Title

CRITICAL ANALYSIS OF VARIOUS FACTORS

RESPONSIBLE FOR ATTRITION RATE IN BPO WITH
REFERENCE TO Spanco

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be
incomplete without mention of the people who made it possible, whose constant
guidance and encouragement crowns all the efforts with success.

At the outset, I would like to acknowledge my immense gratitude and heartiest

thanks to almighty without whose support I would have not been able to make this
report.
I also want to thank Mr. Amit Joshi my faculty guide for his constant support and
motivation.
I would also like to thanks my parents for their moral support and motivation which
kept me motivated at every point of time.

CERTIFICATION
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

This is to certify that the Management Thesis titled Critical analysis of various factors
responsible for attrition rate with reference to SPANCO submitted by Dolly Kumari,
enrollment no. 0901120037 during Semester-IV of the MBA Program (2009 - 2011)
embodies original work done by her.

Signature of the Faculty Supervisor

Name: Mr. Amit Joshi
Center: IUD Dehradun

ABBREVIATION

BPO: Business process outsourcing

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

KPO: Knowledge process outsourcing

HR:

Human resource

H0:

Null hypothesis

H1:

Alternative hypothesis

TABLE OF CONTENTS
1.
2.
3.
4.
5.

ABSTRACT SUMMARY.6
RESEARCH OBJECTIVE...7
PURPOSE OF STUDY.8
LITRATURE REVIEW..9
HYPOTHESIS FOR STUDY...13

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

6. METHODOLOGY.14
7. LIMITATIONS OF STUDY..15
8. INTRODUCTION TO ATTRITION.16
9. COMPANY PROFILE..19
10. PROGRESS OF STUDY....25
11. HYPOTHESIS TESTING ..30
12. CONCLUSION..37
13. SUGGESTION AND RECOMMENDATION...38
14. GLOSSARY.39
15. ANNEXTURE.40
16. BIBLIOGRAPHY43

ABSTRACT SUMMARY

This report covers all the factors responsible for Attrition rate in BPO sector. SPANCO is
also suffering from the disease of attrition rate. There are many barriers which
contributed to the high attrition rate in this company.
These barriers are within the control of the employees such as lack of time
management, lack of a clear goal and attitude towards work, personal problems.
As Spanco BPO offers world-class end-to-end business process outsourcing services
that can help companies achieve improved business performance. But Spanco is not
able to remove the attrition of the employee. Attrition can be seen due to various
reasons like odd shift timing, long working hours, other growth opportunities etc.
While using the secondary data I came to know that most of the employees are leaving
the company due to odd shift timing, long working hours and other growth opportunities
which in turn lead to attrition. So overall with the secondary data I came to know that
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

odd shift timing and other growth opportunities are reason for almost every employee
lead to attrition in the company.
But some more reasons for attrition came into light when the primary data was used
as after interviewing the employees the reason for attrition rate in the organization was
due to some employees personal problems, some health problem, working environment
and reallocation .
In a nutshell employees personal problems, odd shift timing, other growth
opportunities, etc. are the various reasons for attrition rate in SPANCO.

RESEARCH OBJECTIVES

SPECIFIC OBJECTIVE:

To provide the reasons for attrition rate in BPO sector with special
reference to SPANCO.
To study the attrition rate.
To study the ways by which attrition rate can be reduce in any
organization.
To study the various reasons and effects of attrition rate for the attrition
rate.

GENERAL OBJECTIVES:

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

To know the proportion of factors, contributing in the attrition rate in the

company.
To see the factor this is mainly responsible for the attrition rate.
To know how working environment contributes to high attrition rate.

PURPOSE OF STUDY

The purpose of this study is to provide the reasons for attrition rate in BPO sector. It
is also providing the factor which is mainly responsible for the attrition rate. This
study will help the company to know proportion of factors, contributing in the attrition
rate in the company. It will help the company to know the steps which will help it to
reduce the attrition rate. It will also help the company to know how attrition rate
affects the profitability of the company. This study will help to know how working
environment contributes to high attrition rate. By this study we will also know the
ways by which it can reduce the high attrition rate.

