Call Centers Experience of the Highest Employee Turnover Rates - Research Essay Sample

Introduction

Research shows that call centers experience the highest employee turnover rates as compared to other industries. Hiring and training of new employees in organizations cost time, and resources, elements they never intend to invest in on a regular basis. According to research conducted by Response Design Corporation, call centers record a loss of up to 26% of their full-time agents, and 33% of their part-time agents on an annual basis. According to the same research, a typical call center spends a fortune 4,000 dollars on hiring new employees, and a slightly higher amount of training them. These alarming statistics need to find a solution and avoid further financial losses and curb the high employee turnover. Various organizations have attempted to use strategies like increased wages, and promotions but they worked temporarily (Dyer & Reeves, 2006). When the strategies failed, organizations resorted to conducting research to come up with long-term strategies to curb employee turnover in call centers. This paper reviews the existing literature on employee retention then analyzes the implications of employee retention in organizations and finds suitable employee retention strategies that can be employed by call center managers. These strategies will aid in determining the impact of retention strategies on the effectiveness of work in an organization.

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Literature Review

The literature review section is used to collect secondary data. This data is in the form of books, articles, websites, journals, dissertations, and existing case studies. The literature review section is important in providing a background for the study and sets the expectations of the research. For example, the background of the study used existing statistics and research conducted on turnover rates in call centers. This information was useful in highlighting the need to focus on call centers to provide ample solutions. The literature review, in this case, focuses on the existing case studies on employee retention strategies and case studies on the impact and effectiveness of retention strategies in the work environment.

Case Studies on Employee Retention Strategies

Employee retention strategies can ensure that companies keep their most valued employees at the company. Retaining employees can be done directly or indirectly within the company. Organizations aim at retaining their employees for many different reasons. One of the reasons is that as employees stick to one organization for a long period it shows the organization is a successful organization. The other reason for employee retention is to create a community within the organization that is happy. Having employees work in an organization for a long time ensures that there will always be someone to help when needed (Koyuncu et al., 2013). There have been several case studies on employee retention strategies. The case studies have identified the problems that organizations faced and the solution used to ensure employees are retained.

The first case study is the retention of workers in the ITeS industry in India. The industry deals with the delivery of services via information technology. This organization accounts for about 60% of revenue in the country and has been enjoying the European and the United States markets. Lately, however, there has been a gradual growth in local demand for their services. In the case study which the objectives included the identification of employee retention strategies used in the ITeS industry in India specifically in the tri-city of Panchkula, Chandigarh, and Mohali, Singh et al. (2010) in their research wanted to learn the meaning of diverse: individual, organizational and industry connected factors in shaping the employee retention. Furthermore, the study wanted to find out the relationship between employee retention and job satisfaction in the mentioned industry.

The case study involved twelve organizations. From the study, it was concluded that many organizations in the ITeS industry in India use different employee retention strategies to keep their employees. The case study also found out that employee retention strategies can be divided into two categories that are the monetary category and the non-monetary category. More organizations employ monetary strategies according to this case study. They include Increment in salary, performance incentives, and rewards. However, there are also a good number of organizations that employ nonmonetary employees retention strategies such as job enrichment, participation in management, and public recognition of achievement. The study found out that the longer that employees gained experience in the industry and became comfortable the higher the chances of them leaving their jobs. Two other factors that contributed to employee attrition are age and educational qualifications (James & Mathew, 2012).

The study went on to conclude that organizations that provided fair and competitive salaries and performance-related incentives retained their employees. Furthermore, employees also remained in organizations that employed non-monetary strategies but upheld their values and beliefs. Of all the organizations used in this case study, the use of exit interviews was present. Therefore, it was concluded that the most effective strategy to use for employee retention is exit interviews. Female employees were also considered in some organizations that took part in this case study. Most organizations put up practices that would help retain female employees. Women were treated fairly in most organizations and equality was observed therefore making the female employees feel respected and valued. Women were also provided with security in most cases, therefore, felt comfortable working in these organizations.

