, catalogs, and mailing list

TOP 16 BPO COMPANIES IN INDIA

The data conversion process is required to be performed as the data needs to be in a specific
format to make full use of it. It can be handwritten, audio content, video content, images,
printed material, etc.

Data conversion services are as following:-

• Data digitalization
• Extract data from images
• HTML conversion
• XML conversion
• Electronic Document Management(EDM)
• Robotic Process Automation(RPA)
• Converting handwritten to electronic format.
• Conversion of PDF content to data in different formats.
• Extracting data from receipts and online bills.
Bookkeeping software like SAGE, MS-Small Business Accounting, Peachtree, Quick
Books, and other spreadsheets are used as part of services. The experienced accounting and
bookkeeping outsourcing team adopt a personalized approach for each client. There are many
experienced accountants can work as a virtual back-office to business, to deliver essential
accounting and bookkeeping services cost-effectively within a specified time frame. The most
important part is that business information will be kept secure and confidential.

Services are listed below:

• Maintenance of the customer’s general ledger

• Accounts receivables
• Accounts payables
• Financial statements
• Bank reconciliations
• Assets/equipment ledgers

FORM PROCESSING SERVICES

Form processing has become a stressful and inefficient activity amongst a majority of the
organizations. Form processing services will also you to completely focus your time and
resources towards the more important aspects of the business. Outsourcing from processing is
a way to increase the productivity of an organization in the most cost-effective manner.

The outsource form processing services include:

• Resume processing
• Payroll processing
• Application form processing
• Shipping form processing
• Warranty card insurance claim processing
• Student and immigration form processing
• Medical form processing
• Legal form processing
• Transportation and logistics form processing
• Financial document processing
• Tax form processing
• Questionnaire form processing
• Rebate form processing
• Rental form processing
• Purchase or sales order form processing
This service provides a high level of accuracy, timely deliveries, total confidentiality, and cost-
effective web research services. Online research is the slightest costly research methodology
today. Companies collect and analyze quantitative and qualitative information to provide
reliable and effective solutions. Companies can outsource this to skilled and trained research
professionals.

Services under this are as follows

• Internet research
• Product research
• Market research
• Surveys
• Analysis
• Web research
• Mailing list research

WHAT IS OUTSOURCING?

Outsourcing is the process of obtaining goods or services or both, on commercial terms, from
third-party suppliers. Outsourcing is a form of partnership or rather a practice by which
companies prefer to transfer portions of their services to the outside suppliers instead of
completing the work internally. In simple words, outsourcing means sourcing goods and
services from outside vendors.

When small business owners talk about outsourcing, they’re usually thinking of farming out
content work,hiring an accountancy firm to take on the bookkeeping, or relying on an
employment agency to track down and deploy hired help.

ADVANTAGES OF OUTSOURCING

In the right context and deployed shrewdly, outsourcing can be a fantastic way for small
business owners to improve efficiencies and bolster their company’s bottom line.

1) TIME-SAVING: One of the top reasons small businesses tend to outsource work is
because it will get done quicker. Outsourcing will help you and your company to spend
more time working on the core business. The time that you could spend on the non-core
business will be enough to concentrate on expanding service productivity in the field
of interest.

2) REDUCED OPERATIONAL COSTS: As one might imagine, outsourcing

piecemeal work is almost always going to be cheaper than hiring permanent full-time
 staff. Once you contract out some of the services to an outside supplier or company,
you are surely going to save on an extra amount you could invest in setting up the
technology to support the outsourced services. Here you also cut off the operational
cost in infrastructure.

3) ACCESS TO EXPERTISE: Your core team might be fantastic at a few things, but
nobody is perfect at everything. By outsourcing particular tasks, companies are often
able to substantially improve performance by drawing on the niche skills of experts in
certain fields.

4) SHARING RISKS: One of the most important factors in any project is risk
assessment and analysis. By outsourcing certain campaigns or processes to experts in
their respective fields, you will benefit from their enhanced ability to plan and mitigate
potential risks.

5) SIMPLIFIED PROJECT MANAGEMENT: If you choose to outsource work via a

wide range of specialist freelance websites and online services, you’re often provided
dynamic and intuitive platforms that will help you to effectively manage what’s being
done, when it’s due for submission and how it will be paid. Most of this can be
automated, freeing up your time for more important work.

6) FLEXIBILITY AND MORE COMFORTABLE: You can streamline your

company’s operation and have closer control in running the business. Outsourcing will
also lead to the sharing of business risk, this makes it comfortable for one to invest
more without having that great fear of failure.
 DISADVANTAGES OF OUTSOURCING

• Outsourcing doesn't come without its disadvantages. Outsourcing isn’t right for every
situation, and so you’ve got to think long and hard before investing time and energy in
farming out work. These are the following cons of outsourcing-

1) SECURITY RISKS: In this age of data protection, you must exercise caution
whenever using customer data. If you plan to outsource processes that require personal
data, you could be placing the privacy of others or the security of your business at risk
by passing that data on to other people.

2) HIDDEN COSTS INCURRED MAY BE HIGH: Though outsourcing is cost-

effective to the company itself, some legal costs exist while validating a contract. Much
of the time and money may get their way out before legalizing the partnership. Also,
outsourcing companies or big agencies will typically ask small business owners to sign
lengthy contractual agreements, and they’ll include plenty of fine print. If you don’t
read the terms carefully, you could get hit with unexpected costs.

3) POTENTIAL REDUNDANCIES AND COMMUNICATION DIFFICULTIES:

Lack of interest in employees may develop adverse offshoring. The developed
reluctance in work may lead to low-quality services and a lack of customer focus
transforming to a lower market in the products and services affecting the business
negatively.

