Attrition And Its Effect On The Recruitment Agencies Commerce Essay

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This is a study of the effects of attrition in different Recruitment Agencies in India working for the BPO sectors. A qualitative method was used for this study involving interviews with a suitable sample of directors, managers and freelancers. Although there is a considerable amount of research carried out as to the implications of attrition in the BPO sectors, the impacts on the Recruitment Agencies (RA) has not been taken into consideration in any of the research so far. A critical challenge for Recruitment Agencies (RAs) in India to place candidates for BPO companies can be due to the reason of attrition that hits the market. High attrition rate have a significant impact on the BPO industry in India.

The purpose of this research is to assess the impact that attrition can have on the RAs working for the BPOs in India and to examine the implications of high attrition rates in BPO sector. The task is to analyze whether it creates a positive or negative impact on the RAs. The concept of attrition mainly refers to the reduction in size of the staff and the workforce of any given organization. In an organisation, attrition is explained to be an unpredictable reduction in the number of employees without taking any sort of actions by the management resulting in gaps in the company (Longo, 2007). There are several factors because of which attrition can take place in any BPO industries. It can be due to recruitment and selection, work stress, induction and training, the nature of BPO work itself (Budhwar et al, 2009). It is also believed that employees working in BPOs see their jobs as job rather as a career, therefore are not ready to accept BPOs job as a long-term career and they are taking these jobs as arrangement to pass time (Sengupta et al, 2007).

2.1. Aim of the study:

This research will examine the implication of high attrition rates in BPO sector on RAs. BPO is among one of those industries that has considerably grown over the last few years it has become the obvious strategic choice of companies that look at visible profits of cost in reduction by improving the quality of service, and increasing shareholders values etc (Shah and Sharma, 2006). This was probably because of the increase in demand of the telecommunication services in India. India has been the favourite destination for many companies around the globe for offshore outsourcing because it cuts application development and maintenance costs while delivering the highest quality work and improving productivity (Mishra and Chandiok, 2011). The employment in the BPO sector has grown significantly in this country, there were several employees especially youngsters were hired because of the high demand for telecommunication services. It is found that more than 80% of the workforce in this particular industry consists mainly of graduates looking for high salaries, high growth opportunities (Jha, 2005 as cited in Budhwar et al., 2009) which can also contribute to the high level of attrition rate in the BPOs in India. Because of the high attrition rate organisation is force to recruit more aggressively in order to fill in the gaps. Despite the wide choice of recruitment methods and sources available to the employers today, there still remains a big demand for RAs to help employers attract and recruit staff to their organisation (CIPD, 2008). The attrition rate in the BPOs has increased considerably for the past few years and as a result it is creating an impact on the RAs that has the task of hiring employees for this particular industry. Although there were several researches done on attrition especially within the BPOs' in India, no evidence or data has been collected so far to analyse the impact it has on the RAs who has the responsibility to attract, select and recruit the agents. Hence, there is a need to identify maximum information related to this topic for obtaining best quality data for the research.

2.2. Research Questions

Main Question

What impact does attrition rate in BPO industry in India have on the RAs (loss of business in the market/ loose relationship with their clients)?

Sub Questions

What are the causes and the factors contributing to attrition in the industry?

How does the attrition rate in BPOs in India affect the RAs working for them?

Why high attrition rate has serious implications for RAs in India?

What changes do the RAs take in order to sustain the market if the businesses within the BPOs in India elapse in response to the changes (i.e. high attrition rate)?

This research will try to answer the following questions:

What impact does attrition in the BPOs have on the recruitment consultancies (positive or negative) in India?

What roles do RAs in India play in supporting employers resourcing (BPOs) objectives?

What are the practices and procedures, selection methods used by the RAs in India while recruiting candidates for their clients?

What difficulties do RAs face while selecting candidates for the BPO industry?

What important steps have consulting agencies taken in order to react efficiently to attrition and minimize losses (economically or time) that attrition causes?

