TenacityWhitePaperDraft

REDUCINGABSENTEEISM&ATTRITIONAguideforimprovingemployeeengagementand

retentionintoday’scontactcenters

www.gotenacity.com

TenacitynamedGartner2016CoolVendorforCRMServicesandSupport.Readaboutithere.

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Table of Contents

OMNICHANNEL SERVICE: THE ERA OF THE ‘ALWAYS ON’ AGENT .. . . . . . . . . . . . . . . . . . . . . . . . 3 Theagentisstillthelastlinkthevaluechain..............................................................................................3

WORKFORCE OPTIMIZATION: OPTIMIZING EVERYTHING BUT THE WORKFORCE . . . . 4

ATTRITION: TORPEDOING CUSTOMER EXPERIENCE AND THE BOTTOM LINE . . . . . . . . . 4 CustomerExperience...................................................................................................................................4CatastrophicCosts.......................................................................................................................................5

THE SOLUTION: AGENT QUALITY OF LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Resi l iency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Community...................................................................................................................................................6Meaning.......................................................................................................................................................7ANoteonSupervisors..................................................................................................................................8

“BEST PRACTICES” ARE THE WORST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

HOW TO PREPARE YOUR ORGANIZATION TO REDUCE ATTRITION .. . . . . . . . . . . . . . . . . . . . . 11 Step 1: Measure the Effect of Every Change You Make L ike the Future Depends on It . . 10 Step2:CounttheCost................................................................................................................................11Step3:SorryHR.OnlyBudget/P&LOwnersGetToDrive........................................................................12

CONCLUSION .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

ABOUT TENACITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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OMNICHANNEL SERVICE: THE ERA OF THE ‘ALWAYS ON’ AGENT

The agent is st i l l the last l ink in the value chain

Today’scontactcenterisachallengingenvironment.

Withtheadventofsocial,mobile,chatandSMS,customershavemorecontactchannelsthanever.Buttheystillwantarealhumanbeingontheothersideofthephonetosolvetheirmostdifficult problems.While customers canemploy ahost of channels for real-time service, this24x7approachhasdrivencallvolumesupinsteadofdown.Andwiththeincreaseinself-serviceandIVR,customersarrivemorefrustrated,withmorecomplicatedcallsthanever.

Agents have the difficult job of juggling sometimescontradictory KPIs, sticking to scripts, and learningtonsoftechnologyandprocess,allwhileexiledtothelonelyworldofacontactcentercubicle.

For thesehaggardagents, thepacenever letsup. Insomeof the largest and busiest centers, agents canhandlemorethan100callsaday,whiledealingwith

additionalcontactchannels,escalations,scriptadherence,post-callsurveysandaftercallwork.Infact,accordingtothe2015/2016editionofContactBabel’sContactCentreHR&OperationalBenchmarkingReport, idletimehasdroppedtoan11-yearlow,asagentsarebusyansweringcalls,addressingemailsandchats,managingservice ticketsandmasteringnewskillson theiroff-phonelearningbreaks.

Contact center supervisors are also swamped, coaching new agents, shifting call queues tomeetSLArequirements,handlingtheirownescalationsandmanagingthebusinessonthefloor.Theyhaveverylittletimetoaddressthehumansideoftheagents’needs,whichleavesagentsaloneinmanagingtheirdaytodaystress,buildingrelationshipswiththeirpeers,orseeingtheirworkinameaningfulcontext.

Whatdoesthismeanforcallcenterandcustomerexperienceexecutives?Itmeanstheyhavestressedout,strungoutagentswhocan’thandlecomplicatedcallsefficiently.Itmeanstheseemployeeshaveverylittlesocialconnectiontotheirworkplaceandgetmuchlessmeaningoutoftheirwork,especiallythemillennials.Fortheircompanies,itmeansagrowingbusinessproblem:aworkforcethatburnsoutfaster,showsupless,producesless,andmostexpensively,quitsmore.

ACCORDINGTOCONTACTBABEL’S2016REPORT,AGENTIDLETIMEHASREACHEDAN11-YEARLOW.

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WORKFORCE OPTIMIZATION: OPTIMIZING EVERYTHING BUT THE

WORKFORCE

Technologyhasn’thelpedmuch.Thegreatironyofsocalled“workforceoptimization”isthattheonethingitdoesn’tdoisoptimizetheworkforce.Itoptimizesthework.Theflow,theoutput,therouting,theschedules,theconformitytoscript,thecarrots,thesticks.Thefocusis

theworkandtheworkershavebeenforgotten.

