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Attrition

Attrition rate in BPOs has become legendary. In fact, the problem is seen by many players to be so deep-rooted that they have merely added it as a cost of doing business! The various costs incurred due to high attrition rates are elaborated as follows:

Costs Due to a person leaving

1. The cost of conducting an exit interview to includes the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments.
2. The cost of managerial intervention -to understand what work remains, and how to cover that work until a replacement is found.
3. The cost of training the company has invested in the employee who is leaving.
4. The cost of decrease in departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late?
5. The cost of lost knowledge, skills and contacts that the person who is leaving is taking with them.
6. The cost of the vacant position till a new replacement is selected.

Recruitment Costs

1. The cost of advertisements; agency costs; employee referral costs; internet posting costs.

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* Contributed by -
Ankur Pawa & Nishant Choudhary,
Indian Institute of Management,
Lucknow.