The global capability centers (GCC) have been in the news for quite some time now, especially in India. If you follow the industry news, you probably know that these centers are a major driver of employment and economic growth in India.
A recent study by Deloitte estimates that these centers will employ about 3.9 million people by 2025, which is more than double their current size of 1.5 million people. But there are challenges to this growth story as well, and one of them is great attrition – an average of 25-30% in the GCCs today, according to sources. A significant portion of this attrition happens in the first 1-2 years of employment, which means it costs the companies a great deal!
This means that new employees have to be hired and trained each year to replace those leaving. For example, at one facility, a total of 3,600 people were hired in 2017, but by the end of the year, 1,800 had left. This sort of attrition rate is hard enough to manage in any business environment, but it is even more difficult when many of the employees are likely to be younger professionals who are starting their careers.
So what exactly is causing all this attrition? What do the GCC employees want? How do they feel about their jobs?
- Employees want to work with companies that have a mission and purpose. They want to be proud of what they do and where they work.
- An important factor is related to wellness/work-life balance, especially among women employees.
- We see employees looking for flexibility with respect to their working hours, i.e., location-agnostic working hours.
The traditional workplace has undergone a significant transformation over the past few years. With the rise of the remote and agile workplace, companies are re-evaluating their talent strategies and driving a holistic approach to employee well-being. Employee well-being is fast becoming an HR imperative, especially with the increased focus on employee retention. Ensuring that employees are not just engaged but happy at work is critical for organizations to remain competitive in today’s complex and VUCA world.
According to Gartner’s latest report, “Employee Well-being in a Global Capability Center,” well-being can have both internal and external manifestations: Internal well-being includes managing stress levels, increasing resilience, fostering a healthy lifestyle, and fueling engagement at work. External well-being includes creating a sense of belonging in the community, ensuring social connections, and enabling opportunities for personal growth.
Technology has become a key enabler for HR to build the employee experience and promote employee wellness. Today, a growing number of companies are implementing health-oriented technology that helps employees focus on well-being, happiness, mindfulness, and productivity. With this new approach, HR is able to create programs that are more focused on the employee experience and less focused on focusing on long-term ROI. According to ADP research, HR is also experimenting with other technologies that can help employees connect with their team members, improve productivity and even reduce stress.
Employee well-being could benefit the Organizations from 360 deg:
- Productivity improves because happier employees are more engaged and productive at work.
- Engagement improves because happy employees feel connected with their organizations and identify with their purpose and mission. They also have a strong sense of loyalty and commitment towards their employer.
- Retention improves because happy employees are less likely to leave the organization for any reason — including better opportunities.
