THE INTRINSIC AND EXTRINSIC MOTIVATION, HUMAN …

UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL PAGE

THE INTRINSIC AND EXTRINSIC MOTIVATION, HUMAN RESOURCE AND MANAGEMENT PROCESS AND JOB

SATISFACTION: AN ASSESSMENT OF THE RETENTION SCHEME FOR EMPLOYEES

OF SELECTED BPO COMPANIES IN THE PHILIPPINES

A Thesis Presented to the Graduate School

University of Santo Tomas

In Partial Fulfillment Of the Requirements of the Degree

Master’s in Business Administration

by

Jimielle Jean M. Legaspi, MBA Leonardo Canoy Jr., Ph.D.

JULY 2020

GSJ: Volume 9, Issue 6, June 2021 ISSN 2320-9186 1615

GSJ© 2021 www.globalscientificjournal.com

GSJ: Volume 9, Issue 6, June 2021, Online: ISSN 2320-9186 www.globalscientificjournal.com


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ACKNOWLEDGMENT

To Almighty God, who strengthen and gave me hope to finish my post

degree on time and being blessed that I have all the resources that I needed

throughout the process. I owe everything to You.

To my parents, Lyn and Jaime Legaspi, who supported me in all of my

personal and career decisions in life.

To my sister, Juno Legaspi, who encouraged and guided me throughout

my postgraduate life and constantly giving me advices for decision making.

To my adviser, Dr. Leonardo Canoy, who is my one-call away mentor and

guided me in every stage in finishing my thesis.

To my panel members, Dr. Enrico Torres, Dr. Vida Caparas and Dr.

George Lu, for their insightful comments and suggestions for the betterment of

my thesis.

To my statisticians and English editor, for helping me in enhancing the

technical parts of my thesis.

To OGR, ERC, and Graduate School staff, who are helpful and patiently

accommodating our inquiries despite of their workloads.

To my dear friends, Team Alyansa, Forever Squad and BSG, who are my

emotional support system, especially in my stressful days.

To my thesis buddies, classmates, and colleagues, who encouraged and

inspired me to continue my MBA journey.

And to all people who were involved, thank you for all the support.




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ABSTRACT

The Philippines holds a high rate of employment in Business Processing Outsource (BPO) as the second-highest country next to India. Despite of this situation, there is a 3.15% labor turnover rate last October 31, 2018, according to the survey of the Philippine Statistics Authority (PSA).

The study aims to determine what makes BPO employees stay in the company based on the following factors that may affect their retention decision: intrinsic and extrinsic motivation; human resource and management process; and job satisfaction. Hence, recommendations are discussed to help management sustain their employees in a long run. It would be beneficial, especially to Human Resource Departments, on their management approaches and processes in handling people. Employee engagement and open communication can provide a harmonious working relationship between employer and employee resulting in stronger bonds and commitment. The researcher used Descriptive Correlational research design and gathered data from 500 valid respondents (those with at least one-year work experience) through stratified random sampling from the top 4 locations with the highest number of BPO establishment and employment in National Capital Region (NCR). The results were measured using Pearson Correlation, Sperman Rho, Point Biseral and Chi Square Test.

Keywords: Business Processing Outsource, retention, motivation, human

resource management, job satisfaction




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TABLE OF CONTENTS

Page

Title Page i

Approval Sheet ii

Certificate of Originality iii

Certificate of Turnitin iv

Certificate of English edit v

Acknowledgment vi

Abstract vii

Table of Contents vii

List of Figures xii

List of Tables xii

1.0 Problem Rationale

1.1 Introduction/Background of the Study 1

1.2 Statement of the Problem 6

1.3 Research Objectives 8

1.4 Hypothesis of the Study 9

1.5 Scope and Limitation of the Study 10

1.6 Significance of the Study 11

1.7 Definition of Terms 12

2.0 The Research Questions

2.1 Review of Related Literature 13

2.1.1 Demographic Profile 13

2.1.1.1 Age 13

2.1.1.2 Gender 14

2.1.1.3 Tenureship 14




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2.1.1.4 Income/Salary 14

2.1.2 Retention 14

2.1.3 Employee Sustainability 17

2.1.4 Motivation 21

2.1.5 Human Resource and Management Process 24

2.1.6 Job Satisfaction 28

2.2 Theoretical Framework 31

2.2.1 Herberg’s Motivation Theory – Two Factor Theory 31

2.2.2 Antecedent Mediation Model 32

2.2.3 A Model of Facet Satisfaction – Affect Theory 33

2.3 Conceptual Framework 34

3.0 Research Methods

3.1 Research Design: Descriptive Correlational 36

3.2 Research Instruments/Data Measure 37

3.2.1 Questionnaire 37

3.2.2 Pilot Study 38

3.2.3 Documentary Analysis 38

3.3 Data Gathering Procedure 38

3.4 Ethical Consideration 39

3.4.1 Purpose and Conduct of the Study 39

3.4.2 Benefits of the Participants 40

3.4.3 Confidentiality of the Participants 40

3.4.4 Voluntariness of the Participants 40

3.4.5 Responsibility of the Participants 40

3.5 Statistical Treatment of Data 41

4.0 Results and Discussion

4.1 Presentation and Analysis of Data 43




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4.2 Retention Decision and Demographic Profile 45

4.3 Correlation of Demographic Profile 46

4.4 Implication to the Retention Decision 54

4.5 Retention Variables 56

4.6 Correlation of Retention Variables 57

4.7 Retention Variables and its Subfactors 58

4.8 Overall Retention Satisfaction 74

4.9 Variable Subfactor Determinants 75

5.0 Conclusions, Recommendations and Directions for Future Research

5.1 Summary of Findings and Recommendations 77

5.2 Conclusions 79

5.3 Directions for Future Research 80




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APPENDIX

Appendix I. Summary List of References 81

Appendix II. Business Processing Outsource Information and History 87

Appendix III. Request data from PSA 91

Appendix IV. Number of Establishments Engaged Call Center

Activities by Cities 92

Appendix V. Request permission to use and adapt questionnaire 96

Appendix VI. Request permission to conduct survey 97

Appendix VII. Consent Form for the Respondents 98

Appendix VIII. Survey Questionnaire 99

Appendix IX. Ethics Certificate of Attendance 103

Appendix X. ERC Certificate 104

Bibliography

Curriculum Vitae




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LIST OF FIGURES Figure Title Page

1 Herberg’s Two Factor Theory Model 31 2 Antecedent Mediation Model 32 3 Model of Determinants of Facet Satisfaction 33 4 Proposed framework for employee retention by the

researcher 34

5 Employees to stay in given years 55 6 Percentage of employee to stay or leave if an opportunity

comes 56

7 Summary AVM of retention variables 57

LIST OF TABLES Table Title Page

1 Reliability Statistics 38 2 Demographic Profile of Respondents 44 3 2018 Number of Establishments Engaged Call Center in

NCR 45

4 Summary result of significance of demographic profile to the retention decision

46

5 Correlation between Age and Retention Decision 46 6 Correlation between Gender and Retention Decision 47 7 Correlation between Civil Status and Retention Decision 48 8 Correlation between Educational Attainment and

Retention Decision 48

9 Correlation between Working Location and Retention Decision

49

10 Crosstabulation for Chi Square with Significant Results 50 11 Correlation between Level of Position and Retention

Decision 51

12 Correlation between Tenureship and Retention Decision 51 13 Correlation between Type of Business and Retention

Decision 52

14 Correlation between Monthly Income and Retention Decision

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15 Summary result for Retention Decision 55 16 Correlation of retention decision to retention variables 57




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17 Legend for determinants 58 18 Correlation between Intrinsic Motivation and Retention

Decision 59

19 Average Weighted Mean and Standard Deviation for Intrinsic Motivation

61

20 Correlation between Extrinsic Motivation Factor and Retention Decision

63

21 Average Weighted Mean and Standard Deviation for Extrinsic Motivational Factor

64

22 Correlation between Management Process and Retention Decision

67

23 Average Weighted Mean and Standard Deviation for HRM Process

68

24 Correlation between Job Satisfaction and Retention Decision

71

25 Average weighted mean & standard deviation for job satisfaction subfactor determinants

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26 Summary result for Overall Retention Satisfaction 74 27 Summary list of retention determinants 75 28 Findings and recommendations 77




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CHAPTER 1

PROBLEM RATIONALE

This chapter will present an introduction and background of the study,

research problem and questions, research objectives, hypothesis, significance of

the study, scope and limitation and definition of terms.

Introduction/Background of the Study

Outsourcing is the process of hiring third party firms to do work

previously performed by the organization itself; this often includes payroll,

employee training, facility maintenance, research and development, human

resources, and accounting functions. Call centers, for example, perform

outsourcing, as widely considered in India and Philippines. Today, large call

centers engage in outsourcing for their operation due to lower labor cost (Soon, et

al, 2019).

Maintaining an effective workforce while meeting the operation

requirements can be achieved by businesses through adopting retention

techniques (Mita (2014), as cited in Kossivi (2016). This issue is one of the

common problems in the BPO industry because they have a fast turnover, a

percentage of employees leave during a period of time, to their employees due to

continuous updates in operation, and technology advancement resulting in




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constant changes in processes and policies. Due to such developments, employees

decide to look for a different and better company that suits their needs and wants

resulting in “BPO hopping”; it is when an employee leaves their current job to

work for a different company, stays there in a brief specific period and leaves

again.

Management should consider and understand the reasons and sentiments

of their employees to solve these issues. It is imperative to determine the gap

between the perspective of the employees towards their workplace, colleagues,

and job itself; with such, there can be a decrease in the rate of employees

resigning. Furthermore, the management can better comprehend the expectations

of employees from their employers and realize how to make them be committed

thus stay in the company. Some possible reasons employees quit and taking

different directions for career growth are: there is no movement on their position;

no healthy relationship between the employer and the employee, efforts are not

being recognized; and the job lacks challenge, and lack of their vision for the

company (Wong, 2002). Hence, there are various factors considered by the

employees in staying at work, such as when they believe to be part of a special

environment and culture, and when what they do have a meaning and purpose

(Oakstone International, 2018); pride in the organization and affiliation affects it

as well (Nguyen, 2010).

The common reason people get a job is because of the compensation. If

their current pay is not satisfactory, employees tend to look for a better company




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that can attend on their needs and demands. Based on a survey by Paychex Worx

(2016), employees leave when they receive low salary (69.44%) and if there is

lack of recognition and reward (45.24%). With 10% higher base pay, there is

1.5% increase and chance that employees will stay at their work as pay matters;

new responsibilities indicates an upward progress for the employees and

compensation should get along with it (Chamberlein, 2017). Thus, compensation

can be classified into three: salary, benefits, and incentives; whereas the

incentives serve as the driver to attract the best employees. Commission is also

one factor because they are being paid according to their performance, making

employees strive to do their best (MaRSdd.com). On the other hand, motivation is

not included within the external factors that employees are getting. They may stay

in a company where they find their purpose, where they feel they belong and

where they acquire a sense of fulfilment; these factors are mostly innate feelings

of the employee for their benefit (Meunier & Bradley, 2019).

However, not all employees are persuaded by either monetary value or

having a sense of self-fulfillment; but companies who prioritize work-life balance,

offer more vacation time, and provide other benefits beyond the basic ones, such

as ancillary and transit benefits, are some factors employees consider as they stay

thus tend to be happy with their work (Johnson, 2020). According to Heathfield

(2020), one factor that makes employees stay is when a company provides tool,

training and time that is essential to the productivity; otherwise, employees leave

to find other companies that can provide these tools. Management system such as




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providing adequate training is important since it gives them ground on what the

company should expect from them to do; and it will give clear vision of their

function in the organization. Thus, it will help them build opportunities for new

learnings and help for performance development resulting in motivated

employees. If an employee is being motivated, it can lead to employees being

committed to their job and to the company resulting in being satisfied with their

employees. There are different determinants on how an employee can be satisfied;

it could be in terms of having a healthy environment, having rewards and being

recognized by the company and having a supervisor with ideas, and career

development (Chair et al,, 2017).

Retention of key and skilled employees is critical to the long-term and

success of organization that involves customer satisfaction, increase in sales,

satisfied staffs, and an effective succession planning inline to the organizational

knowledge and learning (Mathimaran & Kumar, 2017). On the other hand, the

ability of the company to achieve its business goal is through their sustainability

in integrating with business strategies and opportunities from social, economic

and environment which leads to the increase of long term shareholder value

(Mazar, 2014). Thus, employee sustainability and the longevity of employee

residence is one of the factors determining the success of the company in BPO

industry as it shows how companies value their employee and treat them as an

asset. Employee sustainability correlates to retention because it determines how

management can sustain their employees in the long run through their own ways




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and methods to help support their business; and promote commitment and loyalty

to the company, which increases their company credibility on how they are

properly treating their efficient workers, an essential characteristic that every

employee are looking for from their employers.

The government support is through the implementation of the Special

Economic Zone Act of 1995 under the Republic Act No. (RA) 7916 by the

Philippine Economic Zone Authority (PEZA), a government agency under the

Department of Trade and Industry helping to encourage foreign investment into

country which provides tax holiday incentives and exemptions under the special

economic zones, where accredited buildings are located in Makati and Bonifacio

Global City; this is one reason Makati city has the highest number of call center

companies and employment in the NCR. Therefore, making Makati City the top

location in NCR with the highest number of BPO employment and offices

followed by Quezon City, Pasig City and Taguig City, respectively; as source of

data selected to conduct survey, and where respondents determined through

stratified random sampling based on their working location.




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Statement of the Problem

The study aims to answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Age;

1.2 Gender;

1.3 Civil Status;

1.4 Educational Attainment;

1.5 Working Location;

1.6 Level of Position;

1.7 Tenureship / Length of Service;

1.8 Type of Business; and

1.9 Monthly Income?

2. Is there an implication between the years of service of employees to

their decision to stay or leave the BPO industry?

3. To what extent level of how the variables affect the retention decision

of the employees?

4. Are the following variables significant to the retention decision of

employees: intrinsic motivation, extrinsic motivation, human resource

management process and job satisfaction?

5. Is there a significant relationship betweeen the retention decision of

the employees to the following intrinsic motivation subfactors:

5.1 Personal Growth;




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5.2 Recognition; and

5.3 Working Relationship

6. Is there a significant relationship between the retention decision of the

employees to the following extrinsic motivation subfactors:

6.1 Compensation and Benefits;

6.2 Co-workers;

6.3 Proximity; and

6.4 Working Condition


employees to the following human resource management process

subfactors:

7.1 Company Policy;

7.2 Employee Engagement;

7.3 Performance and Rewards; and

7.4 Training and Development


employees to the following job satisfaction subfactors:

8.1 Career Growth and Development;

8.2 Job Security;

8.3 Stress level; and

8.4 Work life balance




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Research Objectives

In addressing the research problems, this study aims to determine:

(1) if there is an implication between the years of service to the

employee’s decision to stay or leave BPO industry.

(2) the extent level on how the variables affect the retention decision of

employees.

(3) the level of significance of each variable to the retention decision of

employees.

(4) the relationship between the intrinsic motivation and its subfactors to

the retention decision of the employees.

(5) the relationship between the extrinsic motivation and its subfactors to

the retention decision of the employees.

(6) the relationship between the human resource management process and

its subfactors to the retention decision of the employees.