Workforceoptimizationhasitsbenefits,butthedrawbacksarepoorlyunderstood.Ithasindeedsqueezedmoreproductivityoutofagents,buthashadlittlepositiveimpactonagentresiliencyandqualityoflife.Infact,this“squeezing”probablyhascontributedto

theemployeeturnoverproblem.

Formorethantwentyyears,attritionhasbeenoneofthetopconcernsofcallcenterexecutives.Andforthatsamescoreyears,WFOmavenshavepeddledtheirsolutionsastheanswertoattrition.WhyagainwereQMsolutionsorelectronicrenditionsofwhite-boardscorecardsgoingtomakeagentshappier?Thestrainedlogichasfinallybrokenundertheheavyweightofdecadesofindustryexperience.Callcenterexecutiveshavecollectivelyspentbillionsofdollarsperyear.Yetattritionratesremainathistoricallyhighlevels.AndtheWFOcompaniescontinuetorecyclesameoldmyths.

ATTRITION: TORPEDOING CUSTOMER EXPERIENCE AND THE BOTTOM

LINE

Customer Experience

Asidefromtheobvioushumancost,theeffectonbusinessoutcomesistremendousanddistressing.Allthisemployeestressandlonelinesserodesthecustomerexperience.AccordingtoVerint,92%ofconsumerssayanagent’sperceivedhappinessaffectstheirpersonalcustomerexperience.InMcKinsey’sreport,“CustomerExperience:CreatingValueThroughTransformingCustomerJourneys,”theauthorsarguethatcustomers’expectationsforallindustriesaredrivenbytheirexperiencesatworld-beatingcompanieslikeAmazonorApple.1Withthebarsetthishigh,theirresearchshowsthat“25%ofcustomerswilldefectafterjustonebadexperience.”

1Duncan,E.,Fanderl,H.,Maechler,N.,&Neher,K.(2016).Customerexperience:Creatingvaluethroughtransformingcustomerjourneys.InMcKinsey.

THEGREATIRONYOF“WORKFORCEOPTIMIZATION”ISTHATTHEONETHINGITDOESN’TDOISOPTIMIZETHEWORKFORCE…ITHASPROBABLYCONTRIBUTEDTOTHEEMPLOYEETURNOVERPROBLEM

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Theriskisthatmiserableagentsdeliverweakercustomerexperiences.Andmiserableagentsquit,takingcustomerintelligenceandexperiencewiththem.Inturn,newagentstaketheirplace,andthese“newbies”answerfewercallsandmakemoremistakes.Sounhappyagentseitherdeliverabadexperience,orquitandarereplacedbyrookies,whodeliverabadexperience.Thisreducescustomerloyalty,increaseschurn,underminesupsells,andincreasesthecostofcustomeracquisition.

Catastrophic Costs

Dependingonthetypeofcallsandcommunicationchannels,thesizeofthecenter,anditslocation,personnelcostseatuproughly80%ofthecontactcenterbudget.Evenincenterslocatedoffshoreforlaborarbitrage,humancapitalisstillthebiggestdriverofcost.Andattritionremainsthemostexpensivehumancapitalprobleminthecontactcenter,andoftenthemostexpensiveproblemofanysort.

According toTheCall Center School, averageagent turnover rates globally arebetween30%and 45%.2 And firms with 500 or more employees suffer from turnover rates above 50%annually,with absence rates that are twice ashigh,making the combinationof attritionandabsenteeismadevastatingdetractionfromthetopandbottomline.Annualturnoverrates inthe80%-150%rangearenotunusual.

Certainindustriesfeelthisburnevenmore.Forexample,a1000-seatBPOisestimatedtobleedapproximately$8.5Mperyearininvoluntaryturnoverexpenses,anamountthatfarexceedsitsthinmargins.SiteSelectionGroupestimatesthattheUSemploys2.2Mcallcenterworkers inofficeswith25ormorepeople.3Includingsmalleroffices,andtheexplodinghome-basedagentpopulation,thetotaliscloserto3M.ThismeansthatUSbasedcallcentercompaniesaloneloseover $7B a year in attrition costs. Even the ever-affordable Philippines loses approximately$1.3B on its 800,000 contact center employees annually, according to an analysis based onstatisticsfromCCAP,theCallCenterAssociationofthePhilippines.

