Tuesday, June 18, 2024

Attrition rates in PH contact center firms continue to go down

The number of agents resigning from local call center firms is continuously declining, based on a study released by the Contact Center Association of the Philippines (CCAP).

Results of the 145-member organization’s annual Attrition and Retention Survey show that voluntary attrition rate slowed to 31 percent in 2022 from 36 percent in 2021.

Findings of the poll conducted by data solutions firm Willis Towers Watson show that involuntary attrition rate in 2022 was at 14.1 percent, while the rate of agents committing absence without leave (or unauthorized leave considered as work abandonment) was at 9.9 percent.

About 1.9 percent of hired agents were ‘No Show’ or did not report to work on Day 1. Total voluntary and involuntary attrition rate in 2022 was 45 percent.

Historically, the call center sector has among the highest employee attrition rates in the country. About 60 percent to 70 percent of agents had been leaving their companies until 2016, when the rate began to slow below 50 percent.

Preliminary data covering the first half of 2023 (latest available information) show that voluntary attrition rate was at 19 percent, while involuntary attrition was 9.2 percent, unauthorized leave rate was 8.1 percent, and no-show rate was 2.5 percent. Overall, the six-month attrition rate was 28 percent.

“CCAP member-companies are continuously investing to make the workplace more conducive in the digital age,” said CCAP president Mickey Ocampo. “The poll data indicate that the sector’s efforts to re-skill and upskill its workforce are paying off amid the evolving landscape.”

Based on exit interviews, up to 69 percent of resigned employees cite “better pay opportunity” for their voluntary decision.

About 68 percent say they are seeking “better growth opportunity,” while 46 percent state health-related reasons for their resignation.

When asked about their next plans after resignation, about 64 percent of resigned agents said they are moving to other jobs within the shared service and outsourcing. While those taking employment outside the information technology-business process management (IT-BPM) industry account for 27 percent.

The majority of agents (78 percent) in CCAP member-companies prefer the hybrid work arrangement, based on preliminary poll data in 2023.

Interestingly, agents who prefer to work onsite comprised 47 percent of respondents, exceeding the 41 percent who like to do remote work.  

Jamea Garcia, VP for human resources at Alorica Philippines, said those who prefer to work on-site mostly comes from the branches outside Metro Manila since they have better transportation and the branch offices provide conducive working spaces, stable Internet conditions, and equipment.

When it comes to talent acquisition, CCAP member-firms identified the top five challenging roles to hire agents:

  1. Big data/ data analytics/ business intelligence
  2. Application development
  3. Accounting and finance
  4. Cybersecurity
  5. Human resources

The top sources of new hires during recruitment are within shared service and outsourcing (83 percent), outside the industry (44 percent), and freelancing (19 percent).

Overall, IT-BPM industry in the Philippines posted revenues of $35.5 billion in 2023, with an estimated 1.7 million employees.  Majority of the revenue and employee numbers came from the contact center and business process sector.

Haidee Enriquez, CEO of MicroSourcing and Beepo, mentioned that the industry aims to hit revenues of $43.7 billion by 2025, and almost double the present number of employees. 

She said about 55% of the current number of employees in the industry come from outside Metro Manila, and companies are still expanding to explore this option.

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