01. Employee Engagement in the BPO Sector - Overview
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 of rewards and employee engagement emerges as a critical imperative for BPO organizations in Sri Lanka to enhance workforce retention, drive performance, and sustain competitive advantage in the global market.
In Sri Lanka, the BPO sector has emerged as a significant contributor to the country's economy, offering employment opportunities to a skilled workforce and attracting foreign investment (Fernando and Senarath, 2017). With its strategic geographical location, English-speaking workforce, and competitive labor costs, Sri Lanka has positioned itself as an attractive destination for outsourcing services, particularly in sectors such as IT, finance, and customer support (Kodituwakku and Jayakody, 2018). As a result, the BPO sector has experienced steady growth, with numerous multinational corporations and domestic firms establishing operations across the country (Wickramanayake and Ranasinghe, 2019). However, alongside this growth, BPO organizations in Sri Lanka grapple with the challenge of retaining talented employees and fostering a culture of engagement and motivation (Perera and Wickramasinghe, 2020).
Employee turnover rates in the Sri Lankan BPO sector are notably higher compared to global averages, with attrition rates ranging from 25% to 40% annually (Senaratne and Gunawardana, 2018). This turnover not only poses a significant financial burden on organizations but also hampers operational efficiency and service quality (De Silva and Wickramasinghe, 2017). Furthermore, the issue of employee disengagement compounds these challenges, leading to decreased productivity, absenteeism, and lower levels of customer satisfaction (Seneviratne and Ranaweera, 2020). Consequently, BPO organizations in Sri Lanka are increasingly recognizing the importance of implementing effective strategies to manage rewards and employee engagement to mitigate turnover and enhance organizational performance (Karunaratne and Dissanayake, 2019).
The relationship between rewards and employee engagement is central to addressing the challenges faced by BPO organizations in Sri Lanka. Rewards, encompassing both monetary and non-monetary incentives, play a crucial role in motivating employees and reinforcing desired behaviors (Ranasinghe and Wickramasinghe, 2018). Moreover, effective reward systems are instrumental in fostering a culture of recognition and appreciation, which is vital for enhancing employee engagement and job satisfaction (Fernando and Senarath, 2017). However, designing and implementing reward systems that resonate with the diverse workforce in the Sri Lankan BPO sector presents unique challenges, requiring careful consideration of cultural, economic, and organizational factors (Kodituwakku and Jayakody, 2018).
In addition to rewards, employee engagement emerges as a critical determinant of organizational success in the BPO sector in Sri Lanka. Engaged employees are more committed, productive, and resilient, contributing positively to overall business performance (Karunaratne and Dissanayake, 2019). However, fostering involvement in a BPO setting characterized by high-pressure work environments, repetitive tasks, and demanding client expectations poses significant challenges (Perera and Wickramasinghe, 2020). Hence, BPO organizations in Sri Lanka must adopt tailored strategies to cultivate an engaging work culture that promotes employee well-being, growth, and job satisfaction (Wickramanayake and Ranasinghe, 2019).
In conclusion, the issue of rewards and employee engagement presents a multifaceted challenge for BPO organizations in Sri Lanka. High turnover rates, coupled with employee disengagement, undermine organizational performance and sustainability, necessitating proactive measures to address these issues (Seneviratne and Ranaweera, 2020). By understanding the dynamics of rewards and engagement in the context of the Sri Lankan BPO sector and implementing tailored strategies, organizations can enhance employee retention, drive performance, and maintain a competitive edge in the global market.
When applying this issue to my current workplace which is WNS Global Services (Pvt) Ltd, there is a high employee turnover within the organization. Due to the heavy workload, employees have to work late nights to complete the tasks and satisfy the clients. Not only that but also the HR department of the organization has taken a decision to defer quarter one-related salary increments and promotions until quarter two due to the bad organizational performance. However, organizational higher management has already kept enough funds aside to celebrate their upcoming organizational anniversary and this has created a bad impression about the organization in the employee mindset. Because of that most of the employees leave the organization continuously due to workplace stress and not receiving recognition for their hard work. Ultimately, this has created less employee engagement with organizational activities. Most of the clients have made a decision to get back all the operations into their mother countries due to the lack of productivity and quality in the work.
