The Young and the Restless

More than 50% of the employees feel that they are not paid enough for the

work they are doing, but only 22% would leave if another company offered a job.

However, 54% would not mind working in another industry given the chance. More

than 75% feel their jobs are secure and more than 84% feel their job roles are

well defined. The industry continues to be in flux-the instability of

adolescence is not yet over

For the second year running, BPO employees were on the whole more satisfied

than their counterparts in the IT and IT services industry. While last year, the

fact that the IT services industry was coming out of a slowdown was thought to

contribute to this. But this year, even as the IT services sector witnessed a

rejuvenation, higher employee satisfaction in the call center sector is indeed a

surprise. More so, when one considers the high rates of attrition prevalent in

the industry.

One

does not have to look very far to understand this apparent dichotomy. In keeping

with our findings last year, this year too, it is the first timers and those

with less than two years' experience who turn out to be the happiest lot in

the ITeS industry. The degree of happiness seems to be inversely proportional to

the experience accrued. The dissatisfaction level climbs up steeply with those

employees with more than five years of experience. The converse is true for the

IT services industry. There, the middle management is under the most pressure,

and even the first timers are not very contented as a group. But at the same

time, the experienced employees there also proved to be the most satisfied.

Moral of the survey: BPO and call centers are basically an industry for the

young, and true to form, the spirit of youth also enfolds within it

restlessness. As call centers scale up substantially over the next few years,

the proportion of these first timers is bound to remain high. That in turn would

ensure that in surveys like this one, which uses a weighted sample size, the

overall satisfaction level will always remain on the higher side.

The methodology followed in the survey was fairly simple. 60 questions were

asked of 462 BPO employees across the country. The questions related to a wide

range of subjects, including company culture, job content/growth, training,

salary and compensation, appraisal system, and relationship with superiors and

peers. Training was a new parameter added this year-an acknowledgement of how

crucial this has become for the industry. Every single call center now vies to

train their employees not only on accent and voice neutralization, but also on

processes and quality. In fact, a separate call center training industry has

spawned off by itself.

The respondents were asked to rate their companies on a scale of 1-10 on each

of 60 statements, where a score of 10 meant they strongly agreed, and a score of

one meant they strongly disagreed. Finally, we closed in on eight parameters-other

than company culture, job content/growth, training, salary and compensation,

appraisal system and people, we also have a composite satisfaction. This

variable analyses the company's image amongst its employees by asking

questions about, e.g., the degree of sense of belonging to the company, and the

pride and satisfaction derived by working from it. In addition, the overall

feeling of well-being has been captured in the parameter "overall

satisfaction."

Overall Satisfaction



The overall satisfaction score of BPO employees at 8.2 was not only very

different from last year's score, it was also higher than the employee

satisfaction scores for the IT and IT services industry for the second year

running. This sounds incongruous, given received wisdom about the plight of the

call center workforce, the high levels of attrition, and the revival in the IT

services industry this year. However, a closer look reveals that it is the first

timers and those with less than two years' experience whose satisfaction level

is much higher in the call center industry. And thanks to most call centers

substantially scaling up either organically or through acquisitions, the number

of first-timers is easily swelling.

The

level of satisfaction drops substantially once the threshold of two-years'

experience is crossed. And for those with five plus years, satisfaction level is

substantially lower than their IT services counterparts. It seems, then, for the

horde of ordinary graduates who constitute the bulk of the first timer brigade,

a five-figure salary with the promise of a glitzy lifestyle ensures a high

degree of happiness. But as the novelty wears off, and with the gradual

realization that scope for career growth is non-existent or at most limited, the

frustration seeps in.

Statements evaluated (include): based on your total experience, how would you

rate your overall satisfaction with the company on a scale of 1-10 where one is

highly dissatisfied and 10 is highly satisfied.



Base: 462

Company Image/Composite Satisfaction



Overall satisfaction might bring out the employee's general sense of well

being, but composite satisfaction is the acid test for any company, for it shows

how it manages to instill employee confidence and belief in itself. The

questions are pertinent: would you recommend the company to a close friend?

Would you leave the job for a 20% salary hike? Do you look forward to a

long-term career in the company?

