BPO sets highest attrition rate among industries
CALIFORNIA, UNITED STATES — The Business Process Outsourcing (BPO) sector recorded the highest attrition rate among all industries with 40%, said employee benefits platform Advantage Club.
In its Recognition Rewards Trends 2023 report, the Advantage Club stated that two of the biggest reasons for attrition in organizations are when people are not recognized and rewarded adequately for their efforts.
The study added that monetary rewards could reduce attrition by 87% compared to employees who receive no rewards. On the other hand, non-monetary rewards can reduce attrition by 71%.
Advantage Club also revealed that companies spend around 2-5% of their payroll on rewards and recognition programs. These programs typically offer four types of rewards: Day-to-Day, Formal, Informal, and Approval-Based.
“Organizations need to recognize the importance of Rewards and Recognition strategies to retain employees. By understanding the different types of recognitions, [they] can design and implement an effective R&R program that meets the needs of their employees,” the study concluded.
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