Thriving in Digital Age: PH Contact Center Firms Continue to Post Slowing Attrition Rates
The Contact Center Association of the Philippines (CCAP) recently released a study indicating a continuous decrease in the number of agents resigning from local call center firms. According to the organization’s annual Attrition and Retention Survey, the voluntary attrition rate dropped to 31 percent in 2022 from 36 percent in 2021. In 2022, the involuntary attrition rate was at 14.1 percent, with 9.9 percent of agents committing absence without leave. Additionally, 1.9 percent of hired agents were ‘No Show’ on their first day of work. The total attrition rate, combining voluntary and involuntary departures, was 45 percent in 2022.
Historically, the call center industry in the Philippines has experienced high employee turnover rates, with 60 to 70 percent of agents leaving their positions until 2016, when the rate began to decline below 50 percent.
Preliminary data for the first half of 2023 revealed that the voluntary attrition rate stood at 19 percent, while the involuntary attrition rate was 9.2 percent. Unauthorized leave and no-show rates were at 8.1 percent and 2.5 percent, respectively. The overall six-month attrition rate was 28 percent.
“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.”
Data from exit interviews
According to exit interviews, nearly 69 percent of employees who have resigned mention “better pay opportunity” as the reason for their voluntary departure. Approximately 68 percent express their desire for “better growth opportunity,” while 46 percent attribute their resignation to health-related reasons.
When questioned about their future plans after resigning, around 64 percent of resigned individuals stated that they are transitioning to other positions within the Shared Service and Outsourcing sector. Meanwhile, 27 percent of them are opting for employment outside the information technology-business process management (IT-BPM) industry.
The hybrid work arrangement is favored by the majority of agents (78 percent) in CCAP-member companies, as indicated by preliminary poll data in 2023. It is worth noting that 47 percent of respondents who prefer working onsite outnumber the 41 percent who opt for remote work.
In terms of talent acquisition, CCAP-member firms have pinpointed the top five challenging roles in hiring agents—big data/data analytics/business intelligence, application development, accounting and finance, cyber security, and human resources.
The primary sources of new hires during recruitment include Shared Service and Outsourcing (83 percent), external to the industry (44 percent), and freelancing (19 percent).
Leadership seminar program
Meanwhile, CCAP is also continuing to further develop and facilitate programs targeting agents in various functions and levels within member-companies. The organization is teaming up with the Asian Institute of Management’s School of Executive Education and Lifelong Learning (AIM-SEEL) for a series of leadership workshops designed for managers and team leaders.
Under the partnership, several AIM professors have created and conducted highly curated learning sessions along with industry experts and thought leaders. “This program intends to further make our management and leaders abreast with the new developments amid the constantly evolving requirements of our jobs. For several years now, our leadership series has been conducted at least thrice yearly,” said Ocampo.