How is the relationship between employers and RAs? Is there any communication gap between them? Are employers too demanding?

The researcher is going to determine the possible scenarios regarding attrition and its impact on the RAs both positive and negative: Positive (1) more openings for the Recruitment firms (2) higher reliability on Recruitment firms (3) Chances for making more money. Negative (1) Recruitment Firms normally have a Replacement clause so (a) they take hit on their earnings and (b) have to find a replacement for earning original candidate's placement bill value, which in many cases may not be possible (2) Recruitment agencies might lose their credibility with their clients which in turn will lose their contracts and their business in the market. The possibility of attrition having no effect on the recruitment firms is very little.

3.5. Contributions to the Proposed Research

By conducting this research on RAs in India, it is believed that it could lend insight into the work ethics of the RAs and the relationship between them and their clients (BPOs industry in India). This study could also contribute to the understanding regarding the applications of different methods and process of various RAs while attracting and recruiting potential candidates for the IT and BPO sector. It could also shed light on how attrition in this industry affects the Recruitments industry as a whole. This research on RAs could also help the Recruitment firms to strategise their operations so that they will be able to react efficiently to attrition in terms of recruitment and selection process while attracting and recruiting candidates for their clients (BPOs companies in India). If attrition has a negative impact on the recruitment firms, this research could also help them find an alternative to minimize the losses (Recruitment cost and time) that attrition caused.

LITERATURE REVIEW

The rise of India in the global economy is driven by the rise of the IT industry in India. One of the largest components of that industry is the BPO sector, which includes global service jobs; professional and business service jobs (Benjamin, 2000). It is known that India contributed to more than 35 percent of the worldwide BPO market in 2008 (NASSCOMM,2008) Goel and Thakur (2007) mentioned that there were over 400 companies operating within the BPO space, including both multinational companies (MNCs) and Indian companies and also the third party services providers. The Indian BPO revenue is estimated to cross to $100 million in 2011-2012 according to NASSCOMM and is expected to recruit over 200,000 employees in 2012-13; currently employing over 2.8 million professional, with over 2,30,000 jobs being added in 2011-12 (Business Standard, 2012). The Indian BPO industry is increasingly perceived as facing a major challenge in recruiting and retaining people in their sector. A key problem for service organisations has been attracting and retaining high quality employees (Heskett et al, 2008). Attrition refers to a gradual, natural reduction in membership or personnel, as through retirement, resignation, or death (National Performance Review, 1997). It not only effects the organization and the employees but also the customer service and satisfaction (Kemal et al, 2002). It has an impact over the organization's costs relating to recruitment and selection, personnel process and induction, training of new personnel and above all, loss of knowledge gained by the employee while on job (Jha). Grover (2007) adds that attrition in the BPO sector is a big drain on their resources where organisations invested a lot in terms of training and development, induction and retaining employees (Ongoroi, 2007). The future growth of the Indian BPO depends on the supply of human capital at all levels in the industry (cite). The emphasis on human capital in organisations reflects the view that market value depends less on tangible resources, but rather on intangible ones, particularly human resources (cite).

Attrition in India is especially severe in the BPO sector, where the average rate ranges approximately from 30 - 35 percent (Kumar et al, 2012) and the numbers quoted by various service provider range from 40 to 75 percent (annualised basis) (Goel and Thakur, 2007). Attrition in the BPO industry can be of two types, firstly, attrition in which researchers claimed that many employees leave their jobs when their needs are not being satisfied by their present employer, so, therefore alternative jobs becomes an option for them. Secondly, attrition in which empirical evidence has proved that it is mainly affected by staffing practices like recruitment and selection process (Shaw et al, 1998). This incurs heavy costs both in terms of direct costs (recruitment and selection, replacement, training and development, the time spent in managing) and indirect cost (learning costs, self-esteem, pressure on the remaining staff) and not to forget it also effect the organisation adversely in terms of personnel costs (Dess et al, 2001; Ongori, 2007). Attrition or employee turnover has a major impact on the organisation and it has drawn massive attention to many researchers, they argue that attrition does have a negative impact on the profitability of the organisation in terms of personal cost at the expense of both direct and indirect cost (Hogan, 1992; Wasmuth and Davis, 1993; Barrows, 1990; Dess et al, 2001; Catherine, 2002) if not properly managed or taken care of. Many research and evidence has proved that attrition has a serious impact on the BPO industry, one of which describe in Pawan, Luthar and Bhatnagar (2006) is that high attrition rate costs a company almost $900- $1100 for every employee that attrite in terms of recruiting and training a replacement . But there has been no research/ analysis on the impact it has on the recruitment firms placing employees for these organisations.