The true picture of the industry emerges through these questions. For each

and every company in the survey, the composite satisfaction score substantially

drops from the overall satisfaction level. And this is not a new phenomenon-the

same thing was also witnessed last year. Even for the companies like iSeva and

Motif who came on the top of the ladder, the overall satisfaction levels were

much higher. Interestingly, both these companies were smaller and scored higher

on composite satisfaction than larger players like Daksh, ICICI OneSource and

24/7 Customer. One logical conclusion can be that small town people have higher

satisfaction levels than those from bigger cities, and they also tend to stick

with one company for a longer time. In Ahmedabad-based Motif, all respondents

said they would recommend the company to a friend, and very few of them (14.7%)

said they would leave the company for a 20% salary hike. However, there is a

stern warning for the industry overall-nearly one-fourth of the employees

would leave the job for another industry. Except for small-town Motif, where

career options in other industry sectors are also limited, even high scorers

like iSeva (12.1%) and HTMT (15.1%) were not safe from this danger.

Statements evaluated (include): I would definitely recommend this

company to a close friend of mine; I look forward to every day's work; I would

leave this job if another reputed company offered me a job; I am proud of

working for this company; working in this company is a short term job

opportunity for me; I look forward to a long term career in the company; given a

chance I would work for some other industry; this company lives up to the

promises it made in its ad; this job is not stressful.



Base: 462

Company Culture



Most BPO companies might boast of devising an innovative office culture that

fosters positive spirit amongst its employees, but unfortunately that is not

reflected in the results. The overall company culture mean score of 7.6 is

considerably lower than that in the IT services industry. One surprise was that

more than 82% felt a sense of belonging to the company, which, despite the high

attrition rate, is indeed commendable. However, where the call center industry

fails on the company culture front is on the issue of employee empowerment. Less

than half the employees felt that they were encouraged to take risk in their

work, while only 65% felt they had the freedom to make decisions on their own

related to their work. Perhaps this is the result of a highly standards- and

process-driven environment, which naturally discourages individual innovation.

However, more worrying were the low scores recorded on the questions about

the ethics of the company-68% felt the company's policies are open and

transparent, while only 60% felt that there is adequate amount of transparency

in the management. This is indeed enlightening, since, with the exception of

Sykes, all the other companies participating in the survey were only Indian

third-party service provider.

Both iSeva and Motif scored very high on nearly all parameters-perhaps

having a smaller workforce helps the management take better care of the

employees. Regarding operational transparency on the part of top management, the

general feeling is that MNC companies are always more rigid than Indian

counterparts. This is endorsed further by only 30% employees in Sykes feeling

there is adequate transparency in the management. Unfortunately, Transworks

scores lowest on these parameters-not a good endorsement for the new

management of the new Aditya Birla Group, which acquired the company.

Statements

evaluated (include): This company's culture creates a very positive work

environment; Its policies and procedures are open and transparent; the company

conducts its business in a fair manner; I feel my opinion matters in this

company; there is adequate transparency in the management; I have the freedom to

make decisions on my own relating to my work.



Base: 462

Training



This parameter was added since last year's survey; its importance

especially in the context of the industry cannot be overlooked any more. Is the

training given to me relevant to the kind of work I do? Is it genuinely helping

me in my profession? And am I satisfied with the quality and the number of days

of training that is provided? These were some of the pertinent questions asked.

The vital role of training is evident from the fact that it has virtually given

birth to an ancillary industry that specializes in call center related training.

And it seems that employees too are endorsing what the industry is trying to do.

Nearly three-fourths are satisfied with the quality and number of days of

training, while over 80% felt it was relevant to the kind of work they do. One

surprise was training specialists like NIIT figured lower than the industry

average in most of the training-related parameters. So was the case with 24/7

Customer, EXL Services and Transworks, all of which rapidly scaled up in

manpower last year.

Statements

evaluated (include): I am satisfied with number of days of training that is

given to me in an year I am satisfied with the quality of training the company

provides; the training given to me is relevant to kind of work I do; the

training given in this company genuinely helps me in my profession.



Base: 462

Job Content/Growth



Though the industry might be saddled with its own problems related to holding

on to its workforce, there is no lack of internal selling of the company to its

employees. And it is proving to be a success as evident from more than 79%

employees feeling that they are excited by the work they handle and also the

process they are working on. And this was notwithstanding the fact that the

repetitive nature of the work turned out to be one of the biggest causes for

stress. Surprise, surprise: only 17% of the respondents felt they were stressed

at work-even in the worst scenario, only one-fourth of Transworks employees

felt they were stressed out.

Two anomalies from last year have undergone corrections in the normal course-as

obvious from the high level of attrition, nearly three-fourth of the respondents

felt they had sufficient job security. And in an industry defined by watertight

processes, more than 84% felt that their job roles were very clearly defined.

