The Factors That Affect Employee Turnover of Call Center Agents in It Park Cebu City

APPROVAL SHEET
This research entitled: “The Factors that Affect Employee Turnover of Call
Center Agents in IT Park, Cebu City” prepared and submitted by Barcenas, Karl Rainier
R., Cagula, Jane Carressa Mae T., Gelacio, Kim L., Gongon, Aldwin, Nantes, Dean
Anthony, Rosit, Jia Angelique R., Sasuman, Chris Vincent D., Tsai, Ken Michael A., in
partial fulfilment of the requirements for the course AC 527 ACCOUNTING
SYNTHESIS, has been examined and is recommended for Oral Presentation..
Marissa M.Baldecir,CPA,DCM Mr. Nivolas Alesna
Adviser Discussant
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Abstract of the Study
The primary purpose of this study is to help call center companies identify on
what aspects they have to improve to lessen the employee turnover rate. The
respondents were the call center agents in Asia Town IT Park Cebu City and focused
on the call center companies located in that area. Self-administered questionnaires
were distributed to the respondents to gather data.
Results have verified income, working relationship with co-workers, and balance
with work and personal life as key factors that would really affect the decision of the
employee to stay or transfer to a better company or seek for a more stable job. Those
factors alone could be the cause of high turnover and could diminish the company’s
employee standards if the employees keep on changing.
The researchers would suggest that future researches should include the way of
living of the Cebuanos and the culture of the city. The above stated are vital in knowing
the kind of employee the company would employ and could tailor trainings, seminars
and team building activities that would improve their quality of work in their company.
The researchers would also like to suggest that future studies involving this problem
include the stand of college students and high school graduates as with regards to
working in call centers as a long term career option to broaden up the scope of the
research.
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LIST OF TABLES
Title Page No.
4.1 Call Center Companies and Number of Respondents 20
4.2 Level of Satisfaction of Respondents 20
4.3 Duration of Employment 21
4.4 Job Expectation 22
4.5 Monthly Income of the Respondents 22
4.6 Relevance of Income to the Decision to Stay with the Company 23
4.7 Level of Recognition the Respondent Receives from the Company 24
4.8 Relevance of Recognition 24
4.9 Level of Rewards 25
4.10 Relevance of Rewards 25
4.11 Level of Balance between Job and Personal Life 26
4.12 Relevance of the Balance 27
4.13 Level of Relationship with Co-workers 27
4.14Relevance of the Level of Relationship with Co-workers 28
4.15 Search for a more Stable Job 28
4.16 Search for a more Secure Job 29
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TABLE OF CONTENTS
Page
Cover Page
Approval Sheet i
Abstract ii
List of Tables iii
Chapter
1 INTRODUCTION
Rationale of the study 1
THE PROBLEM
Statement of the Problem 2
Significance of the Study 2
Scope and Limitations 3
DEFINITIONS OF TERMS 3
2 THEORETICAL BACKGROUND
Review of Related Literature 4
Theoretical Framework 5
Conceptual Framework 13
4
3 RESEARCH METHODOLOGY
Research Design 15
Research Environment 16
Research Respondents 16
Research Procedures 18
Gathering of Data 18
Treatment of Data 19
Research Instrument 19
4 PRESENTATION, ANALYSIS AND INTERPRETATION
OF DATA 20
5 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION 30
BIBLIOGRAPHY 33
APPENDICES
A Transmittal Letter 34
B Survey Instrument 36
C Curriculum Vitae 39
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CHAPTER I
INTRODUCTION
“How long do employees tend to stay?” Employee turnover is a ratio comparison
of the number of employees a company must replace in a given time period to the
average number of total employees. The call center agents turnover is one of the
biggest problems that call center managers face today. It has a huge impact on the
costs and the quality of service. The rate of turnover differs by area of the country,
employment factors in a specific region or city and by industry. There is a lower turnover
in more specialized, higher level jobs and in union environments. Turnover rate is much
higher in routine, order-taking positions or in outbound telemarketing where burnout is
high.
Many factors play a role in the employee turnover rate of any company, and
these can stem from both the employer and the employees. This paper provides the
factors on why call center agents transfer from one company to another.
The rationale is to know and verify the key factors that affect employee turnover
of different call centers in IT Park, Lahug, Cebu City. In which these factors affect
companies that wants to have a minimal cost of employment. Due to employee
turnover, cost of trainees employed are getting higher each time an employee resigns
they are replaced with new employees that may be less beneficial to the company
because a trainee may or may not pursue due to these factors.
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There are not much gaps between other related studies. They basically have the
same factors that affect employee turnover such as low salary, the environment,
benefits, and others. In our present economy, job opportunities are rare. But with the
boom in Business Process Outsourcing (BPO) in our country, it has paved the way for
call center companies in Cebu. Knowing this, the researchers would want to know and
verify factors that affect employee turnover in these companies.
THE PROBLEM
Statement of the Problem
The impact of employee turnover has received considerable attention by senior
management, human resources professionals and industrial psychologists. It has to be
one of the most costly and seemingly intractable human resource challenges
confronting organizations.
Purpose
The goal of this study is to identify the causes of the high turnover rate in call
center companies in IT Park, Cebu City.
Significance of the Study
The researchers chose this study to help call center companies identify on what
aspects they have to improve to lessen the employee turnover rate.
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Scope and Limitation
The study will focus on call centers in IT Park, Lahug, Cebu City. Thus, the study
is limited to those call centers who have given their approval namely Convergys, Stream
Global Solutions, Aegis People Support, LWS Media and Qualfon. The respondents
taken are those who are currently working for the said companies.
Definition of Terms
The following are the terms used in this study:
Employee Turnover is a ratio comparison of the number of employees a company must
replace in a given time period to the average number of total employees.
Call Centers refer to the branch where agents are the ones receiving phone call for your
assistance.
Call Center Agent is a person who handles incoming or outgoing customer calls for a
business. A call center agent might handle account inquiries, customer complaints or
support issues.
IT Park is the place where we conduct our study located at Lahug across Waterfront
Hotel and Casino.
Business Process Outsourcing (BPO) is a subset of outsourcing that involves the
contracting of the operations and responsibilities of specific business functions (or
processes) to a third-party service provider.
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Chapter II
THEORETICAL BACKGROUND
This chapter gives added information from related studies that would supplement
the present research.
REVIEW OF RELATED LITERATURE
Existing Study
The employee turnover causes a considerable attention on the senior