ACHIEVEMENT PLANNED:-

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

This study is done by me to achieve the objective of the study i.e. to analyze the
attrition rate at SPANCO and to find out the reasons for attrition rate. The effects of
attrition rate in the company can also determined by this study. This study also helps
me to find out the ways through which the attrition rate of the company can be reduced.

RESEARCH PLANNED:The research done by me in this study is through primary and secondary data. The
research for knowing the employees response about their working in the company and
their views about the company is collected through interview and questionnaire
method.
The data about the attrition rate and the types of attrition rate and causes and effects
of attrition rate is collected through secondary data i.e. internet.

LITERATURE REVIEW
Outsourcing has increasingly become a vital tool for the implementation of business
Strategy in many organizations. Competition continues to increase and organizations
are being continuously forced to find ways to improve business performance and
to obtain competitive advantage. Increasingly, organizations are looking beyond the
traditional boundaries of the firm to obtain performance improvement. The growing
prevalence of outsourcing service providers is shaping the development of competitive
strategies as well. The BPO phenomenon has grown as organizations have
been transferring responsibility for entire functions such as human resource
management,
Finance and information services to service providers sometimes referred
to as unbundling (Hagel and Singer, 1999). According to Nelson Hall, the BPO
tracking company, the global business process outsourcing market was worth $ 48.4
billion for the first three quarters of 2006, representing a rise of 34% from the same
period in 2005 (Nelson Hall, 2006). Information technology and human resources
are particular growth areas for outsourcing. Outsourcing has grown in reaction to the
need for organizations to be more flexible and responsive to customer requirements.
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

The outcome of increased outsourcing has been the restructuring of organizations

from hierarchies performing the majority of business processes to more network
oriented
Structures working with specialist suppliers (McIvor, 2005). Gottfredson
et al. (2005) suggested that competitive advantage from a capability perspective is
no longer concerned with a companys ownership of capabilities but more exactly
about its ability to control critical capabilities, whether owned or outsourced.
Outsourcing has become increasingly complex with both strategic and operational
Implications. In addition, there are many possible types of outsourcing arrangements,
all of which redefine the boundaries of the firm, are dynamic in nature and
subject to change over time. Therefore, performance measurement within the
outsourcing process has become increasingly complex. Perhaps unsurprisingly, many
firms lack a detailed understanding of outsourcing, particularly with regard to the
potential benefits and risks. Outsourcing involves the sourcing of goods and services
previously produced internally within an organization from external suppliers. The
term outsourcing can cover many areas, including the outsourcing of manufacturing
as well as services. Outsourcing can involve the transfer of an entire business process
to a supplier. Alternatively, outsourcing may lead to the transfer of some activities
associated with the process whilst some are kept in-house. Outsourcing can also
involve the transfer of both people and physical assets to the supplier. Organizations
have always employed external product and service providers to carry out a range
of business activities such as security, distribution, accounting and information
technology.
However, many organizations are increasingly outsourcing a wider range of
activities and a greater level of the value associated with these activities. In effect,
organizations are no longer outsourcing peripheral activities alone but extending the
scope of outsourcing to encompass more critical activities that impact upon competitive
position. Also, the recent movement of many service-related activities such
as after-sales support and direct marketing offshore to developing economies has
become increasingly prevalent. Outsourcing is not just a straightforward financial
or purchasing decision. In many cases, outsourcing is a major strategic decision as
Organizations increasingly focus on a limited number of core competencies. Indeed,
there is evidence to suggest that well-defined outsourcing strategies can enhance the
overall strategy of the organization (Gottfredson et al., 2005).
The evaluation and management of the outsourcing process involves a number
of important elements. A starting point in the evaluation process involves analyzing
whether outsourcing a process is appropriate for the organization.
In emergency services, team stability and reliability in responders is essential to safely
and efficiently mitigate the variety of dangerous situations faced daily. Turnover of
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

