Skills CFA Contact Centre Labour Market Information April 2010 6 Graphite Square Vauxhall Walk London SE11 5EE info@skillscfa.org Tel: 020 7091 9620 Fax: 020 7091 7340 www.skillscfa.org Contents Contents Page 1. Foreword 1 2. Executive summary 2 3. Background to research 5 3.1 3.2 4. 5. 6. 7. 8. Scope of the research Methodological issues and information validity Contact centres in the wider context 4.1 What is a contact centre? 4.2 Contact centres and the information explosion 4.3 Factors influencing changing customer expectations of contact centres 4.4 Industry groupings 4.5 Contact centres and the future Contact centre occupations 5.1 Contact centre occupational structures 5.2 Operator/agent occupations 5.3 Senior operator/agent and managerial positions 5.4 The contact centre workforce Contact centres and customer service skills 6.1 Contact centre agent jobs 6.2 Employer views on skills needs 6.3 Senior operator/agent and managerial positions Contact centres and skills shortages 7.1 Primary research evidence of skills shortages 7.2 Secondary research evidence of skills shortages 7.3 Skills shortages by country 7.4 Skills shortages by sector 7.5 Contact centre specifics and country differences Contact centres and skills gaps 8.1 Primary research evidence of skills gaps 8.2 Secondary research evidence of skills gaps 8.3 Skills gaps by country 8.4 Skills gaps by sector 8.5 Contact centre specifics by country 16 26 34 37 55 Contents 9. 10. 11. Contact Centre qualifications and training 9.1 Contact centre qualifications 9.2 Contact centre apprenticeships 9.3 Contact centre training 9.4 9.5 Matching training supply with demand Investment in skills Occupational change and employment projections in contact centres 10.1 UK growth in contact centres and employment 10.2 UK contact centres and employment by sector 10.3 UK contact centres and employment by region Priorities and the next steps 11.1 Identifying priorities 11.2 Vision of future qualifications Appendix 1 11.3 Priority 1 11.4 Priority 2 11.5 Priority 3 11.6 Next steps 11.7 Future evolution of the CCQS 11.8 Summary 74 90 99 109 Section 1: Forward Table No. Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Table 5.8 Table 5.9 Table 5.10 Table 5.11 Table 7.1 Table 7.2 Table 7.3 Table 7.4 Table 8.1 Table 8.2 Table 8.3 Table 8.4 Table 8.5 Table 8.6 Table 9.1 Table 9.2 Table 9.2(a) Table 9.2(b) Table 9.3 Table 9.4 Table 9.5 Table 9.6 © Skills CFA 2010 Title Replacement demand by Standard Occupational Classification (SOC) sub major group 2004-2014 Annual agent attrition rate by economic sector Annual agent attrition rate by region Length of agent service by economic sector The SOC major and sub-major unit group structure of all occupations Minor group classification for major group 7, customer service occupations Page 11 12 13 13 15 16 Revision of the Standard Occupational Classification (SOC) 2010 Management gender in contact centres Employment of contact centre staff by job role Call centre agents and operators by full time and part time staff Call centre agents and operators by gender Contact centre employee gender All customer service employment full-time/part-time and male/female analysis by UK countries - April 2008 to March 2009 All contact centre employment full-time/part-time and male/female April 2005 to June 2009 Estimated UK contact centre agent employment using Office for National Statistics (ONS) proportions and ContactBabel figures Estimated contact centre agent numbers by age group Average age of contact centre agents, by economic sector Major group 'sales and customer service' by ethnicity and UK Countries 17 29 30 30 31 31 32 Skills shortage by occupation – major groups – England Hard-to-fill and skill shortage vacancies as a proportion of vacancies by occupation in Scotland Skills required for skills shortage vacancies by occupation - Wales Profile of skills shortage vacancies by occupation within Sector Skills councils 44 46 Skills lacking in employees overall and by occupation – all England Skills gaps by region – England Distribution of skill gaps in Wales by occupation Skills lacking among employees with skills gaps by occupational group – Northern Ireland The nature of skills gaps by Sector Skills Council Main two skills gap area by Sector Skills Council National Qualifications in Contact Centres NVQ/SVQ awards by gender, academic age, occupation, centre type, Government Office, region and country by level of award 60 61 69 70 Contact centre qualifications - achievements and enrolments 78 Contact Centre Apprenticeships - completions and registrations 79 Gender and level of qualification for major group sales and customer service England and Wales Apprentice job roles and employer engagement Typical educational attainment of staff in UK contact centres Ongoing training 79 Page 1 of 115 32 33 34 34 35 50 54 72 73 76 77 82 85 91 Contact Centre Labour Market Information April 2010 Section 1: Forward Table No. Table 9.7 Table 10.1 Table 10.2 Table 10.3 Table 10.4 Table 10.5 Table 10.6 Title Weekly hours of coaching and development for team leaders Call Centre Agents and Operators The UK contact centre industry - contact centres, 1995-2007 Growth of UK contact centres 2007 - 2011 UK Contact Centre Industry - Agent Positions, 1995-2007 UK agent positions 2007 - 2011 Agent positions and contact centres by size of contact centre Table 10.7 Table 10.8 Table 10.9 Table 10.10 Contact centres by sector 2003 - 2011 Agent positions by sector 2003 - 2011 UK contact centre employment by region UK contact centre projected employment changes by region 2007 - 2011 97 97 97 99 Table 10.11 Table 10.12 Contact centres by region and size band Agent positions by region and size band 99 100 Figure Figure 5.1 Figure 6.1 Figure 7.1 Title Proportion of people by occupation and age - UK wide Top three abilities or characteristics of a successful contact centre agent Overall distribution of vacancies and recruitment difficulties by occupation England Skills sought in connection with skill shortage vacancies - England Skills sought in connection with skill shortage vacancies - Scotland Skills sought in connection with skill shortage vacancies - Wales Skills sought in connection with skill shortage vacancies – Northern Ireland Sector Skills Councils – SSVs for Sales and Customer Service Occupations Skills Gaps by Region - England Highest Skills Gaps – All Scotland Skills gaps by occupation Highlands and Islands Skills gaps by occupation North East Scotland Skills gaps by occupation South East Scotland Skills gaps by occupation South West Scotland Skills gaps by occupation West Scotland Skills lacking amongst employees with skills gaps - Wales Impact of skills gaps in Northern Ireland Contact Centre and Customer Service Apprentice starts England and Wales 2003-2009 Contact Centre Apprenticeship Starts and 10% of Customer Service Apprenticeships in known Contact Centre Starts Page 33 37 42 Figure 7.2 Figure 7.3 Figure 7.4 Figure 7.5 Figure 7.6 Figure 8.1 Figure 8.2 Figure 8.3 Figure 8.4 Figure 8.5 Figure 8.6 Figure 8.7 Figure 8.8 Figure 8.9 Figure 9.1 Figure 9.2 © Skills CFA 2010 Page 2 of 115 Page 91 94 95 95 95 96 96 43 45 51 52 55 61 62 63 64 65 66 67 68 71 81 81 Contact Centre Labour Market Information April 2010 Section 1: Forward 1. Foreword This report examines Labour Market Intelligence (LMI) relating to contact centre employment and to the demand from employers for relevant staff skills. The development of this report is supported by the UK Commission for Employment and Skills (UKCES). The report draws on: existing data from Government and commercial surveys of employment patterns in the contact centre sector information included in data sets of the devolved administrations, the Learning and Skills Council and Government Departments primary research relating to the broader skills sets of customer service occupations and qualifications which include contact centre skills qualitative research to gather information and opinions from a cross-section of employers. The report: describes the research methodology including the boundaries and limitations of available information sets out the business context in which employers are addressing skills issues in contact centres examines evidence of the evolution and development of contact centres and likely changes in the foreseeable future analyses available data relating to employment patterns in contact centres across the four nations of the UK analyses available data relating to skills shortages and skills gaps in the contact centre sector. The principal purpose of the report is to provide robust analysis of LMI that will inform future development of qualifications and frameworks appropriate to the contact centre sector. © Skills CFA 2010 Page 3 of 115 Contact Centre