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BPO No More Stopgap
Continued from page: 1

Shipra Malhotra
Wednesday, October 01, 2008
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A plausible reason for this disconnect could be the fact that the big companies have better processes and systems in place as compared to the smaller companies. They are also able to score higher owing to their large employee base. Allsec, with 2,349 employees is an exception to this, making it to #5 on HR scores.

But, with growing number of employees, there is a tendency for the companies to become more impersonal and too process driven in their dealings with their employees. This, in turn, can affect employee satisfaction. However, HCL BPO with 10,443 employees has successfully made an exception to this rule by making it to the #5 position on employee score. The company has also significantly improved upon its performance, moving up five notches since last year.

Ups and Downs at the Top
Talking about performance comparisons, there have been some major displacements over last year. Knoah was the biggest success story of the survey as it moved up six notches. This was owing to the significant improvement in its employee score wherein it jumped eight positions. The company has shown good performance compared to the industry average on parameters like training and salary structure. Its employees are also found to be satisfied with the companys appraisal system and image. EXL emerged as the next biggest gainer, with an improvement of five positions. It has especially done good (compared to the industry average) on parameters like company culture and company image. Other significant gainers include Aditya Birla Minacs (up four ranks) and HCL BPO (up three ranks).

Correlation coefficient implies the relation between employee satisfaction and the above mentioned parameters. For example, I am paid enough for the work I do in this company has the strongest bearing on satisfaction

Among the losers, both e4e and Ajuba Solutions slipped five ranks each. For e4e, the score has declined in most of the employee parameters. Employees are found to be particularly dissatisfied with the cultural aspect and feel that it doesnt create a very positive work environment. They are also not too happy with the appraisal system, apart from job content. Its time both companies analyze and upgrade their appraisal systems as well as make the job and work environment more exciting for their employees.

Satisfaction Up
Of the seven broad employee satisfaction parameters captured in the survey, satisfaction levels have improved in four over last year: work culture, job content, people, and salary. While the score on the image front remained constant at 7.70, there was a slip in training and appraisal.

Interestingly, salary, which has an important bearing on employee satisfaction, has got the least satisfaction score among the parameters. Salary scoring the least on satisfaction means that it has become the most significant reason for discontent among the surveyed employees. One of the reasons for this can be the fall in average salary hike across categories from 16.2% last year to 14% this year. With the slowdown blues forcing companies to go slow on spending and squeezing the salary hikes, there is always the fear of attrition assuming greater force.

Not so Healthy
One of the biggest detractors in the otherwise shining Indian BPO story has been the health issue, the result of the need for night shifts, an inherent requirement of the industry. Considering that most clients these companies are catering to are in the US and Europe there is nothing much that can be done about this problem. As a result, health has become a prime area of concern. While it is true that there are other industries as well that require working in the nightlaw enforcement services, medical servicesbut no other industry has received this kind of attention, or rather flack, for promoting a lifestyle thats contrary to the natural body clock. Even the Union Health Minister Anbumani Ramadoss got very involved and proposed a special health policy. While this might have been taking matters too far, there is no denying that health remains an important issueand the industry has to find ways to tackle it.

At a closer look, sleeping disorder came out as the biggest ailment plaguing BPO employees with 32.20% of surveyed employees citing it. Interestingly, eye sight problem has become a larger menace than last year, overtaking digestive disorders to take the third position.

Companies already have corporate health programs, and with more awareness now they are further stepping up their health initiatives making them regular periodic programs rather than once in a while initiatives. Ajuba has a corporate wellness program, Svasth; initiatives under this include doc-on-call, diabetes awareness camp, and weight management. vCustomer also organizes health week each quarter wherein the doctors/dieticians/dentist/eye specialists and other specialists are called for employees to get checked free of cost. IBM Daksh runs periodic health camps organized with well defined scope and methodology. It also runs employees awareness on workplace ergonomics matters. Patni, on the other hand, has tied with Apollo Hospitals for personalized health survey of the employees.