management, in many companies and industries. It has been one of the most costly and
seemingly intractable human resource challenges confronting organizations. This
research provides a summary of information, abstracted from published research, costs
of turnover and factors contributing to its magnitude in organizations, and proposed
remedies.
There are a number of costs incurred as a result of employee turnover. These
costs are derived from a number of different sources, a few of which are listed.
Recruitment of replacements, including administrative expenses, advertising, screening
and interviewing, and services associated with selection, such as security checks,
processing of references and possibly, psychological testing.
Costs of training, including supervisory and coworker time spent in formal training, as
well as the time that the worker in training must spend off the job.
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There are a number of factors that contributes to employee turnover. The
researchers explore some of the factors.
The economy. One of the most common reasons given for leaving is the
availability of higher paying jobs. Some minimum wage workers report leaving one job
for another that pays only 50 cents an hour more. Obviously, in a better economy the
availability of alternative jobs plays a role in turnover.
The performance of the organization is another reason given in economic
difficulty which will also raise the specter of impending layoffs. Workers believe that it is
rational to seek other employment.
The organizational culture. Much has been written about organizational culture. It
is sufficient to note here that the reward system, the strength of leadership, the ability of
the organizations to elicit a sense of commitment on the part of workers, and its
development of a sense of shared goals, among other factors, will influence such in-
dices of job satisfaction as turnover intentions and turnover rate.
The characteristics of the job are intrinsically more attractive than others. A job's
attractiveness will be affected by many characteristics, including its repetitiveness,
challenge, danger, perceived importance, and capacity to elicit a sense of
accomplishment. A job's status is also important, as are many other factors.
Unrealistic expectation. Another factor is the unrealistic expectations and general
lack of knowledge that many job applicants has about the job at the time that they
receive an offer. When these unrealistic expectations are not realized, the worker
becomes truthful to their self and decides to quit.
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Demographics. Empirical studies have demonstrated that turnover is associated
in particular situations with demographic and biographical characteristics of workers.
But to use lifestyle factors (e.g. smoking) or past employment history (e.g. many job
changes) as an explicit basis for screening applicants, it is important for legality and
fairness to job applicants to verify such bio-data empirically.
The person. In addition to the factors listed above. There are also factors specific
to the individual that can influence turnover rates. These include both personal and trait-
based factors. Personal factors include things such as changes in family situation, a
desire to learn a new skill or trade, or an unsolicited job offer. In addition to these
personal factors, there are also trait-based or personality features that are associated
with turnover. These traits are some of the same characteristics that predict job
performance and counterproductive behaviors such as loafing, absenteeism, theft,
substance abuse on the job, and sabotage of employer's equipment or production.
These traits can be measured and used in employee screening to identify individuals
showing lower probability of turnover.
The History of Call Centers
The fastest growing area of the call center market nowadays is the home-based
contact centers. It is an emergent change in the call center industry. In particular, the
home-based segment has grown over the past few years. The profitable benefits
continue to induce adoption of this capable and scalable service model. This is an effort
to cut down cost and to provide quality service to its customers.
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The traditional call center began soberly in 1980s. In that time, the call center
location was only based mostly on the viability of a technical infrastructure and the need
of young and transient workers. When telecommunication networks are widely used, the
number of call centers was also enhanced. In 1990s companies engaged in outsourcing
business but the expenses must be reduced. With predetermined connectivity and
operating costs, less expensive labor can be a solution. Companies started to search
for a cheaper labor force outside US which is now feasible using a reliable
telecommunications network. With this, offshore outsourcing was done which gives
satisfying solution to certain markets.
The so called home-based or virtual customer service center was introduced in
the late 1990s. This model had helped to reduce costs. The geographical hurdles for
hiring service professionals were also removed. Now, clientele can pay a smaller
amount but still calls will be answered by trained employees. In an analysis, the virtual
call center was viewed as a solution to highly seasonal businesses such as selling of
flowers for Valentine’s Day. Moreover, home shopping networks which need extra
personnel who will serve their clients, found the flexibility of home-based centers.
The Home-Based Model
Why do people need to come into an office to help customers? This question was
answered by outsourced call center industry by improving business products, creating
employment openings, safeguarding the environment and serving the people struggle
globally.
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The Clients
Virtual call center can handle even the most complex transactions from financial
institutions, healthcare corporations, information technology firms and other
organizations.
The Services
Virtual call centers provide wide range of services that will help the businesses to
avoid sale fluctuations in real-time. The new service feature is the high-touch offering
being provided through home-based employees that include IT help desk support,
collections, and sales.
The Employees
At first, the workforce mostly composed part-time personnel. Some are
performing home-based positions to complement their full-time jobs, while others stay-
at-home. Now, virtual call centers suggest stable work environment with more than 80
percent full-time employees. The employees perform their job more seriously, which
results to less turnover and high rate of customer satisfaction.
The Future
The at-home phenomenon was invented by analysts at Robert Baird & Co., the
fastest growing area of the call center market. IDC ( News - Alert) reported that the
number of at-home C Cps will triple by 2010. Baird said that the use of at home agents
can connect to a 10-15 percent cost cutback and increased agent productivity of up to
10 percent for clients. Truly, home-based contact centers reduce costs while increasing
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the quality of service. (http://www.callcenterphilippines.net/news-blog/the-history-of-
contact-center.html)
A call center or call center is a centralized office used for the purpose of receiving
and transmitting a large volume of requests by. A call center is operated telephone by
a company to administer incoming product support or information inquiries from
consumers. Outgoing calls for telemarketing, clientele, product services, and debt
