High Attrition Rates lead to Increasing ultimate Cost of Manpower

The high attrition rates and consequent re-training costs add to the pressure on margins. Running world class operations under such pressures present significant scaling-up challenges. This attrition is at least in part due to the poaching of agents by Western multinational corporations from Indian outsourcers. And Indian call centres too poach on each others agents.

The current average rate of attrition faced by the call centre industry ranges from 30 percent to 35 percent. Last year, the attrition rate rose by five percent. Indian call centres currently employ 160,000 professionals. They learn foreign accents, work at night to cater to US time zones, and adjust to an altered social and family life. The inherent nature of the job is such that it is monotonous and lacks challenge. Call centre agents also face the risks associated with working in a new industry.

PeopleEquity and NFO India, a part of the US-based Consultancy NFO WorldGroup, conducted a study on call centre employees, interviewing 1,000 agents at 19 leading call centres including GE, Citibank, Transworks and Convergys. The survey results indicated that although employees are aware of the unique demands of the job, they are not prepared to handle the “work-life balance.” They believe that their employers are not doing enough to reduce stress at work. Furthermore, employees don’t look at their jobs as a long-term career option and have low expectations of professional growth within the industry, the study showed.

Most of the agents are well qualified or even overqualified. The survey found nine percent of employees hold MBA degrees. Units in Chennai employ as agents the highest number of engineers and masters in computer applications.

Monotony, stress and lesser chances of professional training and growth have contributed to increased turnover rates. Companies need to provide an environment conducive to stress management, continuous training and education to reduce the attrition rate in India, which is still well below the international average, which sometimes goes up to 90 percent in countries like the US.