EXPLORING RETENTION CHALLENGES AND STRATEGIES: A PHENOMENOLOGICAL STUDY OF TALENT ACQUISITION IN THE BUSINESS PROCESS OUTSOURCING INDUSTRY IN FAIRVIEW, QUEZON CITY

Abstract

The business process outsourcing (BPO) industry in the Philippines has experienced significant growth, establishing the country as a key player in the global outsourcing market. The industry offers a variety of services and attracts companies due to its skilled workforce and cost advantages. It makes a substantial contribution to the economy and job market, employing a large number of Filipinos. However, high attrition rates present a major challenge, driven by factors such as limited career growth and work-life balance issues. This turnover affects operational efficiency and highlights the necessity for improved retention strategies. This research aims to examine employee turnover in Fairview, Quezon City, and develop strategies to enhance retention and support the continued growth of the industry. A phenomenological study investigated employee retention in the BPO industry in Fairview, Quezon City. Interviews conducted with focus groups of five agents from each company revealed common themes and experiences. The study identified factors contributing to employee turnover, as well as the retention strategies employed by companies. Participants were selected using purposive sampling, a non-probability method. The researchers utilized a semi-structured interview approach and collected primary data from various sources to explore retention challenges and strategies. Questionnaires were validated, and confidentiality was maintained throughout the study. Interpretative Phenomenological Analysis was employed to analyze the interviews, providing insights into the retention challenges and strategies within the BPO sector. The findings indicate that agent attrition in the BPO industry in Fairview, Quezon City, is driven by several factors: low compensation, limited opportunities for career growth, a toxic work environment, and long commutes exacerbated by heavy traffic. Agents often leave their companies because they feel undervalued, lack career advancement options, and experience stress due to poor management practices. Additionally, some agents are concerned that AI (Artificial Intelligence) may replace them.

High attrition rates result in increased costs associated with recruitment and training, reduced service quality, and lower employee morale. Current retention strategies in Fairview include offering competitive salaries, career development programs, flexible work arrangements, and agent engagement activities. While these strategies have had some success, long-term retention requires addressing both the practical and emotional needs of agents.

According to the agents, effective retention strategies should include recognition and incentives, support from leadership, work flexibility, and opportunities for career growth. The research highlights three major retention issues in Fairview's BPO industry: low pay, limited opportunities for growth, and toxic work environments. While competitive salaries and flexible work arrangements can help, concerns about AI replacing jobs remain prevalent. Curran Daly et al. (2019) demonstrate that these fears are widespread. Future studies should examine the impact of AI on job security. It is essential to develop policies that address these concerns and to introduce a loyalty program to enhance job stability and employee satisfaction.