Tue. May 21st, 2024

Types of Attrition in BPO

Irrespective of the industry, attrition is one of the major challenges faced by the industry in maintaining a stable organization. Especially in BPO or Call center, where manpower plays a pivotal role in driving business, generating revenue, and building client relations.

However, one thing to keep in mind is that sometimes, employees leave a job isn’t just because they want to, under certain circumstances employers can also ask employees to leave.

 

Types of Attrition in BPO
Types of Attrition in BPO

So in this blog today we will delve deep into types of attrition in BPO.

Just to give a heads up, in the entire blog the attrition term should be referred to as “Attrition of Call Center representative”

For a better understanding, we will also cover the below 4 topics in brief :

  • What is Attrition?
  • Reasons for Attrition.
  • Formula of Attrition.
  • How to reduce Attrition?

Without further ado, let’s start the topic “Types of Attrition in BPO” . But before jumping to the topic let’s understand “what is Attrition in BPO?”

What is Attrition in BPO?

Though attrition can be defined in different ways, depends on the type of industry in Call center or BPO attrition can be defined as  :

Reduction of manpower in a specific period of time due to employees leave the organization, or asked to leave

Now let’ understand :

Types of Attrition in BPO

Before understanding the types of attrition in BPO, let’s understand the ” Reasons for Attrition ”

Common reasons for Attrition  :

If you have been in a leadership role in BPO, then you must come across some common reasons of attrition, these are :

  1. Employees leaving to continue their higher studies
  2. No Career growth
  3. Salary hike in competitive organization
  4. Retired
  5. Asked to Leave by the Organization itself due to :
    • Behavioral issues
    • Poor Performance
    • Fraud or other cases

and some other reasons that may vary as per the location, organization, and nature of work.

Now if you notice in the above-mentioned reasons  Top 4 reasons are due to the agent’s willingness to leave the organization but the 5th point is where agents could be asked to leave due to certain reasons, so these are 2 different types of attrition. Often, there are 2 types of attrition in BPO :

  1. Voluntary
  2. Involuntary

Let’s understand them 1 by 1 :

1. Voluntary:

As the name refers “Voluntary attrition” terms to those instances where employees willingly decide to leave the organization for any of the reasons like:

  • To continue higher studies
  • No Career growth
  • Salary hike in competitive organization

2. In -Voluntary:

 Voluntary Attrition cases are those types where the organization decides to terminate or asks to leave the organization to employees.

There could be several reasons why an employee can be terminated or asked to leave the organization. Some of the reasons are  :

  • Behavioral issues
  • Using profane /unholy language
  • Unable to improve the performance.
  • Culprit in Fraud or other illegal activities

Now let’s understand how to reduce the attrition in BPO

How to reduce Attrition?

Reducing attrition is one of the challenging tasks when an employee has so many reasons to leave. However, I have outlined 4 proven tips to arrest the attrition issue in advance :

1. RAG/EWS Tracker :

RAG stands for (Red, Amber, Green) and  EWS ( Early Warning System), both terms can be used interchangeably. To control the attrition prepare a monthly RAG/EWS tracker to predict the attrition rate for next month and start conducting 1:1 sessions with the suspected employees.

2.  1:1 Session:

Start conducting 1:1 sessions weekly with every employee, especially the new hires and those highly suspected in the RAG list. Remember that tenured people in your team also need counseling sessions. So at least have some chat with them as well if not weekly , once in a month.

3. Build a relationship :

As a leader you are not only accountable to extract the work from the employee but also build a relationship with them. Have a chat with them offline ( means outside the office) . If required conduct some interactive and fun sessions with the team. Some ideas:

  • Chai pe charcha
  • Pot lunch
  • Outing nearby

4.  RNR sessions:

RNR programs are a great way to motivate team members and to award those who deserve it. RNR sessions can be conducted with the help of ER and should be conducted twice or weekly in a month.

Read the full blog on the benefits of conducting RNR sessions in BPO

For a details blog on Reducing Attrition. Click the link “how to reduce attrition?”

Finally, let’s understand how to calculate attrition  :

 

Although there are different ways to calculate attrition in a call centers one universal formula to calculate attrition is  :

Number of people left / Avg of headcount *100 

Let’s understand with a simple example :

Suppose in a process the Month open headcount was 25, while at the end of the month 20 agents remained. Now in this case to calculate attrition we need to have the below parameters:

Number of agents left = Closing Headcount – Opening Headcount

Average of Headcount  = (Closing Headcount + Opening Headcount )/2

Let’s put the number in the formula. So in our case :

Number of agents left = 25 -20 = 5

Average Headcount  = ( 25+20 )/2 =17.5

So the attrition % is = 5/ 17.5*100 = 28.57%

FAQs :

Let’s answer 3 common FAQs regarding ” Types of Attrition in BPO “?

Q1.  What are the types of attrition in BPO?

A1. There are 2 types of Attrition :

  1. Voluntary
  2. Involuntary

Q2.  What is the formula for Attrition?

A2. Number of people left / Avg of headcount *100 

Q3.  What is Attrition in BPO?

A3. Attention in BPO is  the reduction in manpower due to employees leaving the organization or being asked to leave the organization

Related Posts :

How to Calculate Attrition in Call Center ?

What is EWS/RAG in Call Center

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