2Reynolds,P.(2015).ExploringCallCenterTurnoverNumbers.InQualityAssurance&TrainingConnection.3White,K.(2015,February17).HowbigistheU.S.callcenterindustrycomparedtoIndiaandthePhilippines?InSiteSelectionGroup

A1000SEATBPOISESTIMATEDTOBLEED$8.5MINVOLUNTARY

TURNOVERCOSTSPERYEAR.

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THE SOLUTION: AGENT QUALITY OF LIFE

Researchstronglysuggeststhatcallcenterexecutiveswoulddowelltoturntheirfocustoimprovingthequalityoftheworkexperience.4AtTenacity,wecallthis“Agentqualityoflife.”Thisrequiresinvestinginthreekeyareas:

1. Resiliency2. Community3. Meaning

Resi l iency

First,callcenterleadersmustfindwaystofosterresilienceamongtheirworkforce.Fortunately,accordingtotheAmericanPsychologicalAssociation,resiliencycanbetaught.5ResearchbytheWorldHealthOrganizationalsoindicatesthatresiliencycanbeparticularlybeneficialtothoseinlowerincomegroups,astheyaresubjecttogreaterstressand,asaresult,morementalhealthissues.6

Therearemultiplewaystocombatstressthathavebeentestedbyboththemedicalandpsychologicalcommunities.Suchapproachesasmindfulnesstrainingorcertaincognitivebehavioraltherapytechniqueslikepositiveself-talk,weighingevidenceandcompartmentalization,canhaveatremendouseffectonemployees’responsetostress.Otherevidence-basedexerciseslikeguidedbreathing,biofeedback,orevenphysicalactivity,yoga,andimprovedsleephygieneallcontributetohealthierresponsesbyagentsinthefaceofthemanyirritationstheyencounter.Thissuggeststakingalargerviewonhowtimeisallocatedandwhatactivitiesareencouragedduringtheworkday.

Italsosuggestsanareaofimprovementforsupervisorswho,accordingtoresearchbyMichaelHousmanatCornerstoneonDemand,areakeydriverofattritionandretention.7Giventhatagreatdealofattritionisdrivenbynegativeemployeeemotion,andthatsupervisorsareoftenasourceofaddedstress,apicturebeginstoemergeofawayforward.Ifthesupervisorlearnshowtocoachemployeesonperformanceinawaythatislesslikelytoinducestressbutequallyeffectiveatimprovingoutcomes,employeeswillbelesslikelytoquitandperformancewill

4vanderAa,Z.,Bloemer,J.,&Henseler,J.(2012,March29).Reducingemployeeturnoverthroughcustomercontactcenterjobquality.TheInternationalJournalofHumanResourceManagement,23(18),3925-3941.5Alvord,M.,Gurwitch,R.,Martin,J.,&Palomares,R.ResilienceGuideforParentsandTeachers.Availableat:http://www.apa.org/helpcenter/resilience.aspx6Friedli,L.(2009).Mentalhealth,resilience,andinequalities.Availableat:http://www.euro.who.int/__data/assets/pdf_file/0012/100821/E92227.pdf7Housman,M.(2014).TheInfluenceofSupervisorsonEmployeePerformance.MichaelHousman:Decodingtheworkforce.

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remainrobustandpossiblyimprove.Basicbehavioralstrategieslikepositivereinforcementcanreplacetheclassicfirefightingapproachthatisimplicitlyencouragedbyperformancemanagementsystems.

Supervisorscanalsobecomeanovelsourceofemotionalstrengthforemployeesiftheylearntoemploymethodslikeemotioncoaching.8Withthisapproach,thesupervisoractsasasupportiveandunderstandingguideforheragents,helpingthemprocessdifficultcallsandemotions,andproppingthemupinthefaceofaninherentlydifficultjob.

