Discover the key drivers of employee engagement in the BPO industry and learn how to combat high attrition rates through professional growth.
The Business Process Outsourcing (BPO) industry is a powerhouse of the Philippine economy, providing essential job opportunities across the country. However, the fast-paced and stressful nature of the work in the BPO industry has led to a persistent, industry-wide challenge: a staggering 50% attrition rate. This figure is 38% higher than the average turnover rate of US companies, which sits at approximately 22%.
Recent research into the lived experiences of BPO managers in the BPO industry reveals that keeping employees isn’t just about the paycheck; it’s about creating a culture where they feel they truly belong and can envision a long-term future.
4 Pillars of an Engaged BPO Culture
To turn the tide on turnover in the BPO industry, leadership teams are identifying four transformative “leverage factors” that drive authentic engagement:
Setting a Clear Vision and Goals: Employees have a high propensity for engagement when they witness leaders taking action to make the company’s vision and objectives realistic. When staff understand how their position fits within the company and affects the business as a whole, mutual respect and trust are built.
Igniting People Participation: Beyond the daily grind, participation in outreach programs, sports events, and development training helps employees acquire a sense of “belongingness”. It is through these internal and external activities that staff feel like part of an organizational family.
An Individualized Engagement Plan: A concrete human resource development plan should be designed to bring out the best interests and individuality of each employee. This empowers staff to make useful decisions in their daily tasks, contributing directly to higher productivity and efficiency.
The Language of the Heart: This involves tapping into “volunteerism”—where employees are willing to go beyond the call of duty without force or hidden agendas. By aligning tasks with an employee’s internal values and interests, creativity and excellence emerge naturally.
Understanding the “Engagement Killers”
Why do talented people leave the BPO industry? The study uncovered several underlying concerns that negatively impact the BPO workforce:
Career Stagnation: Many high-performing managers and agents leave when they feel their growth is “stagnant” or their daily routine prevents them from utilizing new tools and expertise. Without visible movement or a clear career path, employees may feel bored and seek opportunities elsewhere.
Lack of Administrative Support: Middle management often faces a “generic approach” or a lack of budget for training, conferences, and modern technology. When leaders lack the resources to achieve their goals, internal conflict and a loss of motivation follow.
Underutilized Talent: Rank-and-file agents often resign because their specific skills were not appropriately utilized. Performing agents have a strong urge to be empowered and feel that they can contribute more to the company’s achievements.
The Compensation Reality: While culture is critical, monetary gratification remains the top motivator for survival and a comfortable life. High-performing employees expect pay that corresponds to the extent of the energy they invest in their roles.
The Path Forward: Empathy and Leadership
The solution lies in Transformational Leadership within the BPO industry. By practicing empathy—hearing and considering the personal needs and problems of staff—superiors can build a “win-win” situation for both the employee and the company.
When leaders are “artistic” in showing agents the deeper sense of why they do their work, they create an emotionally attached workforce willing to go the extra mile beyond their contractual agreement. Ultimately, an integrated development plan that prioritizes professional growth and better relationships is the key to organizational success in the BPO industry.
At Goodland, we help businesses simplify operations and scale with confidence through tailored outsourcing solutions. Get direct, one-on-one support from our experts—connect with us today to discuss your needs and discover how we can help your business grow. Call +61 1300 661 888 or request your free quote online.
This post was informed by Negros, J. (2022). Factors that Leverage the Key Drivers of Creating a Culture of Employee Engagement in the Business Process Outsourcing Company: A Qualitative Inquiry. Journal of Education, Management and Development Studies, 2(1), pp.67–75. doi:https://doi.org/10.52631/jemds.v2i1.73.
