The Power of Recognition and Rewards: Driving Success in South Africa's BPO Industry

We live in a time when attracting and retaining top talent across a multi-generational, increasingly mobile workforce is massively challenging. It’s a global phenomenon that is critical to the success and sustainability of every business, but notably so in South Africa’s business process outsourcing (BPO) industry which is increasingly the country’s top export to international markets.

At the heart of this success lies an often-overlooked yet crucial factor: an effective employee recognition and rewards strategy. It’s pivotal to driving performance and engagement in South Africa’s burgeoning Global Business Services (GBS) sector, and foundational to meeting the ambitious targets of creating 500 000 jobs in service of international markets by 2030.

Every GBS provider will attest that the offshoring service level agreements are hugely demanding and leave little room for trial and error or lapses in service quality. Retention and engagement of talented agents able to handle the pace that comes with an always-on, high pressure, customer-centric work environment in service of international markets is fundamental – and its why the BPO industry is pulling out all the stops to modernise its approach to recognition and rewards strategy in line with international markets.

The Human Edge in South Africa’s BPO industry

South Africa's BPO sector is not merely about commoditised factors such as cost savings or language capabilities; it's about people and ‘being human’. Empathy, critical thinking, cultural affinity, curiosity and adaptability are the hallmarks of the South African workforce - qualities that international GBS clients value.

However, these human strengths can only flourish in the right environment. The high-pressure nature of BPO work demands a motivated and engaged workforce. This is why recognition and rewards are not just nice-to-have—they are essential for attracting, retaining, and empowering the talent that drives client satisfaction.

Employee Engagement: Foundational for Quality Outcomes

Why does recognition and rewards matter so much?

In a field where service levels are directly tied to client success, every engaged employee counts. Agents who feel valued are more likely to stay, perform better, and deliver the kind of service that international clients rave about.

For any international client looking to an offshoring partner, the due diligence process is intensive, and a key part of that process is scrutinising the employee value proposition (EVP) of a potential BPO partner. The employee recognition and rewards strategy is foundational to the EVP. A potential client is looking at what motivates and drives the agents who are at the frontline of delivering their brand and customer experience to the world. A BPO with a strong EVP often fosters a culture of excellence, collaboration, and alignment with client goals, ensuring that agents deliver a customer experience that aligns with the brand’s standards.

When a BPO provider has a strong recognition and reward strategy, the impact is felt on multiple levels:

• Retention: Reduced turnover means lower recruitment and training costs and the preservation of institutional knowledge.


• Engagement: Motivated employees are more likely to go above and beyond, delivering superior service.


• Client Confidence: A recognition-driven culture aligns employee performance with client goals, fostering trust and long-term partnerships.

Modernising Recognition and Rewards in the BPO Industry

The BPO industry faces significant challenges, notably high attrition rates. According to a report by McKinsey, most contact centres experience average annual agent turnover rates of up to 60 percent each year, with even best-in-class companies seeing turnover of nearly 20 percent.¹ High absenteeism, low morale, multi-generational workforces with diverse and unique preferences all add to the challenges of attracting and retaining top talent.

Long gone are the days of cookie-cutter recognition and rewards programs. South Africa’s leading BPO providers are rethinking recognition strategies to suit a multigenerational workforce with diverse needs and preferences.

Here are some ways that the Achievement Awards Group is making it work:

• Get the input of employees: Employees know best what motivates them. Surveys and focus groups ensure their voices shape reward programs. Get the participation and input of employees. This is the very first step in meaningful engagement.
  
• Set Clear Expectations: Define performance metrics and behaviours that will be rewarded. Recognise outstanding performance linked to KPIs and organisational goals. Ensure that rewards are aligned with organisational values and objectives.
• Recognise Diverse Contributions: While hitting KPIs is important, recognising teamwork, collaboration, and positive attitudes creates a well-rounded, supportive culture. Celebrate those who exceed job expectations and contribute significantly to team success. Acknowledge milestones such as work anniversaries, birthdays and long-term tenure.
• Focus on Development: Provide growth, skill enhancement, and career advancement opportunities. This ensures that employees feel invested in their future, and that you are too!
• Well-being: Acknowledging the need for work-life balance and offering perks like wellness programs and work-from-home privileges reinforces trust and loyalty.
• Deploy a tech-enabled, digital platform - this allows for timely and real-time recognition, with immediate rewards and recognition accessible on multiple devices. It also means a more connected and supportive culture through social sharing features and real-time feedback and appreciation among all team members and colleagues. A data-driven, tech enabled program is also key to maintaining fairness and transparency through unbiased evaluation processes. This boosts morale, facilitates communication and collaboration across teams.

Real Results: Proof in the Numbers

Modern employee recognition and rewards programs in South Africa’s BPOs are already yielding remarkable outcomes. The ‘achieve’ program powered by bountiXP technology by Achievement Awards Group has achieved international and local awards and reported the following outcomes:

• Received a 92% approval rating from participants. 54% rated it awesome; 38% excellent.
• The percentage of employees sending recognitions every month doubled from 34% to 69%. On average, 93% of staff received recognition every month.
• The overall engagement index improved from 71% to 80%. The percentage of staff saying “My contribution is appreciated in this organisation” increased from 60.2% to 70.2%.
• Agent turnover is down to a low of 10% and team leader attrition is down to 4% - these are exceptional statistics compared with the broader BPO industry which sees attrition rates as high as 60% and on average at 20% in the best operations.
• Absenteeism tracks between 5.7% and 7.0%.
• Post call transactional NPS survey (6000 callers) averages 85+. Compliance scores are consistently over 99%.
• Significantly, the overall Work Performance Index (a balanced scorecard measure) improved from 3.14 to 4.01 out of 5.

These results showcase how aligning employee recognition and rewards with organisational goals leads to better outcomes for both agents and clients.

As South Africa continues to cement its place in the global BPO market, recognition and rewards will be a cornerstone of its success. By valuing and empowering its workforce, the industry not only secures its competitive edge but also strengthens its ability to deliver unparalleled service to international clients.

At a time when the world is looking to South Africa as a trusted outsourcing partner, investing in people is not just good business—it’s the key to sustainable growth. Recognising the human heart of our BPO industry ensures that both employees and clients remain loyal, satisfied, and ready to grow together.