Theeffectofamoreresilientworkforceonbusinessoutcomeswillbedirect.Resilientagentsbouncebackbetterafterfrustratingencountersandthusareabletodeliveramoreconsistentcustomerexperience.Theyalsoresentthestressoftheworkless.Ratherthanwithering,resilientpeopleoftenusechallengetogrow.Thismeanstheyaremuchmorelikelytoshowupforworkandmuchlesslikelytoquit.9

Community

Second,employersneedtohelpemployeesbuildbondswiththeircoworkers.AccordingtoTheNewZealandJournalofPsychology,andMcKinsey,peerrelationshipsmakeemployeeshappyandthatmakesemployerssticky.10Galluphasalsofoundthatemployeeswhohaveabestfriendatworkaremuchhappierandmorelikelytostay.11

Notthatthisiseasy.Thefactis,cultivatingastrongsenseofcommunityinthefast-pacedcallcenterenvironmentcanbeverydifficult.Trainingclassestendtobelargeanditistoughtokeepnewagentstogetheroncetheyreachtheproductionstage,giventhatemptyseatsareusuallyavailableacrossteamsandemployeestendtooptfordifferentschedules.Asstatedabove,idletimeisatan11-yearlow,soagentsareextremelybusy,answeringcalls,doingfollowupcallwork,orworkingonskillstraining.Giventhattheopportunitytominglerequiresbothdowntimeandoneofthethreeorfourpeoplewithintalkingdistancetoalsohavedowntime,relationshipbuildingfacessignificantbarriers.Totopitoff,breaksarerarelyscheduledwithbuildingcommunityinmind.Oftenemployeesonthesameteamhavestaggeredbreaks.Manyreporttousthattheywanderaimlessly,orjustlookattheirphonestopasstheirshortdowntime.

8Cox,E.,&Claire,P.(2012,August).ManagingEmotionsatWork:HowCoachingAffectsRetailSupportWorkers'PerformanceandMotivation.InternationalJournalofEvidenceBasedCoaching&Mentoring,10(2),34.9Bridger,R.S.,Day,A.J.,&Morton,K.(2013,September18).Occupationalstressandemployeeturnover.Ergonomics,56(11),1629-1639.10Morrison,R.(2004,November).Informalrelationshipsintheworkplace:Associationswithjobsatisfaction,organisationalcommitmentandturnoverintentions.NewZealandJournalofPsychology,33(3).11Wagner,R.,&Harter,J.(2008,February14).TheTenthElementofGreatManaging.GallupBusinessJournal.

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Callcenterstendtohaveoneanswerforthisproblem:food.Throughdiscussionswithhundredsofcallcenterexecutives,Tenacityhasfoundthatthisisthemostcommonwaytotrytobringpeopletogetherandmakethemfeelappreciated.Andwhilesharingamealisoftenagoodwaytobuildfriendshipsinnormallife,liningupforTacoTuesdaydoesnotexactlyqualify.Employeesregularlycomplain(justnottotheiremployers!)thatthefoodisobviouslytheretoplacatethem.Andwhiletheydoenjoyeatingit,itisrarethatagentsmentionfreefoodwhenreportingwhatmakeslifeinthecallcenterbearable.Giventhesizeandexpenseoftheproblemofattritionandothermoralerelatedissues,thisapproachneedsseriousrethinking.

Partoftheproblemisthatcommunitybuildingrequirestimeandconcertedeffort.Asmentionedabove,timeisinshortsupplyincontactcenters.Butthereareopportunitiesleftonthetable.ResearchbyAlexPentlandonworkdoneatoneoftheworld’slargestbanks,showsthatwhenemployeesonthesameteamarescheduledforbreaksatthesametime,productivityincreasesandattritiondecreases,bothsignificantly.12Whilethismaynotberealisticinsomesmallerandmediumsizedcallcenters,thesefindingsunderscorethepointthatleadershipneedstodriveabroadersetofstrategicimperativesforworkforcemanagementteams,andthisneedstoincludecreatingopportunitiesforemployeestomingle.Also,aswithstress,supervisorscanplayakeyrole.Supervisorsshouldaimtodomorethancoachindividuals;theyshouldhelpbuildcommunityontheirteam.Thiscanbedonebypullingtheteam(orpartsoftheteam)offthephonesforteachablemoments,publiclyhighlightingexcellentwork,orutilizinglatentexpertiseontheirteamtoteachneweragents.Ifoneoftheperformancegoalsofthesupervisoristoretainagents,hewillreorienthisapproachaccordingly,ifgiventhefreedom.Andthiskindofmethodislikelytodrivethespreadofbestpracticesmorequickly,improvingperformanceaswellasboostingretention.Interestingly,buildingcommunityisalsooneofthepathstowardmakingtheworkmoremeaningfulforemployees,whichistreatedingreaterdetailbelow.13

Meaning

Finally,callcenterexecutivesneedtofindwaystomaketheworkexperienceitselfmoremeaningful.Iftheydon’t,theiremployees,especiallymillennials,willcontinuetoseeandtreattheircompaniesascommodities,willingtowalkawayforpenniesperhour.