4) LOSING CONTROL: As you might expect, when you farm works out to external
agencies or freelancers, you’re losing control of how those tasks are being monitored
and performed. So long as you know and trust who you’ve hired, that shouldn’t be a
huge issue – but you’ve got to tread carefully.

5) SHARING FINANCIAL BURDENS: Although it can be nice to bring in expert

agencies to share in risks, it can be pretty dangerous to tie your business to the financial
well-being of another company. Again, you’ve got to spell out all terms and conditions
in contractual arrangements plainly – because you don’t want to take a financial hit if
they fail to deliver.

6) CHANCE OF LOSING FOCUS: Because many outsourcing agencies or freelancers

tend to service multiple clients at any given time, the work you’re sending out may not
be receiving the focus it deserves. Depending on the processes you’re outsourcing, that
lack of focus could be detrimental to your small business.

• The BPO sector in India is estimated to have reached a 54 per cent growth in
revenue 2. The demand for Indian BPO services has been growing at an annual
 growth rate of 50% 3. The BPO industry in India has provided jobs for over 74,400
Indians. This number is continuing to grow on a yearly basis. The Indian BPO
sector is soon to employ over 1.1 million Indians 4. 70% of India’s BPO industry’s
revenue is from contact centers, 20% from data entry work and the remaining
10% from information technology related work 5. Indian BPOs handle 56% of the
world’s business process outsourcing
• Serious competitor of India in BPO sector Philippines boast of strong skills in
finance and [Link] and Malaysia are competitive with India.
However, India’s main competitors in the BPO space produce a fraction of the
graduates that India does

CHALLANGES FOR AN HR PROFESSIONAL IN BPO

CHALLENGE 1: REPETITIVE TASKS LIMIT EMPLOYEES’ OUTPUT

Doing the same exact tasks day-in and day-out isn’t necessarily the most efficient way to
operate. In many cases, repetitive tasks can be automated, which can both increase productivity
and allow employees to focus on other value-added actions like customer service.

For example, if employees handling sales inquiries need to send the same or similar initial
outreach email to every prospect, manually typing each email can be tough. Not only is it slow,
but if employees get bored they may start to make mistakes.

To help solve this issue, offshoring companies can turn to technology like text expansion. Text
expansion tools like TextExpander empower people to easily insert frequently-used content
wherever they type to eliminate manual repetition.

BPO companies can create shared libraries of frequently used text so that employees can easily
drop them into whatever they’re working on. This can help increase accuracy while increasing
employees’ output. From there, they can have more time to dedicate to more complex issues
that require their full attention.

CHALLENGE 2: EMPLOYEE TURNOVER DRAGS ON PRODUCTIVITY

Far too many companies deal with frequent employee turnover, which hampers productivity.
This can be especially challenging for outsourcing companies, who often manage large teams
of varying skill levels.

In the US, Gallup conservatively estimates that replacing an employee costs between one-half
to two times their annual salary. And in addition to the cost of finding and training new
employees, turnover can also cause a number of knock-on issues within your workforce and
beyond, especially when you lose your top talent.
“Internally, it breaks down team morale. Externally, it can mean lost customer relationships,”

-Gallup.

Limiting turnover requires a number of changes, starting with simply making sure employees
feel stimulated at work. Two out of five US employees would quit their jobs due to boredom,
according to an OfficeTeam survey.

Reducing boredom clearly pays off, but it’s not an easy task for BPO providers. As we
discussed in the last section, BPO work often involves repetitive tasks that adhere to a strict
process.

The key is making this work take less time and effort to help employees feel like they’re doing
less busywork. By using text expansion tools like TextExpander to eliminate repetitive typing,
people can focus on more stimulating, rewarding tasks.

CHALLENGE 3: Quickly hiring or reallocating staff causes training challenges

Admittedly, there’s nothing that can eliminate turnover altogether. Turnover does happen, and
it can lead to “longer/more frequent training times, interrupted schedules, additional overtime,”
and several other consequences, notes Work Institute. Even more frustrating, over one-third of
workers who leave their employers do so within a year; among this group, two-thirds leave in
just the first six months.

That can make training costs even tougher to swallow. If it takes several months to get
employees up to speed, they could be gone before they’ve had a chance to provide much, if
any, value to an organization.

Even when turnover isn’t an issue, offshoring companies often need to hire or reallocate staff
quickly as they add new clients or scale up for existing ones.

That’s why it’s so important to tackle the twin problems of both turnover and training time.
The quicker BPO companies can get employees the training they need, and the longer they can
keep employees, the better off they’ll generally be.

Take When BPO companies first ventured into the Indian market, they brought along with
them a hype never seen before. During those days, the Human Resources Department was
responsible primarily for payroll and staffing. As the hue and cry over the popularity of BPOs
has died down, the role of HR personnel has widened.
Since working at a BPO can often get repetitive, especially for customer care executives, the
onus falls on the HR to lighten up the atmosphere at work. They are accountable for creating
and promoting a comfortable work culture. If need be, they should also take charge of team
debriefings to facilitate a clear understanding of stress factors. For this, it becomes a top priority
to review the company policies from time to time and also predict changes in technology and
the demands of customers.

Since the responsibility shouldered by the HR department in a BPO is so monumental, they are
also bound to face the following challenges, especially in the present year

1. MANAGING MORE PEOPLE IN THE LEAST POSSIBLE TIME

This is one of the most obvious difficulties that HR professionals working for BPOs face. They
assume the responsibility of managing a large workforce and this particular challenge demands
top-notch interpersonal skills.

2. BRANDING
Brand equity is another major component of the job description of an HR staff. Preconceived
notions about the low profile of a BPO needs to be eliminated by providing a positive work
environment and selecting the best candidates for the job, thus building the organization’s
brand impression.

