Media Coverage

New study reveals BPO workers now looking beyond cash pay
Manila, Philippines - August 2, 2009

BPO employees are now putting more importance on non-cash incentives, unlike in recent years when relatively high salaries were enough reasons for them to overlook job-related pressures and stress.

This is according to newly released report by research firm XMG Global, which found that the interest
in strictly cash compensation is slowly starting to wane, specifically among supervisors, team leads and mid-managers working in call centers and BPO firms.

XMG, an ICT think tank based in Canada and the Philippines, said it conducted the study in three offshoring countries -- India, the Philippines, and China -- as a way to determine how the industry is addressing the problems confronting the industry’s talent pool.

Lauro Vives, chief analyst and founder of XMG, said in a statement while high compensation in the form of cash continues to be the most essential for talents in offshoring countries, non-cash incentives are also gaining in significance among BPO workers.

The analyst firm said its category for “quality of life” incentives -- which include flexible hours, additional paid time off, telecommuting, stress management, and family counseling “grew by an astounding” 18 percent compared last year.

“As health and family related issues are on the rise, most particularly due to work-related stress and working the graveyard shifts, the respondents indicated they are willing to devote more to a company that recognizes and respects their personal needs and life circumstances,” Vives said.

XMG said “cultural audits” of its clients show that high performance and successful retention are more consistent in cultures that emphasize quality of life and provide challenging work environments, compared to just using cash rewards for doing good work.

“Given the current economic slowdown and budget cutbacks, focusing on quality of life incentives can lessen the pressure on cash or cash-oriented incentives,” Vives said.

“Such incentives do much to address real and important employee needs and concerns, often without cash outlays. They also serve to foster loyalty and commitment,” he added.

The research firm said vendors and BPO companies that still believe that cash is the only form of incentive in offshoring countries are missing the opportunity to derive higher performance and retain key performers.

“Respecting individual needs for leading a better quality of life from work and more flexible approaches to the work environment will be a leading retention practice,” it said.

by Melvin G. Calimag
for Manila Bulletin