personnel can definitely affect this although the effect may not be easily measurable.
Many other consequences are tangible as noted by Peter W. Ham and Rodger W.
Griffith it Employee Turnover.
The authors list separation costs, replacement costs and training costs that result when
Personnel separate. The first include exit interviews, administrative costs in records
adjustments, disbursement of unused vacations and more. The second item listed
specifies advertisements, personnel recruitment, application processes, entrance
examinations, interviews and so on. Number three above refers, among others, to
concerns such as formal orientation, formal occupational training and on the job training
to develop proficiency.
In the book Recruitment, Retention and Employee Relations, D. Keith Denton
contends that the problem of turnover should be addressed pro-actively. One of the
most effective ways of both recruiting and retaining employees is to be the employer of
choice. Denton adds that employees can be attracted and retained by offering them
career opportunities, job variety, responsibility, training and 10 giving them a sense of
ownership.
David L. Stum writing for the magazine Human Resource Focus expounds on the sense
of ownership when he speaks of a fearless culture and an organizational direction
where employees can comment openly about the status quo, even challenge it without
fear of retribution because they know where the organization is headed and how the
employee fits in and contributes to the chosen strategy.
Some in personnel management resort to reward plans to promote retention of
employees. The article, Seven Dimensions of Successful Reward Plans, authors
Jamie Hale and George Bailey (1998) explains that workers are willing to invest their
intelligence, talent and creativity in support of the company strategy if they can expect a
fair return. Many such programs are used throughout the nation by departments.
Theses include Firefighter of the year, Outstanding firefighter award and more. Hale
and Bailey authors of the above-mentioned piece in Compensation and Benefits Review
add that the greatest reward is the work itself. Hale and Bailey add, At times a heartfelt
thank you may be much more appreciated than cash reward . . .
Any discussion of employee loyalty which, ideally, results in retention, must include the
executive leaderships influence on the employees. In a 1993 study by Ethan Winning
for his book Labor Pains: Employer and Employee Rights and Obligations, 77 percent
of 121 employees surveyed reported that their sense of loyalty to the job decreased
over a five-year period (Selnow and Gilbert, 1997). Among reasons for this was that
corporate leadership is undermining employee loyalty in a variety of ways. Sixty-three of
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

900 large and mid-sized companies surveyed used surveillance and monitoring
procedures with and without the knowledge of the employees. (Selnow, 1997) This did
not sit well with the higher caliber, productive worker who simply seeks to be the best he
or she can be,11 nor did it inspire the mediocre one to excel as this worker feared erring
while under observation and avoided trying any innovative approaches. In the fire
service one must ask, In the use of the Incident Command System, how many chiefs
constantly monitor incidents by radio in order to maintain control at the highest level?
And, how does this affect the field commanders performance and morale?
Ideal for improving retention and reducing attrition is the aligning of the goals of the
individual to those of the employer. Barbara M. McGuiness explains, in the Change in
Employee Loyalty, that todays younger generation places a higher value on personal
achievement over corporate goals . . . they divert their loyalties inward. As already
discussed, the important values do not, necessarily include pay as a high priority. Still,
Aon Consulting Loyalty Institutes study on employee loyalty revealed that while 80% of
the workers surveyed would recommend theirs as the best place to work, 40% of this
same group would go elsewhere for a slight pay increase (McShulski, 1992).
Repeated throughout the literature review was the importance to the employee of family
issues and how their employment allows them the deal with these. In a recent survey
US West indicated that 80% of their employees dealt with family issues while on duty,
70% said that balancing home and work was stressful and one-third of all employees
had taken a day off in the prior year due to some family concern. (McCormmick, 1992)
The answer to employee retention is simple, hire wisely, train well and, what is most
important, value the employee and let them know it (Franklin, 1997). The executive
leadership can demonstrate the value of the employee to the organization by setting
high expectations, communicating constantly, empowering, investing in employees
financial security, giving recognition as often as possible, 12 counseling people in their
careers and educating them (Brewer, 1995).

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

HYPOTHESIS FOR STUDY

HYPOTHESIS TESTING:
Two types of hypothesis null and alternate hypothesis is used.
LEVEL OF SIGNIFICANCE: It shows the probability of rejection of hypothesis when it
should be accepted. When we choose 5% level of significance in a test procedure, there
are about 5 cases in 100 that we would reject hypothesis when it should be accepted
and we are 95% confident that we have made the right decision.
Hypothesis for study is following.
NULL HYPOTHESIS (H0): There is no significant impact of working environment on the
attrition rate of the company.