collection are also made. In addition to a call center, collective handling of letters,
faxes, live chat, and e-mails at one location is known as a contact center.
A call center is often operated through an extensive open workspace for call
centre agents, with work stations that include a computer for each agent,
a telephone set/headset connected to a telecom switch, and one or more supervisor
stations. It can be independently operated or networked with additional centers, often
linked to a corporate computer network,
including mainframes, microcomputers and LANs. Increasingly, the voice and data
pathways into the center are linked through a set of new technologies called computer
telephony integration (CTI).
Most major businesses use call centers to interact with their customers.
Examples include utility companies, mail order catalogue retailers, and customer
support for computer hardware and software. Some businesses even service internal
functions through call centers. Examples of this include help desks, retail financial
support, and sales support.
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Dynamics
Types of calls are often divided into outbound and inbound. Inbound calls are
calls that are made by the consumer to obtain information, report a malfunction, or ask
for help. These calls are substantially different from outbound calls, where agents place
calls to potential customers mostly with intentions of selling or service to the individual.
It is possible to combine inbound and outbound campaigns.
Call center staff are often organized into a multiple support system for a more
efficient handling of calls. The first tier in such a model consists of operators, who direct
inquiries to the appropriate department and provide general directory information. If a
caller requires more assistance, the call is forwarded to the second tier, where most
issues can be resolved. In some cases, there may be three or more tiers of support
staff. If a caller requires more assistance, the caller is forwarded to the third tier of
support; typically the third tier of support is formed by product engineers/developers or
highly skilled technical support staff of the product.
Differences
Call centers have their critics, some of which argue that the work atmosphere in
such an environment is DE-humanizing. Others point to the low rates of pay and
restrictive working practices of some employers. There has been much controversy over
such things as restricting the amount of time that an employee can spend in the
toilet. Furthermore, call centers have been the subject of complaints by callers who find
the staffs often do not have enough skill or authority to resolve problems, while the
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dehumanized workers very often exhibit an attitude of apathy to even the most abusive
customer.
Owing to the highly technological nature of the operations in such offices, the
close monitoring of staff activities is easy and widespread. This can be argued to be
beneficial, to enable the company to better plan the workload and time of its employees.
Some people have argued that such close monitoring breaches human rights to privacy.
CRITICISM AND PERFORMANCE
Criticisms of call centers generally follow a number of common themes, from both
callers and call center staff. From callers, common criticisms include:
 Operators working from a script
 Non-expert operators (call screening)
 Incompetent or untrained operators incapable of processing customers' requests
effectively
 Overseas location, with language and accent problems
 Touch tone menu systems and automated queuing systems
 Excessive waiting times to be connected to an operator
 Complaints that departments of companies do not engage in communication with
one another
 Deceit over location of call center (such as allocating overseas workers false
English names)
 Requiring the caller to repeat the same information multiple time
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Common criticisms from staff include:
 Close scrutiny by management (e.g. frequent random call monitoring)
 Low compensation (pay and bonuses)
 Restrictive working practices (some operators are required to follow a pre-written
script)
 High stress: a common problem associated with front-end jobs where employees
deal directly with customers
 Repetitive job task
 Poor working conditions (e.g. poor facilities, poor maintenance and cleaning,
cramped working conditions, management interference, lack of privacy and noisy)
 Impaired vision and hearing problems
 Rude and abusive customers
The net-net of these concerns is that call centers as a business process exhibit levels of
variability. The experience a customer gets and the results a company achieves on a
given call are almost totally dependent on the quality of the agent answering that call.
Call centers are beginning to address this by using agent-assisted voice solutions to
standardize the process all agents use.
CALL CENTERS IN THE PHILIPPINES
Call centers began in the Philippines as plain providers of email response and
managing services, these have industrial capabilities for almost all types of customer
relations, ranging from travel services, technical support, education, customer
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care, financial services, and online business to customer support, online business to
business support.
The call center industry is an up-and-coming industry in the Philippines. Business
Process Outsourcing (BPO) is regarded as one of the fastest growing industries in the
world.
The Philippines is also considered as location of choice due to its less expensive
operational and labor costs. In 2007, The Philippines remain as a top BPO destination
for the estimated $150-billion business process outsourcing industry.
TOP TEN CALL CENTERS IN THE IT PARK:
• Qualfon Philippines
• Aegis Peoples Support
• Convergys Corporation
• Xlibris Philippines
• Wipro BPO Philippines
• Stream Global Services
• Icomm International
• LWS Media
• Global Sky
• Stream Global
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It is important to note that the factors the researchers listed above can be
classified as being within or beyond the control of the employing organization. In order
to actively participate in reducing costs associated with turnover, organizations need to
identify those factors over which they do have some control and initiate necessary
changes to reduce turnover attributable to these "controllable" factors.
Related studies show that factors of employee turnover on different companies
are more or less the same. But these were from different companies that are foreign
based. The researchers would like to know and verify if the same factors would be
applicable for the different Call Centers in IT Park Lahug, Cebu City. This study would
be helpful to the Call Centers which are based in Cebu in minimizing their employee
turnover cost and for them to develop ways in retaining their employees longer.
Chapter III
Research Methodology
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The research methodology presents the methods and procedures on how the
researchers acquired relevant data. Quantitative research was employed through the
use of structured questionnaires. The survey method of research using self-
administered questionnaires was adopted.
The respondents were the call center agents in Asia Town IT Park Cebu City and
focused on the call center companies located in that area. Self-administered
questionnaires were distributed to the respondents to gather data. After the gathering of
data the researchers tabulated and interpreted the results. The researchers also
consulted a statistician of the University of San Carlos to seek advice on how the