Labour Market Information April 2010 Section 2: Executive summary 2. Executive summary This report sets out to provide a comprehensive survey of labour market information for the contact centre sector with special reference to qualifications and training. It is designed to offer a reference point for planners and operational managers seeking to understand clearly aspects of the contact centre labour market relevant to skills development. There is increasing clarity and understanding surrounding the meaning of the term contact centre. Evolving from the more restrictive term ‘call centre’ a contact centre is an organisation that uses different media, most commonly telephony, to deal with customers in a systematic and structured process both through inbound and outbound communication. The emphasis is on human contact and many contact centre services complement full on-line services offered by their organisations. Contact centres are by their very nature customer focused and indeed can be seen as the only organisations whose primary purpose is the delivery of customer service. Consequently, the skills needs of the sector are intrinsically linked with developments in the world of generic customer service skills development. There are also economic, social and technological influences on changes in contact centre skills needs. The world of contact centres continues to change but it has become an established part of customer service delivery in many sectors and increasingly in the public sector. The pattern of occupational structures is clarifying as the identity of the sector develops. The management line generally includes operations managers and team leaders with key support roles in Information Technology, Human Resources and training being provided by specialists. The majority of positions (often referred to in the industry as ‘seats’) are for operators or agents with senior agent roles that involve coaching and mentoring of less experienced staff. Further groups of common job roles in the industry are those dealing with resource allocation and management and allocation and specialist monitoring roles dealing with quality assurance by sampling of transactions or dealing with customer complaints. Analysis of the occupational groups shows that the industry employs a majority of females although the proportion is lower in high-level positions. The industry has always included a significant number of part-time positions with an even distribution of gender however, this is not the case for customer service where a higher proportion of females work in the parttime positions. Evidence also suggests that the proportion of part-time jobs is falling in the contact centre industry. The focus of employers with regard to skills needs falls mainly on operators and team leaders. The specialist skills of managers and others are noted but in many cases involve more generic management and IT skills than those specific to contact centres. © Skills CFA 2010 Page 4 of 115 Contact Centre Labour Market Information April 2010 Section 2: Executive summary The skills needed by the majority of the workforce in operator and agent roles, the jobs, in common with many others, involve a blend of customer service and ‘technical’ skills. The ‘technical’ skills vary according to the systems being operated in a particular organisation but in nearly all cases consist of a mix of IT skills to use the system-specific software and telephony skills to use the call handling systems. Alongside these technical skills all contact centre front-line occupations involve empathy with customers, teamwork and reliability as key employer demands. The evidence sourced for this report points clearly to recognition by employers that customer service skills are at the heart of the industry's needs and therefore will be especially relevant to qualifications considered by the industry. No clear pattern and trends emerged from research for this report relating to general skills shortages in industry. There are regional variations and patterns that are included in the report mostly evidenced through available statistics on customer service occupations as a whole. The primary research carried out in this report provided valuable guidance on employer views. Most employers see the acquisition of staff with appropriate personality traits as their main route for combating skills shortages. Most of all, recruitment approaches seek to stress the need for interpersonal and customer skills together with a commitment to the industry rather than seeing agent/operator jobs as transient. Specialist skill shortages (areas where it is hard to recruit candidates with appropriate skills) were mentioned in relation to posts for resource planners, team leaders and outbound calling agents with sales skills. The nature of these shortages in the industry is inevitably entwined with the image of contact centre jobs presented to the outside world. Not too long ago, jobs in call centres were poorly regarded among potential applicants. Employers now report an increase in numbers of those seeking longer term employment. Skills gaps (areas in which there is a need for training and development for existing staff) that concern employers relate mainly to the challenge of keeping pace with technology and communication system changes. Most contact centres operate systems of individual assessment and re-accreditation. These enable the identification of skills gaps down to individual levels. Employers agree that performance monitoring is one of the most effective strategies for identifying and dealing with such gaps. Specific examples of skills gaps have been identified such as the need for young people to develop life skills that they may not have acquired but which are needed for dealing with customers of all ages. More detailed reporting of regional variations relates primarily to the broader customer service skills and enables the identification of specific regional needs. Existing qualifications for contact centre staff have limited take-up. It is known that many contact centre employers have chosen to use customer service qualifications in preference to specific contact centre qualifications. However, it is not possible to quantify this take-up as the place of employment of learners is not on any accessible databases. © Skills CFA 2010 Page 5 of 115 Contact Centre Labour Market Information April 2010 Section 2: Executive summary Many contact centres also choose to incorporate more generic customer service and information and communication technology (ICT) training into their in-house programmes that focus on brand and product training. Once again, it is not possible to quantify those learning activities. Looking to the future, the sector is living down a number of negative image connotations that have become commonplace among many observers. Reductions in staff turnover, greater information demands on agents, more permanent career patterns and less emphasis on the stop-gap nature of jobs in the sector will help a to build a more establishment image for call centre occupations. Employment patterns in the sector are being monitored with greater accuracy by private-sector independent agencies than through government statistics. At least as long as the present growth trends continue, these figures will be of immense interest to learning and qualifications planners. This report helps to identify the key sources of available information and to highlight its important features. © Skills CFA 2010 Page 6 of 115 Contact Centre Labour Market Information April 2010 Section 3: Background to research 3. Background to research 3.1 Scope of the research 3.1.1 Secondary data The secondary data used in this research has been extracted from a variety of sources which include Government statistics e.g. Office for National Statistics, NOMIS, The Data Service, and the DTI, in addition to a range of data maintained by the sector itself. Although some data is available through the Standard Occupational Classification (SOC), 1 within which code 7211 lists data for the employment of ‘Call Centre Agents/Operators’, this data has limitations which are discussed below. It nevertheless provides information that can be compared with other sectors. The classification was introduced under the SOC, sub major group of customer service which was listed as a group for the first time in 2000. Prior to 2000, although employers were repeatedly identifying customer service skills shortages and gaps, there was no recognisable and agreed classification of customer service jobs and hence of jobs such as call centre operators and agents under that umbrella term. Another valuable source of secondary data for the sector is provided by a private research agency, ContactBabel 2. This company has assembled a directory of over 3,400 UK contact centres from which, using statistical extrapolation, quantitative conclusions can be drawn within reasonable confidence limits. Once again, the integrity and validity of this data source for the purpose of this report is examined below. Finally, in relation to secondary data, a report on Customer Service LMI produced by the Institute of Customer Service (ICS) 3 also offers valuable source material. This involves a special relationship between the more generic customer service occupational description and the more specific contact centre classification. It is based on the undisputed fact that customer service provision is central to the work of all contact centres and indeed that few other organisations have customer service as such a core activity. The importance and validity of this link is discussed below. 