A second case study carried on a patent firm in Australia wanted to find out what factors led to employee attrition and what strategies the firm used to retain its employees. Ahmed and Azumah (2012) discovered that for an organization to be successful in training its employees, it must consider job satisfaction. The study also indicated that for employees to stay with one organization for a long time, they must always be motivated. The study concluded that most employees are concerned with career growth. If an organization offers a plan for career growth, then most employees will stay for a long time in this organization because they know they have a chance of improving as far as a career is concerned. Employees were found to be in search of action and adventure in their careers. The study discovered that most employees were voted on with their work. To feel likely again, they would seek new jobs elsewhere. The workload was an outstanding issue in this study that found out that most employees were stressed with their workload. Therefore, they would leave an organization that they felt overloaded with much work with less pay.

Employees that felt unappreciated after doing recommendable work were unhappy and would take a chance to go to a new organization that they felt would acknowledge their contribution (Oyer, 2004). Employees, in this case, study were satisfied with their salaries and valued the non-monetary strategies such as public acknowledgment of a job well done. The study also noted that employees at the age of 30 were most likely to leave an organization if they felt that they would not grow career-wise. The study concluded that monetary strategies of retaining employees were not the only strategies as employees prefer to be valued, respected, and acknowledged more.

A case study carried out by Narasimhan and Dogra (2012) focused on the hiring and retention of a company called Naukri. Naukri was an organization that had an organizational culture of employing enthusiastic, energetic and young, and talented employees. Other than corporate culture Naukri had another attraction that made everyone want to work for them; it was the employee stock option plan. However in 2008 due to the famous economic global crisis, the Indian stock market plunged too. Therefore, the attractive hiring and retention strategy of ESOP no longer existed. Managers at Naukri feared that employees will be attracted to other organizations that had better offers. To retain their employees, the chief executive of Naukri offered employees shares for as little as R10 (Rupees). This figure made employees see the stocks as valuable. Furthermore, the company went ahead and introduced incentives for the sales team that were awarded on a monthly basis. Initially, the incentive scheme was similar to other organizations that offered incentives quarterly.

The C.E.O of Naukri and the co-founder also embarked on a campaign to illustrate the company as a corporation that represents the youth and offered a fun working area for its employees. Furthermore, the company noticed that many Indians wanted to work for American companies. Therefore, they spread information that working in an American company may seem great, but there is no room to grow as far as the career is concerned. The result of the strategy is that the employee turnover at Naukri was and is still lower compared to other Indian firms in the same sector. Several executives had earlier moved on to other companies but came back later. In conclusion, the employee retention strategies used by Naukri were both nonmonetary and monetary. The monetary approach was the monthly incentives given to the sales team while the nonmonetary strategy included the focus on organizational culture and value.

A case study was carried on Harrods known as the world's most known and respected retail store. According to this case study, Harrods used different employee retention strategies to ensure it reduces employee turnover that reduces the cost of recruitment. The first strategy that Harrods use is it avoids bringing in workers from outside because they tend to leave. Instead, Harrods develops its employees who then get used to the culture at Harrods. Harrods has developed an improved incentive structure, management structure and has created a structure to allow the development of employees. Every year managers communicate to the employees about their development and growth.

Employees at Harrods, in turn, feel appreciated and valued. Therefore, employee turnover is low at Harrods. This case study indicates that employees who feel that they have a chance to grow and become better employees within an organization will not seek employment anywhere else (Kreisman, 2002). Furthermore, incentives are also a mode of motivation for employees to stay in one organization. Harrods has seen employees that joined the organization as junior employees rise to the level of being retail managers. According to this case study, organizational culture can also be used as an employee retention strategy.

Case Studies on Impact and Effectiveness of Retention Strategies on the Work Environment

Every organization's bedrock is its employees. Individuals come together to share a common goal and purpose in improving and maximizing company productivity towards profit-making. Numerous factors define the success of an organization and examples include resources, capital, leadership, company profile to the public eye, and most importantly employee retention. Employee retention is the process of retaining company workers who elevate the organization to the desired level both internally and publicly.

Employee retention should be at the top of every organization's priorities. Employees want to have a sense of job security, a prioritized position in the home organization, are being treated fairly with a high compensation rate and the all human employer-employee appreciation need. Experienced international and local employees are the princip...