ALTERNATE HYPOTHESIS (H1): There is significant impact of working environment on

the attrition rate of the company.

LEVEL OF SIGNIFICANCE: 5% Level of significance has been taken for the study.
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

METHODOLOGY

DATA COLLECTION:PRIMARY DATA: Primary data is collected through the interview of employees of
Spanco. Questionnaire filled by them is used.
SECONDARY DATA: Secondary data is collected through internet and articles related
to the study are also referred for the study.
After collecting the data through various sources, analysis is done.
SAMPLING
In sampling employees of Spanco and o will be targeted. This sampling will be done
from the employees in Dehradun region only.

SAMPLING TECHNIQUE: Random sampling.

SAMPLE SIZE: Sample size is fifty.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

LIMITATIONS OF STUDY

TIME CONSTRAINT: Time constraint is there because we have limited time. In

between we have to manage other things also like our studies, assignments and
examinations etc.

POSSIBILITY OF SAMPLING ERROR: Sample selected for study may give

wrong information or sample selected may not be right for study.

MANAGEMENT BIASNESS: Management can give incorrect information about

the employee.

DEPENDENCY ON QUESTIONAIRE: The study is dependent on employees

responses through questionnaire. It may be that employees are not interested in
filling them or they want to tell that is not there in questionnaire so information
collected may not be absolutely correct.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

LIMITED SAMPLE SIZE: Sample size is limited and it further it is limited to

Dehradun only. So conclusion may be different from real scenario.

HIDING INFORMATION: The data is collected from the companys employees so

some kind of biasness may occur. They try to hide the information as some of
them are also working the company.

INTRODUCTION

ATTRITION
Attrition is a reduction in the number of employees through retirement, resignation or
death. The rate of shrinkage in size or number is called the Attrition rate. The attrition
rate has always been a sensitive issue for all organizations. Attrition is the action or
process of gradually reducing the strength or effectiveness of someone through
sustained attack or pressure.

TYPES OF ATTRITION:

Fresher attrition: It tells the number of freshers who left the organization within
one year. It tells how many are using the company as a springboard or a launch
pad.

Infant mortality: It is the percentage of people who left the organization within
one year. This indicates the ease with which people adapt to the company.

Critical resource attrition: It tells the attrition in terms of key personnel like
senior executives leaving the organization.

Low performance attrition: It tells the attrition of those who left due to poor
performance.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

GOOD EFFECTS OF ATTRITION-

Employees who are not performing well for a long time can be altered with the
working employees who are beneficial for the growth of the organization.

Employees will try to work hard so that the company cannot ask them to leave.

Company will know the loop holes of itself.

Company will understand the importance of employee and provide them better
facilities.

BAD EFFECTS OF ATTRITION-

As more and more attrition in the organization will affect the working of the
organization.

Revenue and the profits can get decreased due to increase in the number of
employees leaving the organization.

Attrition due to poor working condition or work pressure could lead de-motivation
of employees due to which their performance gets affected.

Attrition rates can be calculated using a simple formula:

Attrition = (No. of employees who left in the year / average employees in the
year) x 100

ATTRITION COST:One of the best methods for calculating the cost of turnover takes into account
expenses involved to replace an employee leaving an organization. These expenses
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

are:

A. Recruitment cost
The cost to the business when hiring new employees includes the following six
factors:

Time spent on sourcing replacement

Time spent on recruitment and selection

Travel expenses, if any

Re-location costs, if any n Training/ramp-up time

Background/reference screening

B. Training and development cost

To estimate the cost of training and developing new employees, cost of new
hires must be taken into consideration. This will mean direct and indirect costs, and can
be largely classified under the following heads:

Training materials

Technology

Employee benefits

Trainers Time

C. Administration cost
They include:

Set up communication systems

Add employees to the HR system

Set up the new hires workspace

Set up ID-cards, access cards, etc.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

COMPANY PROFILE

VisionTo attain a position of leadership in providing innovative

business and technically competent solutions to our clients. Striving to achieve enhanced
business competence for the clients, through a team of highly proficient and motivated
personnel for overall profitability of the company and the satisfaction of all key