3.1.2 Primary data For the purposes of this report, primary data has been collected principally from industry groupings. Focus groups have been held specifically relating to the LMI project and contact centre LMI topics were included in some eight further focus groups held for broader customer service purposes. An analysis of participants in all these meetings is shown in Appendix 1. Once again, the validity of this research source is explored below. However, the use of industry groupings for consultation with employers was seen as appropriate in organisations for which contact centre activity is not their core business but simply a means of delivering customer service. 1 2 3 Standard Occupational Classification 2000 Volume 1, June 2000 UK Contact Centres in 2008, The State of the Industry (6th Edition), ContactBabel, July 2008. Customer Service Employment and Skills, now and the future, ICS, 2008. © Skills CFA 2010 Page 7 of 115 Contact Centre Labour Market Information April 2010 Section 3: Background to research The project team has made site visits to a varied range of contact centres. These are listed in Appendix 1. In addition to identifying the variety of tasks undertaken by different types of centre, the visits gave the team an opportunity to explore employment and occupational patterns. In particular, the visits were used to establish how different centres train and develop their teams. 3.2 Methodological issues and information validity 3.2.1 Contact centre definitions and activities The term contact centre has evolved from earlier references to call centres and has now become industry standard. Whilst still relatively young as terminology, there is some standardisation in the terms used that is reflected especially among the industry groupings quoted elsewhere in this report. There is no single definition of a contact centre but research for this project has explored industry perceptions of the limits of any definition that might be agreed. When the topic is raised people generally seek a definition that includes: the smallest size in terms of number of agents/operators the communication channels used in addition to telephony that is seen as standard the nature of the exchanges and hence any overlap especially with sales occupations. There is general acceptance that a contact centre may be a single department or section of an organisation in a defined occupational sector or may be an organisation dedicated to contact centre activities on behalf of clients in other sectors (this is often referred to as ‘outsourcing’ and should not be confused with the ‘off-shoring’ of activities overseas). ICS focus groups4 were asked to identify the key words for inclusion in a definition of a contact centre. It was never intended that a perfect definition should emerge designed by committee. However, there was a considerable level of agreement among participants that any definition should include: recognition that the primary purpose of a contact centre is to provide customer service 4 against whatever service offer is agreed reference to the channels of communication to be used by the centre (but excluding face-to-face transactions) no restrictive statements of the nature of the business transacted in terms of it being sales related, inbound or outbound, information provision, public administration or for other purposes reference to an infrastructure of contact centre procedures, technology and protocol that makes the centre more than simply a collection of separate customer service agents recognition of adherence to compliance requirements relevant to the centre’s business See Focus Group members at Appendix 1 © Skills CFA 2010 Page 8 of 115 Contact Centre Labour Market Information April 2010 Section 3: Background to research a structure that allows referral of more complex or difficult transactions to specialists or to those with more authority recognition that the establishment is set up essentially to deal with high volumes of transactions a link with the brand message of the organisation. Above all, there was a wish among participants to stress the professionalism within contact centre services and to emphasise the considerable development of the industry beyond its early call centre image. The matter over which there was least general agreement related to the inclusion or exclusion of face-to-face customer service centres. It was recognised by many that such centres, if dealing with high transaction volumes, have much in common with contact centres dealing with customers remotely. However, for the purposes of this project and future demarcation of contact centre and generic customer service competences and skills, it is likely that face-to-face customer service operations will not be included in the contact centre boundaries. In order to establish the boundaries of the sector for this report, it may be appropriate to accept a working definition that a contact centre is any operational unit that is happy to be described as a contact centre. In practice, the boundaries are described by the membership of trade bodies and internal organisational references to the call centre or contact centre function. Above all, it is important that the definitions should not become exclusive as contact centre activities cross many sector boundaries. Rapidly changing working practices and technology will continue to shift the boundaries. 3.2.2 Contact centres and customer service It is worth noting a challenge that is faced in researching and reporting on contact centre skills. Arguably, contact centres are simply a sub-set of pan-sector customer service occupations with their generic nature and dedicated set of National Occupational Standards (NOS) competences. Indeed, within the SOC data sets the most common occupation within contact centres is classified as a sub-set of customer service occupations. However, there are good reasons why, for the purposes of this report, contact centre occupations should not be seen in this way in that they have to this point been treated separately with a discrete set of NOS in existence which support a range of bespoke contact centre qualifications under the broader customer service umbrella contact centres are unique in that their whole raison d’être can be seen as the provision of customer service. A useful parallel can be drawn with IT skills in that, while nearly all organisations use IT, there is a specific group of organisations whose whole business is IT and hence who have particular needs that are distinct from those of IT user organisations. © Skills CFA 2010 Page 9 of 115 Contact Centre Labour Market Information April 2010 Section 3: Background to research One further issue that should be noted relates to potential overlap between contact centre occupations and sales. The link with sales is explored in the ICS report of Customer Service LMI 5. An indeterminate proportion of contact centres are involved in sales through either outbound or inbound contacts. Many of those who are involved take sales opportunities as a consequence of initial customer service contact. However, the overlap with sales has been recognised in customer service research and thus should also be noted in this LMI study. 