Business Process Outsourcing (BPO) is relatively a new sector in the Indian industry, but has established itself well and is growing at a rapid rate. BPO sector offers handsome initial salary, good growth and many other benefits to its employees. Keeping in mind the attrition rates in the sector, the performance measurement and appraisal processes are of extreme importance in BPO’s. It is often used as one of the tools to retain the employees.

BPO employees have the advantage of getting performance based incentives. In most of the BPO organisations, there are well designed schemes for awarding the performance based incentives to the individuals and/or the teams as a whole. An incentive on the completion of the defined targets is a common practice in BPO’s.

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The general parameters for the measurement of employees’ performance are:

  • Speed i.e. process performance,
  • Accuracy and
  • Productivity of each process,

Although the measuring parameters are different for employees at different level, but the general classification of the above mentioned parameters for “Customer care Executives” and “Team leaders” are as follows:

  • Average Call Value (the sales made or the revenue collected etc.)
  • Time and cost per call
  • Average Handling Time (talk time and after call wrap up)
  • Adherence to Schedule (availability to take calls etc.)
  • Percentage of abandoned calls
  • Discipline
  • Attendance

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According to a recent survey – “The Pay for Performance can be as much as 22% of the salary.” Therefore, performance evaluation, reviews and appraisal play a vital role in the performance management in BPO sector and all the above mentioned parameters are used in performance appraisals to evaluate and review the performance of the employees.