Determinants of Talent Retention in BPO Industry Ravinder Kumar & Ritu Arora Talent retention is a strategic tool to ensure superior work perfor- mance. Talent retention continues to top the list of CEOs’ priorities. Top management focus has shifted from numbers to quality and from ‘recruitment’ to ‘reten- tion’. Low retention is common in almost all fields but it is certainly alarming in BPOs. The present study attempts to unveil the de- terminants of talent retention in BPO (ITeS) industry. The employ- ees have been found here to ap- pend greater value to organization’s atmosphere, sup- portive top management and comparative salary structure and other monetary benefits. BPO companies should maintain con- ducive work environment and adopt competitive rewards and recognition policies along with best of the facilities to help em- ployees maintain work life bal- ance. Introduction Today’s organizations are increas- ingly afflicted with the issues concerning talent shortage. The shortage in skilled workers is across the spectrum—from personal assistants and call-centre opera- tors to researchers, engineers and ac- counting staff. Managers and adminis- trators have realized that having capable staff is a competitive advantage. Efficient and productive workforce makes an or- ganization not only survive but flourish too. With this understanding comes in view the rapidly increasing focus on re- taining key talent, which represents the total of the inherent abilities, acquired knowledge, capabilities and skills. Inar- guably, diversity in workforce – age, sex, qualifications, experience, competence, perception, quality etc. - has brought up more, not fewer retention issues. While a small number of employees leaving an organization is natural and acceptable, high turnover is considered a matter of serious concern. High employee turnover can be seen in almost all the sectors but it is certainly alarming in BPOs, espe- cially in ITeS (a whopping 35-50%). In an extremely competitive market, it has become imperative for organizations to look into the causes of high employee attrition and come up with a strategy for Ravinder Kumar (drkumar 2005 @gmail.com) is Associate Professor, Department of Commerce & Business Studies, Jamia Millia Islamia, New Delhi. Ritu Arora (rarora74@rediffmail.com) is Associate Professor in DAV Institute of Management, Faridabad. The Indian Journal of Industrial Relations, Vol. 48, No. 2, October 2012 259