I heard a scary statistic recently (which I hope is not accurate): a well-known Australian company outsourcing to the Philippines with an annual staff turnover rate of 140% within their call centre.
That implies that 100% of staff leave within less than a year, but so do almost half of the new hires.
Often, the number that’s discussed as a rule of thumb is 80%.
Even at 80%, you can almost hear the sound effects…the whirring noise from just spinning the wheels, the sucking sound as your organisational knowledge drains back out of the company.
At the same time, companies are placing emphasis and effort on Net Promoter Score (NPS).
Imagine the improvement in customer service and operational efficiency if you could simply retain staff. Then there are the cost savings on recruitment, employee induction and training.
Done well, your annual turnover rate should be around 10%. I’ve seen high-performing teams in the Philippines where the team attrition rate was lower than the client’s onshore attrition rate.
With a stable offshore platform, anything is possible.