3.2.3 Data source strengths and limitations The principal data sources supporting this LMI study are listed in Section 3.1 above. As with any research of this kind, the data has certain strengths but also has limitations. Whilst as a complete set it may present sound evidence for the project, it is best to be aware of the characteristics of each source. The SOC statistics maintained by the Office of National Statistics (ONS) have the benefit of being official Government statistics that provide long term data from which to identify trends. The limitation of this source is that many of the core statistics are drawn from Neighbourhood Surveys in which respondents are asked to classify the main business of their employer. This means that returns from that survey tend to include only outsourced contact centre operations and do not include those contact centres that are operated by organisations in-house. The independent commercial database offered by ContactBabel 6 offers significant benefits over this as it starts from an organisational base. Covering in excess of 65 per cent of the estimated total number of contact centres in the UK and with members offering reliable information, figures can be extrapolated to give a broad view of the industry within reasonable confidence limits. The limitation of this data source is that, in order to draw more general conclusions, an assumption must be made that the membership is representative of the industry as a whole. No obvious reason to believe that this is not the case. The Customer Service LMI was recognised as a very sound analysis of that pan-sector occupational group. At the time it did not make extensive reference to contact centres but it is known that many customer service qualifications are offered within those businesses. One limitation of the report as a data source is that it is very useful as an umbrella view of customer facing occupations but provides somewhat more limited information about contact centres in certain areas. In addition, it is recognised following the Institute’s recent takeover of the contact centres standards that inadequate take-up figures are available. This is currently being addressed and is one of the reasons priority three focuses on the need for closer monitoring. 3.2.4 Employment levels in contact centres 5 6 Customer Service Employment and Skills, Now and for the Future, ICS, 2008 UK Contact Centres in 2008, The State of the Industry (6th Edition) Contact Babel, July 2008 © Skills CFA 2010 2010 Page 10 of 115 Contact Centre Labour Market Information April Section 3: Background to research Some of the difficulties associated with estimating the numbers employed in contact centres have already been mentioned. As a relatively new occupational innovation, contact centre numbers have been tracked only since 2000. As with customer service data, it is important to separate contact centre functions from purely sales functions. However, this separation presents less challenge than it does to the generic customer service area. Indeed the employment figures presented in this report can be viewed with considerable confidence. The most reliable source of employment information for the sector as a whole is ContactBabel. In July 2008, they reported the existence of 5,180 contact centres in the UK employing 638,250 people as agents. Contact centres with 250 or more agent positions employ 52% of the staff despite representing just 8.5% of contact centre sites. The mean contact centre size is 123 agent positions. There are nearly 4,000 contact centres with 100 agents or fewer representing 76% of the sites but employing just 26% of the agents. 3.2.5 Replacement demand In Section 10 of this report, employment projections are based on the total number of jobs that are expected to be available in the period to 2011. These numbers represent expansion demand in the sector. However, this does not cover a whole range of demand for extra entrants into the sector to replace those leaving through retirement, career changes, maternity leave and many other departures. Even if a sector predicts an overall decline in numbers, it may still offer a significant number of job vacancies to replace workers who leave the occupation. In this report, only expansion demand is used for employment projections whilst recognising that replacement demand has an effect on demand for skills development in the sector. For further information regarding replacement demand see Sector Skills Development Agency (SSDA) Working Futures 2004-2014 7. Table 3.1 UK, all industries Replacement demand by SOC sub major group 2004-2014 Replacement Expansion demand demand (retirements and mortality) UK, all industries Corporate Managers Managers and Proprietors Science/Tech Professionals Health Professionals Teaching/Research Professionals Business/Public service Professionals Science Associate Professionals Health Associate Professionals Protective Service Occupations Culture/Media/Sport Occupations Bus/Public Service Associate Professionals Admin and Clerical Occupations 7 000s 000s 696 -79 177 84 319 117 75 85 0 154 143 -89 1,225 445 272 103 639 296 180 422 98 219 526 1,086 Net requirement (excluding occupational mobility) 000s 1,921 366 449 187 958 413 255 506 98 372 669 998 SSDA Working Futures 2004-2014: National Report, Chapter 5; (January 2006, Institute for Employment Research, University of Warwick) © Skills CFA 2010 2010 Page 11 of 115 Contact Centre Labour Market Information April Section 3: Background to research Table 3.1 UK, all industries Replacement demand by SOC sub major group 2004-2014 Replacement Expansion demand demand (retirements and mortality) Net requirement (excluding occupational mobility) Secretarial and Related Occupations -238 437 Skilled Agricultural Trades 57 157 Skilled Metal/Electrical Trades -340 385 Skilled Construction Trades 226 367 Other Skilled Trades -93 225 Caring Personal Service Occupation 387 682 Leisure/Other Personal Service Occupation 37 219 Sales Occupations 239 711 Customer Service Occupations 136 140 Process Plant and Machinery Operatives -309 408 Transport Drivers and Operatives 190 419 Elementary: Trades/Plant/Machinery -372 324 Elementary: Clerical/Service -303 910 All Occupations 1,300 10,894 Source: CE/IER estimates, based on LEFM Replacement Demand Module, MDM01R1 C51F8A Forecast, ReplacementDemand.xls, (Table5.1). 199 214 45 593 132 1,069 256 950 276 100 610 -48 606 12,194 No evidence is available from Government sources regarding the numbers needed to meet replacement demand specifically for contact centres. However other reliable sources of information provide indications of replacement demand by examining turnover and attrition rates. The contact centre sector has had a reputation for high staff turnover and hence attrition rates provide an indicator of likely replacement demand. The 2004 DTI report 8 analyses attrition by economic sector and by region as shown in Tables 3.2 and 3.3. It should be noted that these rates are for agent positions alone. A comparison with 2008 is also made using figures from a 2008 report by ContactBabel which uses similar sources and methodology as the earlier DTI report. Table 3.2 Annual agent attrition rate by economic sector Economic sector of contact centres Annual attrition rate 2004 Annual attrition rate 2008 Outsourcing 35.7% 43% Telecoms 15.3% 14% Transport and travel 12.9% 15% Retail and distribution 12.7% 15% Finance 11.5% 27% Utilities 10.4% 14% Public services 9.8% 9% IT 8.6% 30% All contact centres 14.5% 23.9% Source : DTI 2004 - The UK contact centre industry: A study and UK Contact Centres in 2008, The State of the Industry (6th Edition), ContactBabel, July 2008. The DTI 2004 report summarised that: “The outsourcing sector has staff attrition rates far in excess of any other sector, certainly driven in part by the campaign-based nature of much of the business. This sector pays 8 The UK Contact Centre Industry: A Study: May 2004 © Skills CFA 2010 2010 Page 12 of 115 Contact Centre Labour Market Information April Section 3: Background to research agents least, and often deals in work which is proven to increase staff attrition: high-volume, outbound cold calling on a dialler.” 