Millennialsarenowthelargestdemographicgroupintheworkforce.14Theyfamouslyhavehighexpectationsfromtheirwork.Thisisnottosaythattheyallmustsavetheworldtofeel12Pentland,A.(2015).Socialphysics:howsocialnetworkscanmakeussmarter(p.95).NewYork,NewYork:PenguinBooks.

13Pentland,A.(2015).Socialphysics:howsocialnetworkscanmakeussmarter(pp.96-104).NewYork,NewYork:PenguinBooks.

14Fry,R.(2016,April24).MillennialsovertakeBabyBoomersasAmerica’slargestgeneration.InPewResearchCenter.

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goodattheendoftheday.Nevertheless,ifexecutiveswantthemtogetoutofbedeachmorningandreturntotheinherentlystressfulworkofanagent,theseyoungemployeesdoneedtofeelliketheirworkmeanssomethingpositive.

Thatsaid,theneedformeaningextendsfarbeyondthemillennialpopulation.Mostpeoplewantmeaningoutoftheirwork.Andeventhosewhocynicallythinkworkcouldneverbemeaningfularemuchmorelikelytostayinaworkplaceiftheyfeelliketheyareapartofsomethingbiggerthanthemselves.

Manycompaniesstartwithconnectingtheirvaluestothework–whichisagoodstart,ifabitabstract.Thisshouldbedrivenatthesupervisorlevel,notthroughgeneralizedcorporatebulletins.Buteitherway,ithastogodeeperandbecomemoreconcrete.

Let’sbehonest,agentshavethejoboffrequentlydisappointingcustomers.That’sprettyrough(theysayitisoneofthehardestparts,actually).Empoweringthemtodomoreforcustomersisthebestwaytofixthis.Thebestagentstakegreatpleasureinsolvingproblems.Anyopportunitythatexecutivescangivethemtosolveproblemsforcustomersmoreeffectivelyisagoodstartingpoint.

Totrulyengageemployeesonadeeperlevel,however,requiresnothinglessthanempoweringthemtoreshapethecustomerexperience.Thismeansmorethantheoccasionalfocusgrouponhowthingscouldimprove.Supervisorsshouldbeconstantlycultivatingareflectivedialogtogatherinputandinsightsfromagentsaboutthecustomerexperience.Agentsneedtobecomeakeydriverofimprovementstothecustomerexperience,andforthistofeelmeaningful,theyneedtoseehowtheireffortsbearfruitintermsofprocessandpolicychanges.

Meaningfulworkalsorequiresgivingthemarealisticshotatapathup(andoutofthecenter).Humanbeingsappreciateworkmuchmorewhenithasapoint.Upwardmobilitycanbethepointoftheworkforahugepercentageoftheworkforce,bringingmeaningtootherwiserotetasks.Executivesshouldstartbyhelpingthemseepathwaysupandoutbeforeagentsevenfinishtraining.Companiesshouldalsoholdquarterlycareerfairs,andensurethataneffectivesystemforflaggingtalentedemployeesandidentifyingkeyskillsisnotonlyinplacebutalsoactivelyused.Trainingsupervisorsascareercoaches,whoregularlymeetwithemployeesanddiscusstheirfutures,enablespowerfulpositivereinforcementandmotivation.Theseconcretestepswillbothreduceoverallattritionandtransformmuchofitintothebestkind—wherecallcentersfeedtheirmothercompaniesapipelineofhomegrowntalent.

A Note on Supervisors

Theaboverecommendationswillrequireasignificantrethinkingofbusinesspracticeinareasasdiverseashowemployeesspendtheirtimeandwhattheircompaniescompensatethemfor.Butonecommonthreadinallthreecasesistheroleofsupervisors.Asmentionedabove,MichaelHousmanhasshownthatsupervisorsplayakeyroleinwhetheremployeeschooseto

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keepworkingintheircallcenter.15Itisunsurprising,then,thatsupervisorswouldplayaroleineachofthethreekeyareasofagentqualityoflife.