To grow into a fast and profitable way, many firms in India are confronted with the challenges of recruiting qualified personnel. The challenges is not only to hire people and get them in in but also to retain them as stated by Joshi(2007). As mentioned in Brockett (2006), by Devyani Vaishampayan who is a regional human resources of BG group companies in India both foreign and domestic are battling with high rates of attrition, therefore pushing firms to replace one third or more employees every year (Budhwar et al, 2006; Chatterjee, 2007) and he mentioned the reasons behind is that Indian workers are individualistic and ambitious.

Causes/ factors of Attrition:

Employee turnover has become a severe problem in the industry; it is however becoming more severe at the junior level management in most of the companies of this sector. In a study conducted by Budhwar et al in 2007 where a survey of 204 'on floor' agents were taken, the reasons to this problem includes limited career development and growth opportunities, monotonous de- skilled work and night shifts where employees health and psychological ailments arises, monetary, further education and growth prospects elsewhere, additionally people leave as they find their job not to their taste, few HR managers made comments "some employees leave due to dissatisfaction with the work culture, this usually happens with first timers in the call centres industry" (Budhwar et al, 2007; p 890; Budhwar, Varma, Singh and Dhar, 2006). Attrition also happens due to many factors and there is no standard reason as to why employees attrite in the BPO sectors. Many researchers have also studied the reason/ causes and the main reasons include working in a high pressure environment to meet their monthly or weekly targets, working night shifts (unnatural work hours), tight deadlines, excessive workloads and long working hours, job security is lacking, psychological stress that is placed on the employees because of the closed circuit camera and the close monitoring by specially designed software on the agents (Srivastava, 2007; Pratap, 2011; Budhwar et al, 2006; Raman, Budhwar and balasubramanian,2007)). Career related, work environment and cultural concerns are also the main attributes to increase the attrition levels (Goel and Thakur, 2007).

3.1. Theory

"It is difficult for employers to retain good employees if they do not have a strategy to hire the right people in the first place." (Cactus search, 2009, p 1) Recruiting the right employee will have an added value to the organisation, since, employees holds the main source of sustained competitive advantage according to the Resource based View (RBV) literature (Barney, 1991 cited in Huselid, 1995). Competitive advantage does not depend on the firm's technology, natural resources, economies of scale, but in fact what makes a firm gained sustained competitive advantage is on the valuable resources that is with accordance to RBV are rare, inimitable and valuable and this can only be considered to human capital (Stiles and Kulvisaechana). As argued by Wright, McMahon and McWilliams (1994) human capital pool (human resource) builds and leads a firm to gained competitive advantage. According to Itami (1997) human capital are the invisible assets of any organisation. Unless the levels of skills of employee are distributed equally to form that talent where other organisation cannot, then that form of human capital cannot be a source of sustained competitive advantage (Snell et al, 1996). Many authors Lepak and Snell (1999) and Hoopes, Madsen,and Walker (2003) claim that

"rareness is important only if a resource is valuable and exists only if the resource cannot be imitated by competitors", (Hoopes et al., 2003, p. 890).