9 It is evident that this is still true in 2008 and that some other sectors, notably finance and IT suffer high turnover, probably due to structural and economic changes that have affected those sectors. The figures shown in Table 3.3 below make it clear that attrition rates have risen dramatically in all regions. Most of the movement shown in Table 3.2 above is in the outsourcing sector. Table 3.3 Region Northern Ireland Scotland Wales London West Midlands North-West East Midlands East Anglia South-East Yorkshire South-West North-East UK average rate Annual agent attrition rate by region Attrition rate 2004 16.7% 19.7% 10.1% 18.3% 14.1% 15.9% 9.7% 13.7% 14.1% 15.1% 16.3% 7.8% 14.5% Attrition rate 2008 26% 24% 16% 37% 29% 28% 26% 22% 22% 20% 20% 16% 23.9% Source : DTI 2004 - The UK contact centre industry: A study and UK Contact Centres in 2008, The State of the Industry (6th Edition), ContactBabel, July 2008. The DTI report provides further useful data regarding the average length of service for contact centre agents in different sectors as shown in Table 3.4. Length of agent service by economic sector Economic sector Length of agent service (months) Telecoms 26 Outsourcing 28 IT 35 Finance 41 Transport and travel 43 Utilities 44 Retail and distribution 46 Public services 51 Average for all sectors 39 Source : DTI 2004 - The UK contact centre industry: A study Table 3.4 The challenges presented when locating appropriate data sources for replacement demand in contact centre occupations provide a good indication of the difficulties involved in 9 Ibid © Skills CFA 2010 2010 Page 13 of 115 Contact Centre Labour Market Information April Section 3: Background to research tracking detailed employment information about contact centres in general. The problem arises from two sources in that: the relatively recent development of contact centre occupations means that their inclusion in broader statistical bases has still to be clarified the cross-sector nature of the contact centre function combined with choices that organisations make about outsourcing, in-house operation and off-shoring make it difficult to build confidence that all employers of contact centre occupations are included in any statistics. The high attrition rates recorded in available statistics contrast somewhat with length of service data from 2004. These figures indicate that contact centres in specific sectors tend to have longer than average agent service whereas outsourcing and telecoms agents tend to move on quicker. Whilst the evidence is not totally clear from available figures, primary research sources suggest that fewer agents are using the contact centre route solely as a stopgap or stepping stone before settling on a different career route. To some extent this results from employer actions with highly developed selection processes seeking to ensure that there is proper long term commitment. 3.2.6 Standard Occupational Classification (SOC) groups The Office for National Statistics (ONS) published the first Standard Occupational Classification (SOC) Codes in 1990 which replaced the Classification of Occupations 1980 (CO80) and the Classification of Occupations and Dictionary of Occupational Titles (CODOT). The SOC 1990 was revised and updated by ONS to produce SOC 2000. New codings were introduced in SOC 2000 to reflect changes in patterns of employment over the previous 10 years. The growth in the number of jobs characterised by employers as ‘customer service’ was one such change and the recognition of customer service as an occupation at sub major Level 72 as shown in Table 3.5 was a step forwards in terms of related data collection . However the ongoing issue of distinguishing between customer service and sales occupations continues, particularly as much of the data available focuses on major unit groups bringing sales and customer service together as Unit 7 with no opportunity to gather alternative data between the two. Once again it should be noted that call centre operators at 7211 are a subset of the sub major 7200 customer service occupational group. Table 3.5 © Skills CFA 2010 2010 The SOC major and sub-major unit group structure of all occupations Standard Occupational Classification (7) is shown below: Page 14 of 115 Contact Centre Labour Market Information April Section 3: Background to research Major 1 2 3 4 5 6 7 8 9 Sub major MANAGERS AND SENIOR OFFICIALS 11 Corporate Managers 12 Managers and proprietors in agricultural services PROFESSIONAL OCCUPATIONS 21 Science and technology professionals 22 Health professionals 23 Teaching and research professionals 24 Business and public services professionals ASSOCIATE PROFESSIONAL AND TECHNICAL OCCUPATIONS 31 Science and technology associate professionals 32 Health and social welfare associate professionals 33 Protective service operations 34 Culture, media and sports occupations 35 Business and public services associate professionals ADMINISTRATIVE AND SECRETARIAL OCCUPATIONS 41 Administrative occupations 42 Secretarial and related occupations SKILLED TRADES OCCUPATIONS 51 Skilled agricultural trades 52 Skilled metal and electrical trades 53 Skilled construction and building trades 54 Textiles, printing and other skilled trades PERSONAL SERVICE OCCUPATIONS 61 Caring personal service occupations 62 Leisure and other personal service occupations SALES AND CUSTOMER SERVICE OCCUPATIONS 71 Sales occupations 72 Customer service occupations PROCESS, PLANT AND MACHINE OPERATIVES 81 Process, plant and machine operatives 82 Transport and mobile machine drivers and operatives ELEMENTARY OCCUPATIONS 91 Elementary trades, plant and storage related occupations 92 Elementary administration and service occupations © Standard Occupational Classification 2000 Volume 1, June 2000 Within the major and sub-major occupational classifications sit the specific occupational groups for each sub-major group. The occupations underlying group 72 – ‘customer service occupations’ are shown in Table 3.6 below where Call Centre Agents/Operators are listed at 7211. Table 3.6 © Skills CFA 2010 2010 Minor Group Classification for Major Group 7, Customer Service Occupations Page 15 of 115 Contact Centre Labour Market Information April Section 3: Background to research Major Group 7 Sub Major Group Minor Group 71 Sales occupations 72 Customer service occupations 721 Customer service occupations 7211 Call centre agents/operators 7212 Customer care occupations Call centre agents/operators are further described in the SOC 2000 as follows: “Call centre agents and operators receive telephone calls from potential clients and existing customers regarding the products and services offered by an organisation. Typical Entry Routes and Associated Qualifications There are no formal academic entry requirements, although many employers expect candidates to possess GCSEs/S grades. Training is typically provided on-the-job, supplemented by specialist short courses. Tasks answers incoming telephone calls from existing or prospective customers; interviews caller to establish the nature of any complaint or the requirements of the client; informs existing and potential customers on any immediate action to be taken, advises on services available and sells additional products or services; maintains details of calls received, the action taken as a result of a call and updates customer records as required; arranges for field staff to visit the caller if further assistance is required. Related Job Titles Answer line operator Sales order clerk Telephone adviser This historic view of call centre agents/operators developed for the year 2000 is obviously very simplistic given the technological changes that have taken place. As this report shows, numerous models of contact centres have now evolved to meet the many challenges of service technology and raised customer expectations. However statistical evidence of contact centre activity continues to be elusive due to lack of higher level positioning within the SIC and SOC codings. With the development of SOC 2010 four sub groups for contact centre work have been designated under 72 Customer Service Occupations as shown in Table 3.7. This is seen as a positive move in terms of greater choice of role. However, statistical data is still likely to be unavailable with most Government research concentrating on SIC codes and/or SOC codes at the one, two or three digit level only. © Skills CFA 2010 2010 Page 16 of 115 Contact Centre Labour Market Information April Section 3: Background to research Nevertheless what is obvious from this addition is that contact centre work remains firmly within customer service occupations which reinforces other evidence found in this research whereby ‘contact centres’ are intrinsically linked to customer service. Table 3.7 Revision of Standard Occupational Classification (SOC) 2010 Summary of proposed changes to Sales and Customer Service Occupations SOC 2010 Title SOC 2000 7 SALES AND CUSTOMER SERVICE OCCUPATIONS 7 71 SALES OCCUPATIONS 71 711 Sales Assistants and Retail Cashiers 711 7111 7112 7113 7114 7115 Sales and retail assistants Retail cashiers and check-out operators Telephone salespersons Pharmacy and other dispensing assistants Vehicle and parts salespersons and advisers 7111pt 7112pt 7113pt 3217pt, 7111pt 3542pt, 7111pt 712 Sales Related Occupations 712 7121 7122 7123 7124 7125 7129 Collector salespersons and credit agents Debt, rent and other cash collectors Roundspersons and van salespersons Market and street traders and assistants Merchandisers and window dressers Sales related occupations n.e.c. 7121 7122 7123 7124 7125 7129 713 Sales supervisors 711 7130 Sales supervisors 7111-3 72 CUSTOMER SERVICE OCCUPATIONS 72 721 Customer Service Occupations 721 7211 7213 7214 7215 7212 Call and contact centre occupations Telephonists Communication operators Market research interviewers Customer service occupations 7211pt 4141pt 4142 4137 7212pt 722 Customer service managers and supervisors 114pt, 721pt 7220 Customer service managers and supervisors 1142, 7211pt, 7212pt Source: ONS: REVISION OF THE STANDARD OCCUPATIONAL CLASSIFICATION (SOC); Summary of proposed changes to the major groups. June 2009 © Skills CFA 2010 2010 Page 17 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context 4. Contact centres in the wider context 4.1 What is a contact centre? 