Mission

stakeholders.
To partner with clients worldwide in migrating and managing
their Business Processes effectively. We are committed to customer delight through our
dedicated resources, organizational values, quality, innovative technology and highest
security standards.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

WHOS WHO:CEO

: Mr.Pravin Kumar

Chief HR officer

: Mr.Debasish Das

Sr. vice precedent S&M: Mr.Jitendra Nath

Spanco BPO Services Limited, Indias leading BPO services provider, Spanco BPO
offers world-class end-to-end business process outsourcing services that can help
companies achieve improved business performance. We bring together state-of-the art
infrastructure, advanced technology, best people, and process excellence, to deliver
services that create a real value impact on our clients business.
Its service portfolio includes inbound and outbound call management and back office
operations support. By customizing our services to best suit our clients business
requirements; we help our clients achieve maximized process productivity and
profitability.
Spanco BPO is committed towards maximizing the value creation for its clients. To
achieve this, we are constantly identifying solutions and strategies that can help us
extemporize on our service deliverance towards our clients.
Headquartered in Mumbai, India, Spanco BPO is the domestic BPO business of Spanco
BPO Ventures Ltd.
Specialties
Customer Service, Collection, Customer Acquisition, Technical Support and Back Office
Support
Announced a major expansion of its outsourcing services for subscribers of Idea
Cellular from its centre in Dehradun today. In response to market demand, Spanco has
extended its business process outsourcing (BPO) services to offer customer relations
operations for Idea Cellulars subscribers across 3 circles in Delhi, Haryana and
Rajasthan. Spanco has been associated with Idea in Dehradun for over a year now. The
association which began with 100 employees for operations from Dehradun has
witnessed a phenomenal success and has now grown to 1200 strong employee base
and is expected to reach 2000 by the year end.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

"For years, India's outsourcing services have been centered in a few metro hubs. The
spread of IT and IT-enabled services to smaller towns has changed that, as this
revolution reaches out to the300 million-strong middle class, one of the world's most
attractive emerging markets. This will create thousands of new jobs, new education
opportunities and make local governments more technology-savvy," says Mr. Pravin
Kumar, CEO, Spanco BPO.With the increasing business volume and growing need of
manpower Spanco has been setting up call centers in non-metro locations like
Dehradun & Coimbatore to get closer to the relevant workforce and contain operation
costs with increased efficiency.Mr. Kumar further added This expansion further
consolidates our position in the domestic market as a focused Tier1 BPO service
provider to Telecom companies. Delivering services from Dehradun has been a win-win
situation for both Idea Cellular and our employees as it generates quality service for
Idea subscribers and also provides great exposure and employment Opportunities for
the talented graduate and undergraduate students in the region.
Typically, tier 2 & 3 cities currently provide definite cost advantages of 15-30 per cent
over tier 1 cities through optimized labor and real estate costs and reduced staff attrition
rates and this gap is expected to widen further over the next few years.
Speaking about the partnership, Mr. Navanit Narayan, Chief Service Delivery Officer,
Idea Cellular, said, Customer satisfaction and convenience is critical to business
growth. For our customers in such high potential circles, we needed a partner who could
offer high quality service delivery, and consolidate operations for the region, from a
location that offers abundant talent pool with cost effective and scalable operations. We
are happy to extend our partnership with Spanco, which has been successfully
managing our operations and providing quality customer services for our subscribers
across 3 circles through the Dehradun centre.
Spanco manages call centre work for leading telecom firms. It was the 1st BPO to set
up call center operations for Indias largest telecom company in 2001. Since then it has
grown significantly and now services 4 of Indias top 5 telecom companies.
About Spanco BPO Spanco BPO offers world-class end-to-end business process
outsourcing services that can help companies achieve improved business performance.
Spanco brings together state-of-the art Infrastructure, advanced technology, best
people, and process excellence, to deliver services that create a real value impact on its
clients business. The companys service portfolio includes inbound and outbound call
management and back office operations support.
Spanco BPO is committed towards maximizing the value creation for its clients. To
achieve this, we are constantly identifying solutions and strategies that can help us
extemporize on our service deliverance towards our clients.
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

Spanco has a formidable presence in the BPO space spread over four continents
catering to India, US/Europe, Middle East and African Markets. It is a fully owned
subsidiary of Spanco Ltd., a public listed company certified to ISO 9001:2008 and CMMI
level 3.