(7) the relationship between the job satisfaction and its subfactors to the

retention decision of the employees; and provide

(8) recommendations on how the company can sustain its employees in a

long period of time based on the findings of the study.




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Hypotheses of the Study

The researcher formulated the following null hypotheses upon analyzing

the statement of the problem:

Ho1. There is no significant relationship between the demographic

profile of the employees to the retention decision of the employees.

Ho2. There is no significant relationship between the intrinsic

motivation and its subfactors to the retention decision of

employees.

Ho3. There is no significant relationship between the extrinsic motivation

and its subfactors to the retention decision of employees.

Ho4. There is no significant relationship between the human resource

management process and its subfactors to the retention decision of

employees.

Ho5. There is no significant relationship between the job satisfaction and

its subfactors to the retention decision of employees.




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Scope and Limitation of the Study

The research focuses on the top 4 areas with the biggest number of BPO

employment in NCR: Makati City, Quezon City, Pasig City, and Taguig City. The

researcher used NCR as the main location due to its strategic location as it is a

hotspot for companies; and it is a perfect location to target variety of respondents

due to its population for a chance to get diverse answers, which can be beneficial

to the outcome result of the study. Despite its large population, the researcher

limited its respondents to 500 due to time frame, and to focus on results from the

gathered data, supported and accepted by the Sloven formula at 0.5 margin of

error. Retrieving answers from online survey for less physical interaction to the

participants is also one of its limitations. It is only exclusive to employees who

have at least one year of working experience in BPO industry and those from the

selected locations in NCR, who agreed to the consent form provided, can be part

of the study.

The available research literature related to the topic that concerns the

Philippine context is also limited. Most related journals are from other countries,

mostly from India, the leading country in business outsourcing. Thus, most

articles found by the researcher are in a different setting and field of industry.




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Significance of the Study

The study aims to provide recommendations promoting retention in the

BPO industry. Thus, it will be significant to the following entities:

• Researcher – as part of the industry for more than five (5) years and this

being the first job, it gives clarity how the BPO world works and how this

industry differs from different sectors of business with its employees;

• HR management – to outweigh recommendations to raise the effective

programs, plans, and strategies for employee retention;

• BPO companies – due to tight competition in the industry, it helps to

identify what packages mainly attracts employees to join the organization

thus can help edge over other competitors;

• Academe – to provide additional information and knowledge which are

updated to the current employment situation of the BPO industry in the

Philippines;

• Government – to help promote awareness that the BPO needs additional

sector to support for employee -related issues and concerns; and

• Society – this is an addition to the existing research literature relating to

employee retention concerning the Philippine setting that can be beneficial

to other industries, and not limited to BPO. It will also be an avenue for

the future researchers who would like to endeavor same field of study.




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Definition of Terms

To have an in-depth understanding of the study, the following terms are

operationally defined:

• Back Office Outsource – consists of people who work behind-the-scenes

and the main support system of the business

• Business Processing Outsource (BPO) – companies abroad hire people

from another country as a third-party service provider at a lower labor cost

• Motivation – the factors, both internal (intrinsic) and external (extrinsic),

that drive an employee to work and let stay in the company

• Human Resource and Management process – the mandated rules and

standard procedure for the companies to implement

• Job Satisfaction – the criteria in which the employees feel satisfied or

dissatisfied on their current work situation

• Line of Business (LOB) – the type of business or industry that a group

specializes in or focus their job on

• Resource – fundamental entity or source of the organization’s success

• Retention – act or strategy when the organization can make their

employees stay in a company for years

• Sustainability – the ability to sustain people at a certain rate or level

through strengthening their support and commitment to the company.




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CHAPTER 2

THE RESEARCH QUESTIONS

The research will have an in-depth discussion on how retention is

important to the companies, and that employee sustainability is a vital component

to achieve this. This chapter will present a review of related literature to

synthesize the study.

2.1 Review of Related Literature

2.1.1 Demographic Profile

2.1.1.1 Age

The impact of population ageing depends on their labor market

participation, and the challenge will be for governments and employers to

encourage older people to remain in the workforce much longer than in the past in

order to reduce public cost of welfare support through pensions (Marshall &

Mueller, 2002 cited in Shaw et al., 2017). The BPO industry mostly has X and Y

generation in their workforce, which is evident as this industry mostly inclined

with evolving and changing technology. Older workers tend to be resistant to

change especially when new technology is implemented (Mello, 2019).




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2.1.1.2 Gender

BPO companies have a minimal concern about the gender preferences on

their workforce. The Civil Rights Act of 1964 prohibits discrimination based on

sex, to provide protection to those who have been discriminated both gender

identity and sexual orientation.

2.1.1.3 Tenureship

Job tenure can determine to the quality of the employee. Tenured people

in their job means stability and focus of an individual on their craft. Sometimes,

job tenure gives a definite insight into an employee according to an article from

mbaskool.com.

2.1.1.4 Income/Salary

Pay motivates employees in the job they seek, and this area of discussion

is usually discussed initially before engaging to work; however, pay inequality is

common in most workplaces (Cullen & Perez-Truglia, 2018). One way to attract

top talents is by offering competitive and flexible pay rate, which can motivate

staff to give their full potential and focus on their current job rather than to look

for sideline to make ends meet (Ladimeji. K., 2015).

2.1.2 Retention

Either voluntary or involuntarily, employees leaving the organization

causes disruption in operations, work team dynamics, and unit performance

(Mello, 2019). Low efficiency of company due to high probability of employees




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to leave causes refusal by factories to invest in training workers (Ahmad, 2018).

Having a strong retention strategy is a powerful recruitment tool, which is

systematically combined effort of the employees to create an environment

consisting of policies and practices addressing employee’s concern and needs

which helps to encourage current employees to stay in the company. Retention of

key employees is critical to the long-term health and success of any organization

(Das, 2017). According to Mathimaran & Kumar (2017), the organization must

give proper remuneration to the employees to retain them in the company for a

long time. Moreover, management needs to address in resolving about stress

because it plays a vital role to make employees stay since employees feel the

burden of work overload; and may cause them to look for an easier job that can

compensate them equally to their efforts done.

Chordiya (2013) classified retention strategies into two categories,

monetary and non-monetary; this includes job rotation, salary increase,

recognition of achievements, performance, and rewards incentives, exit

interviews, and more. Frustration and misunderstanding with supervisor and other

team members can cause for employees to leave the organization. On the

contrary, having some encouragement, safety environment and infrastructure,

potential talent, competitive compensation, and job involvement are some factors

to consider in retaining workers.

In a study by Castro & Deluna Jr. (2013), results revealed that 86% agreed

to have plans of working in different jobs and 14% plans to shift to a different




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field. The following were the major reasons for them leaving or transferring: they

want to practice their profession (30.54%), graveyard shift resulting in irregular

sleep (20.54%), working in a call center is an unstable job (18.38%); and

computer syndrome (14.32%) was also in their list to search for a new job, health

related reasons (9.46%), stressful work (3.24%), wanting to work abroad (2.43%)

and the desire to have their own business (1.08%) affects their stay.

Career is a predominant cause and primary concern of employees to stay

in the company and not look for other jobs. Having adequate career growth

opportunities, better and progressive career will make them stay in the

organization. Some issues encountered by the employees in their job is they see it

as boring and monotonous because there are not enough learning opportunities in

the organization and seem to be stagnant. Because of this dilemma, they are

tempted to leave to work in a job that is mentally stimulating and is more aligned

with their interests (Ahmad & Azumah, 2012).

In a study, Kumar & Kaushik (2013) determined common reasons

employees leave: the night shifts, money, inability to handle various types of

stress, monotonous work; company policies, lack of career growth, problems with

those in senior positions, and more. Thus, to keep employees and satisfaction

high, the three factors of employee retention - respect, recognition, and rewards

should be present. Respect is the foundation of keeping employees and the

esteem, special regard, or consideration given to people. With no respect,




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recognition and rewards will be affected. Recognition is defined as “special notice

or attention” and “the act of perceiving clearly.” (Mathimaran & Kumar, 2017).

One factor of employee retention is being committed to their job and

company. According to Colquitt, et al. (2019), organizational commitment defines

as the desire of the employee to be part of the organization that can influence their

decision to stay or leave the company. Hence, those employees who are not

committed engages to a set of action performance that may result in quitting or

known as ‘withdrawal behavior’. Commitment is divided into three types, causing

the employees to stay: affective, continuance and normative commitment.

Affective commitment is driven between the emotional attachment built between

the employees, whereas, continuance commitment is affected by salary and

benefits; and lastly, normative commitment is the company’s investment to their

employees through engagement of the organization in charitable efforts.

Emotional attachment to an organization and belief in its values is the

“gold standard” for employee commitment. Employees who are committed will

be less likely to engage in work withdrawal even if they are dissatisfied because

they have a sense of organizational loyalty or attachment (Robbins & Judge,

2018).

2.1.3 Employee Sustainability

There are many factors to consider in employee sustainability in a

workplace. One of which is the ability of the company or the industry to provide

job security to its employees in terms of the employment contact, collective




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bargaining agreement or labor legislation that prevents arbitrary termination

(Dayton, 2019). As a study by Kumar & Kavitha (2019) revealed, that the average

tenure years of call center worker is approximately 1.5 years, as employees find

lack of career growth in the industry afterwards. Workforce is the backbone of the

BPO industry thus the companies should take care of their employees; however,

attrition rate keeps increasing resulting in additional costs for the organization in

terms of recruitment, trainings, orientations, and more. High attrition rate affects

the overall productivity of the business. The following factors were identified to

be the reason for attrition in an article published by mbaskool.com last May 16

2020: low perceived value and monotonous work, high salary expectation and

unusual working hours, disillusioned employees, stress and burnout, the pressure

to perform on metrics, and lack of motivation and lack of security and social

interaction.

A study conducted by Bhargav & Mehra (2018) determined the following

factors causing employee attrition, reviewed by relevant literature classified into

different groups: compensation factor, organizational culture, managerial factor,

parental and family mobility factor, personality factor and lateral poaching of

qualified and skilled employees. Outsourcing people as a third-party service

provider is the idea of the job and without the employees, the business will be

useless. As defined by Rezaee, et al. (2019), constantly gaining attention from

investors, regulators and other businesses is called business sustainability. The

Philippines has been in an open economic policy since the 1960s, which shows a




19

remarkable result in foreign investments. The Code of Business Conduct and

Ethics is also followed within the country, with the intention to aid businesses in

developing and maintaining standard corporate culture with business ethics.

According to Malhotra & Gautam (2016), it is identified that odd working

hours especially nights shifts, disruption in social and family life, lack of growth

opportunities, monotonous nature of job, work-related stress, low perceived value

of the job, uncongenial work culture, health issues arising out of employment in

BPO jobs are the common factors that triggers attrition. Furthermore,

organizational culture enhances internal communication, clear vision of

organizational policies and objectives, fairness of performance and appraisal

inline with the performance standards, recognition, and job security.

BPO sector suffers high turnover rate resulting in higher cost in terms of

recruitment and training expense. Shortages and losing skilled labor constrain in

training workers into higher value-added activities (Errighi, Khatiwada &

Bodwell, 2016). In 2009, the average yearly industry turnover reached 38% but

decreased to 19% in 2015. Despite the decrease with the rate, empirical evidences

exhibit significant variation in the turnover, according to IBPAP. However, there

is a difference between the employee turnover and employee attrition. Whereas

employee turnover is when an employee is being replaced by another worker that

is often resulted by the attrition, which is when the employee either voluntarily or

involuntarily leave their job.




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In a study conducted by Nasir & Mahmood (2018), good career prospects

within an organization and the attitude of supervisor are important to retain

employees for a longer duration. Employee loyalty comes when they are fully

satisfied with their employer. Different measures should be taken to make

communication and relationship between employees and supervisors transparent

and comfortable. On the other hand, in a study conducted by Manzoor (2012), one

factor to enhance the motivation of employees is through recognition and

empowerment. This internally satisfy the feeling of employees in terms of how

they are appreciated with their work output and how it boosts their morale as

members of the organization by letting them participant and provide opinion in

decision making. With such positive setting, they are driven to accomplish their

task with enthusiasm and thus increase their productivity.

According to Fox (2012) cited by Paul & Vincent (2018), there are

affecting factors to reduce turnover rate such as salary, flexible working hours,

recognition and rewards for excellent performance, growth opportunities, job

security, and more. Similarly, in a study conducted in the hospitality industry

revealed that the three most important aspects of employee retention are the good

quality management, pay and respect for work. Hence, in a study conducted by

Rao, et al (2016), they identified that lack of growth opportunities, salary, job

stress, job dissatisfaction are the predominant factors that force employees to

change their jobs.




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2.1.4 Motivation

Motivation is classified into two forces: intrinsic (internal) and extrinsic

(external). Intrinsic motivation refers to any psychological reward that can

achieve internal satisfaction like having a sense of challenge and achieving it,

receiving appreciation, positive recognition; and the opportunity to use own

ability to complete a task (Adeyemo, 2017). As discussed by Berlin & Adams

(2017), intrinsic motivation is perceived voluntarily that takes time and effort for

an individual to be motivated and pursue a goal. If the task itself do not motivate a

person, other external forces can be the reason to motivate, such as pay and other

tangible rewards and commonly known as extrinsic motivation. Personal growth

is essential in motivation because it assembles to personal accomplishment and

helps build moral and development as a person (Coquitt, 2019).

What motivates or demotivate people in a workplace is complex due to

mix of psychological factors, which are introversion/extroversion and self-esteem

and demographic (e.g. gender, ethnicity) characteristics (Punnett, 2019). One

aspect of being motivated is having a good working relationship with your

colleagues. This is mostly experienced in the BPO industry because of the diverse

culture it entails as two or more countries merge to work together. The collective

values, beliefs, and principles of the organization is called organizational culture

(Needle, 2010, cited by Sparkman, 2018). In a study conducted by Senevirathna

(2017), a strong superior-subordinate-relationship was more likely to engage

workers, encourage two-way communication, motivate them to raise productivity,




22

which finally led to the building-up of a strong relationship with trust and

confidence, thus leading workers to stay committed and loyal to the business. In

addition, if supervisors lack competence, empathy, and trust in employees, they

will fail to command the respect of the subordinates (Goswami & Jha, 2012).

Also, building trust and respect between people who collaborate able to work

together with compassion and respect, they tend to be goal oriented considering

that they can have the same benefit result. It also engages people to feel that they

are being valued at work (Worline & Dutton, 2017).

Workforce especially in BPO is constantly changing and positions and

roles of employees are being affected by it; due to these changes, employees need

to be quick in adapting with little to no additional training. Tenured employees are

expected to provide feedback to the new employees to set expectations about the

company and requirements in the job. Feedback is also a great tool for motivation

as it can boost the confidence of workers professionally and build its competence

at work (De Janasz, et al., 2019). It is beneficial to learn mistakes because there

will always be room for improvements.