tabulated data was interpreted.
Research Design
The researchers chose the survey type of design. The survey research design is
a very valuable tool for assessing opinions and trends. Even on a small scale, such as
call centers in Cebu, judging opinion with carefully designed surveys can dramatically
increase the chances of an accurate and effective survey.
Research Environment
The call centers within IT Park Cebu City were the basis of the study. The call
centers included Convergys, LWS Media, People Support, Stream, and Qualfon. The
researchers conducted a survey to these call centers to gather relevant data for the
20
study because these are the only call centers located in Asia Town IT Park that agreed
to participate in the study.
Research Respondents
To make the scope of the study manageable, only sample of respondents were
covered due to time, effort, and cost constraints.
The researchers gathered the total employee population per call center and used
the Sloven’s formula to come up with the sample size per call centers for the survey.
The researchers used the Sloven's formula to get the sample size for the survey from
each company's total number of call center agents.
Sloven's Formula:
n = N / 1 + N (e) 2
Where:
n= sample size
N= total population
e = level of confidence (.07 to .10)
The sample size was computed by dividing the total population (N) by the
product of the square of the level of confidence (e) and the total population (N) and
added by one.
Solution:
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n N e%
People Support 114 1,488 9
Convergys 111 1,100 9
STREAM 89 809 10
LWS 46 82 10
Qualfon 90 900 10
Total 450
People Support: Convergys: STREAM:
n=1488/ (1+1488(.09) ^2) n=1100/ (1+1100(.09) ^2) n=809/ (1+809(.10) ^2)
n=1488/13.0528 n=1100/9.91 n=809/9.09
n=113.99 or 114 n=110.99 or 111 n=88.99 or 89
LWS: Qualfon:
n=82/ (1+82(.10) ^2) n=900/ (1+900(.10) ^2)
n=82/1.82 n=900/10
n=45.05 or 46 n=90
Research Procedures
The researchers after printing their questionnaires went to IT Park for the survey.
Each group member had a specific area of responsibility to survey. Formal letters were
sent to ask the permission of the building management for the survey to be conducted.
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The researchers were denied by SKYRISE Building but were able to conduct the survey
for Qualfon. Access to the TGU building was also denied thus the researchers were
also not able to conduct a survey at Xlibris. The researchers gathered the required data
from Qualfon, Convergys, LWS Media, Aegis People Support and STREAM. The results
were then tabulated as to the specifications of the statistician and the interpretations of
results were done.
Primary Sources
The study was conducted using the survey method of research. Self-
administered questionnaires and informal interviews were the techniques used in
gathering data. Researchers distributed self-administered questionnaires to
respondents who were available and found it convenient to answer the self-
administered questionnaires. An informal personal interview was also conducted with
the respondents regarding their views, suggestions and opinions concerning the study.
Secondary Sources
The researchers have also gathered data from the websites of the different call
centers along with different related studies about employee turnover within the industry
to supplement the research.
Treatment of Data
The data gathered from questionnaires and interviews were the sources of the
conclusions made. The tabulated data consisted of the frequency of respondents, the
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percentage, the valid percentage, and the cumulative percentage for the quantitative
analysis. The results per table were interpreted by the group with the aid of the
statistician.
Research Instrument
The researchers made use of the Survey Questionnaire to gather relevant data
regarding the factors that affect employee turnover. Through this method the
researchers asked specific questions which led to understanding why different call
centers tend to lose or gain different employees. The survey questionnaire was effective
in achieving high levels of reliability of gathered data due to controlled observations.
Self-administered questionnaires which had fifteen questions were provided to
the respondents. Questions about income, recognition, rewards and balance were
asked to each respondent. The questions were designed to establish and verify key
factors that would affect the decision of call center agents to change company or
change job career. Each question had a list of choices to evaluate the respondent’s
behaviour and to control the observations.
CHAPTER 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Chapter 4 deals with the tabulation and interpretation of data. With the aid of the
USC Statistician- Mr. Rene Argenal, the group was able to accurately interpret each
result per table and came up with a reasonable conclusion.
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Table 4.1
Call Center Companies and Number of Respondents
Cumulative
Frequency Percent Valid Percent Percent
Valid PeopleSupport 114 25.3 25.3 25.3
Convergys 2 111 24.7 24.7 50.0
STREAM 89 19.8 19.8 69.8
LWS 46 10.2 10.2 80.0
Qualfon 90 20.0 20.0 100.0
Total 450 100.0 100.0
Table 4.1 shows the different call center companies that participated in the study
and the number of surveyed agents per call center with the percentage equivalent.
Table 4.2
Level of Satisfaction of Respondents
Cumulative
Valid Happy 299 66.4 67.2 67.2
Not Happy 146 32.4 32.8 100.0
Total 445 98.9 100.0
Missing 99.00 5 1.1
Total 450 100.0
Table 4.2 shows the level of satisfaction the call center agents are experiencing
in their different companies. A majority of 66.4% of the respondents are happy with their
current employment in their respective companies. This means that majority of the
respondents are satisfied with their current employment or may just mean that they are
happy just to be employed.
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Table 4.3
Duration of Employment
Cumulative
Valid less than 3 months 100 22.2 22.2 22.2
between 3-6 months 109 24.2 24.2 46.4
between 6-12 months 114 25.3 25.3 71.8
between 1-2 years 92 20.4 20.4 92.2
between 3-5 years 27 6.0 6.0 98.2
more than 5 years 8 1.8 1.8 100.0
Total 450 100.0 100.0
Table 4.3 shows the range of employment of our respondents. The table shows
that a slight majority of our respondents are working with the company for less than a
year. This would show that the agents are relatively new to their environment and could
still be adjusting to the challenges of their chosen career.
Table 4.4
Job Expectation
26
Cumulative
Valid Well below expectations 27 6.0 6.0 6.0
Below expectations 69 15.3 15.4 21.4
Meets expectations 270 60.0 60.3 81.7
Above expectations 64 14.2 14.3 96.0
Well above expectations 13 2.9 2.9 98.9
No training 5 1.1 1.1 100.0
Total 448 99.6 100.0
Missing 99.00 2 .4
Total 450 100.0
Table 4.4 shows the level of expectations met while working for their current
company. The results show that 60.3% of the respondents met their expectations with
the company which would affect their longevity of employment. The more satisfied they
are, the longer they would stay in that particular company.
Table 4.5
Monthly Income
Cumulative
Valid Between Php10,000
247 54.9 54.9 54.9
- 15,000
15,001 - 20,000 108 24.0 24.0 78.9
20,001 - 25,000 76 16.9 16.9 95.8
25,001 - 30,000 15 3.3 3.3 99.1
above 30,000 4 .9 .9 100.0
Total 450 100.0 100.0
Table 4.5 shows the range of income a call center agent would receive if
employed. A majority of 54.9% of the respondents are receiving compensation ranging

