Deepshika Batheja
Economics
India is home to the largest youth population in the world (over 650 million people below the age of 35) but it also has very high rates of youth unemployment. Over 30% of youth aged 15-29 in India are Not in Employment, Education or Training (NEET). This is more than double the OECD average and almost three times that of China (Jethmalani, 2017). The call center industry, also referred to as the Business Process Outsourcing (BPO) industry, is the largest private sector employer in India, providing jobs to around 3.9 million people (NASSCOM Report, 2017). These jobs are starting jobs and source of financial independence and livelihood for many young people. It is a high pressure and target-oriented job, however, with constant performance appraisals/feedback by supervisors. Thus, this industry has very high employee turnover rates. We plan to conduct a randomized a randomized controlled trial to study if incentives and feedbacks can improve retention of agents in this high employee turnover industry.
Call center jobs have been providing a pathway out of poverty to millions across the world. Over the past two decades, the BPO industry has grown rapidly in India and in many other English-speaking lower middle income countries like Philippines, Sri Lanka and El Salvador. There is causal evidence of improvements in poverty and well-being (health, educational and fertility outcomes) of young girls and women in small villages in India due to the availability of call center job opportunities (Jensen, 2012). However, this industry faces problems of retention and is plagued with high attrition rates. Many workers quit and return to relatively lower paying jobs like domestic work and self-employed agricultural work. (Blattman and Dercon, 2012). Retaining workers in this industry through better human resource management and thereby increasing the job satisfaction levels of employees can be an effective way to stop people from falling back into the poverty trap.