Survey: BPO companies’ turnover rate slows down
MANILA — Business process outsourcing workers are holding down their jobs far longer than they used to.
In a statement, Towers Watson said its annual BPO/Shared Services/Call Center Industry Total Rewards Survey showed that the turnover rate at Philippine BPO companies slumped to a record low last year.
“The sector, though fast-growing, has adopted various strategies in talent acquisition, including expanding operations outside the National Capital Region to tap talent in Cebu, Davao and Southern Luzon,” said Vangie Daquilanea, Global Data Services Practice Head of Towers Watson Philippines.
“This has, in turn, minimized talent movements within the NCR, registering the lowest attrition rate in the last seven years,” she said.
Towers Watsons’ annual survey provides insights into compensation practices and trends in the industry, helping companies make informed decisions about total reward programs for its employees.
The international consulting firm’s survey found that the Philippine BPO sector is anchored on qualified talent availability, thus the need to expand to other areas to avoid talent saturation in NCR.
As such, Central Visayas salaries are found to be about 23 percent lower than in NCR, making it a viable location for BPO companies to operate in. This supports an international research on the top global outsourcing destinations, identifying Cebu in the top eight.
According to the survey, salaries in the industry have risen by an average 7 percent last year, and are expected to grow at about the same rate in the next two years. Pay increases are performancebased, so exemplary performers are rewarded more, and non-performers are given zero to minimal increases.
The compensation mix leans more towards guaranteed compensation, supplemented by a minimal annual performance bonus equivalent to 1 to 1.5 months of pay.
The survey also found that the BPO sector has the most robust health and wellness programs, as companies take care of their employees by offering stress/risk assessment programs, health screening, counseling, fitness competitions, and smoking cessation programs, among others.
According to Towers Watson, providing these health and wellness programs to employees paves the way for building a culture of health awareness, and ultimately becomes a shared responsibility between employers and employees.
Eighty companies participated in this year’s survey, representing the entire service outsourcing spectrum in the country, comprising information technology outsourcing, knowledge process outsourcing and BPO service lines. (Interaksyon.com)