27
from 10,000 to 15,000 pesos. Level of income would play a significant role in
determining if the agent would stay with the current company or leave to find higher
paying offers.
Table 4.6
Relevance of Income to the Decision to Stay with the Company
Cumulative
Valid Yes 369 82.0 82.2 82.2
No 80 17.8 17.8 100.0
Total 449 99.8 100.0
Missing 99.00 1 .2
Total 450 100.0
Table 4.6 shows the relevance of income in staying or transferring to a higher
paying call center company is significant. A majority of 82% of the respondents
answered that income is a significant factor in their decision to stay in their present
company. If another company would offer a higher rate of compensation for the same
amount of work, the agent would willingly transfer to that company which verifies it as a
factor for employee turnover.
Table 4.7
Level of Recognition
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Cumulative
Well above expectations 4 .9 .9 100.0
Total 450 100.0 100.0
Table 4.7 shows the different levels of recognition the respondents receive from
their current employer. A majority of 61.8% shows that they're efforts and achievements
have been recognized.
Table 4.8
Relevance of Recognition
Cumulative
Valid Yes 61 13.6 13.6 13.6
No 389 86.4 86.4 100.0
Total 450 100.0 100.0
Table 4.8 shows the relevance of recognition received from the employer is
significant in the decision to stay or leave the company. A majority of 86.4% shows that
the employees would not work for a company that does not recognize the achievements
and hard work the employee does for the company. This factor would drastically affect
the rate of employee turnover with call center agents
Table 4.9
Level of Rewards
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Cumulative
No Rewards 11 2.4 2.5 100.0
Total 447 99.3 100.0
Missing 99.00 3 .7
Total 450 100.0
Table 4.9 shows the level of rewards the call center agent receives while being
employed in the company. A majority of 58.2% shows that the employees are satisfied
with the rewards they receive from the company they are employed. From the informal
interviews, rewards would be in forms of salary increase when quotas are achieved, gift
certificates equivalent to cash, discounts at partner boutiques in malls, discounts at
partner restaurants and ultimately, a higher position with higher pay in the company.
Table 4.10
Relevance of Rewards
Table 4.10 shows the relevance of rewards received from the company
employed in staying or leaving the company. A majority of 70.9% said that they would
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not consider working for a company that would not give rewards to their employees.
This factor would also affect employee turnover seeing that there are different rewards
given by different call center companies.
Table 4.11
Level of Balance between Job and Personal Life
Cumulative
No Balance 12 2.7 2.7 100.0
Total 450 100.0 100.0
Table 4.11 shows the level of balance achieved by the respondents between
work as a call center agent and the different aspects of their life. A majority of 60.2%
said that they are well satisfied with the balance of being a call center agent which
works primarily at night and studying or resting in the morning. Responses from the
informal interviews also revealed that though they are satisfied with the balance
between job and career, it is not without cost. The respondents said that it had to be
done because of their chosen career and that they had to deal with the health and other
issues that come with the job.
Table 4.12
Relevance of the Balance
31
Cumulative
Valid Yes 379 84.2 84.2 84.2
No 70 15.6 15.6 99.8
3.00 1 .2 .2 100.0
Total 450 100.0 100.0
Table 4.12 shows the relevance of balance between being a call center agent and other
aspects of personal life plays an important basis in the decision to stay or leave the
current employment. A majority of 84.2% said that balance is a key factor in their
decision. This is understandable because working at night would bring different health
and other issues that would affect the employee.
Table 4.13
Level of Relationship with Co-workers
Cumulative
Valid Bad 24 5.3 5.3 5.3
Improving 68 15.1 15.1 20.4
Good 176 39.1 39.1 59.6
It could be better 59 13.1 13.1 72.7
Great 123 27.3 27.3 100.0
Total 450 100.0 100.0
Table 4.13 shows the level of relationship the employee is having with their co-workers
in their work environment. A majority of 39.1% said that they are having a good working
relationship with their colleagues.
32
Table 4.14
Relevance of the Level of Relationship with Co-workers
Cumulative
Valid Yes 295 65.6 65.6 65.6
No 155 34.4 34.4 100.0
Total 450 100.0 100.0
Table 4.14 shows that the type of relationship the agent is having with their co-
workers is significant in their decision to stay. A majority of 66.6% said that employee-
employee relationship is vital in their decision to leave or to stay in the company.
Table 4.15
Search for a more Stable job
Cumulative
Valid Yes 285 63.3 63.3 63.3
No 165 36.7 36.7 100.0
Total 450 100.0 100.0