PRODUCTS OFFERED BY THE COMPANY

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

SWOT ANALYSIS:-

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

STRENGTH
Large no. of talented graduates.
Affordable and quality education as
compared to developed countries.
English language benefit.

WEAKNESS
Scarce foreign language skills other
than English.
Lack of customer service culture.
Expensive and poor quality telecom
infrastructure.

Well-developed IT industry.
Strong customer base of well known
companies.

Poor electricity supply.

Cultural differences.

Powerful venture capital interest in

investing in growth opportunity.

High attrition rates, therefore less no.

of people with extensive call centre
experience.

OPPOROTUNITIES
Horizontal and vertical expansion of
existing customer base into new
markets.

THREATS
High Billing rates.

Time zone difference between India

and target markets.
Increasing awareness of outsourcing
services.

23

Political instability.
India's competitors in Eastern
Europe, Latin America and the Asia
Pacific regions offering cheap BPO
services.
Increasing technology automation.

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

Evaluation OF BPO Industry:-

Years

24

Process

1960s

Time sharing

1970s

Data processing

1980s

Entire IT operations

1990s

Shared business services

2000s

B2B partnerships via Internet

2000s

Process outsourcing via

Internet

2000s

IT-enabled offshore services

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

PROGRESS OF STUDY

FINDINGS
This study is done by primary data as well as secondary data. Primary data collected
by me is through interview and Questionnaire method. The interview through
questionnaire method is done. Employees were interviewed in which it was found that
the main reasons for an employee leaving the job in SPANCO Dehradun is due to
personal problems, salary, work timings, other career options, adding that there is
always the danger of costs increasing while billing rates decline. Some employees also
leave the job for growth, or when they get fed up of the monotonous job, and some of
the employees leave the job when they do not get the job according to their capabilities.
While talking to employees of SPANCO Dehradun I came to know about some of
the reasons for attrition in the company. The following are the names of some of the
employees with whom the interview were done and their responses:-

1.) Ms.Rohini negi Her main reasons for attrition in the company is due to odd shift
timing and personal problems.

2.) Ms. Shraddha agrawal- According to her When I worked in SPANCO, I was just
too tired of the odd timings and the long working hours, usually I went to work
at 7 in the morning and came back at 9 and would be so tired that after making
my dinner I would just go to sleep and not talk to anyone at home and wake up
and again office. I was sooo out of society and especially my family that I had
decided; I would be leaving this work.
Employees jumping ship is one of the causes of attrition in this work area.

3.) Ms. Richa Aggarwal- As she was x- employee her reason for attrition in the
company is due to personal problems of employee i.e. the lady employee leaves the
company due to her marriage or some employees can leave the job due to some
family problems.
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

4.) Mr. Naveen Bist- As he was also an x- employee his reason for attrition in the
company is due to growth some people leave the job for growth. Some employees
leave the job and switch over to other companies for better growth opportunities and
full utilization of their capabilities.

5.) Mr. Arvind Singh- He is an existing employee of the company and according to him
the main reason for attrition in SPANCO is work timings and other career options
growth option is very less in BPO sector which leads to attrition.

6.) Ms.Priyanka Rauthela- According to her the reason for attrition in the company is
due to work environment some of the employees are not able to perform for a long
period due to this.

7.) Mr. Sunil Dhasmana- According to him the basic reason for attrition in the company
is odd work timings.

8.) Mr.Sanjay Singh- His reason for attrition in the company is due to odd shift and
personal problems.
9.) Mr. Arpit Rawat-His reasons were the employees personal problem and growth.

10.) Ms.Ruchika singh- Her reasons for attrition in the company are due to
reallocation.

ANALYSIS
The above are the example of some of the employees who were interviewed and their
responses, like this others were interviewed and by their responses some common
reasons for attrition in the company came into light. By grading the reasons of the
26

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

employees we can easily find out how much percentage of which reason effects the
company the most.