Encouragingretentionrelatedbehaviorswillrequirereworkinghowsupervisorsarehiredandevaluated.Excellentagentsdon’tnecessarilymakeexcellentsupervisors;theyareoftenbetteratescalationsanddevelopingdeepsubjectmatterexpertise.Seniorexecutivesneedtofindsupervisorsfromwithinandoutsidetheirrankswhocandeliveranexcellentemployeeexperience.

RetentionshouldbecomeaprimaryKPIforsupervisors,butevenwiththis,manypitfallsremain.First,ateamof10to15peopleisaverysmallsampleofthepopulation.Thismeansattritionwillbelumpy,makingitappearthatcertainsupervisorsdideitheranexcellentorhorriblejob,monthtomonth.Thispresentsachallenge:thiskindoflumpyvariationinsmallgroupsisentirelydrivenbyluck,somethingstatisticianscall“noise”.Also,companiesthatprovideorwithholdbonusesbasedonmonthlyattritioncanunwittinglycreateperverseincentivesordemoralizesupervisors.Ifasupervisorishavingabadattritionmonthandisunlikelytobonus,hemighttrytoattritallhisleastloyalemployeessothathecanstartwithacleanerslatethefollowingmonth.Evaluatingsupervisorsbasedonretention,then,requirescarefullongitudinalengineering,andpossibleriskadjustedanalysisforcompaniesusingpredictivehiringanalytics.

“BEST PRACTICES” ARE THE WORST

Einsteinsaidthedefinitionofinsanityisdoingthesamethingoverandoveragainandexpectingadifferentresult.Employeeturnoverhasplaguedcontactcentersfordecades.Andexecutiveshavewrackedtheirbrainsforjustaslongonhowbesttoaddresstheproblem.Duringretentiondiscussions,theusualsuspectstendtogettrottedout:recognition,mentoring,teambuilding,socialevents,theuseofconsultants,moresupervisors,morefood,moreawards,moretools,moretraining.

Theproblemwiththeseapproaches–atleastwiththewaythey’vebeenimplementedtothispoint–isthattheysimplyarenotthateffective(hence,theproblempersists).Furthermore,theseareneitherscalablenorsustainable,noraretheyaffordableformanycenters.Andyet,inlisticleafterlisticle,conferenceafterconference,andmeetingaftermeeting,thesesameoldso-calledsolutionscontinuetodominatethediscussion.Einsteinalsosaid,“Noproblemcanbesolvedfromthesamelevelofconsciousnessthatcreatedit.”Thetimehascometoadmitthefailuresofworn-out“bestpractices”andembraceanewerafocusedonthehumanexperiencethatdrivesattritionincontactcenters. 15Housman,M.(2014).TheInfluenceofSupervisorsonEmployeePerformance.MichaelHousman:Decodingtheworkforce.

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Prioritizingagentqualityoflifepresentsanovelwayofaddressingthechallengeofattrition.Itisworthacknowledging,however,thatthisapproachwilllikelyrequiretworelatedchangesoforganizationalmindset.First,itwillrequireasignificantrethinkingofthewaybusinessisdone,whichisalwaysachallengeinentrenchedbusinesses.Second,itwillrequireup-frontinvestment.Executivesdon’tusuallygetjobsleadingcontactcentersbecausetheyinvesttosavemoney,theygetthosejobsbecausetheycuttosavemoney.Sotheparadigmshiftwillbesignificant.Yettheshort-termdiscomfortoftheseadaptationsiswell-justifiedgiventhestaggeringcostsof“businessasusual”attritionlevels.

HOW TO PREPARE YOUR ORGANIZATION TO REDUCE ATTRITION

Fortunately,therearesometangiblestrategicstepsexecutivescantaketobegintosystematicallysupportapositivetransformationofagentqualityoflife.Doingsoeffectivelyrequiresthreesteps.Thesewillprepareorganizationstoinvestresourcesappropriately,andtobereadyforadoptionofthekindsofserioustechnology,processesandpracticesthatwillaidintransformingtheagentexperience.

Step 1: Measure the Effect of Every Change You Make Like the Future

Depends on It

Oneofthebestthingsaboutcontactcentersisthattheyareawashindata.Thereisnoproblemtoosmallforaspreadsheet.