3. PROVIDING TRAINING BEFORE A NEW EMPLOYEE BEGINS WORK

Often it has been observed that new recruits are overloaded with work even before they have
been properly inducted. This leads to low quality output and thus builds up on employee
frustration. The issue can be tackled by providing training to an employee from day 1, even
before he has been allotted his duties.

4. EMPLOYEE RETENTION AND EXIT MANAGEMENT

It is solely (though unfairly) the HR department's duty to retain the best employees in the
company, hence reducing the attrition rate. In case employees do decide to bid farewell, the
processes in place for their exit should be clear and hassle-free. Management in such areas is a
major concern and the HR professionals should strive to review company policies and
regulations every now and then.

5. UNREALISTIC CLIENT EXPECTATIONS

Since companies outsource a wide range of their processes to BPOs, they have every right to
express their requirements. However client companies often make demands that are unrealistic
and hold expectations that exceed limits. Starting from providing information security to
ensuring timeliness and quality, the burden solely falls on the HR department.
 6. LACK OF BENCHMARKS
An Indian BPO's major drawback is the fact that there are no standardized benchmarks for
deciding HR policies, salary structure and employee benefits. This poses a challenge to HR
personnel since these policies vary as per company needs.

7. DEARTH OF CERTIFICATIONS AND TRAINING

BPOs are still lagging behind when it comes to customized, process-specific training and valid
certifications. The onus hence is upon HR professionals to generate ample opportunities for
such training.

Though these are challenges that can often pull us down, HR professionals can always find
new, unconventional methods to overcome these. Thinking out of the box is always a good
idea; add to that the much needed personal touch and the job becomes easier. Working for a
BPO can get quite disconcerting, but once you’ve figured out a workaround, the perks of being
an HR professional are full and plenty.

• While outsourcing is considered a strategic solution that provides startups and small
companies all the help needed for managing various operations, the industry itself has
its own daily challenges.
• Companies operating in the Business Process Outsourcing (BPO) sector have a
considerable number of employees. Therefore, one of the main challenges for the sector
is human resources. BPOs. Many BPOs specialize in HR outsourcing for other sellers,
but what about their own HR activities.
• One of the reasons why companies all over the world decide to delegate operations such
as customer care, market research, sales, or HR to a BPO partner is because the latter
provides the needed workforce the required qualifications. Hence, the seller avoids all
the tasks related to staff recruitment, training, and talent retention and the financial
burden that they bring in for the company.
• The HR department’s responsibilities in a BPO company go beyond recruitment and
payroll. BPOs mostly deal with the repetitive, boring, and time-consuming tasks that
sellers can’t afford to do in-house. Therefore, one of the tasks of the HR specialists is
to make sure that all their employees are motivated and that the general atmosphere in
the company happy. This is crucial for creating and promoting a positive culture within
the company.
• BPOs create the link between the seller and their customers. Their role is to build a
great relationship between both sides. Managing hundreds of employees at the same
time is one of the most difficult tasks for the HR department. Dedicated and positive
HR specialists are able to establish great communication with the staff. Therefore, they
can identify problems and address them through changes to internal policies or through
the integration of new technologies that make the work process easier for everyone
• Customer-companies tend to demand better results from outsourcing partners than
what they could actually expect from their own departments. When the job is being
 done 10,000 miles away, demands on parameters such as quality, turn around
timeliness, information security, business continuity and disaster recovery, etc, are far
higher than at home.
• Lack of focused training and certifications Given this background, the recruiting and
compensation challenges of HR departments are only understandable.

TRAINING:

Training is a must in a BPO, for the new and old staff. Ongoing training is crucial to
help the new recruits understand the way how the organization works and also its
culture and values. In the meantime, older employees must receive continuous training
in order to gain new skills and improve their career prospects within the organization.
This would help with talent retention.

TALENT RETENTION:

One of the HR tasks is to recruit new talent and keep them as much as they can. HR
defines salary structures and employee benefits. Yet, people decide to leave a company
for various reasons. The HR specialists have to make sure that all labor law policies are
updated and that both the employment and exit processes are carried easily.
• The key to success in ramping up talent in a BPO environment is a rapid training
module. The training component has to be seen as an important sub-process, requiring
constant re-engineering. HR Practices being practiced by some of the Leading
BPO’s WNS: In a bid to retain its experienced professionals in the midst of growing
demand for trained manpower, business process outsourcing (BPO) firm WNS Global
Services (P) Ltd has opted for a competency-based framework for selection and
promotion of its key personnel. The idea is to fill up a majority of the leadership
positions from within WNS instead of importing talent from outside. It is also an
attempt to keep out bias in the system and increase transparency. The program is
performance-driven and puts in place a scientific process, which, matches employees
knowledge, skills and attributes with the role requirements. WNS is among the first
companies in the BPO space to opt for a competency-based framework and integrate it
with HR practices. Apart from compensation, developing managerial talent from within
the organization is considered to be an important retention tool. Skills of the middle
management level would be critical as operations are ramped up. Identifying talent and
building capabilities to enable them to handle larger teams and develop new skill-sets
that drive business dealing capability is needed. HSS (Skills and Behavioral Training)
HSS' work culture and value system are the key foundation in creating a unique
workplace. There is a strong emphasis on Skill and Behavioral Training, Leadership
Development and e Learning. Its practices are benchmarked by the entire industry. HSS
is a winner of several industry awards for its HR practice.
 • Major challenge for HR manager in BPO's is to reduce attrition. B'coz it is due to
attrition that they have to incur cost on recruitment , selection, orientation & training &
development of employee need to work out this problem.

BPO FOR HR PRATICE

HR BPO is the process of outsourcing your HR activities to specialized HR BPO vendors.