Table 4.15 shows that 63.3% of the call agents considered their jobs as a mean
time job. This is probably true because majority of the agents are college students and
most college students who recently graduated and landed in no job would consider the
call center industry as a good training ground for a better job in the future. It is better
than no job at all.
33
Table 4.16
Search for a More Secure Job
Cumulative
Valid Yes 319 70.9 73.7 73.7
No 114 25.3 26.3 100.0
Total 433 96.2 100.0
Missing 99.00 17 3.8
Total 450 100.0
Table 4.16 shows that a majority of 73.7% of the respondents would look for a
more stable job than being a call center agent. This would greatly affect employee
turnover between call center companies because their agents would most probably
resign if offered a more secure job.
Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
The primary purpose of this study was to determine the factors that affect employee
turnover of the call centers found in IT Park Lahug Cebu City.. A secondary purpose
34
was to aid call center companies in finding ways to help keep their employees happy at
maximum capacity. This Chapter presents conclusions based on the findings in Chapter
4 and the review of Literature in Chapter 2. The discussions of these conclusions are
divided into two sections:
1) Major findings and
2) Directions for future research.
This study reported descriptive data for five call centers found in IT Park Cebu. The
results were tabulated as recommended by our statistician. The process involved
solving for the percentage, the valid percentage and the cumulative percentage. The
results gave the researchers a better idea of the ratio of pros and cons between the
choices and quantified the results in a more understandable way.
Major Findings
The results verified income, working relationship with co-workers, and balance
with work and personal life as key factors that would really affect the decision of the
employee to stay or transfer to a better company or more stable job. The findings also
highlighted factors such as job expectation and recognition as secondary factors that
35
would affect longevity of the employee. The researchers also found out that the majority
of the respondents consider being a call center agent as a “for the meantime job’ and
would consider leaving that job for a better and more secure career. Those factors
alone could be the cause of high turnover and could diminish the company’s employee
standards if the employees keep on changing.
Conclusion
Call center agents value the level of satisfaction felt in the company, the level of
expectations from the company regarding job experience, level of income received from
the company, level of recognition received from the company, the number of rewards
received from the company, balance between work and personal life, the relationship
they have with their co- workers as key factors in staying or leaving their current call
center company. But call centers showed also bear in mind that majority of the call
center agents consider their job as a “for the meantime” job and would leave it for a
more stable and secure job offering. The above stated are the factors that affect
employee turnover of the different call center companies located in IT Park Cebu City.
Recommendations
The researchers would suggest that future researches to include the way of living
of the Cebuanos and the culture of the city. The above stated are vital in knowing the
kind of employee the company would employ and could tailor trainings, seminars and
team building activities that would improve their quality of work in their company. the
36
researchers would also like to suggest that future studies involving this problem include
the stand of college students and highschool graduates as with regard to working in call
centers as a long term career option to broaden up the scope of the research.
BIBLIOGRAPHY
Websites:
[1] http://www.call-center.net/tutorial-turnover-mod1.htm, January 2011
[2] http://en.wikipedia.org/wiki/Turnover_(employment), January 2011
[3] http://www.wisegeek.com/what-is-employee-turnover.htm, February 2011
37
[4] http://www.referenceforbusiness.com/encyclopedia/Eco-Ent/Employee-
Turnover.html, February 2011
[5] http://www.sigmaassessmentsystems.com/articles/empturnover.asp,
February 2011
Appendix A
Letter to Respondents
Department of Accountancy
38
College of Commerce
February 3, 2010
HR Officer
Convergys
11th floor, I2 Bldg.
IT Park, Cebu City
Greetings!
We, the fourth year Bachelor of Science in Management Accounting students of the University of
San Carlos- main campus would kindly ask for your permission to be able to acquire pertinent
information regarding the total number of call center agents per shift or work schedule who you are
currently employing. This information would aid us in our thesis which deals with the different
factors that affect employee turnover with the different call centers located in IT Park, Lahug, Cebu
City.
We ask for your kind consideration in this matter.
Very truly yours,
Chris Vincent Sasuman

