HR Challenges

Potentially massive savings in wage and benefit costs continue to drive the global offshoring movement, but companies are facing a wide range of people management issues both overseas and at home, according to a major study released by The Conference Board, the global research and business membership organization. But offshoring continues to pose risks as well as opportunities. “Does cheaper also mean riskier?” the new study asks. “As labor demand rises in offshoring markets, offshorers and potential offshorers would be right to wonder how long the arbitrage opportunity will last.

Will labor supply continue to meet growing demand?” Already, increases in demand for IT skills are driving up pay levels, especially in such centers as Bangalore and New Delhi in India. The study emphasizes that companies must look beyond wages to consider benefits, training and other costs before they outsource and also consider transportation, cultural and other expenses related to offshoring. At home, companies are learning they can quell some of the disruption springing from offshoring by designing plans to aid employees who lose their jobs to offshoring, overcoming resistance from disgruntled workers and maintaining both morale and a positive image among remaining employees.

The study points to a number of actions that companies can take to build cooperation and sustain trust, including: Involve managers at all levels in important decisions. Foster openness and create a sense of fairness. Promote a culture in which people believe in their colleagues’ and leaders’ competence. Promote cross-cultural health, awareness, and cooperation. Staff TurnoverStrategies For Combating Staff Turnover Across the call center industry, there have been 12 typical causes of call center turnover, including (in no specific order): Pace of effort required Sense of powerlessness or lack of control, Frustration of not being allowed to do a good job, Repetition, Daily physical confinement (tied to their desk), Over-regimentation.

The feeling of being spied on, The feeling of not being appreciated by others in the organization, Handling complaints and problems all day, Odd work hours, Pay, Better opportunities elsewhere, Of course, not all will apply in each case, but one or two are likely to be the biggest culprits. In this case, I'd start by asking what changed in the internal and external environments from the period of no turnover to the current situation of 30 +percent turnover? Which of these 12 factors stand out? Pay could be a problem if you're not keeping pace with the market. As the call center environment becomes more complex, I think a lot of organizations are going to have to do some soul-searching on the importance and commensurate remuneration associated with these jobs. Many managers are quick to point out that pay is just one factor, and often not the most important; true, but there's a point at which this argument gets carried too far. Reality is, there are lots of opportunity out there for competent, personable people who have both technical and communication skills.