These vendors will handle the HR activities you choose to outsource – giving you more space
to focus on your core business activities. Some of these tasks include:

• High-volume recruiting.
• Payroll and benefits administration.
• Developing and implementing training programs

HR BPO Vendors?

A human resources business process outsourcing vendor is a business that provides HR

solutions to their clients. They can handle just a few of your HRM tasks or even manage all of
your human resources functions – depending on what you want.

There are largely two types of HR BPO vendors:

Human Resource Outsourcing (HRO) firms

Professional Employer Organizations (PEO)

Here’s how these two vendors differ:

Service Set-Up and Decision Making

A. HRO

HRO providers help with tasks such as payroll, taxes, and talent recruitment. The workload
they handle is largely fixed and you’ll still retain control of all major HR admin decisions.

B. PEO

PEOs take over your business’ entire HR process. They do everything from hiring to training
and performance management. If you outsource to a PEO, they’ll be in charge of major HR
decision making processes.
Taxes and Legal Compliance

A. HRO

HROs are service providers to your business – they’re not fully-fledged employees of your
company. They simply perform the tasks assigned to them and charge you a fee. You’ll have
to handle all the tax and legal implications resulting from your HR activities by yourself.

B. PEO

As PEOs take complete control of your HR processes, they can also file the taxes related your
HR activities. They can also manage any legal issues surrounding your HR functions.

2. EMPLOYER STATUS

A. HRO

HRO vendors engage in a client-provider relationship with your business. They’re not
employees or co-owners of your business. They deliver a service for a fee but do not interfere
with your business decisions.

B. PEO

A PEO’s integrated role with your business makes them an extension of your firm – taking
over all your HR data and responsibilities. They usually play a major role in your HR-related
business decisions

There are tons of HR activities that you can outsource. Here’s a closer look at some of the most
commonly outsourced HR activities

1. PAYROLL AND TAX ADMINISTRATION

What’s the most painstaking part of HR administration?

Dealing with countless tax and legal obligations.

Whether it’s managing income taxes or handling employee issues – there’s a lot of tax and
legal work involved in HR. As these are such vital activities, you’ll need someone with prior
experience and formal training to handle this.

Instead of trying to manage these activities in-house and risk overworking your team, why not
outsource it?

HRO vendors help companies manage their taxes and payroll by:
 • Paying employee salaries, benefits and relevant taxes.
• Filing taxes and other documentation with authorities.
• Resolving issues that arise regarding employee salaries, benefits and taxes.
This saves you the time and effort of managing all of this by yourself!

2. RECRUITING TALENT
Your staff will make or break your company.

So it makes sense that you hire the best, right?

You need expert recruiters to thoroughly find and screen candidates that apply. The problem
is, most companies let their senior managers handle recruitment activities.

While there’s nothing wrong with letting managers in on the hiring process – they’re not
experts in the field and may already be overworked.

Instead of this, why not outsource your recruitment activities to a dedicated HR BPO firm?

They have all the expertise needed to carefully sort through candidates and find the best ones.
They can manage tasks like:

• Advertising vacancies.
• Filtering applications.
• Conducting interviews.
• Negotiating offers.
In addition to recruiting, HRO vendors can also train new hires to help them integrate quicker.

3. COMPLETE HR OUTSOURCING SOLUTIONS

Many companies hire HR BPO vendors to help them with specific HR activities to reduce their
workload.

But what if you’re a small business who needs a global HR overhaul?

HR BPO vendors can also overtake your entire HR process to lessen your workload. They’ll
plan your HR business strategy, detailing how you should approach the entire HR process.
These plans cover your entire HR delivery model, from employee benefits administration to
maintain legal compliance.

This saves you the trouble of conceptualizing and implementing everything on your own!
BENEFITS OF OUTSOURCING YOUR HR PROCESS

There are tons of reasons why you should outsource your HR activities. Here’s a closer look at
them:

1. COST SAVINGS
What’s the #1 reason why businesses outsource?

To save a ton of money.

By outsourcing services, you no longer have to manage things in-house. This will reduce your
payroll expenses and the money spent on training your staff. Often, companies also outsource
to countries with lower wage rates to save costs.

For example, if you’re a company based in the United States, you can outsource your HR work
to service centers in the Philippines. This allows you to access top-quality talent at a fraction
of the cost!

Additionally, most HR BPO firms adopt a shared service model where they handle tons of
clients. This allows them to acquire more cost-effective plans for their clients- such as lower
insurance premiums.

2. REDUCES THE LEGAL HASSLE

It’s no secret that HR involves tons of legal paperwork.
As this can be complicated, you need a dedicated team to handle it.

Remember, any hiccups here can lead to penalties – and even lawsuits.

Instead of keeping a dedicated team on your payroll, why not simply outsource the activity?

As this outsourced team is made up of experts, you won’t have to worry about any mixups
taking place. They can easily handle all your HR paperwork and file it for you!

3. PREVENTS OVERWORKING YOUR EMPLOYEES

Most in-house HR teams handle more work than they’re hired for. Whether it’s additional
administrative work or working with another department, the scope of their workload isn’t
well-defined.

The problem with this approach is that it can overwork your employees. As they’re forced to
handle so many different things, they won’t be able to focus on their core HR work.
That’s why it makes sense to outsource your HR activities to dedicated HR professionals in a
BPO firm. As this is all they’ll be focused on, you won’t have to worry about overworking
them.

RISKS ASSOCIATED WITH OUTSOURCING HR

While outsourcing your HR activities can help you, there are a few risks involved:

1. EMPLOYEE RESISTANCE
One of the key benefits of having a built-in HR department is that all your HR issues are kept
[Link] an employee has an issue, they can go to your company’s in-house HR
department and get it [Link] what happens if you outsource your HR?As you don’t have
an in-house HR team, your employees forced to go to an external party to deal with their issues.
This issue is magnified by the fact that most HR issues are personal – such as problems with
coworkers, bosses, workloads, etc.