According to Ghandi (2010), as cited by Ayeremusah (2018), employee

motivation has been recognized to have some impact in reversing employee

turnover issues. In fact, the demotivation of a single important employee of an

organization can lead to low productivity. Hence, job challenge or the level of

how an employee continuously feel that they do not have a routinely job may

affect how they are being motivated due to a possible enriching their skills that




23

will be beneficial to their growth. The employee’s feeling correlate to their

satisfaction because it is how they perceive their work if this is challenging,

interesting, respected, and skillful instead of making them uncomfortable due to

work being dull and monotonous (Coquitt, 2019). Equality of treatment on

employees with the same hierarchy in the organization with no authority builds a

relationship among co-workers. Thus, employees enjoy having a support system

with their colleagues resulting to high performing and industrious workforce and

finds their workplace to have friendly competition (Nwannebuife, 2017). It is

found that there is a positive significance on the interaction among the work

group and support of co-workers that can affect the job satisfaction of the

employees in the international service providers (Ducharme & Martin, 2000 as

cited in Tan, 2013).

Working condition or the working environment is one of the motivations

that an employee seeks in their company. For the workplace to act as an effective

enabler for the organization, it needs to foster a mix of services that fits what the

business needs to achieve and the settings that create the conditions for its people

as individuals and teams to achieve such. Physical place and virtual space

contribute to enable people to do their best work (Swann, 2018). Hence, a good

workplace should create a pleasant working experience for employees, with

adequate resources and flexibility at work (Senevirathna, 2017). Employees feel

motivated when they feel good going to work because of having a positive

working environment, and that they look forward to reporting for work each day




24

(Msengeti & Obwogi, 2015); this is one of the good connotations that employees

love their current company since they feel excited going to work. As discussed by

Sparkman (2018), companies will often choose locations based strictly on that

location’s ability to help attract and retain top talent. These companies see a prime

location to build on their employer brand offering, to attract candidates that might

otherwise not be interested in working for that company. It needs a collaboration

between the business leaders and site-selection decision makers to think through

and develop location-based strategies that will accomplish the goal of attracting

and retaining such top talent.

Compensation program is a confidential part of management which makes

it difficult for employees to obtain accurate information on co-worker

compensation. These perceptions impact motivation, commitment, and

performance, and must be effectively managed. Although compensation is not the

only work-related outcome employees received, it is often the basis by which

employees conclude that they are being treated appropriately. Hence, employees

should feel that the pay differentials between their jobs are fair and based on the

work and company standards, given the corresponding difference in job

responsibilities (Mello, 2019).

2.1.5 Human Resource and Management Process

A study conducted by Wijesiri, et al. (2018), discovered that there is the

low impact of recruitment & selection, performance management, compensation




25

& reward management, and training & development towards employee retention.

However, human resource technology is used for recruitment, onboarding, and

engaging employees to work flexibly, including physical and financial wellness

programs in the organization (Rohini, V. & Panneerselvam, S., 2019). As part of

management, it is expected to formulate ideas on how to retain their employees in

the long run as regards the company’s policies and its processes, followed by each

department. In a study by De Ocampo & Aguiling (2018), it is found that the

highest influence in retention is career development and training; for employees

to stay motivated is through career progression. Employees tend to look for other

jobs that can help provide better experience due to lack of training and

opportunity growth in their current job (Staff, 2019). Kolb (1984) as cited by

Shaw (2017) explains that having a consistent pattern of transaction in between

the individual and environment is a learning process through distinctive

differences. Furthermore, it differs from personality traits, which focuses on how

individuals deal with ideas and day-to-day situations. Thus, Kolb’s experiential

learning model states that due to generic qualities and environment demands, the

learning process is not the same for everybody.

Communication is important in the organization; policies should be shared

among employees within the organization to keep them informed; and they should

be allowed to voice out their thoughts and be open to make suggestions about

these policies and procedures implemented by the management. It aims to

encourage employees to speak up and express their views; thus, it helps ensure the




26

loyalty of workforce in the organization while employing HRM practices

(Tangthong, 2014). Employee training and development is important because it

helps build loyalty, especially with new hires, who may possibly leave if they

have less sense of loyalty to their employer (Mello, 2019). According to

Kumudha & Harsha (2016), organizations need to reflect their beliefs and

principles to new human resource policies and strategies to maintain acceptable

relationship between the top management, middle management and front liners

that can reflect on their selection and recruitment, training and development and

performance management. Employee attitudes and behaviors, including

performance, reflect their perceptions and expectations, a favorable concern that

they gained from the organization.

The benefits of training apply to both the individual and the organization.

For the organization, it will retain skilled and experienced employees who will

meet the supervisory and management needs of the future; also, companies will

have higher levels of innovation and productivity and be able to be more resilient

and flexible in the changing environment. Whereas, for the individual, on-going

development enables them to develop a career path and progress within the

organization. (Shaw, et al. 2017). In the study of Terera and Ngirande (2014),

where even there is no significant relationship on rewards and job satisfaction, it

is significant to the employee retention at p=0.000 indicating that as long as the

employee is being rewarded, they will stay in the company; and that they are

receiving in return from the economic gains that the organization is getting. The




27

result is supported by a study conducted by Mngomezulu, et al. (2015), which

presented that the highest factor to contribute employee retention is monetary

award at 30%.

One of the company policies that affect retention is the employees work

schedule. In the BPO industry, there is a possible chance to take morning shift,

mid shift or night shift depending on the account’s requested; sometimes the

employee may also take shifting work schedule. Employees tend to be more

satisfied if they can choose their workday. Having a flexible work schedule shows

that 79% are being satisfied with this arrangement as it promotes work life

balance compared to those who do not have flexible working schedule are 73%

satisfaction rate (Staff, 2019). Companies provide flexible working arrangement

to motivate employees by giving them options how and when they can work; this

could also be one way to help them decide when will they be most productive to

do their work (Soon, 2019). The purpose of engaging in flexible work

arrangement is to permit employees to work in there on terms; they get to decide

what time they will start and end their shift. It also promotes job satisfaction

among employees since they can manage their time on both work and non-work-

related actives (Johns & Saks, 2017). This is one of the advantages in working at

an outsourcing company especially when the employees do not want to join the

mob on regular days due to heavy traffic and hassle in the morning.




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2.1.6 Job Satisfaction

Job satisfaction is a positive feeling and attitude towards the job that

affects employee retention (Robbins & Judge, 2018). Increase in employee

productivity and performance are the results of job satisfaction. It also has an

impact to the quality of work and the commitment of employees to the

organization; thus, it reduces the turnover. The opportunities for career growth are

minimal. As a result, employees leave the organization to grab better

opportunities. The employees are also dissatisfied with the appraisal system

(Chaturvedi & Sangwan, 2016). According to Kumar & Kavitha (2019), working

in a call center has an average tenureship of approximately 1.5 years; this is the

reason most employees leave because they sense lack of career growth

opportunities in the industry by this time.

In an article by Root (2017), there are several methods to achieve

employee job satisfaction; these are identified as responsibility, dedication,

referrals, and growth. Employees feel more empowered when they are satisfied

with their jobs; and it will help them be more inclined at work resulting in less

absenteeism. The loyalty of the employee is attested when they are satisfied as

they emotionally invested with the success of the company. Lastly, employees

find satisfaction in their jobs when they observe a company growth through their

contribution and work output provided. Hence, it would relate to the individuals’

involvement with satisfaction resulting in employee engagement, which includes

the enthusiasm for work. Highly engaged employees have a passion for their work




29

and feel a deep connection to their companies; disengaged employees have

essentially checked out, putting time but no energy or attention into their work

(Robbins & Judge, 2018)

Employee recognition and reward program helps to derive satisfaction

when working with companies who exhibits best practices and effective human

resource management (Dugguh & Ayaga, 2014). According to Sageer, et al.

(2012), job satisfaction is the employee’s view of work that can either be

favorable and unfavorable as impacted by the job design. On the other hand,

environment affects the motivation. Autonomy, task significance, feedback and

other jobs with positive behavioral elements contribute to the satisfaction.

Difficulty of task, quantity of work, responsibility, task identity and

empowerment are some factors to consider also.

Organizational commitment and productivity are related to job

satisfaction. Better compensation packages, fringe benefits, and job security are

some factors that the human resources should consider satisfying their workforce

to stay in the company. Having good working environment, good peer

relationship, supervisory and organizational support system can help retain their

employees within the organization (Slesh & Viswambharan, 2018).

A systematic and well-organized plan to achieve balance between the

career needs of an individual and organization workforce requirement is called

career development (Hassan, et al., 2013). One big investment of a company to

their workforce is through company trainings because they feel that the




30

organization is interested to develop their career, as well as their individuality. In

this way, they feel important to the organization and thus helps increase employee

retention and decrease turnover (Hassan et al., 2013).

Work-life balance is essential to every individual. Being a workaholic

person is not a good practice; hence, one should once in a while take a break to

avoid stress and productivity may be affected; thus, a company with no work-life

balance practice will put away their employees interest to stay in the company.

Das (2015), defined work-life balance as an everyday achievement and enjoyment

in each of our four life quadrants: work, family, friends, and self.

One factor that can determine the satisfaction of the employee is through

the stress level that the employee receives from work and people around them.

Working in BPO can cause much stress due to simultaneous tasks given to the

agent and due to continuous technological changes, which may affect the process.

Work stress is caused by factors in the work environment during the week, and

nonwork (external) pressures that extends over into the workplace. This kind of

stress is classified into two: work demands and nonwork demands. Work demands

consist of the task, role, interpersonal and physical demands whereas, nonwork

demands are home and personal demands (Nelson & Quick, 2017).




31

2.2 Theoretical Framework

The research is anchored by the following theory and model:

2.2.1 Herzberg’s Motivation Theory – Two Factory Theory

Figure 1. Herberg’s Two Factor Theory Model

Frederick Herzberg (1959) proposed a two-factor theory that categorized

job factors under two categories: hygiene factors and motivational factors. The

theory explains that these factors will result in either satisfaction or dissatisfaction

in a job. Hygiene factors or maintenance factors are those that pacifies the

employees to be satisfied at a certain period which involves pay, company

policies, fringe benefits, employee status, job security, physical working

environment, and interpersonal relations. On the other hand, motivational factors

are those satisfiers that help in motivating positive performance in the job which

involves recognition, growth and promotional opportunities, responsibility, sense

of achievement and meaningfulness of the work.




32

2.2.2 Antecedent Mediation Model - AMM

Figure 2. Antecedent Mediation Model

Leite, Rodrigues and Albuquerque’s (2014) Antecedent Mediation Model

(AMM), states that the satisfaction with rewards and with the interpersonal

relations are the mediator between the relationship of the antecedents which are

the tension at work, variety of tasks, scope of work, previous realistic

expectations and creativity in job content and the organizational commitment.




33

2.2.3 A Model of Facet Satisfaction – Affect Theory

Figure 3. Model of Determinants of Facet Satisfaction

Edwin A. Locke’s Affect Theory (1976) stated that satisfaction is

determined between the discrepancy of what a person wants in the job and what

has in the job. It is between how a person feels that he should receive versus what

he receives. Model shows that when there is an agreement between the person’s

perception of ‘what he receives’ and ‘what actually receives’, there is a

satisfaction; if there is lower level on outcome versus what he feels, there is

dissatisfaction; and if it exceeds the ‘what he feels’, there would be a feeling of

guilt, inequity or discomfort.




34

Conceptual Framework

Figure 4. Proposed framework for employee retention by the researcher

DEMOGRAPHIC PROFILE Age, Gender, Civil Status, Tenureship, Level of Position, Type of Business,

Monthly Income

MOTIVATION

HUMAN RESOURCE AND MANAGEMENT

PROCESS

JOB SATISFACTION

Employee Retention in the BPO industry

INTRINSIC

MOTIVATION Personal Growth

Recognition Working Relationship

EXTRINSIC

MOTIVATION Compensation & Benefits

Co-workers Proximity

Working Condition

Company Policy

Employee Engagement Performance & Rewards Training & Development

Career Growth Job Security Stress Level

Work-life Balance




35

The formulated conceptual framework is based on IPO process that

depicts the relationship among the independent variables, which are the

motivation, human resource and management process and job satisfaction (input);

the mediating independent variable, demographic profile, is also included in

framework to determine who are the respondents for the study as they are the

main instrument in getting primary data through survey; and the subfactors

relating to each variable (process) were presented, as these affect the retention

decision of the employees in the BPO industry (output). These variables were

selected based on the research literatures used in the study, and are the empirical

factors affecting the retention decision of the employees. Thus, these were aligned

based on the research by Dr. Nancy Kumari (2018) entitled, “Factors Influencing

the Retention of Employees in the IT Services Industry in Bengaluru” where the

questionnaire for the study was adapted. These subfactors helped to determine the

traits that the employees want in their job and company to make them stay.

Motivation is presented as an attribution on how a person able to accomplish tasks

thus, make it as a vital factor to retention as it promotes commitment to work.

Human resource management process represents how standard procedures of

companies can affect the work behavior and decision of employees based on the

mandated rules and actions to follow. Lastly, satisfaction represents how

employees are perceived on the aftermath results of their work in the BPO

industry if they will be happy or not.




36

CHAPTER 3

THE RESEARCH METHODS

This chapter will thoroughly discuss the research design used in the study

and the data collection employed. Furthermore, the statistical tool and procedure

used will be explained.

Research Design

The research design used is descriptive correlational, which aims to

describe relationship among variables without establishing casual connection.

Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. The data

description is factual, accurate and systematic; the research cannot describe what

caused a situation (Azagan, 2013). It is a method that usually includes surveys,

case studies and observations, whereas, correlational assess the relationship

between variables; and when combined can provide a clearer and more reliable

results. The validity can be established further using the quantitative approach that

will give statistical methods to help analyze which will come from the survey

questionnaire to be distributed using stratified random sampling. It is best used to

the study to determine if the variables presented have a relationship to the

retention decision.




37

Research Instruments/Data Measure

The researcher’s primary data was gathered using survey as quantitative

method to measure the significance of the variables presented to the retention

decision of the employee. Thus, review literatures and other resources related to

the topic were used as secondary data to support the study.

A. Questionnaire

A survey questionnaire was used for data gathering, which consists of the

profile of respondents and their perception on each question. It will be the basis of

the researcher to come up with the recommendations for employee retention. The

researcher adapted and used an existing research, which was essential to answer

the research questions. Below is the formula-driven by the quantitative research

design for the study and as presented in the conceptual framework whereas:

ER = f (IM + EM + HRMP + JS)

ER = Employee Retention

IM = Intrinsic Motivation

EM = Extrinsic Motivation

HRMP = Human Resource and Management Process

JS = Job Satisfaction




38

B. Pilot Study

As for validation purposes, the researcher conducted a pilot survey

through stratified random sampling to 20 employees to determine the

acceptability rate of the questionnaire. The participants, who also have a

background profession in the outsourcing industry and are randomly

selected, were excluded from the respondents used in the study.

Cronbach’s alpha measured the data and with a good result of 0.878 as

shown in Table 3.

Cronbach's Alpha Cronbach's Alpha Based on

Standardized Items N of Items .878 .863 33

Table 1. Reliability Statistics

C. Documentary Analysis

Researcher used to gather related and pertinent data and information

through books, theses, dissertations, journals, and online articles, which

will be relevant to the study. Thus, it would align to the derived

conceptual framework.

Data Gathering Procedure

The researcher requested for approval to conduct a survey and asked

permission for respondents to sign a consent form confirming that all the answers

provided will strictly be considered confidential and only be used for study

purposes only. The researcher sought assistance of the BPO employees and




39

managers to help gather data and information that will be needed in the study. The

researcher both used Google forms to cascade survey through online, and pen and

paper for manual answering which took a longer time to retrieve answers from.