This explains that if a single organisation controlled the valuable resources compare to its competitors, it is likely for that organisation to gained sustained competitive advantage. BPO companies as well as the RAs in India are increasing day by day and it is difficult at their end to achieve a success rate with high competition and high attrition rate in the industry. The argument comes in whether the RAs are able to attract, select candidates that can be the real human capital to the organisation and if attrition exist within these candidates are they able to replace them. Is there any difficulty from the RAs end to find a replacement as according to the clauses and agreement agreed by both parties.

Based on Schneider Attraction- Selection-Selection (ASA) theory (1987), employees defines the place and relatively organisations become homogenous with regard to the kind of people in them that comes naturally from the ASA cycle. This cycle refers to the formal and informal selection procedures used by the recruitment teams who hire employees with the attributes the organisation desires (Schneider et al, 1995). The main ideology of this theory is the ability of how an organisation can attract, select, and retain their valued staffs who share the deep values of the firm.

Attraction refers mainly on how organisation attracts candidates to their firm and how people are attracted towards these organisations which reflect their personality and expectations. From an RBV perspective, employer image includes all factors that make a firm different and desirable as an employer for actual and potential employees (Backhaus & Tikoo, 2004) and this includes how the RAs working for these organisation help them achieved what the employer looked in for an employee and how these RAs help them build that employer image to attract candidates. Selection takes place through formal and informal process when there is a 'fit' within the attracted firm (Billsberry, 2004). The argument is that employees within the BPO sector are not looking for a long term career but in fact for high salary, high growth opportunities (Budhwar et al, 2009). In this regard, how RAs attracts the key staff is important for the organisation. With high competition and attrition rate in the sector, BPO's employers finds it difficult to retain employees, being effective and hiring the right people is significant for the organisation to clearly defines their needs so that the hiring process is done in a proper and effective way (Munsterman et al, 2010), therefore they hire the RAs to do the job for them like attracting and even training the selected candidates. People who do not fit within the environment tend to leave the organization and according to the ASA cycle the people who stay in the organization creates a homogeneity environment (Schneider et al, 1995). Within the context of the BPO sector the causes of attrition is based on internal factors which include work timing, low level of career growth for internal workforce, the conditions of working environment, deficiencies in the recruitment process, inadequate training and development deficiencies and the external factor includes attentiveness of demand for hiring talented people, shortage in the supply of talent pool, limited workforce in the management pool, career viewpoint etc (Misra, 2007).

3.2. Recruitment Agencies

Recruitment is the prime issue for managers in companies according to Munstermann et al., (2010). Companies are struggling with questions regarding the HR activities and their organisation (Ordanini and Silvestri, 2008). Since recruitment takes most time and costs, many companies choose to outsource this particular HR process (Dasborough and Sue-Chen, 2002). Moving the recruitment process to external recruitment agency will save the managers' time to focus on the organisational performance as well as providing trust and the proper competitive expertise needed, furthermore, increase an organisation's efficiency through managerial time saving (ibid).

A recruitment agency is described as any person who wishes to provide employment services for gain (Skills Development Act, Number, 97 of 1998). Agency theory is the theory based on the relationship between an agent and a principal (Donaldson and O'Toole, 2007; Eisenhardt, 1989), in this theory the principal party delegates work to the agent party, who accomplishes the principal's orders. According to CIPD 2009 survey it is observed that 76% of the organization used RAs as a method to attract candidates, so this proves how important RAs are to the organization. Almost 50 per cent of companies looking for professional staff use recruiting firms, with specialist recruiters capturing nearly 70 per cent of candidates for niche market positions (News Ltd, 2011) In India, almost all BPOs employers rely on RAs for the supply of professional and skilled employees/ candidates to their organization. There are endless reasons as to why organizations use RAs but few of those reasons mentioned by CIPD, 2008; firstly, to source out right candidate from the potential pool and match up the candidate to the organization's job vacancies, secondly, to reduce time of recruitment in an organization by using a range of specialist skills which is highly regarded as offered exclusively by the recruitment experts, thirdly, to access specialist services such as screening, filtering and profiling of candidates and last but not the least mainly for benchmarking purposes - access to salary data and local market knowledge .