Most employees are uncomfortable talking about these issues with an external party for privacy
reasons. Some may even be apprehensive because they don’t believe an external party will
understand their perspective as well as an in-house team.

2. POTENTIAL CONFIDENTIALITY ISSUES

Your HR department handles tons of sensitive information such as:

• Employee complaints.
• Their personal information.
• Their financial records.
Naturally, keeping all this information confidential is essential. You can’t afford to let this
information reach the wrong hands, right?

The problem is, when you outsource your HR activities, a third-party gets access to these
sensitive records. While most HR BPO firms are incredibly trustworthy, sharing anything
outside your organization always carries risk.

This can increase your chances of a data breach that could compromise your company’s and
employee’s security.

[Link] TO MONITOR YOUR HR ACTIVITIES

The problem with outsourcing any activity is that it’s incredibly difficult to monitor what’s
going on.
Think about it.

When you run an in-house team, you’re able to monitor their work constantly because they’re
in the same office. But when you outsource, you’re handing your work over to an independent
HR BPO agent that could be thousands of miles away.

This can make it difficult to know:

• How productive your outsourced team is.

• If they’re focused during work hours.
• If they’re billing you accurately.
Luckily, there’s a solution to this BPO monitoring problem.

All you have to do is use performance monitoring tools like Time Doctor!

Time Doctor is a powerful performance monitoring tool used by companies that can help you
monitor your outsourced HR staff.

The software can help you keep track of what tasks your outsourced team is working on and
the hours they have dedicated to each task.

This is especially useful if you are outsourcing your HR operations to a small company or
independent freelancers

1. IT HELPS YOUR OUTSOURCED STAFF EASILY TRACK THEIR

ACTIVITIES

You won’t be able to monitor your outsourced staff if they don’t use your monitoring tool in
the first place, right?

That’s why TimeDoctor is super easy to use.

All a user has to do is:

• Open the application.

• Type in the task they’re working on.
• Start the timer – where the app will track time quietly in the background.
• Pause the timer when they’re done.

2. POWERFUL REPORTING TO KEEP TRACK OF YOUR BPO ACTIVITIES

Time Doctor has tons of detailed reports to give you a real-time look at your outsourced staff’s
productivity. Here’s a brief look at them:
 • Timesheet Report – Shows you the time worked by all your outsourced staff within a
given time frame.
• Time Use Report – Breakdown of the time spent on all tasks by a single staff member.
• Timeline Daily Report – Chronological breakdown of time spent by a staff member
on a given day.
• Projects Report – Shows you who worked on your projects and for how long.
• Web and App Usage Report – A breakdown of each app and site accessed by someone
during work hours.
• Poor Time Use Report – Highlights any unproductive apps & sites accessed by
someone during work hours

3. CAN MANAGE DISTRACTIONS EFFICIENTLY

As HR work is incredibly important to your company, you need your outsourced staff
completely focused on it.

You can’t have them browsing Facebook while dealing with employee complaints, right?

That’s why Time Doctor has built-in distraction management features.

Whenever a user opens an unproductive site or app while working, a popup asks them if they’re
still working. This is usually enough to get distracted workers back on track.

The Best HR BPO Vendors

Here are the best HR BPO vendors on the market today

1. AON HEWITT
Aon Hewitt is a human capital and management consulting firm founded in 1940. It’s
headquartered in Illinois and has a presence of 500 offices spanning 120 countries.

KEY HR BPO SERVICES:

• Talent Management
• Payroll services
• Retirement plans
• Health and Benefits

2. IBM
International Business Machines (IBM) is a multinational information technology company
operating in 170 countries and employing over 350,000 people.

Key HR BPO Services:

• Cloud HR services
 • Artificial Intelligence-based recruiting
• Talent development

3. NORTHGATEARINSO (NGA) HR

NGA HR operated as Arinso from its founding in 1969 until its acquisition by Northgate in
2007. NorthgateArinso operates in 35 countries across five continents and employs over 4,500
workers.

KEY HR BPO SERVICES:

• Payroll outsourcing
• HR as a service software
• HR analytics

4. AUTOMATIC DATA PROCESSING (ADP)

ADP is a provider of human resource management software and HR technology solutions.
They employ around 57,000 people and operate globally.

KEY HR BPO SERVICES:

• Global payroll
• Tax services

Conclusion
Outsourcing your HR activities is a great way to save costs and increase efficiency. It allows
you to focus on your core competencies while simultaneously giving your HR activities the
attention it deserves.

With tons of capable outsourcing options available today, you’ll have no trouble finding one
that perfectly fits your needs!

EMPLOYEE BENEFITS PROVIDED BY BPO

• Employee Benefits Provided By Majority Of the BPO Companies Provident Fund: As

per the statutory guidelines, the employee is required to contribute a percentage of his
basic salary and DA to a common fund. The employer for this fund contributes as well.
The employee can use the amount deposited in this fund for various personal purposes
such as purchase of a new house, marriage etc. Gratuity: Gratuity is one of the retrial
benefits given to the employee in which the employer every year contributes a particular
amount. The fund created can be used by the employee for the purpose of long-term
investment in various things such as a house etc.
• Group Mediclaim Insurance Scheme: This insurance scheme is to provide adequate
insurance coverage of employees for expenses related to hospitalization due to illness,
disease or injury or pregnancy in case of female employees or spouse of male
employees. All employees and their dependent family members are eligible. Dependent
family members include spouse, non-earning parents and children above three months.