4.1.1 The criteria for defining a contact centre For a long time the term call centre tended to be used for operations that were largely based on telephony and most of all dealt with inbound calls from customers. It is fair to say that the term ‘call centre’ developed relatively negative connotations with both customers and employees (and hence potential employees). The term contact centre developed as the activities undertaken by call centres broadened and the channels of communication which they use multiplied. More recently, ‘contact centre’ has become the term which is generic to the sector and encompasses the few operations that are still referred to as ‘call centres’. So the principal criterion for describing a business operation or part of a business operation as a ‘contact centre’ is that its main activity involves contact with customers. It is generally agreed that this includes either inbound or outbound traffic or both and that the channel of communication is immaterial. However, there is also some agreement that customer service centres which major on face-to face contact are not seen as ‘contact centres’. An exception to this may be in the public sector where local authorities in particular often promote ‘one stop shop’ customer contact centres which include drop in, face to face services. The size of the operation is immaterial although an arbitrary distinction is sometimes made to classify centres with fewer than ten operators as ‘mini-centres’ and subsequently to exclude them from statistics measuring the concentration of staff in a few large centres. This report is therefore not suggesting a specific definition of a contact centre. However, taking into account comments made in all the intelligence sources used, it is reasonable to suggest that any such definition should include recognition that a contact centre is a centralised function to deal with contact and communication with customers employs people in mainly similar roles using structured, process methodology may use telephony, web, e-mail, post or other channels of communication at a distance has a minimum of ten staff directly involved in customer contact processes may deal with inbound or outbound traffic or both. These criteria would surely satisfy all those in the sector who may need to devise a specific description or definition. The criteria show a clear match with views expressed during primary research meetings and outlined in Section 3.2.1 of this report. 4.1.2 Evolution and change Aspects of the future of contact centres are examined later in this section of the report. Nevertheless, it is worth noting that the current criteria that are appropriate for defining a contact centre are changing constantly and rapidly. Organisations involved are innovating in relation to distribution, information provision, on-line transactions, service provision and emergency services contact. © Skills CFA 2010 2010 Page 18 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context In the coming period it will be important, therefore, not to be as restrictive with the meaning of ‘contact centre’ as earlier was the case with the use of the term ‘call centre’. 4.2 Contact centres and the information explosion 4.2.1 Contact centres as a complement to on-line services Many of the organisations operating contact centres also offer on-line service delivery. Constant re-evaluation of investment in these two differing channels of service delivery is a feature of many larger organisations as they seek to gain competitive or public recognition advantage by making access and delivery easier for customers. Purely in terms of cost effectiveness, the need for human intervention in a contact centre transaction will always make that method more costly. However, that is rarely seen as the sole reason for choosing to provide service through a particular channel. Increasingly, the sheer volume of information that can be made available to customers is influencing decisions about the way service is delivered. 4.2.2 The need for human contact Making more information available to customers on-line also involves greater complexity of website design and the need for increasingly sophisticated navigation through the site. This in turn increases the likelihood of a customer needing to have a direct conversation to achieve their service aims. There are clear indications that in the future automation especially through voice recognition systems will increase. However, for the foreseeable future, there are equally clear indications that customer expectations, partly simply through personal preference, will be to deal with a person. The balance of these trends has clear implications for skills needs within contact centres in the foreseeable future. 4.3 Factors influencing changing customer expectations of contact centres 4.3.1 Links with general customer service developments The LMI 10 in customer service identifies key factors influencing changing customer service expectations. Those changes are supported by commentaries on customer expectations recorded in that report and include: “The trend of rising skills required to do jobs seen since the 1990s may be expected to continue as a result of … the increasing tendency of consumers to demand products and services tailored to their individual needs” 11 “Today’s customer ‘wow’ is tomorrow’s ‘what I’m now expecting’” 12 10 Customer Service Employment and Skills, now and the future, ICS, 2008. Skills in the Global Economy, DfES, 2004 12 Carnival UK, ICS Employer Focus Group, 2007 11 © Skills CFA 2010 2010 Page 19 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context “Increasingly what customers need from us [local councils] is a bespoke service and so this idea that we need set processes that work every time just falls down again and again because the individual customer needs a bespoke service.” 13 “Public services have to be refocused around the needs of the customer not the problems of those who provide the service.” 14 “20 years ago 65% of people thought that those in charge knew what was best for them. Now less than 20% feel this.” 15 “It used to be that a dissatisfied customer would tell 10 other people whereas now, using the Internet, it’s probably thousands.” 16 “In 1978, 61% of UK jobs were in services. By 2005 this had risen to 82%.” 17 “It is increasingly apparent that producers of goods or services who fail to adapt to the changing global environment are less likely to succeed in the 21st Century.15 18 These views of customer service are clearly significant for contact centres and are driving change as well as other influences described below. It is inevitable that the development and direction taken by customer service will continue to influence many aspects of occupations in the contact centre sector. 4.3.2 Economic influences The economic factors influencing the development of contact centres include: an increasingly service-led UK economy (over 70% of UK GDP and 80% of UK employment is service based) increasing concentration of distribution and service industries into larger organisations that can support contact centre operations global business developments which mean that organisations are not restricted by national boundaries the need to cater effectively for customer expectations for consistent reliable customer service that are transferred across national boundaries national economic pressures to produce growth in the service sectors to replace the economic contribution of the manufacturing and other sectors of the economy economic pressures favouring off-shoring for some contact centre operations where the quality of service can be maintained 13 London Borough of Haringey, ICS Employer Focus Group, 2007 Tony Blair when Prime Minister, New Year Message, 2003 15 Ipsos MORI, 2007 16 ICS Employer Focus Group, 2007 17 National Statistics Office, 2005 18 M. Milakovich, Improving Service Quality in a Global Economy. CRC Press, 2006 14 © Skills CFA 2010 2010 Page 20 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context 4.3.3 Social influences Changing social and customer behaviour patterns that could influence contact centre developments include: a more assertive stance by customers requiring more of service suppliers changes in the way people do business with a wide range of service providers because of increased use of on-line services especially in information gathering, booking services and retailing ongoing increase in the use of debit and credit cards rather than cash and cheques making contact centre transactions more possible increasing access to broadband connection in domestic premises enabling people to transact business involving contact centres around the clock. 