Group Leader
Dr. Marissa M. Baldecir, CPA

Thesis Adviser
University of San Carlos P. del Rosario Street, Cebu City Phone: 253-1000 loc.210 e-mail:bsadept@usc.edu.ph
Appendix B
Letters to Building Administrators
39
College of Commerce
February 3, 2010
To IT Park Building Administrators:
Greetings!
We, the fourth year Bachelor of Science in Management Accounting students of the
University of San Carlos- main campus would kindly ask for your permission to conduct a
survey of the different call center companies located in your building. This is to aid us with
our thesis which deals with the different factors that affect employee turnover with the
different call centers located in IT Park, Lahug, Cebu City.
We ask for your kind consideration in this matter.
Very truly yours,
Chris Vincent Sasuman

Group Leader
Dr. Marissa M. Baldecir, CPA, MBA

Thesis Adviser
University of San Carlos P. del Rosario Street, Cebu City Phone: 253-1000 loc.210 e-mail:bsadept@usc.edu.ph
Appendix C
Survey Instrument
40
College of Commerce
We, the BSMA 4 students of the University of San Carlos are conducting a study regarding the
factors that affect employee turnover of the call centers around IT Park Cebu City. We have prepared a
list of questions to help solve our problem statement. Please check one (1) answer per question.
Name (Optional): _______________________ Company: _______________________
1. Are you happy with your current call center company?
__Yes __No
2. For how long did you work for your call center company in IT Park?
__ Less than 3 months __ Between 1-2 years
__ Between 3-6 months __ Between 3-5 years
__ Between 6-12 months __ More than 5 years
3. How was your experience in your call center company in IT Park?
__ Well below expectations __ Above expectations
__ Below expectations __ Well above expectations
__ Meets expectations __ No training
4. What is your monthly income?
__ Between P10,000-P15,000 __ Between P25,001-P30,000
__ Between P15,001-P20,000 __ Above P30,000
__ Between P20,001-P25,000
5. Would your monthly income affect your decision to stay or move to another call
center in IT Park?
41
__Yes __No
6. Overall, how is the recognition that you receive from doing your job?
__ Meets expectations
7. Would you choose to stay in the company if your efforts are not recognized?
__Yes __No
8. Overall, how are the rewards that you receive from doing your job?
__ Meets expectations __ No rewards
9. Would you choose to stay in that company if there were better rewards in a different callcenter
company?
__Yes __No
10. Overall, how is the balance between your job and the other parts of your life?
__ Meets expectations __ No balance
11. Would your answer in question number 10 affect your decision in staying in the company?
__Yes __No
42
12. How are the relationships with your colleagues?
__ Bad __ It could be better
__ Improving __ Great
__ Good
13. Would your relationship with your colleagues affect your decision to stay or transfer to a different
call center?
__Yes __No
14. Is being a call center agent just a “for the meantime job”?
__Yes __No
15. If you answered yes in question number 14, would you leave your call center agency for a more
stable job?
__Yes __No
43
CURRICULUM
VITAE
44
Karl Rainier R. Barcenas
88 Hillside Compound, Don Gervacio Quijada St.
Guadalupe, Cebu City, Philippines 6000
254-6876/09228596848
karlwhata@yahoo.com
PERSONAL INFORMATION
Date of Birth : April 16, 1990
Place of Birth: Cebu City
Citizenship : Filipino
Sex : Male
Status : Single
EDUCATION
High School : Don Bosco Technology Center,
2003 –2007
College : Bachelor of Science in Management Accounting

University of San Carlos – Main Campus
2007 – Present
EMPLOYMENT HISTORY
Intern at Waterfront Cebu City Hotel and Casino, November 2010 - December 2010
45
Jane Carressa Mae T. Cagula
Apt. 2, 340- Q Ascension St., Sambag 2, Cebu City, Cebu
09235192952
jcmtcagula@yahoo.com
Date of Birth : December 14, 1991
Place of Birth: Dapa, Surigao del Norte
Sex : Female
Status : Single
EDUCATION
High School : Dapa National High School
2003- 2007

University of San Carlos,
2007- Present
EMPLOYMENT HISTORY
Intern at Securities and Exchange Commission, October 2010 - March 2011
46
Dean Anthony Nantes
G7 Residence Hall, Junquera St., Cebu City, Philippines
+639238714594
toxinvibe@yahoo.com
Date of Birth : December 7, 1990
Place of Birth: Anahawan, Southern Leyte
Gender : Male
EDUCATION
High School : Cristo Rey Regional High School
2003-2007

