One of the biggest concerns companies have about having resources in other countries is turn over. Whether it is through an outsourcing partner, a BOT (Build, Operate, Transfer), captive or hybrid model, it is a valid concern.

Why should you consider using a global workforce when reports of companies using resources in developing countries like India and China have seen attrition rates anywhere from 15-30% per year? It is hard to build cohesiveness teams and to grow your core competency when you are constantly losing staff.

There are several key issues that are at the heart of the high attrition being witnessed.

Issues:
1) Work Involvement: A major source for the high attrition rates seen in developing countries like India and China is a lack of worker fulfillment. Many of the statistics come from outsourcing firms where the tasks that are given to the staff are highly repetitive in nature. In most cases, the employee is not ask for input, nor are they assigned to a given client long enough to learn about their needs to be able to offer suggestions.

2) Work Location: Another major source for attrition is the location and work environment itself. In many cases, employees have to battle for 2 -3 hours to get to a facility. The reality is that quality work is not available where the employees want to live or raise a family.

3) Opportunity: A third factor in the high level of attrition is the employee’s opportunity to use his/her creative ability and knowledge to have an impact on the business. Creating impact for a business creates opportunities for growth and increased responsibilities. The majority of the attrition seems to be centered on employees in outsourcing environments where in order to advance; they end up jumping from company to company.

A successful strategy has emerged that seems to have a much different result. What are the keys to this successful strategy? It is probably not a surprise.

Solutions:
A properly executed hybrid or captive strategy addresses the 3 major issues noted above. The staff members are employed as part of a team in a progressive company that values their input. The companies locate their offices in population centers near where the employees live or want to raise their families. The employees enjoy the prestige of having employment in a professional environment close to where the live. Finally, they are part of a company that looks to them to help be part of the innovation process. This creates a win-win situation.

Results:
The results are interesting. While only having about two years of data, the attrition levels in these and other developing countries is below 5% and are some cases below 1% using these strategies. It remains to be seen if such an extremely low attrition rate can be maintained, but it certain points to some promising results.