Download or read book Analysis of perceived attrition in selected business process outsourcing (BPO) companies in Metro Manila written by Margarito U. Ceria and published by . This book was released on with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Attrition is one of the biggest dilemmas faced by business process outsourcing (BPO) firms as it directly affects companies’ financial performance. Financially, attrition decreases gross margin that are non-billable to the client. The study focused on the causes and effects of attrition in the BPO companies, both on the financials and on the organization as a whole. A structured survey questionnaire was given away to agents who work in or have resigned from BPO companies. This study interviewed 367 respondents to find the causes of attrition and ten entities to discover the effects of attrition in terms of financials. The study used descriptive-correlation design that explores the relationship and association relative to the causes and effects of employee attrition in the organization. A correlation test and one-way ANOVA were used in analyzing differences in perception of the respondents. Stochastic frontier regression determined the effects of direct cost and training cost per labor to total gross margin percentage. The results showed that compensation, career growth and work environment are the significant factors of attrition at 5% level. The results showed that a dollar (US$) per agent increase in training cost accrued to a resigned agent diminish the gross margin (%) of business process outsourcing (bpo) firms by -0.025%. An increase in direct cost per active agent decreases the gross margin by -0.618%. This provided insights for the management to come up with good policies and retention strategies to at least minimize attrition rate, thus ensuring timely delivery of service as required by clients.