• Personal Accident Insurance Scheme: This scheme is to provide adequate insurance

coverage for Hospitalization expenses arising out of injuries sustained in an accident.
It is applicable to all the employees of JFWTC and covers total / partial disablement /
death due to accident and due to accidents. Subsidized Food and Transportation:

• The organizations provides transportation facility to all the employees from home till
office at subsidized rates. The lunch provided is also subsidized. Company Leased
Accommodation: Some of the companies provides shared accommodation for all the
out station employees, in fact some of the BPO companies also undertakes to pay
electricity/water bills as well as the Society charges for the shared accommodation. The
purpose is to provide to the employees to lead a more comfortable work life balance.
Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include
pool tables, chess tables and coffee bars. Companies also have well equipped gyms,
personal trainers and showers at facilities.

• Corporate Credit Card: The main purpose of the corporate credit card is enable the
timely and efficient payment of official expenses which the employees undertake for
purposes such as travel related expenses like Hotel bills, Air tickets etc Cellular Phone
/ Laptop: Cellular phone and / or Laptop is provided to the employees on the basis of
business need. The employee is responsible for the maintenance and safeguarding of
the asset. Personal Health Care (Regular medical check-ups): Some of the BPO'S
provides the facility for extensive health check-up. For employees with above 40 years
of age, the medical check-up can be done once a year.

• Loans: Many BPO companies provides loan facility on three different occasions:
Employees are provided with financial assistance in case of a medical emergency.
Employees are also provided with financial assistance at the time of their wedding.
And, The new recruits are provided with interest free loans to assist them in their initial
settlement at the work location.

• Educational Benefits: Many BPO companies have this policy to develop the
personality and knowledge level of their employees and hence reimburses the expenses
incurred towards tuition fees, examination fees, and purchase of books subject, for
 pursuing MBA, and/or other management qualification at India's top most Business
Schools.

• Performance based incentives: In many BPO companies they have plans for ,
performance based incentive scheme. The parameters for calculation are process
performance i.e. speed, accuracy and productivity of each process. The Pay for
Performance can be as much as 22% of the salary

• Flexi-time: The main objective of the flextime policy is to provide opportunity to

employees to work with flexible work schedules and set out conditions for availing this
provision. Flexible work schedules are initiated by employees and approved by
management to meet business commitments while supporting employee personal life
needs .The factors on which Flexi time is allowed to an employee include: Child or
Parent care, Health situation, Maternity, Formal education program Flexible Salary
Benefits:

• Its main objective is to provide flexibility to the employees to plan a tax-effective

compensation structure by balancing the monthly net income, yearly benefits and
income tax payable. It is applicable of all the employees of the organization. The Salary
consists of Basic, DA and Conveyance Allowance.

• The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel
Assistance, Medical Reimbursement, Special Allowance Regular Get together and
other cultural programs:

• The companies organizes cultural program as and when possible but most of the times,
once in a quarter, in which all the employees are given an opportunity to display their
talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also
conduct various sports programs such as Cricket, football, etc and regularly play
matches with the teams of other organizations and colleges
.
• Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based
on their level in the organization. Employee Referral Scheme: In several companies
employee referral scheme is implemented to encourage employees to refer friends and
relatives for employment in the organization.

• In general a person with any graduation can join any of the BPO. Some BPO's like to
take people with MBA but then again the specialization are of an individual hardly
makes any difference. Again, this is the industry, where there is no reference checks
and very often people don't even specify there exact age. Lets me share with you some
 of the reasons as why people prefer to join a BPO. Find nothing better to do. Education
level doesn't matter Good work environment Good Benefits Flexibility of time
Attractive life style Transport facility read more at.

1. FINDINGS AT BPO

In the BPO industry, clients often prefer working with a team specializing in a particular
field, such as the travel industry, food industry, etc. In addition, the client needs the
outsourcing center to be an asset to their business rather than a liability.
Therefore, researching what the company is about and its needs could help seal the deal. It’s
always wise to see the client’s vision, principles, and direction of their business as it allows
you as a BPO business owner to focus on how you can better meet their needs.

To illustrate, a BPO company could analyze the aspects of the client’s operation that need
improvement. By doing this, it could reflect the attentiveness and thoroughness of the BPO
company.

Another good option is to niche down on a particular county. For example, if your customers
are US-based, spending time learning about the legal requirements for their industry/county
can be a fantastic unique selling point, well looking at how to find BPO clients.

2. HIGHLIGHT WHY YOU ARE ESSENTIAL

It is often common practice for BPO companies to propose how their expertise could benefit
the client. This is usually accomplished by offering a solid proposal. But so often, companies
send out standard proposals. (Not a good idea if you are looking at how to find clients for a
BPO)

When I was looking for the services of a BPO company, I was sent many proposals that I could
have found online, meaning that they were basic templates. The one that hit me the hardest and
attracted me the most was a personal proposal that highlighted the benefits of their service.
However, they added charts and visuals about precisely how my business and their business
would operate.

As a visual learner, I was thrilled to see this information, and it was amazing to see. The benefits
were not any different, but the way the messages were delivered was extraordinary.

Most companies would have already identified the need to outsource from BPO companies.
Thus, to go a step further, suggesting solutions or improvements that the clients would not have
identified can give a BPO company the edge. This is also an excellent opening for up & cross-
selling.

3. CONSIDER GIVING TO GET

An effective way to convince clients of a BPO company’s expertise is by showing instead of

telling. This marketing strategy is effective for BPO companies as it often has many perks.

For example, if you are a new BPO business owner/manager and are looking at how to find
call center clients, you will most likely need to test the operations on a particular part of a
business. Offering a free service or trial is a great way to gain new clients for a BPO center and
help test the internal processes.

Showing the client how you operate and what you can provide is a great way to make an official
agreement with new clients.

