Staff Turnover When Outsourcing....A Simple Method To Avoid It

One of the biggest battles any user of outsourcing services can attest to is attrition. There is nothing worse than having put resources (=money) into your hires and see them walk out of the door at a rapid clip. They have to be replaced and the new hires have to be retrained. It  takes time to bring the new hires up to speed...familiarize them with what is going on. The fact of the matter is that constant attrition is a drag on the quality of the work product.

 The problem of staff turnover is  true for virtually all BPO centers....no matter if the service offered is IT (Software), Call Center or Service based.

The problem though is not necessarily the same all over the world. Some BPO / Outsourcing providers  have fostered a culture and pay environment where the talent stays around. As such it makes sense to review the attrition rates your outsourcing provider has. If they assume a staff turnover rate of 50 % and more (which is not unusual) it does provide a provide a pretty good indication that the center you are dealing with is a "mill" or "body shop". The pay is most probably less than what the local competition offers and no positive culture is fostered.

Some welcome news on this front can be found in the article below. The attrition rates of the BPO industry in the Philippines has now fallen to 20 %. A rather astonishing number considering that the number was 33 % as late as 2011.

Philippines Outsourcing BPO Staff Turnover Rates Down To 20 %

Since the 20 % number represents a blend of the entire industry it signals that you can find outsourcing providers  which have reduced staff turnover to levels which are below or close to the turnover rates we are used to see in the US.  As a comparison...the table below shows staff turnover rates (voluntary and involuntary) for the US.

2014 Turnover Rates BPO Outsourcing Philippines
Source: CompData 2014 Survey

Consequently turnover and attrition might not be the problem it used to be, at least not when you pick the right outsourcing / BPO partner....and that is some really good news.