The Importance Of Employee Attrition In The BPO Industry

Employee attrition can be understood as an unpredictable and uncontrollable loss of employees through various circumstances, such as resignation, retirement or death (Gupta, 2013; Iqbal, 2012). Thus the term attrition could be dangerous to any organization since it represents significant costs in the form of disruption of work, recruitment expenditure, cost of training new workers, administrative costs and so on (Adhikari, 2009; Arokiasamy, 2013, Gupta, 2013; Iqbal, 2012; Sengupta & Gupta, 2012). However, it is strange that many organizations do not measure such costs or take adequate measures to minimize this threat (Gupta, 2013), despite having understood that talented employees are the primary source of competitive advantage (Kaur, 2012).

Sengupta and Gupta (2012) defined attrition rate as the rate in which the workforce reduces or rather shrinks, and identified that attrition rate in the BPO industry is significantly higher than any other industries. This higher rate of attrition directly reflects a loss of talent within the industry. Similarly NASSCOM (2004) predicts a shortage of professionals in BPOs in the near future. Accordingly the following section attempts to recognise the magnitude of the identified risk and the importance of addressing attrition

Importance of Attrition

The rising competitiveness among today’s …show more content…
Job satisfaction is simply defined as the extent to which a person either likes or dislikes his/her job (Spector, 1997). However a broader definition states that job satisfaction could be understood as an emotional reaction to any situation in a job, and is often based on how well those situations meet their expectations (Luthans,