New wave hit BPOs: No-Poaching Pact
Date: 3rd November 2004
A New wave has resurfaced to hit the BPOs in India – The No -poach Pact is affecting thousands of employees working across the BPO industry. With severe resource crunch, BPOs are now pressing the anti-poach button to control attrition rates.
According to the No-poach Pact, “No active employee can join a company with whom a ‘No-poach’ pact is signed – within three months of leaving.” This means that an agent or a manager has to sit at home for three months after resigning from BPOs. Some BPOs sign pacts extending this limit to six months. HR managers consider the No-Poach Pact sacred when it comes to hiring employees simply, for the reason that as it is the BPO industry is going through a peak attrition rate of 50 per cent, and no organization would like to lose employees to competitors. Also, There is huge BPO business pouring in from overseas. – A new process is migrated to India every 15 days. There is huge demand for new agents.
The No- Poaching Pact comes coz of huge business pouring in & rocketing attrition rates. Says a senior HR manager with a BPO based in Gurgaon: “The attrition tide does seem to be subsided after we signed ‘no-poach’ pacts with a company next door. It has helped us a lot. Especially because the company is at a stone’s throw away from us. And for just a jump of Rs. 1000, people were leaving us & joining it.”
As most BPO employees are hired from smaller towns the Pact seems to be effective. The Question on everyone’s minds is that whether it’s feasible to continue the No-Poaching Pact with many BPO firms. The answer comes in the negative because there is sharp requirement for workers especially at the higher level. So it’s not intelligent to pact with many BPO firms, as managers, team leaders, quality coaches and voice other firms can supply trainers only.
Priyanka. S.
Date: 3rd November 2004
A New wave has resurfaced to hit the BPOs in India – The No -poach Pact is affecting thousands of employees working across the BPO industry. With severe resource crunch, BPOs are now pressing the anti-poach button to control attrition rates.
According to the No-poach Pact, “No active employee can join a company with whom a ‘No-poach’ pact is signed – within three months of leaving.” This means that an agent or a manager has to sit at home for three months after resigning from BPOs. Some BPOs sign pacts extending this limit to six months. HR managers consider the No-Poach Pact sacred when it comes to hiring employees simply, for the reason that as it is the BPO industry is going through a peak attrition rate of 50 per cent, and no organization would like to lose employees to competitors. Also, There is huge BPO business pouring in from overseas. – A new process is migrated to India every 15 days. There is huge demand for new agents.
The No- Poaching Pact comes coz of huge business pouring in & rocketing attrition rates. Says a senior HR manager with a BPO based in Gurgaon: “The attrition tide does seem to be subsided after we signed ‘no-poach’ pacts with a company next door. It has helped us a lot. Especially because the company is at a stone’s throw away from us. And for just a jump of Rs. 1000, people were leaving us & joining it.”
As most BPO employees are hired from smaller towns the Pact seems to be effective. The Question on everyone’s minds is that whether it’s feasible to continue the No-Poaching Pact with many BPO firms. The answer comes in the negative because there is sharp requirement for workers especially at the higher level. So it’s not intelligent to pact with many BPO firms, as managers, team leaders, quality coaches and voice other firms can supply trainers only.
Priyanka. S.
