reducing absenteeism & attrition -...
TRANSCRIPT
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.