The main role of RAs is basically placement of professionals, casual and contract employees and finding the right and potential candidate at the right time. RAs have become the preferred sources in the BPO's employment market due to the considerable growth in the industry and high attrition rate. Multiple methods are being used by the RAs for the selection process like sourcing profiles from different job portals (Monster (India), Times Job (India) etc), headhunting, career junction and P-net, social networking sites (current tend), Linkedln - business networking sites that helps recruiter identify and contact candidates who are hugely valuable (Thew, 2008), cold - calling, snow - calling, through their database that they have maintain which includes the list of candidates looking for jobs or change in the industry etc (Dhar et al, 2008). It is the consultant's duty to match up the requirement and the candidate's profile and fill the vacancies of the client on time.

There are many researchers who have examined attrition in the BPO sectors in India but there is no standard reason as to why people leave within a short span of time. The attrition rate has increased considerably over the last few years in the BPOs industry in India and what impact it has on the future of the Recruitment firms which are relying in supplying new people to these sectors, what effect does it has on them and what are the changes that the RAs are taking to strategise their business and to sustain within the market is the main focal point.

Relationship between Recruitment Agencies and the Employer:

The supply of candidates to the clients depends on the relationship they created within themselves. The relationship between the HR of any companies and the recruitment agencies highlights that to develop and maintain an added value partnership, there needs to be a number of characteristics present between them; two-way communication being one of the most important assets in the relationship to ensure the flow of business and are kept informed about each other's need, objectives, issues and progress, Mutual respect which is basically the main focus on both ends where they share a sense of trust through openness, honest communication and ongoing interpersonal contact, engaging with one another and a willingness by both parties to mutually agree on balancing both quality and quantity and the anticipating future needs (CIPD, 2008). Value added partnership, according to Johnson and Lawrence (1991) is a set of independent companies that works together to ensure that the flow of services along the entire value added chain and partnership entails a long term commitment between any two parties and an understanding for mutual dependency where both parties are able to fulfil the needs of each other (Lorenz, 1991). Value added partnership is an important part when one party partner with another party through a contract and close relationship are to be built and if partners are to help one another for the benefit of both ends they are required to share information with one another (Johnson and Lawrence, 1991) It is required for recruitment agencies to have an added value relationship with its client in order to sustain themselves in the market and also to bring in more business to their agency. This will further be discussed in the later chapter of this research.

3.3. Current state of Indian BPO Industry

An alarmingly high attrition level is hurting the India based business process outsourcing (BPO) industry and is negatively impacting both its demand (buyers/ clients) and supply (service provider) sides (Holman, 2002). The Indian BPO industry is constantly experiencing a difficult task in retaining the workers. The challenge is quite big and a foremost reason for distress among clients and service providers. This has even casted doubts on whether the Indian BPO industry will be able to satisfy clients in the long term and maintain the current reasonable level of growth rate with Phillippine BPO sector experiencing a high growth and may indeed become an important employment generating sector (Ramos, Estrada and Felipe, 2008). Last year India's overall BPO revenue was $70bn, compared to the Philippine' $9bn. It is predicted that there will be more than a million jobs in the sector in Phillippine within two years, and that the revenue generated will double by at least 2016 (McGeown, 2011).

BPO clients are having a perception that:

• Attrition is a severe matter that Indian service providers experience while providing services to the consumers.

• There is a feeling that attrition rate is increasing and not experiencing downward trend despite the work carried out by service providers.

• After the assumption of current and predicted industry growth rates, there is an expectation that the shortage of the number of resources in India would rise. This was quoted in reference with the 2006 NASSCOM-McKinsey report that highlighted the problem (Kapur, 2002).

