REWARDS AND EMPLOYEE ENGAGEMENT IN BUSINESS PROCESS OUTSOURCING (BPO) SECTOR

   In the vibrant landscape of Sri Lanka's Business Process Outsourcing (BPO) sector, where efficiency and excellence are paramount, lies a critical challenge: the effective management of rewards and employee engagement. As in many emerging economies, the BPO sector in Sri Lanka has witnessed significant growth, driven by factors such as cost advantages, skilled workforce, and favorable government policies (Kariyawasam and Rathnayaka, 2019). However, amidst this growth, the issue of employee turnover and disengagement remains a pressing concern for organizations operating within this sector. High turnover rates not only disrupt operational continuity but also incur significant costs associated with recruitment, training, and lost productivity (Senaratne and Gunawardana, 2018). Moreover, disengaged employees are more likely to deliver subpar performance, affecting service quality and client satisfaction levels (De Silva and Wickramasinghe, 2017). Thus, the effective management ...

    S ocial exchange theory, as proposed by Homans (1958), posits that individuals engage in social interactions based on the principles of reciprocity and mutual benefit. According to this theory, People are driven to act in ways that maximize benefits and reduce expenses within their relationships (Blau, 1964). In the background of the workplace, employees engage in a reciprocal exchange with their organizations, where they invest their efforts and resources in return for various rewards such as salary, recognition, and career advancement opportunities. In the Sri Lankan BPO sector, social exchange theory provides valuable insights into the dynamics of employee engagement. For example, Fernando and Niles (2018) found that high turnover rates in the Sri Lankan BPO industry could be understood through the lens of social exchange theory. Employees may perceive a lack of balance between their efforts and the rewards received from the organization, leading to dissatisfaction and ...

  Herzberg's Two-Factor Theory, also known as the Motivation-Hygiene Theory, provides valuable insights into understanding employee engagement in the Business Process Outsourcing (BPO) sector. According to Herzberg, there are two distinct sets of factors that influence employee motivation and job satisfaction: motivators and hygiene factors. Motivators, as per Herzberg, are intrinsic to the job itself and include factors such as achievement, recognition, responsibility, advancement, and the work itself (Herzberg, 1959). In the context of the BPO sector, motivators play a vital role in fostering employee engagement. For example, employees who receive recognition for their contributions to the company's success are likely to feel valued and motivated to continue performing at their best (Locke & Latham, 2004). Similarly, opportunities for career advancement and skill development within the BPO sector can contribute to employees' sense of achievement and commitment to the ...

  Kahn's model of employee engagement provides a comprehensive framework for understanding how individuals psychologically invest themselves in their work roles. The model emphasizes three dimensions of engagement: physical, cognitive, and emotional (Kahn, 1990). Applying Kahn's model to the Business Process Outsourcing (BPO) sector sheds light on how employees in this industry can be effectively engaged. 1. Physical Engagement: Physical engagement refers to the extent to which employees invest their physical energies in their work roles (Kahn, 1990). In the BPO sector, physical engagement can be observed through employees' active participation in tasks, adherence to schedules, and willingness to expend effort to meet client needs (Macey & Schneider, 2008). 2. Cognitive Engagement: Cognitive engagement involves the extent to which employees focus their attention, immerse themselves in their tasks, and think critically about their work (Kahn, 1990). Within the BPO sector...

    Employee Recruitment in the BPO Sector Recruitment in the Business Process Outsourcing (BPO) sector involves sourcing, screening, and selecting suitable candidates to fill various roles such as customer service representatives, technical support specialists, and data analysts. Given the dynamic nature of the BPO industry and the need for skilled and adaptable employees, recruitment practices in this sector often emphasize specific competencies such as communication skills, problem-solving abilities, and cultural fit with client organizations (Chew & Chan, 2008). Recruitment strategies in the BPO sector may include a combination of traditional methods such as job advertisements, recruitment agencies, and employee referrals, as well as newer approaches like social media recruiting and talent acquisition partnerships with educational institutions (Devi & Narayanan, 2018). The BPO sector typically experiences high employee turnover rates, which can pose challenges for ...

    Learning and Development in the BPO Sector Learning and development play a crucial role in the Business Process Outsourcing (BPO) sector, where employees often handle diverse tasks and interact with clients from various industries. Learning and development initiatives in the BPO sector aim to enhance employees' skills, knowledge, and competencies, thereby improving their performance and contributing to organizational success (Mukherjee & Sudarsan, 2012). Training programs in the BPO sector cover a wide range of topics, including technical skills such as software proficiency, domain knowledge related to specific industries, communication skills, problem-solving abilities, and customer service excellence (Anand & Pandey, 2019). Development opportunities in the BPO sector may include job rotations, cross-functional projects, leadership development programs, and access to online learning platforms (Ahmad et al., 2020). The BPO sector also emphasizes continuous learning...

  When discussing employee engagement in the BPO sector and relating it to other sectors, it's essential to consider common challenges and strategies across various industries. Here's how employee engagement issues in the BPO sector can be related to other sectors along with real-world examples: 1. High Workload and Stress Employee engagement can be affected by high workloads and stress, which are prevalent not only in the BPO sector but also in industries like healthcare and retail. For instance, nurses in hospitals may experience high levels of stress due to long working hours and demanding patient care responsibilities (Makara-Studzińska et al., 2020). Similarly, retail employees during peak seasons may face pressure to meet sales targets and handle customer inquiries efficiently (Kim et al., 2020). 2. Work-Life Balance Maintaining a healthy work-life balance is crucial for employee engagement across various sectors. In addition to the BPO sector, industries like technology ...