Human Resource Practices, employee voice and quit rate in outsourcing Essay

Human Resource Practices, employee voice and quit rate in outsourcing industry in India - Essay Example This paper is written as a research proposal to investigate various issues like Human Resource Practices, Employee Voice and Quit Rate in Outsourcing Industry in India. Since India is a country which is diversified in many ways, thus a unique HRM strategy can not be formulated. The research is conducted to find out the parameters which are required to be considered while formulating HRM strategies for outsourcing businesses in India. The objective of this research is to find out why many employees quit from the outsourcing industry in India. The research will try to make a study as to whether employee quit because of insufficient compensation or any other reasons. The increasing quit rates are actually an important concern of cost for organizations. This is because quit rates increase labor costs (Oi 1962) and at the same time they decrease organizational functioning (Norsworthy and Zabala 1986). According to Freeman and Medoff (1984) industrial relations show that in firms which have a union the quit rate is lesser than when compared to those firms which has no unions. Unions actually in firms are a tool through which the employees can voice their problems and seek better compensation instead of quitting. Arthur (1994) feels that current research on better commitment and high level of performance is in reality a coherent set of human resource (HR) practices. This coherent set can also bring in better performance on the part of the employees according to Ichniowski etal, (1996). High rate of quitting by the employees will sabotage functioning (Alexander, Bloom, and Nuchols 1994; Huselid 1995). Appelbaum et al., (2000) state that better performance patterns comprise those that commit in the accomplishments of the work force and furnish the chance and inducements for employees to utilize those skills efficiently. â€Å"Employee retention is critical to the long term health and success of company