3.4. Future Scope of Recruitments in the BPOs in India

Studies have shown that the IT-BPOs is topping to be one of the largest employers in the country directly employing 2.8 million professionals, with over 230,000 jobs being added in FY 2012. The centre that retains the world's leading sourcing location for IT-BPO services, despite the rise of several alternative sourcing locations; with a share of over 58 percent in 2011 is India (Nasscom, 2011). Industry experts say that in the January-March quarter of every year, BPOs could recruit as many as 1, 00,000 people and that are over 33,000 people per month). The expectations of hiring will be huge in comparison with past numbers. Before the recession hit the world economy, Indian BPOs were adding about 8,000 people every month, taking the total work force in the sector to about 8, 00,000 (Banerjee & Hazarika, 2009)

METHODOLOGY

4.1. Research Design

This section provides a detailed outline of the research study. In considering methodology for this study, the researcher considers two approaches, i.e. interview and secondary data collection. In this research work, there is a usage of both primary and secondary methods for collecting data. In conjunction with the methods used in the previous research and the initial questions are integrated to prepare a suitable approach for the analysis of the data. The cyclic revision of the reviewed literature, in collaboration with the empirical data observation through interviews generates the most ideal coordinated methodology, essential for the dissertation's best outcome.

Given the exploratory nature of the research, an in depth interview and textual approach was adopted for the investigation. For attaining the information on the effects of attrition on the recruitment firms placing agents for the BPO companies in India 9 experience consultants were interviewed including the directors, manager/ executive and freelancers. Apart from interviews sources from reports, journals, articles published in the past few years were also gathered for better understanding of the topic and to attain better results. The main sources of information were mainly gathered from the recruitment consultants with at least one year to 6 years of experience in the industry who agreed to be interviewed. Access to the consultants and freelancers was ensured through contacts, references and other networking techniques. The recruitment agencies and freelancers are located in different location in India but the majority being in Kolkata.

Mixed method

In this study, the researcher used a mixed method i.e. both quantitative and qualitative methods, but this study focussed more on the Qualitative method to be able to analyze the required data accurately. In order to understand the impact of attrition on the RAs, the researcher conducts interviews (structured and unstructured) with the experience respondents in the first aspect of the study and followed by the in-depth interview supported by probes for elaboration with 9 consultants that includes 4 business heads/Directors, 1 manager from five RAs and 3 individual freelancers; the agencies that attracts and recruit potential candidates for the BPOs companies in India.

Many authors have pointed out that interview is one of the best methods for data collection, as compared to other means of collection as interviews gathers highly specified data (unlike for instance surveys and questionnaires). It also gives the possibility for the participants to present their overviews on how they view (the emic perspective) a particular topic by which they will give their general thoughts, alongside more specific and personal opinions and not as the researchers views it (the etic perspective) (Ghauri & Gronhaug., 2002; Marshall & Rossman., 2006). On the second aspect of the study, Quantitative method will be conducted through questionnaires which are closed ended question to selected participants in the IT-BPO sectors to be able to determine the causes of attrition in the BPOs industry in India. These both data will be Primary data. The third aspect of this study will be collecting data through secondary data from different existed sources (documents, research, journals) etc and evaluate the existed data.

Sample:

A sample of 4 recruitment agencies consisting of Directors, managers and executives were invited to participate in this study along with these participants 3 individual freelancers were also invited to take part in this research, a total of 9 respondents participate in this study. The interviews were conducted, questions were mailed to the participants and data were collected from early April 2012 to late August 2012. The interviews lasted between 30 minutes to 45 minutes. The recorded interviews were further transcribed and later analysed with the help of NVivo software, furthermore coding the data to identify the categories (theme and issue) and quotes from the responded data are also provided in our analysis. There are different methods used to analyse the collected data but for most of the part, data used in NVivo software are text based (Ryan and Bernard, 2000). The interviews consists of different questions on the information of the interviewees and their work experiences and the next stage of the questions involves HR practices of the Recruitment agencies while supporting the client's objectives like recruitment methods, the effects of attrition on them, the main causes of attrition in the BPO sectors, the difficulties while sourcing candidates and the types of internal and external challenges facing while recruiting candidates for their clients.