After the survey was collected, the results were interpreted by the statistician

hired by the researcher.

Ethical Considerations

The researcher asked for approval from the Ethics Review Board (ERC) of

the UST Graduate School for permission to conduct a survey and interview,

which includes the involvement of humans that will be beneficial to the study.

Hence, the confidentiality of the respondents in the survey was guaranteed. Each

respondent was presented and asked to sign a consent prior answering the

questionnaire. To ensure the ethicality of the research, below were presented to

each respondent in the consent form and will be requested to sign for the:

Purpose and Conduct of the Study

The study aims to determine what makes the employees stay in the BPO

industry regarding their perspective affected by the following factors:

demographic, intrinsic and extrinsic motivation, management processes, and job

satisfaction. The results of the study will be based on the interpretation from the

data gathered through survey cascaded among selected BPO employees in Makati

City, Quezon City, Pasig City, and Taguig City.




40

Benefits for the Participants

The participants will have the chance to be offered new packages by the

management once they were able to implement new ways on how they can retain

their employees through the result of the study conducted.

Confidentiality of the Respondents

All information will be treated with confidentiality and anonymity. Thus,

it abides by the provisions of the Data Privacy Act of the Philippines. Moreover,

the results of the study may be published and/or presented with the privacy and

confidentiality of the respondents. All personal information included in the survey

will be disclosed only for the academic purposes.

Voluntariness of Participation

These questionnaires are given to the respondents who are willing to

participate in the study; thus, they have the right to decline in answering as well.

There will be no force action to partake in this study without the willingness of

the respondents. Once you have participated and decided to stop answering, you

do have the right to do so and will not be penalized. There will be a required

signatory in each survey to confirm that the participant agrees to this provision.

Responsibilities of the Participants

Upon agreement to be part of the research study, it is the responsibility of

the participants to provide correct and honest answers to support the result of the

study. Thus, their answers will be the basis of conclusion and recommendations

by the researcher at the end of data gathering and interpretation.




41

Statistical Treatment of Data

Using SPSS, Cronbach Alpha was used to measure the reliability of the

survey which serves as the tool to measure in answering the research questions. It

revealed that the survey questionnaire to be used for the study reached 87.8% that

indicates the strength of its validity for the research. The data gathered will be

interpreted by the statistician using the Pearson Correlation Analysis, also known

as Product Moment Correlation Coefficient (PMCC) and formulated by Karl

Pearson. It is a statistical tool to measure how strong the relationship between

variables as it is based on the method of covariance. The return value will be

between -1 and 1 whereas –1. A negative linear, 0. No relationship and +1. A

positive relationship.

Pearson r coefficient was used to determine the relationship between

retention decision and factors: intrinsic and extrinsic motivation, human resource

management process and job satisfaction. It was used since both the dependent

and independent variable are at least interval scale. The correlation is computed

as:

Spearman Rho

This method is used to understand the relationship of two variables. It was

used to determine the significant relationship of age, education, position,

tenureship and income to the employee retention. It was used since these

demographic variables are at ordinal scale only which are in Likhert scale. If p




42

value is less than .05 shows there is significance and if more than 0.05, there is no

significance.

Point Biseral

Point biseral coefficient was used to determine the relationship between

the retention and gender and civil status. It was used since these demographic

variables are nominal but dichotomous. Point biseral is appropriate if one variable

is at least interval scale (retention decision) while the other is nominal

dichotomous (gender, civil status). It is correlation that measures the strength

association between the interval data and binary variable. Hence, Values

for point-biserial range from -1.00 to 1.00.

Chi Square Test

Chi Square was used to determine the relationship between retention and

work location and type of business. This test is appropriate if both variables are at

categorical data. Retention decision was converted to categorical (as likely to stay

and likely to leave). It is used to observe if the distribution of categorical variables

to see if they are related or differ from each other. Low value of chi-square means

high correlation.




43

CHAPTER 4

RESULTS AND DISCUSSION

This chapter discussed the analysis and interpretation of the data gathered

from the study and observations made by the researcher. Thus, it will also include

the significance of the study and answer the research problems which derived

based on the objectives set the researcher.

Presentation and Analysis of Data

4.1 Demographic Profile of the Respondents

Problem 1: What is the demographic profile of the respondents?

A total of 500 employees from Pasig City (65), Quezon City (150), Makati

City (179) and Taguig (106) were included in the study who are mostly from 26

to 30 years old (27.6%) while 27.2% are from 31 to 35 years old. Table 1 also

reveals that female percentage is slightly higher (58.4%), while majority of the

total employees are still single (64.4%), while 28.0% are already married. In

terms of educational attainment, 80.6% were able to finish their bachelor’s

degree, while 2.2% have M.A. degrees and 1.2% were able to finish their doctoral

degrees. Around 73.6% of the total employees are frontliners or rank and file,

while 3.8% are top level manager. In terms of tenureship, 31.6% are from 25 to

36 months, while mostly are 43 months or above (36.8%). Moreover, Table 1 also




44

shows that the most common income bracket is from 20,001 to 30,000 a month

(35.2%) while only 6% earns 50,001 and above each month. Table 2 below is the

summary of the demographic profile of the respondents for the study:

DEMOGRAPHIC PROFILE Age Frequency % 1 Below to 20 years 1 0.2 2 21 to 25 years old 112 22.4 3 26 to 30 years old 138 27.6 4 31 to 35 years old 136 27.2 5 36 to 40 years old 57 11.4 6 41 years old and above 56 11.2 Gender Frequency % 1 Male 208 41.6 2 Female 292 58.4 Civil Status Frequency % 1 Single 322 64.4 2 Married 140 28 3 Separated 30 6 4 Widowed 4 0.8 5 Others 4 0.8 Educational Background Frequency % 1 Non-Graduate 38 7.6 2 High School Graduate 22 4.4 3 Bachelor's Degree 403 80.6 4 Master's Degree 11 2.2 5 Doctoral's Degree 6 1.2 6 Others 20 4 Working Location Frequency % 1 Pasig City 65 13 2 Quezon City 150 30 3 Makati City 179 35.8 4 Taguig City 106 21.2 Level of Position Frequency % 1 Front Liner / Rank and File 368 73.6 2 Middle Manager 113 22.6 3 Top Level Manager 19 3.8 Tenureship / Length of Service Frequency % 1 1 to 12 months 67 13.4 2 13 to 24 months 59 11.8 3 25 to 36 months 158 31.6 4 37 to 42 months 32 6.4 5 43 months and above 184 36.8




45

Type of Business Frequency % 1 Front Liner 240 48 2 Back Office 260 52 Monthly Income Frequency % 1 20,000 and below 54 10.8 2 20,001 to 30,000 176 35.2 3 30,001 to 40,000 134 26.8 4 40,000 to 50,000 106 21.2 5 50,001 and above 30 6

Table 2. Demographic Profile of Respondents

Table 3 shows the total number of employment and the corresponding

needed number of respondents in each city, which was determined using Sloven

formula with 0.5 margin of error.

Total Employment* Respondents Makati City 106143 0.360013 180 Quezon City 87666 0.297343 149 Taguig City 62940 0.213478 106 Pasig City 38082 0.129166 65

TOTAL 294831 500 Table 3. 2018 Number of Establishments Engaged Call Center in NCR*

Source: PSA

4.2 Retention Decision and Demographic Profile

Table 10 shows that their position (r=.197), tenureship (r=.124) and

monthly income (r=.252) are affecting their retention decision. Specifically results

reveal that those who have higher position are the ones who are also likely to stay.

Additionally, those whose tenureship is longer and have higher monthly income

are also the ones who intends to stay in the company. Civil status is also a

significant factor to the retention decision of the employees. Furthermore, results

also reveal that employees working in the Pasig area are likely significant to stay

in their company, while the opposite for employees working in Taguig who are




46

more likely to leave their current company. Table 3 below illustrates the results

for the demographic profile:

Retention Decision vs

Spearman r

p value Decision Conclusion

Age 0.037 0.4036 ACCEPT Not Significant Education -0.007 0.8819 ACCEPT Not Significant Position 0.197 0.0001 REJECT Significant Tenureship 0.124 0.0054 REJECT Significant Income 0.252 0.0001 REJECT Significant


Point Biseral


Gender 0.01 0.7643 ACCEPT Not Significant Civil Status -0.09 0.0362 REJECT Significant


Chi Square Test


Work Location 25.42 0.0001 REJECT Significant Type of Business 3.31 0.0688 ACCEPT Not Significant

Table 4. Summary result of significance of demographic profile to the retention decision

4.3 Correlation of Demographic Profile

Below is the summary result of the test run using the Pearson Correlation:

R1 I see myself still working in BPO for the next 1-3 years R2 I see myself still working in BPO for the next 4-6 years R3 I see myself still working in BPO for the next 7 years and above

R4 If there is another job opportunity in the future, I will still choose to stay in my current job

R5 I am willing to leave my current company if a better opportunity will come R6 Overall level of satisfaction

Correlations R1 R2 R3 R4 R5 R6 AGE Pearson

Correlation .076 .051 -.030 -.024 -.035 .063

Sig. (2-tailed) .091 .259 .500 .596 .434 .160

N 500 500 500 500 500 500 *. Correlation is significant at the 0.05 level (2-tailed).

Table 5. Correlation between Age and Retention Decision




47

BPO companies do not normally discriminate job applicants based on their

age; they would rather focus on the skills and abilities to sustain in the job and the

resiliency to cope with the fast phase of processing transactions.

Correlations R1 R2 R3 R4 R5 R6 GENDER Pearson

Correlation .105* -.138** .028 .069 .089* -.029

Sig. (2-tailed) .018 .002 .528 .123 .047 .520


Table 6. Correlation between Gender and Retention Decision

Gender is significantly related in staying in the job for at least 6 years and

still leave once an opportunity comes but it is not significant to the retention

decision of the employee (p=>.05). The possible reason for this is somehow

related to civil status which is significant to the retention decision. In early years

of working in the BPO industry, most may stay in the company longer due to their

obligation in sustaining their family, especially in the case of men being fathers.

Women may tend to stay longer too since they can also be patient and diligent

especially if they are also breadwinners.




48

Correlations R1 R2 R3 R4 R5 R6 CIVIL STATUS

Pearson Correlation

.171** .113* .044 -.025 -.074 .083

Sig. (2-tailed) .000 .011 .321 .574 .098 .062 N 500 500 500 500 500 500

*. Correlation is significant at the 0.05 level (2-tailed).

Table 7. Correlation between Civil Status and Retention Decision

Study reveals that single employees are more willing to stay in the

company for 1-6 years as mostly are at their young age; they immediately find

comfort in their current job, thinking it is already the best option hence no

tendency to compare with other companies. Similarly discussed in the factor of

gender, those who do not have dependents have no additional expenses thus may

tend to stay in the company since all their earnings are only for their own

expenses. On the other hand, married people who are well-paid would stay longer

to continuously support their family; the idea of resigning and changing industries

is far-fetched since trying to find a “better” company to match the current

compensation may be tough. Single parents may ought to stay as they may be

more willing to work during the night; thus, be able to take care of their children

at daytime.

Correlations

R1 R2 R3 R4 R5 R6 EDUC ATTAIN

Pearson Correlation

-.136** -.048 .137**

.153**

-.226**

-.030

Sig. (2-tailed) .002 .287 .002 .001 .000 .500 N 500 500 500 500 500 500


Table 8. Correlation between Educational Attainment and Retention Decision




49

Educational requirement is a case- to- case basis and often needed in

specialized jobs. However, most posts offered are skill-oriented and if an

applicant is knowledgeable and willing to learn more, the company will give

him/her a job opportunity. As shown on Table 2, 7.6% of the respondents were

non-graduates and 4.4% were high school graduates. Hence, educational

attainment is not relatively significant because the results reveal that

undergraduate degree holders may stay for at least 3 years but uncertain for the

next years and if better opportunities come, they may possibly leave the company.

This can be explained as their being newbies in the corporate industry, they opted

to enter the BPO industry to earn faster, as compared to the regular 8 to 5 jobs

which may not pay as much to fresh graduates due to no work experience.

Correlations

R1 R2 R3 R4 R5 R6 WORKING LOCATION

Pearson Correlation

.196** -.008 -.168** -.173** .104* -.019

Sig. (2-tailed) .000 .866 .000 .000 .020 .668 N 500 500 500 500 500 500


Table 9. Correlation between Working Location and Retention Decision

There are employees who are willing to stay in the company for 1-3 years

even with far proximity, congestion, and heavy traffic like Makati City; because

the location is the central business district where it is believed to provide bigger

opportunities due to the higher compensation rate thus people in the provinces

chase their luck working in Manila. Those who are already working in the




50

company for 7 years and above may ought to stay for a longer time due to

tenureship and mastery for their job. They consider their current rank and position

attained during their residency, their relationship with their supervisors and

colleagues with sense of fulfillment; such is considered as a non-toxic

environment and they may consider it as motivation to travel going to work.

Another possible reason is that they are too afraid for competition in the industry

and think that companies may not accept them due to their age. Hence, there may

be the tendency to be too complacent to their current job, and they already

established job security. Passion is also another aspect; but they may still leave if

better opportunity comes. Table 10 below shows the top 4 hot spot locations in

NCR with the highest BPO employment rate.

Area Likely to Stay (>2 Yes) Likely to Leave

n % n % Makati City 43 36.4 136 35.6 Quezon City 31 26.3 119 31.2 Pasig City 30 25.4 35 9.2 Taguig City 14 11.9 92 24.1

Table 10. Crosstabulation for Chi Square with Significant Results

It reveals that workers from Makati City are likely to stay but also likely to

leave if better opportunity comes. Those who work in Taguig City is least to stay

for more than 2 years in service with 11.9% and those who work in Pasig is least

likely to leave with 9.2%.




51

Correlations

R1 R2 R3 R4 R5 R6 LEVEL OF POSITION

Pearson Correlation

.077 .172** .211** .184** -.196** .143**

Sig. (2-tailed) .084 .000 .000 .000 .000 .001 N 500 500 500 500 500 500


Table 11. Correlation between Level of Position and Retention Decision

The higher the position, the higher the responsibility thus the higher the

compensation. As most would agree, compensation is the main reason why people

work. Being promoted have perks in terms of appraisal and benefits. Level of

position is significant (p=<.05) because once they are promoted, they also develop

a sense of fulfilment and commitment. Earning a reputation in the company,

handling bigger responsibilities, and managing people will help fill contentment

in their career gap; one that boosts the ego to perform better. Lastly, it will be

harder in the transition phase if an important asset in the company decides to

leave.

Correlations R1 R2 R3 R4 R5 R6 TENURE SHIP

Pearson Correlation

.078 .103* .154** .062 .054 .034

Sig. (2-tailed) .082 .021 .001 .164 .227 .454


Table 12. Correlation between Tenureship and Retention Decision

Tenured employees will stay more in the company for 4 years and above

and not bother to look for another job to start as a newbie, once they already

established seniority at work. Tenureship is different with the level of position as




52

some BPO employees are tenured but are not in the managerial level. Some

employees tend to stay as a front liner because moving up in position may add to

their stress; or they consider themselves as best fit with their current job post.

