Philippine BPO industry sees declining employee turnover rates
MANILA, PHILIPPINES — The business process outsourcing (BPO) and contact center industry in the Philippines is experiencing a notable decline in employee turnover rates, according to the latest survey from the Contact Center Association of the Philippines (CCAP).
The annual Attrition and Retention Survey, conducted by data solutions firm Willis Towers Watson, revealed that the voluntary attrition rate in the BPO sector slowed to 31% in 2022, down from 36% in 2021.
Attrition rates drop significantly in 2022
The survey highlighted that the involuntary attrition rate in 2022 was 14.1%, while the rate of agents committing unauthorized leave, considered work abandonment, was 9.9%.
Additionally, about 1.9% of newly hired agents were ‘No Show’ or did not report to work on their first day. The total voluntary and involuntary attrition rate for 2022 stood at 45%.
Tackling high attrition challenges
Historically, the call center sector has had one of the highest employee attrition rates. In the Philippines, it reached between 60% to 70% until 2016. However, the rate began to decline below 50% in subsequent years.
Preliminary data for the first half of 2023 shows further improvement, with a voluntary attrition rate of 19%, involuntary attrition at 9.2%, unauthorized leave at 8.1%, and a no-show rate of 2.5%. The overall six-month attrition rate was 28%.
Competitive salaries, incentives driving retention
“CCAP-member companies are continuously investing to make the workplace more conducive in the digital age,” said CCAP president Mickey Ocampo.
“The poll data indicate that the sector’s efforts to re-skill and upskill its workforce are paying off amid the evolving landscape,” he added.
CCAP Director Haidee Enriquez also emphasized that BPO companies offer competitive salaries compared to other industries.
“Even though our base salary is one of the biggest compared to other industries, it’s not only about salaries but also the benefits, incentives, and bonuses that our workers are getting. In our industry, the more you perform, the higher you get paid,” Enriquez stated.
Depending on the scope of responsibilities, BPO salaries in the Philippines range from PHP 28,000 to PHP 45,000 ($483 to $777).
Industry growth amid unfilled positions
Despite the improvements, the industry still faces challenges, with 150,000 unfilled positions.
CCAP, which has 148 member companies, expects the contact center and business process sector to post an estimated record annual revenue of around $32.16 billion in 2024, based on a yearly average sectoral revenue growth of about 9%.
The sector’s annual revenue was $29.50 billion in 2023, up 9% from $27 billion in 2022.
The BPO sector’s yearly revenue accounted for 83% of the overall revenue posted by the country’s entire information technology and business process management industry, which was $35.5 billion in 2023 and $32.50 billion in 2022.