4.2. Data collection tools for the research

This research required a number of research tools to collect and analyze data. These tools are semi-structured interviews and unstructured interviews and secondary data collection. Each participant are interviewed to formulate the effects of attrition on the RAs. The participants include experienced consultants from the recruitment consultancy firms as well as individual freelancers. The data are mainly collected through face to face interviews with the participants. It is a predetermined document where the researcher took notes during the interview as well as tape recorded the conversation with the participant's permissions, hence, facilitate easy analysis. Additionally, interviews are also sent through emails to few of the participants and the respondents respond accordingly and emailed the same back. NVivo Software has been used for this study to analyse and store the information that is collected for this purpose. NVivo is a software that is used as a tool to analyse, organise and explore the data that have been attained during interviews and textual answers.

Qualitative research has been much criticised, it is generally argued that interviews data are unreliable to be the only source of information and that it should be used combining other research methods (Hammersley, 2005). As described the researcher used two types of interview structured and unstructured. In a structured interview, researchers asked a set of questions and repeat those questions for all of the participants studied. An unstructured interview involves the researcher having main topics, but there is no particular order in which the questions are asked. It is very typical for an unstructured interview to appear as topical conversation on a subject (Cooper, 2006). The responses from the interviewee lead to spontaneous discussion, and simultaneously to an interactive session on exploring different avenues. (Bryman and Bell, 2007). The points of digression and divergence will be clearly observed during the unstructured interview which formed the basis for the formulation of recommendation.

Other than the unstructured in-depth interviews, the research weighed the analyses of secondary collection. The extraction of data was done from several different articles, journals, available documents. Secondary research depicts information assembled by publications, literature, and other sources. This research design is less costly as compared to collecting data through primary methods like surveys and is exceedingly efficient in gaining information from different sources (Kumar, 2007).

Findings:

Discussion:

Recommendation:

4.8. Limitation and suggestions for further studies:

This study investigated the effects of attrition in the BPO sectors and the impact it has on the recruitment firms working for them. Limitations abolish many of the prevalent opportunities and affects different aspect of the research. Study limitations have to be taken into account while interpreting the results and understanding the implications. Research being held at different locations, has troublesome effect on the researcher and evaluation of the prerequisite materials and data. As the research is stationed in India the geographical distance make it difficult to evaluate the information. Time was another factor which opposed the progress of this research, insufficient time result in limited accumulation of information. One turning point of this research is the heterogeneity of the sample in terms of consultancy firms as well as location. Due to relatively small sample size, the researcher was not able to bring about the industry characteristic.

The impact on RAs does not solely depend on attrition rate in BPOs, there are other factors affecting the RAs working for this industry. Evaluation was obtained both through qualitative and quantitative methods but since the study is mainly focus on the basis of qualitative response from the RAs, there is lack of standard comprehension and perspective of a respondent that possibly impart an unsorted unresolved and uncoded data, which may perhaps lead to lack of transparency. This may cause difficulty to establish the exact proceeding. Qualitative findings rely on the researcher's view on what is imperative and significant that may direct to misinterpretation of the audience (Bryman, 2001).

Future studies with more homogenous samples would allow the researcher to analyse more on the effect of attrition on the recruitment firms based in India that might proved to be more efficient in this study which is appropriate for all firms related to the particular text (Holtbrugge, Friedman and Puck; 2010). Future studies should also add emphasis to the HR practices of the recruitment firms, also comparing the effects that attrition on all sectors of the industries not only in the BPO sectors. Future studies should try to collect data from multiple sources to enhance the reliability of responses. Data should also be collected from the recruitment agencies clients to characterise the importance of them supporting their HR strategy.

Conclusion:

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