Indian outsourcers are facing record staff turnover according to a new report, with companies struggling to hold onto bonus-hungry workers.
Attrition rates in the country's business process outsourcing (BPO) industry are about eight per cent higher than the national average, according to a report by global consulting firm the Hay Group.
Annual staff turnover at Indian BPOs stands at 24 per cent, ahead of the country's average of 16 per cent.
The report blames lower and less attractive short term bonuses – worth about four per cent of total pay for BPO workers compared to 10 per cent generally.
Oscar De Mello, head of Hay Group's reward information services in India, said in a statement: "The BPO industry hires a large number of graduates who are bright and ambitious. From our analysis, the overall compensation structure design is not competitive when compared to general market practices.
"This means that BPO employees do not receive as much cash-in-hand as their peers in other industries.
"The BPO industry is a critical sector in the Indian economy, worth $11bn and employing more than two million people.
Read more...
Attrition rates in the country's business process outsourcing (BPO) industry are about eight per cent higher than the national average, according to a report by global consulting firm the Hay Group.
Annual staff turnover at Indian BPOs stands at 24 per cent, ahead of the country's average of 16 per cent.
The report blames lower and less attractive short term bonuses – worth about four per cent of total pay for BPO workers compared to 10 per cent generally.
Oscar De Mello, head of Hay Group's reward information services in India, said in a statement: "The BPO industry hires a large number of graduates who are bright and ambitious. From our analysis, the overall compensation structure design is not competitive when compared to general market practices.
"This means that BPO employees do not receive as much cash-in-hand as their peers in other industries.
"The BPO industry is a critical sector in the Indian economy, worth $11bn and employing more than two million people.
Read more...
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