University of San Carlos
2007-Present
EMPLOYMENT HISTORY
Intern at SVD Provincialate, Southern Province, December 2010 – February 2011
47
Kim L. Gelacio
St. Therese Drive, AS Fortuna Street, Banilad, Mandaue City, Cebu
+639226527448
someoneloggingin@yahoo.com
Date of Birth : November 14, 1990
Place of Birth: Surigao City
Gender : Female
EDUCATION
High School : Caraga Regional Science High School
2003 – 2007

2007 – Present
EMPLOYMENT HISTORY
Intern at Department of Education – Ecotech Center, November 2010 – February 2011
48
Ken Michael A. Tsai
Rm.303 Benedicto Building Zulueta St. Cebu City
4132170/09231894666
tsai_kenmichael@hotmail.com
Personal Information
Date of Birth : February 23, 1991
Place of Birth: Cebu City
Gender : Male
Education
High School : Cebu Eastern College
2003 – 2007

2007 – Present
Employment History
Intern at Securities and Exchange Commission, October 2010 – January 2011
49
Chris Vincent D. Sasuman
St. Jude Acres, Bulacao, Cebu City, Cebu
2723515
chrisvincent_sasuman@yahoo.com
Date of Birth: December 27, 1990
Citizenship: Filipino
Sex: Male
Status: Single
EDUCATION
High School : University of San Jose Recoletos
2003- 2007

2007- Present
EMPLOYMENT HISTORY
Intern at ABOITIZLAND Inc, October 2010 – January 2011
Bookkeeper in Family business
SK Chairman of Brgy. Bulacao, 2007-2010
50
Jia Angelique R. Rosit
19-B Urgello Street, Cebu City
09331332110
jiarosit@ymail.com
Date of Birth : August 19, 1990
Place of Birth: Carrascal, Surigao del Sur
Sex : Female
EDUCATION
High School: St. Michael College
2003- 2007
College: Bachelor of Science in Management Accounting

2007- Present
EMPLOYMENT HISTORY
Intern at Department of Education- Ecotech Center, November 2010 – February 2011
51
Aldwin Gongon
09173250045
wagaca90@yahoo.com
Date of Birth : January 16, 1990
Place of Birth: Samar
Citizenship: Filipino
Sex: Male
EDUCATION
High School: St. Mary’s College,
2003-2007
College: Bachelor of Science in Management Accounting

2007- Present
EMPLOYMENT HISTORY
Intern at Department of Education- Ecotech Center, November 2010 – January 2011
52

The Factors That Affect Employee Turnover of Call Center Agents in It Park Cebu City

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APPROVAL SHEET

partial fulfilment of the requirements for the course AC 527 ACCOUNTING

SYNTHESIS, has been examined and is recommended for Oral Presentation..

Marissa M.Baldecir,CPA,DCM Mr. Nivolas Alesna

on the call center companies located in that area. Self-administered questionnaires

were distributed to the respondents to gather data.

employee standards if the employees keep on changing.

Title Page No.

4.1 Call Center Companies and Number of Respondents 20

4.2 Level of Satisfaction of Respondents 20

4.3 Duration of Employment 21

4.4 Job Expectation 22

4.5 Monthly Income of the Respondents 22

4.6 Relevance of Income to the Decision to Stay with the Company 23

4.7 Level of Recognition the Respondent Receives from the Company 24

4.8 Relevance of Recognition 24

4.9 Level of Rewards 25

4.10 Relevance of Rewards 25

4.11 Level of Balance between Job and Personal Life 26

4.12 Relevance of the Balance 27

4.13 Level of Relationship with Co-workers 27

4.14Relevance of the Level of Relationship with Co-workers 28

4.15 Search for a more Stable Job 28

4.16 Search for a more Secure Job 29

List of Tables iii

Rationale of the study 1

Statement of the Problem 2

Significance of the Study 2

Scope and Limitations 3

Review of Related Literature 4

4 PRESENTATION, ANALYSIS AND INTERPRETATION

5 SUMMARY OF FINDINGS, CONCLUSION AND

“How long do employees tend to stay?” Employee turnover is a ratio comparison

higher in routine, order-taking positions or in outbound telemarketing where burnout is

companies that wants to have a minimal cost of employment. Due to employee

because a trainee may or may not pursue due to these factors.

verify factors that affect employee turnover in these companies.

Statement of the Problem

The impact of employee turnover has received considerable attention by senior

management, human resources professionals and industrial psychologists. It has to be

center companies in IT Park, Cebu City.

Significance of the Study

aspects they have to improve to lessen the employee turnover rate.

The following are the terms used in this study:

Employee Turnover is a ratio comparison of the number of employees a company must

replace in a given time period to the average number of total employees.

Hotel and Casino.

Business Process Outsourcing (BPO) is a subset of outsourcing that involves the

contracting of the operations and responsibilities of specific business functions (or

processes) to a third-party service provider.

the present research.

REVIEW OF RELATED LITERATURE

The employee turnover causes a considerable attention on the senior

seemingly intractable human resource challenges confronting organizations. This

research provides a summary of information, abstracted from published research, costs

of turnover and factors contributing to its magnitude in organizations, and proposed

There are a number of costs incurred as a result of employee turnover. These

Recruitment of replacements, including administrative expenses, advertising, screening

processing of references and possibly, psychological testing.

researchers explore some of the factors.

availability of alternative jobs plays a role in turnover.

The performance of the organization is another reason given in economic