4.3.4 Technological influences Contact centre services by their very nature involve significant reliance on technology. Technological developments that will continue to influence contact centres include: rapid advances in communications technology enabling multimedia contact with customers round the clock and wherever they are information security developments combating the financial and identity risks involved in transacting business on-line advances in automated response systems especially using voice recognition reducing the demand for operator time when dealing with calls. 4.3.5 International influences Contact centres are spread worldwide and are thus subject to a range of international influences including: ongoing debate about the benefits and drawbacks of ‘off-shoring’ contact centre operations the increasingly global acceptance of common customer service skill sets needed by front-line staff a common understanding about the importance of customer service across industries and countries the acceptance and relevance of the UK National Occupational Standards in Customer Service. © Skills CFA 2010 2010 Page 21 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context 4.4 Industry Groupings 4.4.1 Introduction The Contact Centre sector has emerged and developed as an identifiable occupational group quite quickly. For whatever reasons, the growth pattern has been accompanied by the emergence of many trade associations and groupings. The approach and objectives of those organisations naturally vary. However, they provide a platform for dealing with matters of mutual interest and sharing best practice in areas where members are not in direct competition. This section of the report is not intended to provide a comprehensive list of all such organisations and their members or to be in any way evaluative about the services they provide. The topic is addressed here by outlining the profile of just four organisations as examples. The nature of these organisations is clearly relevant to labour markets in the sector as each one of them becomes involved especially with the HR and training functions as well as operations managers from the sector. For future reference, particularly in connection with qualifications strategy and other sequels to the LMI reports, the associations may well be seen as an important source of representative information about the sector providing they are willing to share the information they have. 4.4.2 Example 1 – The Welsh Contact Centre Forum Information available on www.callcentrewales.com indicates that the Forum deals with all different sizes of contact centre regarding benchmarking, networking, new ideas and innovations. The Forum also offers help and advice to members on employment and recruitment matters. The methods used for sharing this information include: workshops and seminars an annual conference an awards competition and ceremony training courses on-line benchmarking information available only to members helpline information and support. These services are available to the corporate membership and are coordinated by a small staff team. An example of the Forum’s industry role was a research project undertaken on behalf of International Business Wales analysing contact centre activity in Wales in June 2007. The information in that report has contributed to the regional trends traced elsewhere in this report and provides valuable referral data to underpin more detailed future actions. The Forum’s commitment to the sector was demonstrated by the part it played in coordinating and publicising the ICS focus group activity included in the primary research for this report. The ICS would like to acknowledge the help and support given by the Forum in this regard. © Skills CFA 2010 2010 Page 22 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context 4.4.3 Example 2 – CallNorthWest The establishment of CallNorthWest was sponsored by the Northwest Regional Development Agency and the University of Central Lancashire in 2003. The organisation aims to support the call and contact centre sector in the North-West of England. As a networking organisation, the main focus of its activities is around regional networking to develop, identify and share good practice training and development identifying industry knowledge and understanding needs developing industry image and challenging negative perceptions about employment in the sector. The organisation pursues these aims through training, awards and general discussion events. In addition, it reports annually on an overview of contact centres in the region. The latest available report for 2008 has been used for regional analysis elsewhere in this report. There are in the order of 120 corporate members of CallNorthWest as reported on the website www.callnorthwest.org.uk Once again, the information held by this organisation provides a valuable further source of detail for future extensions of the LMI project. The organisation’s commitment to the industry was demonstrated by the support and assistance it provided to the ICS in organising a focus group to contribute to primary research for this project. The ICS acknowledges and thanks CallNorthWest for that support. 4.4.4 Example 3 - South West Contact Centre Forum The South West Contact Centre Forum was formed relatively recently modelled on other regional organisations. Growth of contact centre employment in the region resulted in a realisation that a number of employers share an interest in skills and employment trends. The Forum seeks to make contact centres heard and to influence the shape of the industry in the South West. The organisation offers services to members that include: industry updates at regional and national levels advice and mechanisms for networking within the contact centre industry conferences, seminars and special interest meetings help-desk advice and information benchmarking models access to supply chain information regular best practice events and workshops. The South West Contact Centre Forum as a relative newcomer showed its commitment to the industry by helping the ICS to assemble a focus group as primary research for this project the ICS acknowledges and thanks the Forum for that help. © Skills CFA 2010 2010 Page 23 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context 4.4.5 Example 4 – The Contact Centre Association The Contact Centre Association bases its membership offer on the implementation of the CCA Global Standard, an organisational accreditation demonstrating the meeting of performance standards. The standards were developed in partnership with a number of large organisations and represent an insight into the way big brands deliver customer service through contact centres. The CCA website reports that over 250 contact centres out of the estimated 5,300 in the UK have successfully implemented the CCA Global Standard and their website lists 112 accredited member organisations. The Association was established in 1996 as an independent organisation and in May 2004 had over 600 corporate members from the public and private sectors across the UK. It offers individual training as well as organisational accreditation. The organisation commissions and carries out industry research to develop the pool of independent industry knowledge on employment, technical and location matters. The Contact Centre Association did not participate in the consultation process for this report. However, it is believed that a number of its member organisations were represented in the primary research focus groups. The membership also displays significant overlap with the ContactBabel subscription list from which many industry statistics have been drawn for this report. 