After collecting the data analysis was done the major reasons for attrition in SPANCO
Dehradun are discovered. The reasons are further explained below which really effects
the working of the organization and attrition in the company. The study reflects the
attrition in SPANCO Dehradun. The basic reasons which are responsible for the attrition
rate in SPANCO Dehradun are as follows:-

1.) Work Timing- Most of the employees leave the organization due the odd
working timing. According to some employee they had no social life due to
timing of the job even they had no time for themselves.

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

2.) Personal reasons- Employees due to their personal problems also leave the
organization. May be any lady employee getting married or some location
problem to any employee also leads to attrition in Spanco.

3.) Growth- Some employees also leaves the company for their growth purpose.
Many of the places the experience of bpo sector are not count as a work
experience This also leads to attrition.

4.) Health problem- Some employees also leave the organization due to the health
problem .they are facing health problem because of long working shift as well as
odd timing. When the employees are not able to keep themselves healthy with
the work culture of the organization they leave the organization. This is also a
big factor for attrition rate.

5.) Work Environment-this is also one of the reason of attrition in bpo sector like
Spanco some people join the bpo sector but after some time when they are not
able to do work with the work culture of the organization then they left the
organization .

28

METHODOLOGY

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

DATA COLLECTION
Data collection is the most important part of every study. It is the soul of the study. There
are two types of data collection which are used in this study.
They are as follows:PRIMARY DATA: Primary data is the data which is first time collected by the
researcher. The primary data in this study will be collected by Personal interviews and
Questionnaires filling by employee of Spanco.
SECONDARY DATA: Secondary data is a data which is already collected by other
researchers for some research work. The secondary data is be collected by internet,
journals, and reference books etc.
Various methods such as quantitative method can be used for analyses of the data.

SAMPLING
In sampling employees of SPANCO will be targeted. This sampling will be done from the
employees in Dehradun region only.
Random sampling technique will be used for the study and the
Sample Size will be fifty.

HYPOTHESIS TESTING
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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

NULL HYPOTHESIS (H0): There is no significant impact of working environment on the

attrition rate of the company.

ALTERNATE HYPOTHESIS (H1): There is significant impact of working environment on

the attrition rate of the company.
Level of Significance: 5%

SIGN TEST
+ Sign is for employees who are favoring the impact of working environment on
attrition rate in the company.
-Sign is for employees who are not favoring the impact of working environment on
attrition rate in the company.

30

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

p= 38\50
31

NO. OF
EMPLOYEE

SUCCESS
RATIO (P)

FAILURE
RATIO (q)

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

= .76

q= 12\50
=.24

Hypothesis

pHo=.5

pH1=.5
n = 50
p=.76
q=.24

Sdp=pq/n

(where Sdp= stand. Error)

.5*.5/50
= .071

Z Test
Sdp=.071

Upper limit
pH0+1.96(Sdp)
=.5+ (1.96)*.071
Upper limit = .637

Lower limit
PH0-1.96*.071
32

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

= .5-1.96*.07
Lower limit = .363

Acceptance region

Rejection region

0.363
Lower limit

0.6372

upper limit

This graph shows that hypothesis is rejected because our proportion value is
0.76 and it is outside of the critical value region. So there is a significant impact
of working environment on the attrition rate of the company.

RESULT

33

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

This graph shows that hypothesis is rejected because our proportion value is
0.76 and it is outside of the critical value region.

So there is a significant impact of working environment on the attrition rate of the

company.

This shows that attrition rate is dependent on the working environment of the
company if the working environment is good attrition rate will reduce and if
working environment in the company is not good the attrition rate will increase.

This result shows that more and more employee are accepting that they the
organization due to poor working environment.

CONCLUSION

By analyzing the data it is known that Spanco does have some attrition rate. The
above graph shows that hypothesis is rejected because our proportion value is
0.76 and it is outside of the critical value region.
34

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

So there is a significant impact of working environment on the attrition rate of the

company.

If we look at the primary data it shows that attrition in the company is mainly due
the employees personal problems and working hours company which leads to
attrition.