Video 01: Discuss further on Employee Engagement
Source: (Kelleher, 2022)
References
- De Silva, C. S., and Wickramasinghe, V. (2017) Impact of Employee Turnover on Service Quality: A Study on Business Process Outsourcing Industry in Sri Lanka. In 7th International Conference on Business Management (ICBM) 2017.
- Fernando, M., and Senarath, B. (2017) Business process outsourcing in Sri Lanka: Opportunities, challenges and the way forward. Sri Lankan Journal of Management, 21(2), 38-61.
- Karunaratne, N. K., and Dissanayake, D. M. S. B. (2019) Impact of employee engagement on performance of business process outsourcing organizations in Sri Lanka. Journal of Management, 18(1), 24-39.
- Kariyawasam, K. S. S. P., and Rathnayaka, R. M. R. M. (2019) Impact of Turnover on Job Performance in Business Process Outsourcing (BPO) Companies in Sri Lanka: A Special Reference to Millennium IT Company in Sri Lanka.
- Kodituwakku, D. N., and Jayakody, J. A. S. K. (2018) Sri Lankan Business Process Outsourcing (BPO) Industry: A Review. In 8th International Conference on Business Management (ICBM) 2018.
- Perera, G. M. L. N., and Wickramasinghe, V. (2020) The Impact of Employee Engagement on Employee Performance: A Study in BPO Companies in Colombo District.
- Ranasinghe, J. G. L. K., and Wickramasinghe, D. M. I. S. (2018) Impact of Reward Systems on Employee Performance: A Case Study of Business Process Outsourcing (BPO) Organizations in Sri Lanka. 8th International Conference on Business Management (ICBM) 2018.
- Senaratne, K., and Gunawardana, H. A. R. P. (2018) Employee Turnover in the BPO Sector in Sri Lanka: A Case Study of a Multinational BPO Company.
- Seneviratne, K., and Ranaweera, A. K. (2020) The Impact of Employee Engagement on Organizational Performance in the BPO Industry in Sri Lanka: A Study of Call Centers in Colombo District.
- Wickramanayake, W. M. U. I., and Ranasinghe, N. W. (2019). Employee Retention Practices in the Business Process Outsourcing Industry in Sri Lanka: A Study Based on Selected BPO Companies in Colombo.
Kelleher, B. (2022) Employee Engagement - Who's Sinking Your Boat?- YouTube, Kelleher Bob Channel. Available at: https://www.youtube.com/watch?v=wHgVBV1gC48 (Accessed: 4 April 2024).
Could you elaborate on specific strategies that BPO organizations in Sri Lanka can implement to enhance employee engagement, considering factors such as high-pressure work environments and cultural nuances? Additionally, how can these strategies address challenges such as workplace stress and the need for recognition, as highlighted in the provided scenario?
ReplyDeleteCertainly. Enhancing employee engagement in BPO organizations in Sri Lanka amidst high-pressure work environments and cultural nuances requires a nuanced approach. One effective strategy could involve fostering a culture of open communication and feedback, where employees feel valued and heard. According to a study by Harter et al. (2002), when employees perceive that their opinions matter and their contributions are recognized, they exhibit higher levels of engagement. Additionally, implementing regular training and development programs tailored to address cultural sensitivities and provide necessary skills can help alleviate workplace stress. By offering opportunities for personal and professional growth, employees are more likely to feel motivated and committed to their roles (Robbins, 2009). Furthermore, establishing peer support groups or mentorship programs can provide avenues for employees to seek guidance and support, contributing to a sense of belonging and reducing feelings of isolation in high-pressure environments (Kram & Isabella, 1985).
DeleteAccording to the my understanding there are about 300 plus BPO companies which are providing their services in multiple industries of Sri Lankan economy. How ever I noticed that there is a significant employee turn over in BPO sector. so, it is must to implement the retention strategies inside the organization by addressing the issues. Cappelli (1997) said number of practical retention strategies that recognize labour market realities and value differences between employee differences such as new compensation plans, job redesign, job customization.
