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

UNIVERSITY OF SANTO TOMAS COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION This Research Proposal is being presented to the Faculty of the part of humane Resource Development & Management Entitled High Turnover Rate and Employee Benefits in claver Center Industries The HR conductors View By Buotan, Aldrin M. Dimaculangan, Rey Karl A. Flores, John Andrew S. Malabanan, John Peter M. Marquez, Gerard Ephraim L. Tagunicar, Cedie N. phratry 1, 2012 Espana, Manila IntroductionTo sidereal days best companies understand the real key to main(prenominal)taining a world-class workforce is non just to hire the best employees, but to keep them once they argon hired. Retaining progressive workforce has not been an easy task to every employer or organization and thus becomes a real challenge to manage up with the fast pace trade world currently we be on and if this fails, surely senior high disturbance assesss testament occur and will be prominent in an organization. An employee overthr ow respect refers to the movement of employees out of an organization.It is often cited as one of the factors behind the failure of an employee productiveness reckon and is similarly one of the chief determinants of labour supply (Snell & Bohlander, 2010, Principles of Human Resource Management, 15th edition, United States, p,415). Competing organizations are eternally looking to steal top performers, and poaching talent is becoming an increasingly common way for organizations to arm themselves them up as a larger company to be able to expand and earn to a greater extent profits, while at the same time tearing their competitors down (Noe et. l. 2010, Human Resource management Gaining a Competitive Advantage, 7th edition, New York, p461). Turnover comes in good times and in bad, to good companies and to those that are struggling of every size. Losing a good and talented employee is never easy, and sometimes is predictable, but sometimes, it can be prevented, you cant run a serv ice business when you are at war with your employees (Greg Davdidowitch, Noe et. al, 2010, Human Resource Management Gaining Competitive Advantage, 7th edition, New York).Knowing the rate of derangement at a legitimate organization is the first step to understanding whether employees departs within the range of normal for a type of business and manufacture. Turnover is a key benchmark in assessing the health and stability of organizations. A high turnover rate suggests there may be something wrong with the basic structure of a company, its salary levels or even its benefits. Too high turnover rate can alike mean that an organization is losing productivity and knowledge, including an understanding of products and processes. The consequences of the loss are twain financial and in the morale of those who remain.Leading reasons that employees show for their departure a better opportunity or increased responsibilities, higher pay or more benefits, or they are moving to a different location. Benefits may one of the best reasons to go down turnover rate and increase the retention in an industry. Employee benefits that is part of the total compensation package, other than pay for a worker, provided employees in substantial or in part by employer payments, example of which are life insurance, pension, workers compensation and vacation (Milkovich, G & Newman, J1984, Compensation, New York, p. ). Employee benefits are compensations given to employees in addition to regular salaries or wages. Some benefits are legally required, e. g. , social security benefits, Medicare, retirement benefits, maternity benefits, service incentive bring, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and alter job performance (Labor and Employment Blawg A work in progress, June 1, 2010, Philippine Labor Laws, http//www. laborlaw. usc-law. rg, imageed August 22, 2012). aside from large benef its mandate by law, there are other benefits that an industry can offer to reduce their turnover rate. Our hit the books will focus on how an industry uses its turnover rate in making decisions to improve their benefits program. The researchers form elect the call totality industries in the Philippines to best suit their subject consequence about employee turnover rate and benefits. There are certain reports and data that shows the high turnover rate over call condense industries locally.Turnover rate in the countrys call mall has gotten so worse that it has hit 60 to 80 percent, according to the Call Center Association of the Philippines (CCAP) (AURELIO A. PENA, Davao Today march 20, 2008, http//www. gmanetwork. com/ impudentlys/story/85640/news/specialreports/rp-call-centers-reel-from-world-s-highest-turnover, viewed 8/20/2012). Globally, it is an accepted norm in the industry to have a 30 to 40 per cent turnover. Both Australia and India call centers have turnover judge of unaccompanied six to 10 percent.Top government officials are alarmed that an emerging industry that has generated around 2 cardinal US dollars in annual revenues is reeling from a worsening turnover crisis. Labor accounts for between 65% and 75% of the on termination costs of running a contact center. But employee turnover is so high in the call center industry that much of that money is spent on repeated efforts to hire and set people who arent right in the first place, and/or are managed ineffectively, resulting in high turnover.Call center organizations have come to accept that a recurring percentage of their workforce will have to be replaced every year. Those replacements will have to be found, assessed and trained. And then the cycle will repeat again, as a percentage of those new hires will in turn leave. The average turnover is about 35% in the call center industry, which means in three years, an entire contact center agent kitty-cat will have been turned over (Inova Solutions, July 5, 2011, Reducing Agent Turnover in Contact Centers viewed 8/20/2012, http//blog. novasolutions. com/2011/). This studies shows that there are certainly high turnover rates on call center industries in the Philippines. A study conducted by Datacraft Asia in 2009 suggested that Asian call center agents are awake of the large demand for their service, so they are confident that they can easily land a new job after they resign. Better salary offer from other call center outsourcing firms, tight and geological fault schedules, stress from dealing with difficult customers and lack of holiday breaks are also causing many agents to leave their job.Also, allegations of labor code violations in small call centers are on the rise. Some agents who did not ask over incentives or bonuses as promised during recruitment are likely to terminate their contract (Eli, May 24 2011, Philippine call center outsourcing industry fights attrition rate, http//outsourceyourcallcenter. com, viewed 8/20/2012). Due to this high turnover rates that are currently in call center industries, there are