

The past couple of years has introduced a new set of challenges, leaving long-lasting repercussions on the BPM industry. While in 2020, companies experienced low attrition and added load from clients, mass layoffs and uncertainty were still looming over the workforce and are even more ubiquitous today.
The industry has seen a labor shortage, with a large number of people either leaving the workforce or looking for better opportunities in pursuit of passion, work-life balance, and more rewarding ventures.
In the midst of the pandemic, workplaces had already started to navigate and establish new norms to continue operations and delivery. However, certain rising issues compelled employers to better prepare themselves for the struggles they would experience.
According to the U.S. Job Opening and Labor Turnover Survey (JOLTS) August 2021 and the Bureau of Labor Statistics (BLS), September 2021, a record more than 4.4 million Americans had quit their jobs in September; 4.3 million had left their jobs the previous month in 2021.
There were 2.7 million more job openings in the U.S. than people actively searching for work. While businesses added 3.8 million jobs in 2021, according to the U.S. Chamber of Commerce, workforce participation was unprecedentedly low. Finding a sufficient workforce to fill these openings was somewhat challenging.
A survey by the U.S. Chamber of Commerce on the unemployed who lost their jobs during the pandemic studied what was keeping them from returning to work. The results showed:
The global IT service industry was also badly hit by high attrition rates that have only climbed since July 2021. In India, nearly half a million employees have left the top eight companies within the country. This attrition was a significant loss of experience, expertise, and upskilling investments. Businesses incurred further costs on recruitment, salary hikes, and retraining leaving businesses to explain and justify these costs to the company.
Job openings in the U.S. unexpectedly dropped to 10.4 million, most likely attributed to declining economic expectations, contractions in commercial activity, breathers from hiring, statistical noise, or a combination of these factors.
According to the U.S. Chamber of Commerce, there were 7.6 million unemployed Americans, many of whom had not returned to work. On top of that, the expectations of the employees and potential candidates were driving attrition, fill-and-fit recruitment, as well as costs.
During these unprecedented times, participation in the gig economy had expanded rapidly, primarily due to the need to deliver necessities to consumers. This crisis had overturned the traditional 9-5, with many blue- and white-collar employees pursuing gigs for extra (or even primary) income. Many full-time workers had to join the gig economy reluctantly and out of necessity.
As this new way of working will continue to rise post-pandemic, talent leaders must have a strategy in place to accommodate this shift and ensure its long-term viability. Gigs allow schedule flexibility, and due to multiple commitments, shorter training cycles have become imperative to accommodate these schedules. However, it’s not easy as the training materials have become increasingly complex with more cognitive load.
Aside from the change in the business landscape as a result of the pandemic, customer expectations played a significant role in the changes. Today, customers and consumers are more:
To adapt to the evolving landscape, it has become imperative for organizations and business leaders to recognize the common drivers of this high rate of attrition and tailor solutions to address the specific needs of the employees.
A wide variety of personal and professional reasons played a part in attrition. However, the following specific drivers have led people to quit their jobs in our current climate:
Attrition directly affects the bottom line, productivity, brand reputation, and morale. Therefore, aside from employing the traditional approach to address this, companies have had to prepare themselves for the impact, especially in a new and unfamiliar territory.
It’s not just about addressing the attrition but doing so in a competitive market while, at the same time, the company is trying to bounce back from the adverse effects of the pandemic.
HGS addressed the churning attrition through innovations for on-demand employee experience:
Businesses can strive to strike a balance by making strategic decisions today with smart workforce planning for the future. That is the best approach to address the present as well as achieve what they hope for in the future.
Build your business for the future with complete CX solutions. Connect with our experts.
Prakash Hariharasubramanian, Director & Practice Lead, Intelligent Process Automation (IPA), HGS
Prakash has led various IPA implementations across multiple industry verticals in his tenure of 7 years with HGS. In his role, Prakash develops IPA practice frameworks, creates IPA solutions, and serves as a key automation evangelist for HGS.
Recent blog posts: