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Attrition Rate Seen Dropping in PH BPO Sector

by: Sarah Joson

Monday, February 23, 2015 | Outsourcing News |

One of the biggest issues in the business process outsourcing (BPO) industry of the Philippines is the high staff turnover rate. However, many experts have observed that BPOs are coming up with better strategies to make their employees stay.

Drop in PH BPO sector attrition rate

Tower Watson, a global professional services company, revealed the results from their survey wherein the attrition rate in the Philippine BPO sector decreased to 20 percent last year, which is said to be the lowest since 2007.

Back in 2011, the attrition rate was at 33 percent, while in 2012, it clocked in at 24 percent, and just two years ago, it posted a 26-percent staff turnover rate.

According to Vangie Daquilanea, Global Data Services Practice Head of Towers Watson Philippines, the BPO sector has utilized several strategies in talent acquisition, one of which is expanding operations and sourcing from areas outside the National Capital Region (NCR). Some of the provinces that the industry is seen tapping for sourcing are Cebu, Davao, and Southern Luzon. This somehow affected the movements and attrition activity in NCR.
The report also noted that wages in Central Visayas are lower by 23 percent versus the wages in NCR, making the region a feasible location for BPO firms. The Towers Watson report also reinforces another survey where Cebu was named as one of the top 8 outsourcing destinations in the world.


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