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Companies Look to Disabled Persons to Reduce Turnover

Wednesday, December 1st, 2010

The word attrition is used to describe a decrease in workforce via the process of retirement, resignation or even death.

The attrition rate is the shrinkage ratio for the number of employees. In recent times, cost cutting measures have been incorporated in various transnational corporations or by hiring disabled or “differently able” individuals. The advantage that they get here is lower attrition rates.

To ensure a consistent rate of attrition, many transnational corporations have resorted to hiring beyond the conventional areas of employment. This is done by hiring more physically challenged employees along with housewives and retired personnel, especially from the armed forces. Higher attrition rates have been attributed to factors like work schedules or timing, salaries and of course motivated career goals.

Transnational corporations can reduce the haywire and chaotic costs of hiring and losing employees by selecting physically challenged individuals for the assigned tasks. It is true that the bills of any company increase and billing rates decline due to erratic resignations.

As per the DWA or Disability Works Australia, employees with disabilities have higher safety records and attendance percentiles. Pizza Hut has a “Jobs PlusTM” program with 3,000 employees with disabilities in their total workforce of 68,000.

The BPO Sector

This trend is mainly seen in the BPO - or the business process outsourcing -industry. The sector has faced immense challenges in retaining their employees and also finding quality human resources. The average attrition rate for this industry is about 50 percent, which is higher than the average 18 percent attrition rate for regular companies in India. The average attrition rate of U.S based companies is around 42 percent. Even though the attrition rate in the U.S is growing at an alarming rate, MNC’s have found a new way to curb this increasing level.

Mercer India believes that the BPO sector should focus more on employing physically challenged people. The physically challenged individuals have lower rates of resignations and retirements. On the whole, they are restricted to certain designations, which restrict their career motivations. Job satisfaction rates are higher and thus the attrition rates are reduced.

Analysts state that the attrition rates fluctuate by almost 20 percent-40 percent in many companies, with the average of at least 15 percent for larger companies. As per the Nasscom report, the outsourcing industry could be facing a shortage of at least 262,000 employees by the year 2012. Statistics compiled by the National Human Resource Development Network show that attrition rates for the IT-enabled process outsourcing businesses have been lowered to almost 25 percent.

Physically challenged individuals are hired now via a special task force. This task force addresses issues of short-term challenges like attrition along with long-term situations of assembling a talent pool. MNC’s are rewards and bonding programs, flexible hours of working and a more scientific and analytical approach. The attrition rates are drastically affected by monotony. Combating it and making the job interesting is another vital factor.

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