certain solutions pertaining to benefits and motivation that could assistance to lower down the high turnover on call center industries.Government mandated benefits much(prenominal) as hearty Security System (SSS) contributions, Philippine Health Insurance (Phil Health) contributions, Home Development Mutual Fund (Pag-ibig Fund) contributions, thirteenth month pay, service incentive leave, meal and rest periods, overtime pay, special holiday/rest day rates, and night shift differentials and company benefits such as holiday bonus, mid-year bonus, and paid holiday and vacation leaves (Honey Amabelle D. Young, process 8, 2012, Employee Benefits in the Philippines, weblog, viewed August 22, 2012, asyoutsource. om/blog/). With these benefits, call center industries will surely lower down their turnover rate and could save more money on costly training and development programs. Other companies give a little more than the minimum benefits required by law in order to be competitive or at least be at par with community or industry practices. There are also employers who give more benefits than required out of compassion for employees who are hard-core to the company. Managers of call center face many challenges.They are responsible for operations that are capital intensive, with a high demand for continual investment to keep up with rapid developments in technology. They are also responsible, in many cases, for large numbers of staff often working with different shifts. Human resources double-decker in call center industries plays a vital role in valuing employees to reduce high turnover rate and improve their company retention capability. HR managers have the birds eye view on what is happening on personnel related issued on an industry.Their views on issues such as turnover rates and giving benefits to their employees are important points to consider bec ause they are the one who would create certain solutions to such problems for the more efficient and smoother run of a call center industry. As HR students and prospective HR managers, the researchers would like to understand and to she-bop the views and insights of HR managers on this phenomenon and find out if there are improvements to employee benefits to lower this turnover rates.As HR students, the researchers would like to spearhead this study in order to analyze and pull realistic solutions that could jock the call center industries on this growing phenomenon. The researchers will conduct a semi-structured query to the HR Manager of call center industries here in the Philippines. The following central questions will organize the interviewers 1. ) How do Human Resources Managers view on the high turnover rate on call center industries? 2. ) What new benefits are implemented to reduce turnover rate and what changes in employee benefits were introduced to improve employee retention?Our study will focus on how a call center industry uses its turnover rate in making decisions to improve their benefits program rates in call center industries. Methodology Research intent The research design that the researchers adapted in this study is phenomenological research design, particularly the transcendental or mental phenomenology. This design aims to get the meaning of as this is a qualitative analysis of narrative data, methods to analyze its data must be quite different from more traditional or quantitative methods of research (Janet Waters, psychological science Capillano University, viewed August, 25, 2012, http//www2. apilanou. ca). This type of research design is the most effective in terms of expressing the essence of how high turn-over rate shapes the organizations benefit system. Data Gathering Procedure The researchers has knited Human Resource Managers from different Call Centers Companies, both Local(PacificHub) and International(HSBC and PhilA m Life) Companies, who have an adequate years of experience in dealing with the prevalent High Turn-Over rate in their previous and present employers.The subjects group age ranges from late 20s to the late 40s with the average years of experience of 3 to 10 years from the same employers. The researcher adopts a person-centered and holistic perspective. It helps to generate an in-depth account that will help the researcher a picture of reality regarding their lived experience to answer the researcher inquiry about the subject. The researchers will conduct their interview by setting a date time for each manager during the assemblage of data or their answers regarding the interview.The research workers will proceed to the process of meeting the manager and Data Collection. Each posing may last up to 2 hours, depending on the interviewees length of views and insights on their experiences also cognize as Extended Interview. Story telling will be conducted also to ask the emotions of the HR Manager and his/her intellectual memory and consciousness about the turnover rate in call center industries. The Researcher has chosen Call Canter Companies that has attrition rate of 30 to 40 % to be able to toss as a reliable source of information about the topic. Data ExploitationDuring the interview, the main concern of the researchers was to get the view of HR manager in the high turnover rate and the benefits given? The questionnaire for HR mangers shall take their robotfoto (Kelchtermans & Ballet 2002), basis on the rate of employee turnover in the last 3 years, number of employees industrious and the employee benefits or other discretionary benefits given. The researchers will be using an interview to gather the participants descriptions of their experience, or the participants compose or oral self-report, or even their aesthetic expressions (e. . art, narratives, or poetry, essays). The phenomenon of high turnover rate is the main subject of this research and how the HR managers have experienced it in call center industries. This research is going to be conducted by taking interview Interview is the appropriate method for collecting of data and giving a questionnaire to the Human Resource managers with full knowledge in the call center industry chosen by the researchers, to find out their view on the high turnover rate and benefits given to their employees.The HR Managers are chosen by their number of years in service in the industry. subsequently the researchers gather the essential data for their research, they will, and then follow the Collaizis Procedure, reading and re-reading of the interview and analyzing or extraction of the information to significant statements or quotes and coming up with the categories (Cool Analysis) and combines the statements into themes (Warm Analysis).The researchers will develop phenomenal referents of the persons interviewed. After this procedure, the researchers can gather the data by the use of data anal ytic tools in data lessening such as Repertory or Kelly Grid in order to categorized and give themes to the insights/referents of the manager. schooling site Data Gathering Procedure