Attrition in the Indian BPO sector: Role of compensation and opportunity to advancement on employee’s intention to quit

Authors : Akanksha Jain, Akanksha Jain

DOI : 10.18231/2394-2770.2018.0038

Volume : 5

Issue : 3

Year : 0

Page No : 239-243

Human capital is the most crucial resource on which the BPO industry in India depends. However, it is plagued by this never ending problem of employee attrition. Whenever a well-trained and well-adapted employee leaves the organization, it creates a vacuity. The organization loses a skilled, trained, and essential resource. Consistent employee attrition not only leads to an increase in tangible cost but also includes an intangible or “hidden” cost associated with it.
Purpose: This study intends to study the impact of tangible factor like compensation and an intangible factor like opportunity for advancement on an employee’s intention to quit.
Research Design: Employee intention to quit, employees satisfaction from compensation levels and opportunity for advancement were measured using 5-point Likert scale. Statistical techniques such as, correlation analysis, Principal component analysis, descriptive analysis etc were used for understanding the data and analysis.
Results: A study of the statistical output reveals that both compensation and opportunity for advancement factors play a significant role in influencing an employee’s intention to quit. Although opportunity for advancement is a major factor which plays a more significant role than compensation.

Keywords: Employee attrition, Compensation, Opportunity for advancement.

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