Shockingly, the industry had performed much lower than the IT services industry

on these counts last year.

As

more and more US and UK companies outsource, the level of interaction with the

agents keeps on increasing. Therefore, it does not come as a surprise that more

than 92% of the respondents felt their work crucially contributed to the company's

growth. This number was up from 85% last year-a potent refreshing tonic for

the industry otherwise beleaguered with myriad problems.

Statements evaluated (include): The work I do adds value to the

company and contributes to its growth; I am very excited about the work I handle

here; I have exciting growth opportunities in this company; I am very stressed

at work; my job is secure here; my goals are clearly defined and know what I am

excepted to do.



Base: 462

Appraisal System



In an industry driven so strongly by performance metrics, the appraisal

system was obviously sure to draw strong reactions. And it did. While more than

61% felt that the appraisal system is transparent, slightly fewer than 55% felt

that it was fair. However, more than 63% gave thumbs up to the fact that special

initiatives and efforts are duly recognized at the time of appraisal. Seems that

all those customary call center phenomena like champion of the week and the like

are duly appreciated at the time of appraisal.

Like on many other parameters, iSeva fared well with all the appraisal

questions. More than four-fifth of its respondents



not only felt that the appraisal system was transparent and fair, they also
believe that the appraisal parameters were well thought out and relevant. On the

other hand, Sykes, the only MNC in the survey, was on the lowest rung-strange

considering that these foreign companies claim to have well-knit, carefully

planned out appraisal systems.

Statements

evaluated (include): The appraisal system in the company is transparent; the

appraisal system in the company is fair; the appraisal parameters are well

thought out and relevant; special initiatives and efforts are duly recognized at

the time of appraisal.



Base: 462

Salary and Compensation



This continues to remain the sore point of the industry, with only 61%

endorsing their satisfaction for the existing salary and compensation structure.

First-timers might join the industry attracted by five-figure salaries, but once

the initial excitement weans off it becomes a bone of contention. In none of the

salary-related questions did even half the respondents express their

satisfaction. Only 49% feel that they are paid enough for the work they do, 42%

feel they are paid at par with industry standards, while only 43% are happy with

the salary hikes.

There seems to a serious gap between expectation and reality, and unless the

industry addresses this vexing issue with utmost urgency and seriousness, many

of the companies could head for serious trouble.

It

would not be out of place to mark out two of India's best known BPO companies-not

a single respondent from 24/7 Customer feels he/she is getting paid on par with

industry standards, and only 3% are satisfied with their salary hikes. Only 16%

of Transworks respondents think they are paid enough for the work they do and

only 13% of them feel that it is at par with industry standards. On the other

end of the heap, more than 90% of iSeva respondents are not only happy with what

they are paid, but they also think that even the perks and benefits are relevant

to them. However, this perception is more the exception rather than the rule.

Statements evaluated (include): I am paid enough for the work I do in

this company; my salary structure is quite tax efficient; I am getting paid at

par with industry standards; I am satisfied with the kind of salary hikes I get;

the perks and benefits I get in this company are relevant to me; I am satisfied

with perks and benefits available to me.



Base: 462

People



Like last year, there was a general satisfaction with this parameter-while

more than 90% were satisfied with the company leadership, more than 80%

expressed happiness with their managers. On the leadership front, more than 90%

endorsement came from Ajooba, HTMT, iSeva and EXL Services, while most others

scored over 80%. The companies apparently in leadership crises, according to

employee perception, were Transworks, Sykes and HCL BPO. This must cause serious

concern for Transworks, with its new Aditya Birla Group management and a top

leadership that includes some industry pioneers like Prakash Gurbaxani and

Rizwan Koita.

On different managerial fronts, various companies shared top spots-eFunds,

ICICI OneSource and HTMT. This bespeaks a healthy people related position across

all leading companies. More than 78% of respondents across the industry felt

that managers genuinely care about the employees' professional and personal

growth. In an industry otherwise wracked with attrition, this could be a crucial

issue, as resignations often happen because of confrontation with the immediate

superior. And the team leader on the call floor is virtually the supremo for

each and every agent there.

Statements

evaluated (include): I believe that the company's leadership is doing what

is required; my manager is always available when I need help or advice; my

manager encourages me to speak freely at meeting; my manager genuinely cares

about my professional and personal growth; my superiors give recognition

immediately for outstanding work; I get regular and constructive feedback from

manager\superior; my colleagues help me when I need them; my relationship with

my peers makes for a better work environment.



Base: 462

Rajneesh De in Mumbai