While the secondary data shows some other picture, According to secondary
data the attrition in the company is due to odd shift timings personal problems of
the employees is not shown in the secondary data.

Hence, we can conclude that working environment plays a vital role in the
attrition rate.

SUGGESSTIONS AND RECOMMENDATION

35

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

There are some suggestions which can be used by the company for the
reduction of attrition rate in the company. The suggestions are as follows:-

The top management of the company should try to involve in solving the problem
of the employees by this the employees will feel that the company is concerned
about them and so they will try to retain in the company.

Good motivational techniques should be adopted by the company to retain the

employee in the company and make them feel concerned. Company should try to
adopt some techniques like games, parties etc.to reduces the work pressure of
the employees and this will also lead to retention in the company.

Job rotation, Job enrichment etc. should be adopted so the work should not be
monotonous for the employees.

Company should also check its attrition rate every month to know the reduction
or increment in the attrition rate.

Not only monetary but non-monetary appraisal should also be done because
different people have different meaning of motivation.

Company should know the importance of retaining the employee in the company
and try to provide all the requirements to the employees so the employees could
retain in the company.

The company should provide good working environment in the company so that
the employees dont feel like leaving the company.

The company should provide some value added services to the employee so that
they cannot leave the company due to any reasons.

The company should organize a family meeting every month to know the
personal problem of the employees.

GLOSSARY

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

Employee relocation: Employee relocation includes a range of internal business

processes to transfer employees, their families, and/or entire departments of a business
to a new location.

Employee turnover: Employee turnover is a ratio comparison of the number of

employees a company must replace in a given time period to the average number of
total employees.

Employee retention: Employee retention is 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.

Stakeholder: Stakeholder a person, group, organization, or system who affects or can

be affected by an organization's actions.

Random sampling: Random sampling refers to taking a number of independent

observations from the same probability distribution, without involving any real
population.

Sample size: The sample size of a statistical sample is the number of observations that
constitute it.

Null hypothesis: The null hypothesis typically proposes a general or default position,
such as that there is no relationship between two measured phenomena
Alternative hypothesis: Alternative hypothesis, which asserts a particular relationship
between the phenomena.

ANNEXURE

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

QUESTIONNAIRE

NAME
GENDER
OCCUPATION

:
:
:

ADDRESS:

Ques1) Are you satisfied by the quality of work life in the company?
a) YES

b) NO

c) UNCERTAIN

Ques2) Are you satisfied with the pay package in the company?
a) YES

b) NO

c) UNCERTAIN

Ques3) Are you aware of the rewards and promotion criteria in the company?
a) YES

b) NO

c) UNCERTAIN

Ques4) Are you getting any type of work pressure in the company?
a) YES

b)NO

c) UNCERTAIN

Ques5) Are you getting good working environment in the company?

a) YES

b) NO

c) UNCERTAIN

Ques6) Do you have a proper Grievance Redressal system in the company?

a) YES

b) NO

c) UNCERTAIN

b)

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

Ques7) Are you satisfied with the Grievance Redressal system in SPANCO?
a) YES

b) NO

c) UNCERTAIN

b)

Ques8) Do the personal needs of the employees are also been catered in
SPANCO?
a) YES

b) NO

c) UNCERTAIN

Ques9) what are the main reasons for the attrition in the company?
a) ODD WORKING SHIFT b) GROWTH c) PERSONAL PROBLEMS

d) HEALTH PROBLEM

e) WORK ENVIRONMENT

Ques10) Are you satisfied with the Human Resource policies in the company?
a) YES

b) NO

c) UNCERTAIN

Ques11) Do the proper job responsibilities are given to the employees in the
companies?
a) YES

b)NO

c)UNCERTAIN

Ques12) Do the employees have any participation in the Decision-Making in the

company?
39

CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

a) YES

b) NO

c) UNCERTAIN

REFERENCES

www.spanco.com.my
www.wikipedia.com
www.google.com
www.go4bpo.com
www.247bpo.com

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO

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CRITICAL ANALYSIS OF VARIOUS FACTORS RESPONSIBLE FOR ATTRITION RATE IN BPO