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Maintaining Employee Retention in the BPO Industry

The success of any great business usually lands on the backs of talented employees dedicated to their work and bringing out the best quality in products and services. Finding hard-working individuals is the responsibility of any business process outsourcing company with the ambition to serve its clients with absolute perfection.

However, most BPO industries do not keep incredible talent and lose business opportunities based on the comings and goings of existing employees. Employee turnover is one of the biggest challenges the BPO industry faces, with 20% being the new normal globally.

This article will supply in-depth context about the loss of employees within the BPO industry and the latest retention strategies to keep them from leaving.

Why are Employees Leaving?

The nature of the BPO industry has always been a competitive field that favors cheap labor for quality service. Clients look to providers who can manage fresh employees to complete repetitive work without losing quality or production speed.

In the process, BPO employees can quickly lose the drive and steam for tasks clients did not want to do themselves. Throughout an employee’s time with a BPO company, several factors can affect their reasons for leaving.


Many BPO employees do not see these sectors as permanent positions but rather as a training investment towards a better career and future. It is a starting point for workers who want practical experience in exchange for quick and easy jobs.

An employee who has been with the company for years will understand the business, harness skills, and realize the increase in their marketability. Experience and growth become a wagering point for competing companies willing to pay more for talent.

Lack of Growth Opportunities

Business process outsourcing companies are not known to house executive-level job opportunities for their employees. Most of their concerns revolve around producing the largest amount of work while reducing costs and keeping those earnings.

A BPO employee who learned everything the company offers would want to expand their knowledge in a higher position with the promise of a raised salary and responsibilities that test and challenge capabilities.

Working the same job for years is tiresome and limits what the employee can do, pushing them to search for more opportunities elsewhere.

Work-Life Imbalance

Employees coming straight out of school or having minimal responsibilities are the ideal candidates for BPO industries. Free time and flexibility are common among these workers since their schedules are available for assigned tasks and projects.

However, as life goes on, people begin to shoulder families, expenses, and other demands that make it hard to juggle the stressful expectations of a BPO company. The desire for better pay, no weekend work, and rebalancing a healthy lifestyle contributes to the fluctuating increase and decline of BPO employees.

Strategies to Increase Employee Retention

BPO companies who understand the value of their employees can avoid high turnover rates. Holding onto that talent can ensure continuous quality towards customer satisfaction and production speed.

The following strategies approach employee retention with a proactive mindset. Integrating these plans with your own company will help save on new hiring costs and keep your potential lead in the market.

Flexible Working Environment

The atmosphere of a workplace can have lasting effects on any employee. In a sector that excels in repetitive and time-consuming work, BPO providers should offer flexibility for their workers to decompress and on-the-job benefits.

Expecting mothers can have extended maternal leaves to ensure they come back in full strength to continue offering their excellent services. Remote work options can also be a choice for employees who can exchange travel time for work hours and create an arrangement for those with kids.

The emphasis on recreational activities and company events are features that attract millennial employees. A fun and engaging company culture reduces the risk of burnout and presents the facility in a comfortable spotlight worth sticking around.

Competitive Salary and Benefits

Job opportunities are becoming less of a concern for most BPO employees. As they develop their skills, they search for better opportunities matching their skills and necessities.

BPO providers who want to keep talented employees should be flexible and progressive with contractual benefits. Medical benefits like general healthcare, dental plans, and vision are good reasons for an employee to consider staying.

Long-term employees like to see progress in their current position, which exists in the form of job benefits. A 10% higher base pay is standard within the industry, with the promise of paid lunches, travel fees, and basic insurance for health and security.

Performance Incentives

Employees like their efforts and performance acknowledged by their supervisors and upper-level management team. This approach offers a level of appreciation that motivates employees to continue their above-average performance for the BPO company.

Performance reviews are a wonderful way to introduce incentive-based bonuses throughout a quarterly or yearly work period. Excellent performance ratings and evaluations can lead to extra vacation time, bonus pay, discounted offers, and other rewards that make employees feel like a welcome part of the team.


Employee retention is still a pressuring concern for the BPO industry due to personal growth and company limitations. Nothing is more demotivating than working at a job that feels like a roadblock with few opportunities to expand.

Providers can become more appreciative of their workers by addressing their needs and building a relaxing work environment to reduce stress and burnout. Your employees are an asset to your competitive advantage over rival companies and keeping them happy and on your side only improves your financial standing.



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