Being tenured is significant (p=<.05) because it means they already established

their position in the industry, they are comfortable in the whole process and that

leaving would it harder for their career as well. Building a strong foundation in

the industry builds a strong credibility and expertise, which makes the employees

the most reliable individuals.

Correlations

R1 R2 R3 R4 R5 R6 TYPE OF BUSINESS

Pearson Correlation

.145** -0.0304

-.143**

-.176** .145** .044

Sig. (2-tailed)

.001 .498 .001 .000 .001 .323


Table 13. Correlation between Type of Business and Retention Decision

Two types of BPO are front and back office. The results reveal that it does

not greatly significant affecting the retention decision of the employee (p=>0.05)

but it could determine staying or leaving primarily because of the nature of work.

Back office is more laid-back compared to the frontlines that requires much

preparation. Back office work is mostly routinary with desk job tasks like

emailing. Unlike in the frontline, who deals directly to customers, who may be

normally furious due to their raised complaints. One reason the type or line of




53

business does not significantly affect the decision is because prior joining the

organization, the employee was already given a brief introduction about their job

nature and description; likewise, the expectations have been spelled out as

business dealings are systematically presented, unless there will be changes

during the operations.

Correlations

R1 R2 R3 R4 R5 R6 MONTHLY INCOME

Pearson Correlation

.122** .181** .246** .228** -.143**

.143**

Sig. (2-tailed)

.006 .000 .000 .000 .001 .001


Table 14. Correlation between Monthly Income and Retention Decision

Employees are willing to stay in the company regardless of years if they

are satisfied with their monthly income. However, if there are better job

opportunities, they would still leave the company. Nothing is more enticing than

better salary packages. If the company can fairly reciprocate the employee’s

hardwork and not provide less than expected, the employee will stay. This is what

all workplaces need to be competitive for since the initial reason people apply is

for the money, before building good relationships with supervisors and

colleagues; the compensation package would always attract employees. It is one

of the most significant factors (p=<.05) because it binds the employee to work

hard to be compensated better. Employees strive hard to be promoted and stay




54

long in the company (level of position and tenureship) as companies increase the

basic pay or allowance once they reach a particular year of service.

Ho1. There is no significant relationship between the demographic profile of

the employees to the retention decision of the employees.

The null hypothesis is rejected since retention decision is significantly

correlated with demographic profile because the level of position is r=.197,

tenureship (r=.124), and monthly income (r=.252) also civil status and working

location are p=<0.05. One aspect that do not have significance to the decision is

the age; since the BPO industry is not particular with age as a factor, as long as

the employee is an asset to the business and can help generate profit using their

skills needed by the job. There were also about 11.2% acquired respondents who

are 41 years old and above.

4.4 Implication to the Retention Decision

Objective 1: To determine if there is an implication between the years of service

to the employee’s decision to stay or leave BPO industry.

Problem 2: Is there an implication between the years of service of employees to

their decision to stay or leave the BPO industry?

Table 16 reveals that 85.2% of the total employees intend to stay in the

next 1 to 3 years, while only 43.8% are seeing themselves in the same company in

the next 4 to 6 years. Moreover, in the next 7 years and above, only 19.6% are




55

inclined to stay. However, employees are willing to leave their current company if

better opportunities come (87.6%).

Retention Decision n (Yes) % (Yes) I see myself still working in BPO for the next 1-3 years 426 85.2 I see myself still working in BPO for the next 4-6 years 219 43.8 I see myself still working in BPO for the next 7 years and above 98 19.6

If there is another job opportunity in the future, I will still choose to stay in my current job 136 27.2

I am willing to leave my current company if a better opportunity will come 438 87.6

Table 15. Summary result for Retention Decision

It shows that in over the years, there is a decreasing trend with those who

would stay in the company, as shown in Graph 11.

Figure 5. Employees to stay in given years

Contrarily, once an opportunity comes, 87.6% employees may still want to leave

their jobs if given a better deal by another company, as shown in Figure 7.

0

20

40

60

80

100

YEAR 1-3 YEAR 4-6 YEAR 7 AND

UP

TENURESHIP




56

Figure 6. Percentage of employee to stay or leave if an opportunity comes

Employees have their reasons why they stay and leave the organization,

which is affected by their perception of their current work situation, their sense of

satisfaction and their view of a better option they can possible transfer to.

4.5 Retention Variables

Objective 2: To determine the extent level on how the variables, affect the

retention decision of employees.

Problem 3: To what extent level of how the variables affect the retention decision

of the employees?

Below is the summary result of the average weighted mean of the

variables affecting the retention decision of the employees. Among the 4 variables

presented, intrinsic motivation has the highest effect of retention decision of the

employee with 3.44 mean average followed by extrinsic motivation at 3.37,

management processes at 3.31, and job satisfaction at 3.37 with the least effect.

STAY

LEAVE




57

3.2 3.25 3.3 3.35 3.4 3.45

Intrinsic Motivation

Extrinsic Motivation

Management Process

Job Satisfaction

RETENTION VARIABLES

Figure 7. Summary AVM of retention variables

4.6 Correlation of Retention Variables

Objective 3: To determine the level of significance of each variable to the

retention decision of employees.

Problem 4: Are the following variables significant to the retention decision of

employees: intrinsic motivation, extrinsic motivation, human resource

management process and job satisfaction?

In summary, despite of the different effects each variable may affect the

employee, it showed that all variables used for the study has all significant

relationship to their retention decision.

Retention Decision vs Pearson r Coefficient p value Decision Conclusion

Intrinsic Factor 0.251 0.0001 REJECT Significant

Extrinsic Factor 0.203 0.0001 REJECT Significant

HRM Process 0.245 0.0001 REJECT Significant

Job Satisfaction 0.206 0.0001 REJECT Significant Table 16. Correlation of retention decision to retention variables




58

Table 21 shows that their retention decision to stay in their current

company is positively linearly correlated with their level of agreement that

intrinsic factors (r=.251), extrinsic factors (r=.203), management processes

(r=.245) and job satisfaction (r=.206) . This suggests that the more they agree that

intrinsic and extrinsic factors affect their decision to stay, the more they are

inclined to stay in their current company. Likewise, the more they agree that

HRM process affects their decision to stay, the likely they will stay in their

current company. Lastly, the higher is their job satisfaction, the more likely they

will choose to stay.

4.7 Retention Variables and its Subfactors

Each variable has subfactors determined based on their corresponding

questions from the survey. Table 17 below are the correlational of each variable

used and the total average of each subfactor followed by the summary list of the

weighted mean and standard deviation of its determinants. The following legend

is followed:

Range Motivation HRM Process Satisfaction

3.20 to 4.00 HM Highly Motivated

SA Strongly Agree

ES Extremely Satisfied

2.60 to 3.19 M Motivated A Agree S Satisfied

1.80 to 2.59 SM Slightly Motivated D Disagree DS Dissatisfied

1.00 to 1.79 NM Not Motivated SD Strongly Disagree NS Not Satisfied

Table 17: Legend for determinants




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INTRINSIC MOTIVATION

Objective 4: To determine the relationship between the intrinsic motivation and


Problem 5: Is there a significant relationship between the retention decision of

the employees to the following intrinsic motivation subfactors: personal growth,

recognition; and working relationship?

Correlations

R1 R2 R3 R4 R5 R6

INTRINSIC FACTOR

Pearson Correlation

.227** .175** .196** .088* -.188** .392**

Sig. (2-tailed) .000 .000 .000 .049 .000 .000


Table 18. Correlation between Intrinsic Motivation and Retention Decision

Intrinsic motivation has the highest impact that affects the retention

decision of the employee. They tend to feel satisfied and choose to stay in the

company once they feel motivated from within. It happens when an employee has

a good working relationship with their colleagues and when they feel the respect

from others. They also feel valued if they are considered part of the community as

they participate and share their thoughts during discussion, where open

communication helps build openness and teamwork with one another. Also, if

they feel that their supervisors are motivating and guiding them can help boost

their want to be part of the organization. Getting good feedback as well, shows

that even small tasks done by the employee is greatly appreciated.




60

The subfactors for intrinsic motivation are classified as: personal growth,

that was determined based on questions #3 and #6; recognition based on questions

#1 and #5 and working relationship based on questions #2 and #4. The highest

among the three variables is recognition with average mean of 3.49, followed by

working relationship at 3.48 and lastly is personal growth at 3.36. All these

subfactors have strong agreeableness among respondents.

Table 19 shows an overall mean of 3.44, denoting a strong agreement that

they consider intrinsic factor as influencer to their decision to stay. All attributes

referring to intrinsic factor were strongly agreed by the employees, where the

highest mean of 3.52 is about their strong agreement that respect and fair

treatment received from managers and other employees is one of their

motivational factors to stay. Likewise, mean of 3.50 also implies a strong

agreement that they consider open communication policy being followed by the

organization as a motivation factor.




61

Questions/Determinants Weighted Mean

Standard Deviation Description

1 Open Communication Policy is followed by the organization

3.50 0.58

HM

2 Organization focuses on Teamwork and to also to develop Leadership Skills in the employees

3.44 0.60

HM

3 Shorten Feedback Loop (i.e. Feedback for every small work done is provided by the supervisor)

3.41 0.63

HM

4 Respect and fair treatment received from managers and other employees

3.52 0.65

HM

5 Freedom of Employee's participation in management to provide their valuable thoughts and ideas

3.47 0.62

HM

6 Guidance and Motivation provided by the immediate supervisor

3.31 0.58

HM

Average 3.44 0.61 HM Table 19. Average Weighted Mean & Standard Deviation for Intrinsic Motivation

Among the intrinsic variables, recognition and working relationship are

closely related to affect the retention decision of employees based on the result.

Employees want to be respected and feel valued by their managers, at the same

time, experience equal treatment with everyone. Workforce in all the same levels

openly communicate; thus, business leaders and employees support each other’s

progress and achievement can help with their interpersonal characteristics to be

developed and engaged. Being recognized by the management through their hard

work and perseverance in the job boosts their motivation to perform their best;

this helps to develop effective collaboration and promote stronger bond promoting

teamwork among individuals, teams and departments to collaborate with one

another in achieving their goals. Team members feel happy and valued if their

opinion and ideas are entertained, their employee in participant is welcomed by

the management and colleagues. Being recognized is a motivation to pursue in




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their job because it shows that they are needed, and their skills will be useful to

reach their goal. Lastly, personal growth is also important part of the intrinsic

factor because it can help develop one’s self-esteem and be emotionally

committed to the job. Being guided and motivated by their supervisor while

provided with feedback about their output can help them strive to work harder

thus develop their competencies. Intrinsic motivation is about how a person can

be motivated within, it resulted in a behavior driven by an internal force to pursue

a goal that makes one feel a sense of fulfilment and satisfaction to one’s self and

does not require any reward in return.

Ho2. There is a significant relationship between the intrinsic motivation and

its subfactors to the retention decision of employees.


correlated with intrinsic motivational factors because correlation is significant at

0.05 with level of agreement of r=0.251 and overall satisfaction rate of r=0.392.

Overall, the average mean for the intrinsic motivation reached a strong

agreeableness from the respondents with 3.44, the highest among 4 variables

discussed. Working relationship is the highest subfactor in which the employees

feel respected and have a fair treatment from their supervisors and colleagues.

Even with strong agreeableness, guidance and motivation provided by the

immediate supervisor has the influence in intrinsic motivation determinants.




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EXTRINSIC MOTIVATION Objective 5: To determine the relationship between the extrinsic motivation and



the employees to the following extrinsic motivation subfactors: compensation and

benefits, co-workers, proximity; and working condition.

Correlations R1 R2 R3 R4 R5 R6 EXTRINSIC FACTORS

Pearson Correlation

.150** .131** .212** .050 -.170** .440**

Sig. (2-tailed) .001 .003 .000 .264 .000 .000


Table 20. Correlation between Extrinsic Motivation Factor and Retention Decision

Employees are motivated and satisfied through many external factors such

as having good relationship with co-workers aside from working relation; this

means building friendship among colleagues, as well as working in a healthy

environment can help sustain employees. Mostly, workers tend to stay because of

people around them and not due to the workload. It could have a psychological

effect, but it can lessen the burden of the job. However, pay will always be the

‘initial kicker’ for employees to stay in the company. They believe they need to

be paid according to their job productivity and not be underpaid nor overpaid; this

covers not only the basic pay, but the commission, benefits and other allowances

included. Lastly, the distance of the site also plays a vital role, i.e., if it has an




64

easy access with transportation from the residence, it will be a bonus because it

could save additional expenses.

The subfactors for extrinsic motivation are classified as: compensation

and benefits which was determined based on questions #7, #9 and #11; co-

workers based on question #10; proximity based on question #12; and working

condition based on question #8. The highest subfactor is co-workers at 3.55

average mean followed by working condition at 3.43, third is compensation and

benefits at 3.39 and lastly proximity at 3.08.

With overall mean of 3.37 also denotes a strong agreement in extrinsic

factors as motivation to stay in the company (Table 21). Highest resulting mean of

3.55 implies a strong agreement that supervisors being approachable and

cooperative in nature is a motivational factor to stay. Likewise, mean of 3.52 also

suggests a strong agreement that performance appraisal system followed per

industry standard is also a factor that they consider. The transport facility

provided is only agreed to be one of the factors (3.08).

Questions Weighted Mean


7 Remuneration provided by the organization should be as per industry standards

3.38

0.60 HM

8 A good and healthy Working Environment for the employees 3.43 0.58 HM

9 Performance Appraisal System followed are per industry standards 3.52 0.63 HM

10 Supervisors are approachable and co-operative in nature 3.55 0.70 HM

11 Adequate leave and leave benefits are provided by the organization 3.28 0.62 HM




65

12 Transport facility provided by the organization (may include accessibility going to work)

3.08 0.91

M

Average 3.37 0.70 HM Table 21. Average Weighted Mean & Standard Deviation for Extrinsic Motivational Factor

It is shown that among the extrinsic variables, co-workers have the highest

effect to the employee’s retention decision to stay longer in the company. The

result is similar with that of intrinsic motivation; apart from their working

relationship, having a co-worker who they can be friends and get along with

makes them stay, especially when they get attached and build friendships.

Likewise, having co-workers with no issues can help lighten the workload thus

keep the stress away. Likewise, having a healthy working environment motivates

the employees to stay because it is difficult to find a job where there are less

issues to deal with such as work, people, and management; it can be more

challenging in the BPO industry where diverse people are obligated to work

despite their differences. Employees will also stay when the company offers a

systematic appraisal system; management awards promotion after years of service

supported by performance-based output. Workers seek companies who give

competitive compensation package that matches their level of responsibility as no

one wants to be underpaid. Transport facility only have agreeableness among the

extrinsic favors because upon joining an organization, employees have a prior

knowledge on how they could travel from their residence to their homes. They

already have an idea if working far from their home is feasible in their day to day




66

transport service. Since the study is about retention, even transportation and

accessibility have an impact; it does not give much significance on long run other

than what is listed on extrinsic motivators because it can be earlier decided before

signing a contract. Mostly, people will be practical to choose those companies

already near their area. Extrinsic motivations are influenced by external forces

that one can encounter and helps to drive one towards a goal or reward; the most

common tangible rewards are pay, medals, and trophies.