4. ADDRESS THEIR MAIN WORRIES

Clients who have not tried outsourcing previously can often worry about the risks associated
with working with a BPO company. Some of these could be:

• Paying & Not Receiving What Was Promised

• Processes Become A Liability
• Delayed Tasks Affecting Business Operations
• Poor Communication
There are also many more, but the most important thing is to address these pain points and
worries. This is because these worries can become a barrier for a potential client. So if you are
wondering how to get clients for a BPO, then addressing the worries is an important step.

Making formal agreements with payment terms before any work is started may help with any
concerns they have. In other words, getting rid of the risk factors could be the key to making
the client feel more comfortable working with your outsourcing company.

5. CALCULATE YOUR COSTS

A budget Is often one of the most common concerns for clients. Therefore, BPO companies
need to calculate their services carefully. This can include offering a better service or a better
price. There is an old saying about the business, and it goes, “Either be first or be the best.” So
the question is, can you be the best in terms of service or cost?

Nevertheless, it is best to ensure that the rates would not gravely compromise the company.
Sadly some companies spend more time cutting prices rather than increasing value. This is so
critical when looking at how to get clients for a BPO.

Monitoring the market trend and the competition’s prices could also help BPO companies as it
will help gauge a reasonable rate that would benefit both parties. An additional tip for call
center business owners is to allow a customer’s attention to focus on the savings that He/she
can receive from your service.

6. FINDING THEIR REAL “WHY”

• Less Internal Work
A company would not need to monitor and assess the performance of its employees when it
outsourced. Instead, it could concentrate on the more essential aspects of the business. As a
result, it could give the company a competitive edge and improve its value. As a result, in due
time, the clients for BPO could have increased profits and better customer relations.

This is one of the biggest reasons why clients choose to outsource. If you are looking at how
to get clients for a BPO/call center, then this is one area to focus on. Pressing on this desire
will help you show the client the value of your service.

• WORK QUALITY
“BPO companies could focus on a specific work type. “It would be fantastic for the non-core
tasks of a business to be outsourced.” That is what one customer said in a recent review of a
call center based in the Philippines. BPOs could also install the latest technologies and
specialize in processing. This could help businesses increase their capacity and improve core
work accuracy.
If your call centre/BPO offers a particular service, which would result in improved work quality
for a client, then highlighting this is another great way to get clients for a BPO.

• FULL COVERAGE
Some BPO companies provide services 24 hours a day and even in different languages. This
gives BPOs an advantage in various countries. Outsourcing could also help minimize the need
to establish different departments for the client. There are also many other BPO types of
coverages that you could offer to help increase your value.

• RESULTS
Guaranteeing benefits to the client could entail a lot of pressure for the BPO company. Some
of these expected benefits could be:

6. Improvements In Processes
7. Better Customer Service
8. Flexibility
9. Fewer Expenses
10. Reduction Of Risk Factors
There is an old business saying, “People pay for results” the growth of the business needs to
overdeliver where possible. But, it is imperative to add clarification into the contract.

By making the expectations clear and documenting the work, the vendor and the client could
establish trust. The client could delegate work and set deadlines. Then, the BPO partner would
have the opportunity to reach and surpass the client’s expectations. This is a fantastic way to
find new BPO customers.

Before diving into ways to get clients, where could BPO companies search for clients? Most
BPO companies could get clients, big or small, from referrals. Therefore, it is crucial to
maintain a relationship with clients by clearly communicating with them.

Other clients for BPO could come from quotation requests or direct messages from the website
or through social media. Therefore, having an excellent online presence could play an essential
role in getting clients.
 DATA ENTRY AND TRANSCRIPTION

Data entry is another common type of work that BPOs offer their clients, and many of
the jobs in this field are home-based. Typically, the work-at-home jobs in data entry are for
independent contractors. Often they pay per piece, which can mean less than minimum wage.
Many data entry companies make use of crowdsourcing to spread the available work out to a
large, remote workforce. Transcription requires more skill and usually pays better than data
entry.

• Data Entry Jobs List

MEDICAL BPO

Hospitals, medical practices, and insurance companies commonly contract with BPOs
specializing in medical-related business processes, such as medical coding, billing, and
transcription.

• Medical Coding
• Medical Transcription
• Medical Call Center Jobs
• Other Medical Jobs From Home

ACCOUNTING/BOOKKEEPING

Accounting and bookkeeping functions are often contracted out to BPOs. However, relatively
few BPOs use home-based workers for this type of work. But, you will find a few in this list
of work

Other BPO Jobs

Many BPOs need bilingual workers for a variety of jobs such as translation, globalization,
and search evaluation. The job requirements and pay will vary depending on the position and
amount of skill required for the job.

• Translation Jobs
• Search Evaluation Jobs
• Insurance Jobs From Home

• Assess Your Needs – The first crucial step of how to find a best-qualified BPO company
is to assess your needs. Evaluating and analyzing what your organization needs from
BPO to be successful is undeniably essential for you to be satisfied with your BPO
company’s work, services, and results.
• Decide What Tasks & Processes to Outsource – In addition to assessing your needs, it
is also important to decide what specific tasks are most beneficial to be taken care of
with BPO as opposed to in-house. This step requires extensive tracking and analysis to
ensure that you are making the most of BPO.

• Research Extensively – If you are wondering how to find a best-qualified BPO

company, it is crucial to conduct as much research as [Link] extensive research,
you can gain insight into how different BPO companies communicate with their clients,
conduct their services, and more.

• Create Requirements & Qualifications – If you are looking to outsource your business’s
most complex operations, you must create requirements for specific skills and
[Link] these in place, you can be assured that your BPO team is fully
equipped to complete the work.