Butwhenitcomestomeasuringtheeffectivenessofaninitiativetoreduceattrition,contactcenterleadersrarelyknowhowtoproperlyanalyzetherightdata.Whenweconsultwithcompanies,wefindthatmostimpactmeasurementtechniquesfallwoefullyshort.Forinstance,executivesoftenturntobefore-and-aftermeasurements,butthencannotfigureoutwhatactuallycausedthechangesin,say,averagehandletime.Orperhapstheyturntobenchmarkingagainstothercenters,anotherflawedapproach.Differentcenterswithdifferentlabormarketsandmanagementandculturesareunlikelytoworkasanadequatecomparisongroup.

Whenourconsultantspushexecutivesonthis,theseexecutivestendtofallbackonthevagueexcusethattherearea“lotoffactors”.

Fortunately,thisiswhatthefieldofstatisticswasinventedfor.Thisisalsowhycompaniescollectdataandhiredatascientists.Toproperlymeasureaproblemorsoftware’seffect,createanidenticallysituatedcontrolgroupandcomparetheiroutcomestotheirinterventiongroup.

Thistypeofanalysis(calledcontrolgroupanalysis)shouldbeappliedtoallareasofchange.TesteverythingfrompilotedcustomerexperiencetoolstoTacoTuesdays,newtrainingprogramstosoftwarevendorsofeveryvarietywithacontrolandinterventiongroup.Iftheydon’tproducethekindofreturnyouarelookingfor,dumpthem.

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Youwillencounterresistance,bothfromvendorsandinternalmanagement.Noonelikeshavingtheharshlightofstatisticalanalysisshinedontheirpetprojects.Butcallcenterbudgetsaretootighttocontinuewastingmoneyonthingsthatmayormaynotbedoinganygood.Itdoesn’thelpanyonetocontinuebusinessasusual.Itistimeforallcontactcenterleaderstostoppretendingtomeasurecauseandeffectandinsteadinvestinactualmeasurement.

Havingestablishedtheregularpracticeofusingcontrolgroupanalysistoproperlymeasuretheeffectofeveryinitiative,theorganizationwillfallintomuchbetteralignment.Itwillputeverything–newsoftwareandhardwaretools,cloudmigrationsandIVRsystemsandnewtrainingapproaches,TacoTuesdays,andotherprogramsallintoperspective.

Justbecausesomething“feelssolid”doesn’tmeantheoutcomesitproducesaremoreconcrete.Executivesjustneedtomeasureitproperly.Thentheywillhavethecriticalinformationneededtomakeahugedifferenceinalmosteveryareaofmanagement,includingsoftware,CX,attrition,andyourbottomline.

Step 2: Count the Cost

Thesecondstepisrelated.Leadersmustfindwaystoquantifythebroadeffectsofagentqualityoflife,sotheycanknowhowmuchtheyshouldbewillingtoinvesttoimproveit.Thisrequiresacomprehensiveanalysis.

Executivesneedtoquantifytherelationshipbetween,say,agentengagementandthecustomerexperience.Theyneedtouncoverthecostsofabsenteeismandhowmuchofthisisdrivenbytheagentexperience,andtheyneedtodothesameforefficiencymetricslikeAHTandNCP.

Butmostimportant,theymustuseamorerigorousapproachtomeasuringthebiggestrelatedlineitem-thecostofattrition.Tenacityconsultswithdozensoflarge,worldclasscompaniesabouthowtocontrolattrition.Inalmosteverycase,executivesatthesebehemothsreportthattheyknowthecostofattrition.Andwhentheyopentheirbookstoouranalysts,itturnsouttheyalmostalwaysunderestimateitbyanenormousamount,oftenby300%ormore.

It’snothardtounderstandwhy.First,thereisnowidelyacceptedindustrystandardformeasuringthesecostsandsoexecutiveshavetomakeitupastheygo—akindofwildwest.

Second,inthecontextofthetypicalmindsettowardcontactcenteroperations,theincentivesareproblematic.Whatismorelikely?Thatanexecutivewhothinkshighattritionisinevitablewouldratherreporttoherbossthatsheislosing$3millionayear,or$10M?Asyoucanimagine,shealmostalwayspicksthelowernumber.

Interestingly,thefewcompaniesthatdothiswelltendtohavethelowestattrition–becausetheyhavetrulycountedthecostandtheytheninvestappropriately.

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Foradeeperunderstandingofhowtoproperlymeasureattritioncosts,pleaseseeTenacity’sblogseriesonthesubject.