Ho3. There is a significant relationship between the extrinsic motivation and its

subfactors to the retention decision of employees.


correlated with extrinsic motivational factors because correlation is significant at

0.05 with level of agreement of r=0.203 and overall employee satisfaction rate of

r=0.511. Overall, the average mean for the extrinsic motivation reached a strong

agreeableness from the respondents with 3.37 as the second most influential

variable. Co-workers is the highest subfactor in which employees tend to retain

with having a supervisor who is approachable and co-operative in nature; this is

the highest influence among the 27 determinants presented. However, the least is

the transport facility, which is the lowest determinant influence.




67

HUMAN RESOURCE AND MANAGEMENT PROCESS

Objective 6: To determine the relationship between the human resource

management process and its subfactors to the retention decision of the employees.


the employees to the following human resource management process subfactors:

company policy, employee engagement, performance and rewards; and training

and development?

Correlations R1 R2 R3 R4 R5 R6

HUMAN RESOURCE MANAGEMENT PROCESS

Pearson Correlation

.179** .153** .206** .111* -.206** .511**

Sig. (2-tailed)

.000 .001 .000 .013 .000 .000


Table 22. Correlation between Management Process and Retention Decision

In BPO, working schedule is one big factor why people choose to stay

since they have a choice on their work shift, they could attend to whether it is day,

mid, or night shift depending on their current needs and wants. Hence,

performance and rewards boost their motivation to work hard and stay. Training

and development are essential for this is how employees learn and improve; and

this would make them feel that the management is concerned with their

development in skills and knowledge. Some trainings and mentorship expenses

that are also shouldered by the company is a good indication that they are willing

to invest for their employees to excel and learn more beyond their current job




68

post. Employee engagement is important as this is a great avenue to create

relationship among employees; thus, they can feel they are part of the community.

The subfactors for management process are classified as: company policy

which was determined based on questions #15 and #19; employee engagement

based on questions #17; performance and rewards based on questions #13 and

#14; and training and development based on questions #16 and #18. The highest

subfactor is training and development at 3.37, second is performance and rewards

at 3.33, third is company policy at 3.29 and lastly, employee engagement at 3.23.

Table 23 resulting mean of 3.31 reveals a strong agreement that the

management process is a factor that affects retention of the employees.

Specifically, the highest mean of 3.47 implies strong agreement that flexibility in

working hours is a factor. Likewise, resulting mean of 3.37 also denotes strong

agreement that they consider company’s focus on mentoring programs as one of

the factors to stay. On the other hand, fringe benefits such as use of telephone,

team outing, get together, family involvements just received a mean of 3.10,

which denotes an agreement only as they consider it as a factor to stay.



13 Good performance is very recognized by the organization 3.38 0.65 SA

14 Organization has a good Rewards and Incentive System 3.27 0.71 SA

15 Flexibility in working hours is emphasized by the organization 3.47 0.75 SA

16 Focus more on Mentoring Programs for employees 3.37 0.77 SA




69

17 Organization policies and culture creates a positive environment 3.23 0.64 SA

18 The organization provides adequate Training & Development programs for growth

3.36 0.68

SA

19 Fringe Benefits (e.g. use of telephone, team outing, get together, family involvements, etc.)

3.10 0.72

A

Average 3.31 0.71 SA Table 23. Average Weighted Mean & Standard Deviation for HRM Process

It is shown that among the management process variables, training and

development has the highest effect. On the contrary, a company policy

determinant, flexible working hours with the highest mean at 3.47, giving

employees the privilege to choose which shift they prefer. Companies also offer

fixed day off or alternate day off; schedules may change each week or month

depending on the nature of service of the account or business. To keep

consistently high performing employees, providing rewards and additional

incentive in excelling at their job help motivate employees to strive and work

harder, it would also help increase the company’s competitive edge by this type of

workforce. The quality of service provided by the employees is honed by the

trainings and mentorship provided by the company. On the other hand, policy

about fringe benefits has least mean since most BPO workers already used to

follow the no electronic devices in the floor area. Lastly, employee engagement

and the presence of management should be felt by employees; interesting

activities initiated by the company that can be work and/or non-work related can

entice the employees to join and be part of. In outsourcing business, cultural




70

differences should be given attention as well because different races, age and

religion are put together to achieve a goal; understanding and respecting of each

diversity is one way to keep employees stay.

Ho4. There is a significant relationship between the human resource

management process and its subfactors to the retention decision of employees.


correlated with management process because correlation is significant at 0.05

with level of agreement of r=0.245 and overall employee satisfaction rate of

r=0.511. Overall, the average mean for the management process reached a strong

agreeableness from the respondents with 3.31, third influential out of 4 variables

presented wherein the highest subfactor is training and development at 3.47.

Flexibility in working hours emphasized by the organization, under company

policy subfactor, is the highest determinant among management process, making

it top 6 out of 27 determinants. However, fringe benefits are the least influential

and only have agreeable level at 3.1 and landed as top 26 determinant.




71

JOB SATISFACTION

Objective 7: To determine the relationship between the job satisfaction and its

subfactors to the retention decision of the employees.


the employees to the following job satisfaction subfactors: career growth and

development, job security, stress level; and work life balance?

Correlations

R1 R2 R3 R4 R5 R6

JOB SATISFACTION

Pearson Correlation

.187** .138** .194** .029 -.182** .480**

Sig. (2-tailed) .000 .002 .000 .514 .000 .000 N 500 500 500 500 500 500

*. Correlation is significant at the 0.05 level (2-tailed). Table 24. Correlation between Job Satisfaction and Retention Decision

Job satisfaction has various aspects, but the research will focus on these:

career growth and development, job security, stress reduction and work-life

balance. It is important that despite the high stress in the BPO industry,

employees can have their own personal life outside work. Having routinary task,

employers should think of ways how to reduce stress to keep work productivity.

Stress is very hard to cope with but once the employee reached the level where

they want to give up, they will decide to leave and that is the last thing any

company would like to happen. Lastly, despite the high attrition in this business,

job security is what each employee are seeking; assurance as well is sought

especially at this time of pandemic when many businesses closed down and even

the BPO adapt a work- from- home set up that those who decided to go back to




72

their hometowns thus unable to work remotely are suffering from no- work- no-

pay scheme. Some were put into probationary and floating status until the

business resumes to normal.

The subfactors for job satisfaction are classified as: career growth and

development which is based on questions #20, 21, 23, 24 & 25; job security based

on question #22; stress based on question #26; and work-life balance based on

question #27. The highest subfactor based on the total average mean is work-life

balance at 3.46, followed by career growth and development at 3.39, next is job

security at 3.36 and lastly, stress level at 3.23.

Table 25 reveals that opportunities for career growth, promotion and

promoting work-life balance (3.46) are all tied as the number 1 factor of their job

satisfaction. Thus, stress reduction and opportunities for new assignment both

indicates an agreement among employees.



20 Opportunities for Career Growth provided by the organization 3.46 0.68 ES

21 Opportunities resulting Promotion are available in the organization 3.46

0.70 ES

22 A sense of Job Security should be experienced by the employees 3.36 0.70 ES

23 Additional training is provided for different domain jobs/task 3.35 0.74 ES

24 Opportunities for new assignments provided by the organization

3.23 0.57

S

25 Opportunities available to develop new skills 3.43 0.61 ES

26 Promote Work-life balance in the organization 3.46 0.78 ES




73

27 Stress reduction programs like yoga, meditation, health care etc. conducted by the organization

3.23

0.96 S

Average 3.37 0.73 ES Table 25. Average weighted mean & standard deviation for job satisfaction subfactor determinants

It is shown that among the job satisfaction variables, work-life have the

highest effect to the retention decision. According to Marcelo (2018), to build

long term career in BPO, one should spend 4-5 years to gain in-depth knowledge

and end-to-end operations with a medium-term goal. To surpass its longevity,

management should support the work-life balance and wellness of their employee.

However, stress level got the least probably because some organizations do not

engage in some leisure activities due to additional costing. Current programs

implemented might not be effective enough; management should formulate other

activities to reduce the stress. Moreover, most employees tend to choose

additional leaves to take some days off from work, as it might be effective for

employees to reboot their minds over stressful job handling irate clients, which is

inevitable in the BPO industry.

Ho5. There is a significant relationship between the job satisfaction and its

subfactors to the retention decision of employees.


correlated with job satisfaction because correlation is significant at 0.05 with level

of agreement of r=0.206 and overall employee satisfaction rate at r=0.480.




74

Overall, the average mean for the job satisfaction reached a strong agreeableness

from the respondents with 3.37, tied up with extrinsic motivation. Opportunities

for career growth provided by the organization is the highest determinant of job

satisfaction, making it top 7 out of 27 determinants, however, work-life balance is

still the highest subfactor with the average mean of 3.46 and the least subfactor is

stress level at 3.23, its determinant of stress reduction program conducted by the

organization ranked 25 out of 27 determinants.

4.8 Overall Retention Satisfaction

Table 26 resulting mean of 3.07 denotes that employees are satisfied

towards retention endeavors undertaken by their organization. Although satisfied

in general, there are 3.5% who claims to be not satisfied at all and 5% who are

dissatisfied.

Weighted Mean Description Retention Satisfaction 3.07 Satisfied

Table 26. Summary result for Overall Retention Satisfaction




75

4.9 Variables subfactor determinants

Below is the summary of all determinants of each subfactor ranking from

the highest to lowest reason for employee retention. These are the criteria to

determine, which subfactor has the highest level of effect on retention decision.

Rank Determinant Subfactor Mean

1 Supervisors are approachable and co-operative in nature

Extrinsic Motivation 3.55

2 Performance Appraisal System followed are per industry standards



Intrinsic Motivation 3.52



5 Freedom of Employee's participation in management to provide their valuable thoughts and ideas


6 Flexibility in working hours is emphasized by the organization

Management Process 3.47

7 Opportunities for Career Growth provided by the organization

Job Satisfaction 3.46

8 Opportunities resulting Promotion are available in the organization


9 Promote Work-life balance in the organization Job Satisfaction 3.46

10 Organization focuses on Teamwork and to also to develop Leadership Skills in the employees


11 A good and healthy Working Environment for the employees


12 Opportunities available to develop new skills Job Satisfaction 3.43

13 Shorten Feedback Loop (i.e. Feedback for every small work done is provided by the supervisor)




15 Good performance is very recognized by the organization


16 Focus more on Mentoring Programs for employees


17 The organization provides adequate Training & Development programs for growth


18 A sense of Job Security should be experienced by the employees


19 Additional training is provided for different domain jobs/task







76

21 Adequate leave and leave benefits are provided by the organization


22 Organization has a good Rewards and Incentive System


23 Organization policies and culture creates a positive environment




25 Stress reduction programs like yoga, meditation, health care etc. conducted by the organization


26 Fringe Benefits (e.g. use of telephone, team outing, get together, family involvements, etc.)


27 Transport facility provided by the organization (may include accessibility going to work)


Table 27. Summary list of retention determinants




77

CHAPTER 5

CONCLUSIONS, RECOMMENDATIONS,

AND DIRECTIONS FOR FUTURE RESEARCH

This chapter summarizes all the results and findings from the study

together with conclusions and answers from the problem rationale.

Recommendations are provided which can serve as possible solutions to the

problem in retention. Lastly, the researcher included directions, which can be

beneficial to the future researchers with the same topic or study.

Summary of Findings and Recommendations

Below are the results and recommendations based on findings:

Summary of Findings Recommendations

1

Among the demographic profile, only level of position, tenureship, civil status, working location and monthly income has significance to retention decision.

Provide retirement program to their employees as it gives security that after retirement, they will get benefits from their years of service and make them decide to stay. These could be in form of:

• Monetary retention incentive or bonus • Stocks or bonds from the company • Investment contribution • Salary deduction for retirement savings • Pension plan

Loyalty recognition should be given to those who worked in the company for at least 5 years.

2

Employees see an overall satisfaction through their level of position and monthly income which makes them stay in the company.




78

3

Employees working in Makati has the highest percentage of people who are likely to stay (25.4%) and likely to leave (35.6%) if better opportunity comes. Employees from Pasig City are least likely to leave the company (9.2%).

Location can be a factor as it will incur transportation expenses for employees. Shuttle services can be provided to those living beyond 4km from the office. Work-at-home arrangement can be offered as long as criteria on their metric and productivity should be implemented. This can also be beneficial to parents who need to watch over their children while working.

4

Fringe benefits and transport facility are the determinants of subfactors.

5

Intrinsic and extrinsic motivation, HRM processes and job satisfaction are all significant to the overall satisfaction of the employee.

Companies should offer something different from their competitors such as additional leave benefits. BPOs are strict in attendance and punctuality thus having additional leave in a year can attract them to stay, compared to the traditional 12-15 day off. Provide stress reliever facilities and amenities like playroom, gym, yoga hub, shower room, etc. that are accessible to employees are perks since not all companies can provide it. Insurance and HMO benefits that can be extended to its family members are important factors that employees are looking for their employers as it will show how company value the health of their employees. Scholarship assistance. It can be offered to those who are required to have certification in their job. In exchange, they will have a bond render service in the company

5

Motivation is the most influential among the variables discussed in the study; the top 5 determinants belong to intrinsic and extrinsic motivation.

6

There is a decreasing trend of employees who are seeing themselves working in the BPO industry as years go by.

7

Majority are willing to leave in the company (87.6%) if a better opportunity comes.

8

Having a supervisor who is approachable and co-operative in nature (extrinsic motivation) is the highest determinant in

Monthly coaching (immediate supervisor and agent) and skip level (manager and agent) should be implemented to the companies to sustain connection between top management and front liners, vice-versa. This could also




79

employee retention. help boost the career and development of the employee. This could be done via staff 1:1, team huddle, staff survey and management meeting. “PEERformance review” will have a chance to provide evaluation through peer review to have a different perspective of the work performance of the employee compared to the traditional performance review.

9

Intrinsic motivation is the most influential variable with 3.44 overall mean, extrinsic and job satisfaction tied at 3.37 and least influential is management process at 3.31.

Bonuses and incentives program. Hitting and exceling the goal, a high score mark of C-SAT (customer satisfaction), AHT (average handling time) efficiency, high occupancy rate; these are some aspects to consider when the employee is able to manage thus should be given additional bonus as this could help increase their productivity and performance as well. Top performer hall of fame. The top performer for the quarter will be awarded a monetary incentive and a plaque for its excellence; and the top performer of the year will be sent to have training and/or seminar to the country of their client, all-expense paid by the company.

Table 28. Findings and recommendations

Conclusion

The primary reason why employees stay in their company is the

compensation; and if such is reasonable for the service they render. However, pay

do not sustain employees in some cases, if the employee tends to stay in the

company for long, their relationship among their colleagues and supervisors

greatly affect their retention decision. Most employees ought to choose to have a

better environment and colleagues to work with; and this makes them attached to




80

their day- to- day work. It is in nature to relate stress at work, but it is better to

deal with knowing there is a good relationship with supervisors and co-workers.

Management also plays a vital role as the employees seek to feel being valued and

they know they are being a good asset in the company; lastly, employees need to

be satisfied with their job.

Directions for Future Research

Based on the discussions, it can serve as a pattern for future researchers

who would aim to explore other factors affecting the retention decision of

employees. However, it is not enclosed solely to BPO industry, this could be also

applicable to other types of industry. Future researches may also expand their

scope to conduct a study on different setting or based top companies with highest

rate of performance based on assets, branches, and more. Researchers will be

inspired to widen various recommendations in helping the management support

their assets to stay in the company.