ReplyDeleteYour observation regarding the high turnover rate within the BPO sector in Sri Lanka is indeed a pressing concern that necessitates the implementation of effective retention strategies. Cappelli (1997) suggests various practical strategies that acknowledge the realities of the labor market and cater to the diverse needs of employees. One viable approach involves the implementation of new compensation plans tailored to reward performance and address employees' evolving expectations. By offering competitive salaries, bonuses, and incentives, BPO companies can motivate employees to stay and excel in their roles. Additionally, job redesign and customization initiatives can play a crucial role in enhancing job satisfaction and reducing turnover. Providing opportunities for skill development, career advancement, and job rotation can not only cater to individual preferences but also foster a sense of growth and fulfillment among employees (Cappelli, 1997).
DeleteAgreed, managing rewards and engagement is crucial for BPO firms in Sri Lanka (Senaratne and Gunawardana, 2018). High turnover rates and disengagement hinder productivity and incur costs (De Silva and Wickramasinghe, 2017). Effective strategies are needed to address these challenges (Perera and Wickramasinghe, 2020). Your workplace example underscores the real impact of these issues and the need for proactive measures (Seneviratne and Ranaweera, 2020).
ReplyDeleteTotally agree with you. De Silva and Wickramasinghe (2017) emphasize the importance of implementing strategies to enhance employee engagement, as disengagement is a significant driver of turnover. This can be achieved through initiatives such as providing competitive salaries and benefits, offering opportunities for career development and advancement, and fostering a positive work environment that values employee well-being. Additionally, effective communication channels between management and employees can help address issues promptly and ensure that employees feel heard and valued (Perera & Wickramasinghe, 2020). Furthermore, implementing comprehensive onboarding programs and providing ongoing training and support can help employees feel more equipped and confident in their roles, reducing turnover due to job dissatisfaction or lack of skills.
DeleteAgree with you. The discussion on the complexities of managing rewards and employee engagement within the BPO sector offers valuable insights into the dynamics of the industry. Patel and Desai (2018) underscore the importance of recognition and appreciation in fostering employee engagement, aligning with the emphasis on effective reward systems discussed in the article. Additionally, Jain and Mehta (2021) highlight the impact of high turnover rates on organizational costs, further emphasizing the need for strategic interventions.
ReplyDeleteCertainly Dinuka. Implementing effective reward systems can significantly contribute to reducing employee turnover and increasing employee engagement within organizations. Research by Smith and Johnson (2019) highlights that rewards, such as competitive salaries, bonuses, and recognition programs, serve as powerful motivators for employees, enhancing their satisfaction and commitment to the organization. When employees feel adequately rewarded for their contributions, they are more likely to feel valued and motivated to remain with the company, thus reducing turnover rates. Additionally, rewards can foster a positive work environment where employees feel appreciated and recognized for their efforts, leading to increased levels of engagement. By aligning rewards with desired behaviors and performance outcomes, organizations can create a culture of recognition and incentivize employees to actively contribute to the company's success (Smith & Johnson, 2019). Overall, the implementation of strategic reward systems plays a crucial role in retaining talent and cultivating a highly engaged workforce.
DeleteAgree with you. The impact of the BPO sector on the economy is intricately linked with employee engagement. Engaged employees in the BPO sector drive productivity, quality of service, and innovation, all of which are crucial for maintaining a competitive edge in the global market. Research conducted by Gallup found that engaged BPO employees are 17% more productive and contribute significantly to higher customer ratings and profitability (Gallup, 2020). Thus, investing in employee engagement initiatives not only enhances the performance and efficiency of BPO firms but also strengthens the sector's positive impact on the country's economy.
ReplyDeleteTotally Agree with your comment. Harter et al. (2002) suggest that organizations with high levels of employee engagement experience lower absenteeism and turnover rates, resulting in cost savings associated with recruitment, training, and lost productivity. Moreover, engaged employees tend to be more innovative and creative, contributing new ideas and solutions that drive business growth and competitiveness (Robinson et al., 2004). Overall, the cumulative effect of employee engagement on various facets of organizational performance ultimately leads to better economic outcomes, including higher profitability, revenue growth, and market share.
DeleteAgree. The exploration of challenges in managing rewards and employee engagement within Sri Lanka's BPO sector is thorough and enlightening. As highlighted by Sharma and Singh (2020), the link between employee engagement and organizational performance is crucial, echoing the sentiments expressed in the article regarding the importance of addressing turnover and disengagement. Moreover, Gupta and Sharma (2019) emphasize the need for tailored strategies to enhance workforce retention, further reinforcing the urgency for proactive measures.
ReplyDelete