Step 3: Sorry HR. Only Budget / P&L Owners Get to Drive

Oncecompaniesmeasurethevalueoftheirspendingoneveryattemptedsolution(whetherprogramorproduct),andoncetheydevelopadeepunderstandingofallthecostsofattritionandotherareasrelatedtoagentqualityoflife,theywillbereadytoimproveitandreapthebenefits.

Buttherightpersonmusttakethehelm.Whoultimatelyownsthebudgetforthecallcenter?Whoeverownsthebudget,orP&Lwhererelevant,musttaketheleadonagentqualityoflife.

Theseexecutiveseatthecostofattrition,andsotheyhavetheproperincentives.WhentheproblemisdelegatedtoHR,youget$10,000solutionsto$1Mproblems.HRmeanswell,ofcourse–it’sjustthattheyarethewrongstakeholdertobeputinthedriver’sseathere.Operationalexecutivesdrivethedaytodaylifeofthecenter.Andtheyaretheonlyonesthathavetheorganizationalclouttoadequatelycommandthekindofchangethatwilldriverealbottom-lineresults.

ManyCEOswanttothinktheirHRdepartmentcanleadthemtosolvethisproblem.AtTenacity,weregularlyconsultwithsomeoftheworld’slargestcompaniesandBPOsonthisverytopic,andhaveneverseenanHR-firstapproachwork.Notonce.

HumanResourcesprofessionalsarewonderfulpeople,buttheirdepartmentsarenotdatadriven.Theyarenotlikelytowanttoautomatejobfunctions,noradmitthattheirpastadviceaboutgamificationorrecognitionandrewardsprogramsisinadequate.Andtheirbudgetsaretoopaltrywhenfacedwiththeenormityoftheattritionandemployeequalityoflifeproblem.Mostimportant,thisisnottheirfocus.Theirexpertiseiscompliance,dealingwithemployeeissues,processdesign,andhiringandfiring.Inreality,budgetandP&Lownersaretheonlyonesadequatelyequippedandmotivatedtodrivethenecessarytransformation.Theymusttakethereins.

CONCLUSION

Followingthesestepswillprepareanorganizationtomakethekindsofwell-informedinvestmentsthatareneededtotransformagentqualityoflifeandimproveemployeeengagementandretentioninasustainablemanner.Theseniorexecutivesmostaffectedbyattritioncostswillbeinchargeoffixingit.Theywillknowhowmuchtheyshouldbewillingtoinvestbecausethecostofthepainwillbepreciselyquantified.Andtheywillknowiftheattemptedsolutionswork,becausetheywillrigorouslytestandmeasuretheeffectsofeveryprogramorproducttheyadopt.

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Organizationsthatfollowthisprocessandtheninvestaggressivelytotackletheabovewillseedramaticreductionsinattritionandabsenteeism,andimprovementsinperformance,whichwillsavethebiggestofthesecompaniestensandevenhundredsofmillionsofdollarsandaddmanymillionsmoretotoplinerevenue.

Andtheexecutiveswhoimplementtheabovewillhavesetupawin/win/win/winsituation.Itwillmaketheirjobseasier.Itwillimprovethelivesofemployeesandfamilies.Itwillmakeshareholdersmoremoney.Anditwillhavepositionedtheircompaniestodeliverabest-of-breedcustomerexperience.

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ABOUT TENACITY

AtTenacity,we’repassionateabouthelpingour clientsaddressoneof theirbiggestbusinesschallenges – improving employee quality of life – in a sustainable, scalable manner usinginnovativecombinationsofcuttingedgesocialscience,stressmanagementandresiliencybestpractices,allenabledbycloudtechnology,andcustomizedbyAIforeachindividualcenterandagent.

Tenacity’sretention-as-a-servicesolutionreducesstress, improvesthewaypeoplefeel,buildsmeaningintoworkandconnectsagentswitheachotheronahumanlevel.It’sapowerfulwaytogetagentstostayintheirjobslonger,andtoperformbetterwhiledoingit.

Tenacity prequalifies its customers and thus has been able to consistently deliver, clear,rigorouslymeasurable,strongreturnsoninvestmentforeverysingleoneofourclients.

Tolearnmoreandfindoutifwe’reagoodfitforyourworkforce,scheduleaconsultationtodayatgotenacity.com/connect.

TenacityreceivedTMC’s2016CUSTOMERContactCenterTechnologyAward.Readaboutithere.