81

APPENDIX I Summary list of References

Online Journals Year Author Title 2017 Adeyamo, A. Relationship between motivation and staff retention:

A case study of the College of Education, Lanlate, Oyo Nigeria. International Journal of Advanced Academic Research | Arts, Humanities & Education | ISSN: 2488-9849 Vol. 3, Issue 4

2018 Ahmed, S., et al. A Survey on the Factors Affecting Employee Turnover in the Readymade Garments of Bangladesh. Double Blind Peer Reviewed International Research Journal Volume 18 Issue 1 Version 1.0 Year 2018 Online ISSN: 2249-4596 & Print ISSN: 0975-5861

2018 Ayeremusah, E. Motivation and Employee Retention in Bagabaga College of Education in Northern Region, Ghana. International Journal of Education, Learning and Development Vol.6, No.10, pp.30-46, October 2018

2018 Bhargav & Mehra Study of Employee Attrition in Business Process Outsourcing Companies in India. International Journal of Research in Social Sciences Vol. 8 Issue 9, September 2018, ISSN: 2249-2496

2013 Castro, A. & Deluna, R. Jr.

Factors Affecting Call Center as a Job Preference among Employees in Davao City. Munich Personal RePEc Archive MPRA Paper No. 51678, posted 26 Nov 2013 07:39 UTC.

2016 Chaturvedi, A. & Sangwan, K.

Impact of job satisfaction on retention of employees in BPO industry. International Multidisciplinary Research Journal Golden Research Thoughts Vol 5 Issue 11 May 2016. ISSN No :2231-5063

2013 Chordiya, K. Retention Strategies with Reference to BPO Sector. 1st National Conference on “Dynamism in Management” Special Issue of International Journal of Engineering, Economics and Management, ISSN: 2319-7927

2017 Das, S. Retention Strategies in Business Process Outsourcing Industry: An Indian Perspective. Commerce and Management Explorer: International Journal of Social Science Research, Kerala, INDIA Vol. 1 No.1 (ISSN 2230-9187)




82

2018 De Ocampo, R. & Aguiling, H.

Determinants of labor turnover in the BPO industry: Towards the development of HR retention model. International Journal of Advanced Research and Publications. ISSN: 2456-9992

2014 Dugguh, S. & Ayaga, D.

Job satisfaction theories: Traceability to employee performance in organizations. IOSR Journal of Business and Management (IOSR-JBM)-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 5. Ver. I (May. 2014), PP 11-18

2016 Errighi, Khatiwada & Bodwell

Business process outsourcing in the Philippines: Challenges for decent work. ILO Asia-Pacific Working Paper Series, ISSN: 2227-4391; 2227-4405

2012 Goswami, B. & Jha, S.

Attrition issues and retention challenges of employees. International Journal of Scientific & Engineering Research Volume 3, Issue 4, April-2012 ISSN 2229-5518

2013 Hassan, W., et al. The Effect of Training on Employee Retention Global Journal of Management and Business Research Administration and Management Volume 13 Issue 6 Version 1.0 Year 2013 Online ISSN: 2249-4588 & Print ISSN: 0975-5853

2017 Kaur, R. Employee retention models and factors affecting employee’s retention in IT companies. International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1

2016 Kossivi, B., Xu, M. and Kalgora, B.

Study on determining factors of employee retention. Open Journal of Social Sciences, 4, 261-268. http://dx.doi.org/10.4236/jss.2016.45029

2013 Kumar, A. & Kaushik, M.

Retention of BPO employees in India. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.30, 2013

2019 Kumar, T. & Kavitha, M.

Nine elements that trigger employee attrition: A study on BPO companies in Chennai. Journal of Emerging Technologies and Innovative Research (JETIR) May 2019, Volume 6, Issue 5 (ISSN-2349-5162)

2018

Kumari, N.

Factors Influencing the Retention of Employees in the IT Services Industry in Bengaluru

2016 Malhotra, A. & Gautam, A.

Factors leading to employee attrition in BPO industry: A review of literature in the Indian context. International Journal in Management and Social Science. 04. 163-168




83

2012 Manzoor, Q. Impact of employees’ motivation on organizational effectiveness. European Journal of Business and Management. Vol 3, No.3 ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)

2017 Mathimaran, K. & Kumar, A.

Employee retention strategies – An empirical research. Global Journal of Management and Business Research: E Marketing Volume 17 Issue 1 Version 1.0 Year 2017. Online ISSN: 2249-4588 & Print ISSN: 0975-5853

2014 Mazar, B. Sustainable human resource management in theory and practice. Economics and Management – 1/2014 DOI: 10.12846/j.em.2014.01.09

2015 Msengeti, D. & Obwogi, J.

Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County International Journal of Scientific and Research Publications, Volume 5, Issue 4, April 2015 1 ISSN 2250-3153

2018 Nasir, S. Z., & Mahmood, N.

A study of effect of employee retention on organizational competence. International Journal of Academic Research in Business and Social Sciences, 8(4), 408–415. DOI: 10.6007/IJARBSS/v8-i4/4022

2018 Paul, A. & Vincent, T.

Employee motivation and retention: Issues and challenges in startup companies. IJCRT | Volume 6, Issue 1 February 2018 | ISSN: 2320-2882 DOI: 10.1729/IJCRT.17290

2016 Rao, T., Subbarayudu, T. & Siddhardha, D.

Attrition: A serious cause in BPO sector an empirical study confine to Visakhapatnam District Andhra Pradesh. International Journal of Science Technology and Management Vol. No. 5, Special Issue No. (01), February 2016 ISSN 2394-1537

2019 Rohini, V. & Panneerselvam, S.

Role of learning management system in retention of employees in BPO industries in Chennai City. The Online Journal of Distance Education and e-Learning, July 2019 Volume 7, Issue 3

2012 Sageer, A., Rafat, S. & Aragwal, P.

Identification of Variables Affecting Employee Satisfaction and Their Impact on the Organization. IOSR Journal of Business and Management (IOSR-JBM) ISSN: 2278-487X. Volume 5, Issue 1 (Sep-Oct. 2012), PP 32-39

2018 Sylesh, S. & Viswambharan, A.

A study on employee retention in BPO industry in Kerala. International Journal of Management Studies. ISSN(Print) 2249-0302 ISSN (Online)2231-2528 DOI : 10.18843/ijms/v5i3(5)/03




84

2014 Tangthong, S. The effects of human resource management practices on employee retention in Thailand’s multinational corporations. International Journal of Economics, Commerce and Management. Vol. II, Issue 10, Oct 2014 ISSN 2348 0386

2018 Wijesiri, N., et al The impact of HR practices on employee retention: A case of BPO sector, Sri Lanka. 10.5296/ijhrs.v9i1.14050.

Books Year Author Title

2019 Colquitt, J., Lepine J., and Wesson, M.

Organizational Behavior: Improving Performance and Commitment in the Workplace Sixth Edition

2019 De Janasz, S., et al. Intepersonal Skills in Organizations Sixth Edition, McGraw Hill Education, NY

2017 Johns, G. & Saks, A.

Organizational Behaviour: Understanding and Managing Life at Work Tenth Edition, Pearson Canada Inc.

2017 Nelson, D. & Quick, J. OGRB5: Organizational Behavior, Cengage Learning Boston, USA

2019 Punnett, B. International Perspectives on Organizational Behavior

2019

Rezaee, Z., Tsui, J., Cheng, P., and Zhou, G.

Business Sustainability in Asia: Compliance, Performacne and Integrated Reporting and Assurance

2018 Robbins, S. & Judge, T.

Essentials of Organizational Behavior Fourteenth Edition

2017 Shaw, A., McPhail, R., and Ressia, S. Employment Relations 2nd Edition

2019 Soon, L., et al. Organizational Behavior: An Asian Perspective

2018 Sparkman, R. Strategic Workforce Planning: Developing Optomized Talent Strategies for Future Growth

2018 Swann, A.

The Human Workplace: People-centred organizational development, Kogan Page Limited

2017 Worline, M. and Dutton, J.

Awakening Compassion at Work: The Quiet Power that Elevates People and Organizations




85

Unpublished Thesis/Dissertation Year Author Title 2012 Ahmad, K. &

Azumah, K. Employee Retention Strategies: The case of a patent firm in Australia. School of Management Blekinge Institute of Technology.

2016 Kumudha, A. & Harsha, K.

The relationship between human resource practices and employee retention in private organisations with special reference to Jebel Ali international hospital in Dubai. International Journal of Applied Research 2016; 2(5): 961-966

2017 Senevirathna, E.

Factors affecting employee retention.

Online websites

NAME PUBLISHED

DATE TITLE

(website link on bibliography)

ASEAN Briefing 2017 April 17 Business Process Outsourcing in The Philippines

Business World 2018 May 16 BPO sector: An economic pillar

Business World 2020 March 25 Economy may contract this year: NEDA

Cullen Z. & Perez-Truglia 2018 Oct 25

The Motivating (and Demotivating) Effects of Learning Others’ Salaries

David, V. 2019

OUTSOURCING IN THE PHILIPPINES: THE IT-BPO INDUSTRY

David, V. 2019 March 17

The IT-BPO Boom in the Philippines in 2018.

Dayton, D. 2019 Jan 29 The Importance of Obtaining Job Security

Dela Paz, C. 2017 Sept 27 Philippines' BPO industry sees slower annual growth of 9% until 2022

Dela Peña, K. 2020 Mar 4

Groups urge gov’t, companies to prioritize BPO workers’ welfare amid pandemic

Deloitte May 2016 Deloitte’s 2016 Global Outsourcing Survey

Deloitte 2018 The Deloitte Global Outsourcing Survey 2018




86

DOLE 2020 April 12

With extended quarantine Bello to employers: Please pay workers sans job; work displacement breaches 1M mar

Dumlao-Abadilla, D. 2020 April 3 BPO sector seen to help temper downturn

Gonzales, J. 2018 Aug 7 Philippines’ BPO industry: By the numbers.

Human Resource Articles 2013 June 04 Employee Retention in The BPO Sector

Kittelson Carpo 2019 Feb 18 Philippine IT-BPO Industry Expected to Grow Through 2022

Ladimeji, K. 2015 June 24 How Much Does Pay Level Affect Motivation?

Magellan Solutions What’s The Number: Analysis Of The Latest Statistics Of The BPO Industry

ManilaTimes 2018 Nov 29 Career Growth in BPO Mbaskool, Human Resources Terms

Job Tenure Definition, Importance, Steps, Types & Overview

Newsroom 2017 June 27 A Brief Look at the Philippine BPO Industry in 2017

Open Access BPO 2019 Nov 15 Call Center Attrition and Turnover: Average Rates and Common Cases

Outsource Accelerator 2020 July 9

Top 10 outsourcing cities in the Philippines

Oxford Business Group (OBG) 2016

Infographic: The Philippines - 4 sectors to watch

Sainato, M. 2018 Nov 21 No other way to fight back': Philippines call center workers battle unfair quotas

Staff, R. 2019 June 13 8 Essential Employee Retention Factors Modern Employers Ignore

StaffVirtual

PHILIPPINES: 2ND IN THE TOP 100 OUTSOURCING DESTINATION LIST

USource Team 2015 Dec 13 7 Facts and Forecasts: The BPO Industry in the Philippines

When In Manila 2019 Oct 24 BPO Tourism Queen Pageant: An LGBTQ Beauty Pageant




87

APPENDIX II

Business Processing Outsource Information and History

Business Processing Outsource (BPO) industry in the Philippines started

in the year 1992, and the first center was formed by Frank Holz under Accenture

group. In the year 1999, eTelecare was founded by Jim Franke and Derek Holley

and relatively known to be the first call center in the Philippines. By the year

2000, there was 0.075% accounted for the country’s GDP and increased to 2.4%

by 2005 when the Philippines also gained 3% of the global BPO market; thus, the

economy improved by 5.4% in 2006. By 2010, 525,000 employees are working in

call centers, with $8.9 billion revenue generated. By 2013, revenue increased to

$15.5B, and 900,000 were employed, and by 2016, there were 1.3M projected

new jobs available with 17% annual growth, as stated in an article entitled, A

Brief Look at the Philippine BPO Industry in 2017, published in Diversify.com.

The industry is continuously growing until today, giving a huge percentage

increase in the country’s Gross Domestic Product (GDP). According to Oxford

Business Group (OBG), the GDP continuously rising each year as many

companies are starting up their business in the Philippines. GDP in 2000 was at

0.075% and increased to 2.4% in 2005, 4.9% in 2011, 5.4% in 2012, and 6% in

2015. With the economic progress, there are employment opportunities being

opened due to needed additional labor as the business transaction increases. Graph

1 shows how BPO revenue increases each year from 2005 to 2014.




88

In a study conducted by Deloitte in their Global Outsourcing survey in

2018, most companies engage in outsourcing due to its benefits: 34% stated

reducing the need for transition service agreements, 33% at accelerating the

integration of new organization and lowering the operating cost of the acquired

entity by 31%. Not only that, outsourcing enable the competitive advantage of the

company by changing the way the organization is operating making it more agile,

effective, and efficient. Majority also consider embracing disrupting outsourcing

such as cloud computing and Robotic Process Automatic (RPA), software

performing repetitive rules-based commands for better quality and accuracy in

process outcome. In 2016, also from Deloitte Global Outsource survey, discussed

that most companies outsource for transformational change to improve business

results aside from being a cost cutting tool, enabling their core business functions,

and solving capacity issues.

As defined by the Department of Trade and Industry (DTI), published in

ASEAN Briefing, business process outsourcing is a delegation of service-type

business processes to a third-party service provider. According to the Business

World, the BPO industry in the Philippines as of 2016 has a total number of

575,600 employees; 7 of every eight BPO employees work in a call center;

191,154 works in graveyard shift; five of eight workers are within the age range

of 15 to 30 years old. In an article written by David (2019) published in

doingthebusinessinthephilippines.com, job demand will be doubled by 2022 in the

field of IT-BPO and Global Industry Classification (GIC) reaching an




89

approximately $250 billion US dollars. Thus, the industry will require additional

1.3 million direct employees, which can add to the increase of GDP by almost

17% if the expected demand will be achieved; this will make BPO industry in the

Philippines as the second largest source of foreign exchange.

The Roadmap 2022 formed by Information Technology and Business

Process Association of the Philippines (IBPAP) ensures the continuously

expansion of market share while increasing the complexity and value of IT-BPO

capabilities in the Philippines and it also helps to provide millions of direct job

accelerating to the growth of local IT-BPO. The revenue is also expected to hit

by $40 billion and grow 7.6 million of both direct and indirect job deployed

500,000 jobs outside the NCR, according to the IT-BPM Roadmap 2022.

BPO consists of different fields such as IT, sales, customer relations, and

technical services, etc. that could be categorized as either front office customer

services or back-office functions. An analysis from Magellan Solutions, an ISO

27001:2013 certified outsourcing company with leading inbound call center and

BPO solutions provider, revealed that the Philippines had been part of the global

outsourcing industry covering about 10% to 15% global market share. However,

an article published by Rappler last September 2017, expects that there will be

slow growth in the industry by 9% until 2022 and attested by the President and

CEO of IBAP, Rey Untal. The year 2015 is the country’s best year in BPO, but

despite of this situation, there is a 3.15% labor turnover rate last October 31,

2018, according to the survey of the Philippine Statistics Authority (PSA).