• Establish Goals – Goals are a critical factor in how to find a best-qualified BPO
company. By establishing goals for your work, you have concrete evidence of what you
hope to gain from BPO, which minimizes risk.

• Be Transparent in Your Expectations – Similar to establishing goals, communicating

these goals and expectations with your BPO company is also critical for success. When
you are transparent about your expectations with a BPO company, they will know
precisely how to fulfill their duties and meet your needs.

• Conduct Trial of Services – Trial services are a great way to see exactly how a BPO
company will work with you. If you can find a BPO company that will conduct trial
services, you gain real insight into the company so that you can decide whether or not
they are a good fit for your business.

• Analyze Potential Issues – When you analyze potential issues early in the process, you
can take active steps to avoid [Link] these potential issues are addressed, you can
create appropriate problem-solving mechanisms.

• Evaluate Often – Evaluation needs to be done regularly to make sure that you are
working with the right BPO company for your organization. It is simply not enough to
evaluate once. When you assess your BPO company regularly, they have concrete
feedback to work with to best help your business succeed.
 BPO COMPANY QUALIFICATIONS

What To Look For

Businesses that are considering working with a BPO company should know what to look for
from potential partners. If you want to know how to find a best-qualified BPO company, some
essential qualifications are excellent indicators you are dealing with seasoned professionals:

• Proven Experience – Your company’s processes should not be handled by amateurs.

One of the primary BPO company qualifications to keep in mind is a proven industry
experience. Great client testimonials show that your work will be handled similarly.
• Specialized Services – Most BPO companies offer a wide variety of functions and
operations, and specialized services indicate expertise. If you are questioning how to
find a best-qualified BPO company, finding one that specializes in an area similar to
your organization is a great sign.
• Reliability & Security – Because BPO handles sensitive and private company
information, you want to make sure that your BPO company has data security measures
in place. If you can tell that a BPO company values reliability and security, you will
know that your data is safe.
• Metrics Focused – Being data-driven is one of the best BPO company qualifications to
look for. A BPO company that is focused on metrics demonstrates and proves how they
provide results to their clients.
• Transparency – If you want to know how to find a best-qualified BPO company,
transparency is a critical matter to consider. When a BPO company does not appear to
be forthright or transparent, you will not be happy with their work.
FINDINGS
1. Employee retention is one of the most pressing concerns the BPO industry is facing.

2. The good news is that the factors for this phenomenon such as societal factors, no career
growth opportunities, and stress from work due to lack of work-life balance, have already been
identified.

3. BPO industries can now address these issues and incorporate them into their retention
strategy plans.

4. Always remember that your employees are your competitive advantage. They can make or
break your company.

5. Hence, BPO industries must practice a more proactive approach to their employee retention
capabilities.

6. Treat your employees right and provide them with justifiable work-life balance and they
are going to want to stay with you.

7. BPO industry is growing rapidly since its inception. Indian BPO’s are going through exciting
times.

8. Indian BPO are operating in both front office and back office operations and BPO industry
are growing at the rate of 28% and is expected to reach around USD14.8.

9. Upto 2009 around 7,30,000 employments in the country due to shift in BPO services and
Hi-Tech sector

.
 CHAPTER –4
CONCLUSION
 CONCLUSION

Employee retention is a major concern for many employers; management teams of successful
organization have to realize the importance of retention its most productive workforce. High
turnover leads to loss of valuable workers whose replacement is costly.

It is important to note that a high employee turnover is normally unhealthy to an organization’s

performance as well as the productivity of other presumably loyal employees. Moreover,
turnover affects productivity of remaining employees since they may be compelled to perform
duties of more than one person or allocated duties that do not match with their training.

Employee exit from an organization may be a subject of variant factors; however, although
some are avoidable, other factors may be too strong for the employer to control. It is
fundamental for employers to identify these factors and establish strategies of preventing their
occurrence.

Primarily, turnover is attributed to lack of job satisfaction or economic conditions. Lack of job
satisfaction is mainly caused by unmet expectations, the nature of job, corporate culture in the
organization and personal demographics. On the other hand market conditions influence
turnover through availability of better job opportunities with improved compensation.

In order to limit harm of high turnover, employers need to utilize some strategies so as to
improve job satisfaction and hence retention. Primarily, an employer should review his
compensation packages, the workplace relationships, career and development prospects, and
support in the workplace to facilitate retention of high-performers. The employers should offer
competitive compensation packages depending on skills and experience of their employees and
duration worked.

Moreover, the employers can allow high-performers to formulate their work schedule or
flexible working hours. Besides, the employers should compensate the employees for any extra
hours. Further, employees want more independence and autonomy whenever handling their
duties. Moreover, employers can retain employees through providing career development
opportunities and training.
 CHAPTER – 5
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS

1. Hire and Keep the Best People – “BRIAN TRACY”

2. Keeping Your Valuable Employees: Retention Strategies for Your Organization's Most
Important Resource- “SUZANNE DIBBLE”

3. Retaining Top Employees- “J. LESLIE MCKEOWN”

4. Emloyee Retention and Turnover: Why Employees Stay Or Leave- “ DAVID G.

ALLEN, PETER [Link] AND RODGER W. GRIFFETH”

WEBSITES
1. [Link]
2. [Link]
3. [Link]
4. [Link]
5. [Link]

JOURNALS
1. Comfort Osaro (2016)
2. [Link] Mehta and Aarti Kurbetti and Ravneeta Dhankha (2014)
3. Marie Rose Muir and Lin Li (2014)
1. Muppuri. Nagabhaskar (2014)
2. N. Hemalatha and Dr. A. Savarimuthu, (2013)
3. Bidisha Lahkar Das, Dr. Mukulesh Baruah (2013)
4. Chandranshu Sinha and Ruchi Sinha(2012)
5. Muhammad Irshad after 20