Matters to Stress
Though workload, timings and health issues together have taken a toll on stress levels, the number one stress factor for employees is travel timing followed by insufficient holidays. One of the reasons for this can be the choice of location for BPOs. With most BPOs located in the suburbs and the outskirts of cities, travelling takes a toll on the employees. So even the office transport provided by the company is not sufficient to take away the woes of long traffic jams which are becoming a common feature in these increasingly crowding suburbs.

Companies are already taking up measures like implementing automated route planning systems. Genpact has gone a step ahead with its Work From Home model, the objective being to allow employees to cut down on commute time and have flexible schedules. This is also a step toward increasing productivity and enabling a healthy work-life balance. It also allows Genpact to tap into an alternate talent pool of potential employees, who previously chose not to join them.

Methodology
Research Design
The survey was designed and carried out in two phases. In the first phase an HR questionnaire was sent to about 110 BPO companies to get the company specific data that was to be used in analysis and for devising the sample break up for each company. In total 18 companies participated, however in second round only 17 companies took part. Hence, a large-scale survey was then conducted in the second phase among 1528 employees in 17 companies across the country. The seven major regions covered were: Mumbai, Pune, Kolkotta, NCR, Chennai, Hyderabad and Bangalore. In each city, a sample quota was assigned based on the companys employee strength in that city. This quota system was followed strictly to get a proper representation of the different types of employees in the sample. The employee survey included only call-floor executives and operational managers at all levels but excluded back-end support staff from departments like HR and administration. These interviews were based on a structured questionnaire that comprised a number of statements classified under different broad parameters like company image, culture, job content or growth, training, salary & compensation, appraisal system, and people. The employees were asked to rate each of the statements on a 10-point scale. Other than the above parameters, they were also asked about their salary structure, preferred company in the industry, overall satisfaction, reasons for joining or reasons for leaving a company, and work-related stress and ailments if any. In order to retain objectivity, every attempt was made to take an unbiased sample. Every effort was also made to ensure that the management of the company neither influenced the employee responses nor got an opportunity to select respondents for the interviews.

The E-Sat Score 2008
The employee satisfaction score was calculated based on 11 parameters, and was weighted and indexed on a score of 100. Parameters taken for calculating the E-Sat scores are:

  • Employee size n Percentage of last salary hike
  • Cost to company
  • Overall satisfaction score n Company image
  • Company culture
  • Job content or growth
  • Training
  • Salary and compensation
  • Appraisal system
  • People
  • Preferred company: Percentage of respondents of a company who named their own company as the preferred one

Dream Company: Percentage of respondents in the total sample who preferred a particular company excluding their own company
A correlation analysis was run between overall satisfaction and the statements across all these broad parameters. It gave us the dependency of the dependent variable (overall satisfaction) on each of these statements, which in turn provided the weights of each of the statements. The weighted average of the individual scores of statements gave us the score, at the level of each of these broad parameters, and this score was used for the final ranking.

The IDC India team was led by Parishesh Mishra and assisted by Deepak Rajgarhia & Ravi Kant Sharma

Insufficient holidays has overtaken work timing as the next biggest stress factor. This is probably owing to the reason that these employees get their holidays around the American and European holidays, a time when they might not have their families free to spend time with themwhich over a period of time becomes a huge stress factor. Companies are taking innovative measures to counter this. EXL has sensitized its clients on this issue, resulting in some them recognizing the Indian holidays. The good news: this years survey has found lesser employees finding insufficient holidays, work timing and workload stressful than last year.

Its a mix of some old and some new challenges. Despite the fact that attrition levels have fallen, it continues to be the biggest challenge for BPO companies today. Acquisition of the right talent is challenge number two. Its no more about just hiring freshers. With high-end analytics work increasingly coming to Indian BPOs, hiring the right talent has become imperative. The next challenge: career progression and expectation managementis a relatively new challenge.

Shipra Malhotra
shipram@cybermedia.co.in

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