90

Figure 1 shows different fields in outsourcing which is divided into

information and communication sector and administrative and support services

activities.

2009 PSIC Industry Description BPM under Information and Communication Sector J58200* Sotftware Publishing J62011* Game design and development J62019* Other computer programming activities J62020* Computer consultancy and computer facilities management activities J62090* Other information technology and computer services activities J63111* Data processing J63112* Website hosting services J63113* Application hosting services J63120* Web portals J58190* Other publishing activities J59111* Pre & main production of traditional & 2D animation J59112* Pre & main production of 3D animation J59121* Postproduction of traditional & 2D animation J59122* Postproduction of 3D animation BPM under Administrative and Support Service Activities N78103 On-line employment placement agencies N82211 Customer relationship management activities N82212 Sales and marketing (including telemarketing) activities N82219 Other call center activities (voice), n.e.c N82221 Finance and accounting activities N82222 Human resource and and training activities N82223 Administrative support activities N82224 Document processes activities N82225 Payroll maintenance and other transaction processing activities N82226 Medical Transcription activities N82227 Legal services activities N82228 Supply chain management activities N82229 Other back office operations activities, n.e.c N82291 Engineering outsourcing activities N82292 Product development activities N82293 Publishing outsourcing activities N82294 Research and analysis activities N82295 Intellectual property research and documentation activities N82296 Security outsourcing activities N82299 Other non-voice related activities, n.e.c

*Industries which are both core ICT Industries and BPM+-

Figure 1. List of BPM Industries in the Philippines, 2009 Source: PSA




91

APPENDIX III Request data from PSA




92

APPENDIX IV Number of Establishments Engaged Call Center Activities by City |

Municipality in the National Capital Region: 2018LE

5-Digit PSIC Number of Establishments

Total Employment

National Capital Region (NCR) 872 399,983

FIRST DISTRICT, City of Manila 48 7,033

City of Manila 48 7,033 N82211 - Customer relationship management

activities 4 2,615

N82212 - Sales and marketing (including telemarketing) activities

10 2,583

N82219 - Other call centers activities (voice), n.e.c. 1 3

N82221 - Finance and accounting activities 1 265

N82222 - Human resources and training activities 6 1,138

N82223 - Administrative support activities 11 326

N82224 - Document processes activities 11 47

N82225 - Payroll maintenance and other transaction processing activities 1 8

N82226 - Medical transcription activities 2 18

N82229 - Other back office operations activities, n.e.c 1 30

SECOND DISTRICT 369 165,158

Mandaluyong City 61 37,882 N82211 - Customer relationship management

activities 16 15,679

N82212 - Sales and marketing (including telemarketing) activities 22 15,178

N82219 - Other call centers activities (voice), n.e.c. 9 6,290





Marikina City 3 1,119 N82211 - Customer relationship management

activities 1 1,079


1 33





93

Pasig City 138 38,082 N82211 - Customer relationship management





N82222 - Human resources and training activities 2 40






Quezon City 146 87,866 N82211 - Customer relationship management










N82227 - Legal Service Activities 1 2

N82229 - Other back office operations activities, n.e.c 2 4,434

San Juan City 21 209 N82211 - Customer relationship management

activities 2 27

N82212 - Sales and marketing (including telemarketing) activities 1 12




THIRD DISTRICT 8 50

Caloocan City 3 15





94

Valenzuela City 5 35


1 22




FOURTH DISTRICT 447 227,742

Las Piñas City 5 2,680 N82211 - Customer relationship management

activities 1 6



Makati City 241 106,143 N82211 - Customer relationship management




N82221 - Finance and accounting activities 12 4,042






N82227 - Legal Service Activities 1 22


Muntinlupa City 81 30,986 N82211 - Customer relationship management





Parañaque City 11 4,362 N82211 - Customer relationship management

activities 6 4,247



Pasay City 20 20,626




95

N82211 - Customer relationship management activities

15 17,175


Pateros 1 5 N82212 - Sales and marketing (including

telemarketing) activities 1 5

Taguig City 88 62,940 N82211 - Customer relationship management




N82221 - Finance and accounting activities 4 3,165




N82229 - Other back office operations activities, n.e.c 1 425 Notes:

The updating of the List of Establishments (ULE) is a regular activity of the PSA. The updating activity could

be comprehensive or noncomprehensive. Comprehensive ULE is a nationwide undertaking which covers all

establishments in the country. It is conducted a year prior to the conduct of the Census of Philippine Business

and Industry (CPBI) to come up with an updated and reliable frame for the sample census.

Noncomprehensive ULE, on the other hand, covers only selected areas, usually those with special concerns or

growth areas, conduct of which depends mainly on the availability of resources or as needed. The updating

is usually supplemented by information from available lists from other sources and establishment's reports

on other surveys undertaken by the PSA.

Source of Data:

The data is based on the result of Comprehensive 2018 Updating of the List of Establishments (ULE)

conducted in 2018.

Industrial Classified Data:

2009 Philippine Standard Industrial Classification (PSIC)

Source:

2018 List of Establishments

PHILIPPINE STATISTICS AUTHORITY

Census and Technical Coordination Office-National Censuses Service

Service and industry Census Division




96

APPENDIX V Request permission to use and adapt questionnaire




97

APPENDIX VI Request Permission to Conduct Survey




98

APPENDIX VII Consent Form for the Respondents

UNIVERSITY OF STO. TOMAS GRADUATE SCHOOL S.Y. 2019-2020

SURVEY QUESTIONNAIRE Good day!

I am Jimielle Jean M. Legaspi, a Master in Business Administration (MBA) candidate and currently enrolled in my Thesis Writing at the University of Sto. Thomas. I am inviting you to participate in my research survey entitled, “RETENTION SCHEME: THE EFFECTS OF INTRINSIC AND EXTRINSIC MOTIVATION, MANAGEMENT PROCESS AND JOB SATISFACTION TO THE RETENTION DECISION OF BPO EMPLOYEES”. This study serves as a partial requirement for the completion of an MBA at the Graduate School at the University of Sto. Thomas. I am humbly asking for your permission to participate and consider answering this survey questionnaire that will only require a few minutes of your time. Your participation is highly appreciated and guarantees that your response will only be used for academic purposes.

Purpose and Conduct of the Study The study aims to determine the what makes BPO employees stay in the company based on by the following factors that may affect their retention decision: intrinsic and extrinsic motivation, management process and job satisfaction. The results of the study will be based on the interpretation from the data gathered through survey cascaded among selected BPO employees in Makati City, Quezon City, Pasig City, and Taguig City. Confidentiality All information will be treated with confidentiality and anonymity. Thus, it abides by the provisions of the Data Privacy Act of the Philippines. Moreover, the results of the study may be published and/or presented with the privacy and confidentiality of the respondents. Voluntariness of Participation These questionnaires are given to the respondents who are willing to participate in the study; thus, they have the right to decline in answering as well. Once you have participated and decided to stop answering, you do have the right to do so and will not be penalized. Contact Person In case there is any clarification, questions, comments, and suggestions about the research, you may contact the researcher, Jimielle Jean Legaspi at 09089310640/09564924824 or [email protected] ___________________________ Name and signature / Date



mailto:[email protected]


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APPENDIX VIII Survey Questionnaire

Name: ______________________________ Affiliation: ___________________________ Position: ____________________________

I. Demographic Profile

Age: ( ) 20 and below ( ) 21 to 25 years old ( ) 26 to 30 years old ( ) 31 to 35 years old ( ) 36 to 40 years old ( ) 41 years and above Gender: ( ) Male ( ) Female Civil Status: ( ) Single ( ) Married ( ) Widowed ( ) Separated ( ) Others: _______________ Educational Attainment: ( ) Non-Graduate ( ) High school Graduate ( ) Bachelor’s Degree ( ) Doctoral’s Degree ( ) Other: ______________ Working location: ( ) Makati City ( ) Quezon City ( ) Pasig City ( ) Taguig City ( ) Others: _____________ Level of Position: ( ) Front liner / Rank and File ( ) Middle Manager ( ) Top Level Manager Tenureship /Length of Service: ( ) 1 to 12 months ( ) 13 to 24 months ( ) 25 to 36 months ( ) 37 to 42 months ( ) 43 months and above BPO Type of Business: ( ) Front Office ( ) Back Office ( ) Others: ____________ Monthly Income: ( ) P20,000 and below ( ) P20,001-P30,000 ( ) P30,001- P40,000 ( ) P40,001 and P50,000 ( ) P50,001 and others




100

II. Retention Variables Please encircle and rate yourself honestly based on what you do given the statements below using the following scales:

4 – Strongly Agree 3 –Agree 2 –Disagree 1 – Strongly Disagree

ITEM RETENTION VARIABLES Strongly Agree Agree Disagree Strongly

Disagree

INTRINSIC FACTOR


4 3 2 1

2

Organization focuses on teamwork and to also to develop Leadership Skills in the employees

4 3 2 1

3

Shorten Feedback Loop (i.e. Feedback for every small work done is provided by the supervisor)

4 3 2 1


4 3 2 1

5

Freedom of Employee's participation in management to provide their valuable thoughts and ideas

4 3 2 1


4 3 2 1

EXTRINSIC FACTOR


4 3 2 1

8 A good and healthy Working Environment for the employees

4 3 2 1

9 Performance Appraisal System followed are per industry standards

4 3 2 1




101

10 Supervisors are approachable and co-operative in nature

4 3 2 1

11 Adequate leave and leave benefits are provided by the organization

4 3 2 1

12

Transport facility provided by the organization (may include accessibility going to work)

4 3 2 1

HUMAN RESOURCE AND MANAGEMENT PROCESS

13 Good performance is very recognized by the organization

4 3 2 1

14 Organization has a good Rewards and Incentive system

4 3 2 1

15 Flexibility in working hours is emphasized by the organization

4 3 2 1

16 Focus more on Mentoring Programs for employees

4 3 2 1

17 Organization policies and culture creates a positive environment

4 3 2 1

18

The organization provides adequate Training & Development programs for growth

4 3 2 1

19

Fringe Benefits (e.g. use of telephone, team outing, get together, family involvements, etc.)

4 3 2 1

JOB SATISFACTION

20 Opportunities for Career Growth provided by the organization

4 3 2 1

21 Opportunities resulting Promotion are available in the organization

4 3 2 1

22 A sense of Job Security should be experienced by the employees

4 3 2 1

23 Additional training is provided for different 4 3 2 1




102

domain jobs/task


4 3 2 1

25 Opportunities available to develop new skills 4 3 2 1

26 Promote Work-life balance in the organization

4 3 2 1

27

Stress reduction programs like yoga, meditation, health care etc. conducted by the organization

4 3 2 1

III. Retention Decision RETENTION DECISION

28 I see myself still working in BPO for the next 1-3 years

YES NO

29 I see myself still working in BPO for the next 4-6 years

YES NO

30 I see myself still working in BPO for the next 7 years and above

YES NO

31 If there is another job opportunity in the future, I will still choose to stay in my current job

YES NO

32 I am willing to leave my current company if a better opportunity will come

YES NO

IV. Retention Satisfaction

RETENTION SATISFACTION

Extremely satisfied Satisfied Dissatisfied

Not satisfied

at all

33

Rate your satisfaction level towards retention endeavors undertaken by the organization

4 3 2 1

THANK YOU! “We can make our plans, but the Lord determines our steps.”

– Proverbs 16:9




103

APPENDIX IX Ethics: Certificate of Attendance




104

APPENDIX X ERC Certificate




105




106

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JIMIELLE JEAN M. LEGASPI 3 Saarland Village Brgy. Cupang Antipolo City, 1870 [email protected] 09089310640 / 09564924824 JOB OBJECTIVE

To obtain a position in the field of Business Management that would best benefit my qualifications and to be part of a progressive and dynamic company were my skills are constantly honed. SKILLS/APTITUDES

• Language Proficiency (English and Filipino) • Computer Literate (Microsoft Word/Excel/Power Point/Windows Movie Maker/

Adobe Photoshop) • Possesses excellent interpersonal and communication skills • Capable of multi-tasking and can work under pressure • Creative and has strong organizational abilities • Comfortable in a fast-paced deadline-oriented environment • Works well as a part of a team • Dependable and honest

PERSONAL INFORMATION Age: 25 Date of Birth: August 10, 1994 Nationality: Filipino Civil Status: Single Place of Birth: Manila Religion: Catholic Height: 5’3 Weight: 127 lbs. EDUCATIONAL BACKGROUND 2011-2015 Tertiary Far Eastern University

Nicanor Reyes St. Claro M. Recto, Manila BSBA in Business Management

2007-2011 Secondary Saint Joseph Catholic School Molave St. Project 3, Quezon City

2001-2007 Primary Morning Dew Montessori Bo. Halang Marcos Highway, Cainta, Rizal



mailto:[email protected]


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WORKING EXPERIENCE 2015-present Processing Transaction II Concentrix Philippines Tera Tower, Bridgetowne, Quezon City 2015 Human Resource Intern

Training and Development National Grid Corporation of the Philippines Quezon City

2011 Intern, Government Intern Program International Corporation Desk Department of Transportation and Communication Columbia Tower, Ortigas, Mandaluyong City MEMBERSHIP AFFILIATION 2014 – 2015 President of FEU Management Society 2013 – 2014 Vice President of FEU Management Society 2011 – 2015 FEU Management Society Member 2013 – 2015 FEU JPMAP Member 2012 – 2013 Board of Director for Academics in FEU Management Society SEMINARS/WORKSHOPS ATTENDED Mar 6, 2015 Delegate, AIESEC Youth to

Government Forum Feb 16, 2015 Delegate, BMAP Students’ Summit 2015 Nov 28, 2015 Delegate, 7th Business Management Students’ Convention Jul 24-26, 2016 Delegate, 24th National Convention: A New Vision for

Management Education: A Response to the ASEAN 2015 Integration Nov 23-24,2014 Delegate, JPMAP’s National Convention: “Discovering Potentials:

Equipping and Preparing Future Globally Competitive Leaders” Aug 3-4, 2013 Delegate, Leadership Development Camp 2013

“Collaboration. Commitment. Competence.” Jul 28-29, 2012 Delegate, 1st Leadership Development Camp: “The REAL Challenge: Unleash

the Leader within You” HONORS/AWARDS/ACHIEVEMENTS July 2019 Rockstar Awardee and Unsung Hero April 2018 Top Sales Performer April 2015 Cum Laude, Far Eastern University July 24, 2014 1st Runner up in 24th COMEPP National Management Quiz Bee

Baguio Country Club, Baguio City




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Feb 27, 2014 Champion in 24th COMEPP Regional and Intercollegiate Management Quiz Bee La Consolacion College, Manila

Nov 28, 2013 Civil Service Examination Professional (2nd Level) passer

2011 – 2012 Granted FEU Merit Scholarship 1st Semester CHARACTER REFERENCE Mr. Odelon Magbanua Senior Specialist, TDD National Grid Corporation of the Phil., Quezon City 09178009741 Jazzy Lad Mercado Team Leader, VAR Sales Commercial PH Concentrix Philippines 09399144326



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