4.5 Contact centres and the future 4.5.1 Customer service trends The report 19 outlines findings about employer views of: changes in customer behaviour and customer expectations expectations about further changes in the future. Employers report that they are experiencing fundamental changes in customer behaviour and customer expectations. These changes can be summarised as follows: Customers are no longer willing to be the passive recipients of service standards with which they are unhappy. Similarly the inertia which in the past was assumed to stop customers taking their business elsewhere has reduced significantly: there is a far greater willingness, particularly but by no means exclusively among the young, to switch suppliers in cases of dissatisfaction. Customers are also far more vocal in sharing their dissatisfaction with others, including through use of the internet 19 Customer Service Employment and Skills, Now and in the Future, Institute of Customer Service (ICS), 2008 © Skills CFA 2010 2010 Page 24 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context “The biggest change I’ve noticed is that customers are much more aware of what they want and expect and much more prepared to fight for it to the extent of involving outside organisations and bodies for support when they don’t feel they are getting the right treatment” 20 “Customers are much more willing to challenge things. I think this is to do with them being more secure financially and their basic needs met” 21 “In the business-to-business environment, expectations have risen significantly partly driven by the standards which business customers expect themselves as consumers outside work and partly because, having put effort into improving their own customer service, they expect their suppliers to do the same” 22 “ Financial services customers are grasping the idea that you can move bank, insurance company or whatever – this has had a huge impact on the service drive because now our customers use their biggest weapon, which is to vote with their feet” 23 “Customers are more demanding for example for round-the-clock access time and faster response times. This is coupled with less willingness to wait”. “Their expectations are a lot higher and I believe a lot of us deal with the fact that people travel in the world, they’re on the internet, they can see what best practice is and they want that best practice in their own back yard” 24 Customers are less tolerant and far more willing to complain all or most of time if dissatisfied. “In the period 2004 to 2006, there has been a 10% increase in the willingness of customers to complain where they think this is justified” 25 Customers are more likely to make cross-sector comparisons “Our customers compare our service delivery with what they get from the local Boots and the local Post Office. They don’t care that we’re the local council – they’ve got expectations of what service they should get anywhere” 26 “If customers ring a contact centre and they take a long time to answer, customers don’t compare them with another contact centre in that market – they compare them with all contact centres” 27 Customers have a greater desire for tailored products and services “There’s a very big drive – certainly in our part of the financial services industry – for customers to want to set the agenda to almost determine their own terms and conditions” 28 20 Carnival UK, ICS Employer Focus Group, 2007 ICS Employer Focus Group, 2007 22 DHL, ICS Employer Focus Group, 2007 23 Lloyds TSB,, ICS Employer Focus Group, 2007 24 Northern Ireland Railways, ICS Employer Focus Group, 2007 25 National Complaints Culture Survey, TMI/ICS, 2006 26 London Borough of Haringey, ICS Employer Focus Group, 2007 27 ICS Employer Focus Group 2007 21 © Skills CFA 2010 2010 Page 25 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context Employers expect customer expectations to continue to rise and that organisations will need to focus on keeping up with and preferably exceeding, those expectations. Employers also see the need for additional interventions, for example: involving customers much more in the development of products and services enhancing customers’ emotional engagement with their organisation educating and informing customers better. “I do think that customers will develop products more and more rather than organisations. We’ve got a chat room on our website where we encourage customers to talk to each other and we have taken information from that chat environment and developed our products or our services in light of what they say … and you get comments back – “they listen, they’ve done it” … and they’ve given us credit for that … and I do think that customers will be dictating what they want from organisations more and more” 29 “It’s how to develop intelligent customers and not just provide products that waste money or encourage poor behaviour, thinking about the longer term environmental or other issues – and that will continue to be a challenge, I think, for the foreseeable future” 30 “What’s changing is the relationship between the service provider and the customer. The customer is driving that relationship much more and will increasingly do so to the point at which there will be a blur almost between who is the customer in this relationship.” 31 “Competition is the big word in our part of the world and what will really define financial services, particularly the banks, will be how you deliver service – it won’t be your products, or even your rates – it will now genuinely be how you deliver those to the customer” 32 Some employers welcome the continuing challenges: “I embrace customers’ expectations rising because I think it’s the life force that drives us to be a better and successful organisation and therefore more profitable, or whatever it is that signifies” 33 4.5.2 Contact centre trends Largely as a result of the rapid pace of change of communication methods and their associated technology, trends in contact centres are hard to predict into the future. There are many predictions which are by their nature speculative but some patterns emerge which will provide guidance on the skills needs of the sector as it develops. Trends that are already evident provide the best indicators for likely directions in the future. 28 Ibid ICS Employer Focus Group 2007 30 DHL, ICS Employer Focus Group 2007The British Council, ICS Employer Focus Group, 2007 31 The British Council, ICS Employer Focus Group, 2007 32 Lloyds TSB, ICS Employer Focus Group, 2007 33 ICS Employer Focus Group, 2007 29 © Skills CFA 2010 2010 Page 26 of 115 Contact Centre Labour Market Information April Section 4: Contact centres in the wider context The most evident change that is taking place is the move towards self-service. As a complement to their contact centre services, many organisations are simultaneously developing their on-line or automated telephony systems. Self service through either of these routes without human intervention is designed to give customers what they want quickly and directly. It is generally recognised that when complications come into the transaction it may be appropriate to offer human contact. Some organisations are seeking to personalise self-service with the use of avatars (on-line, virtual representatives). There are also developments which involve a contact centre operator dealing with multiple customers by ‘supervising’ the activities of avatars and directing the service route when necessary. Although these developments are relatively recent, it is clear that organisations will continue to explore the options as they present opportunities for significant reductions in cost of service delivery through a reduction in the number of contact centre operators. From the customer’s point of view, increased access to broadband and increased familiarity with self-service processes is likely to reduce the number of occasions on which a transaction involves contact with a person in an organisation. Younger customers in particular are expected to embrace these developments but it is generally recognised that all customer expectations will continue to rise. This is likely to lead to a demand for choice in the way contact is made with an organisation even if that involves variation of the service offer and price of each route. The predicted outcome of these changes is that service involving contact centres will increasingly be split between self-service and personal contact centre support. What this split would mean for the organisation of contact centre operations remains to be seen but there would clearly need to be a high level of coordination between front line contact staff and back office functions. All of these factors in turn beg questions about skills requirements in the future. It is generally recognised and predicted that skills requirements for contact centre operators/agents will always involve customer service and people skills. However, it is generally expected that straightforward transactions will be dealt with through self-service. The consequence of this will inevitably be that operators/agents will tend to deal solely with the more complex enquiries. This in turn raises the knowledge and skills demand of the job and implies that a greater proportion of jobs in the sector will be at a higher level. In this and other aspects the nature and extent of change is unknown but it appears certain that there will continue to be significant and rapid change. © Skills CFA 2010 2010 Page 27 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations 5. Contact centre occupations 5.1 Contact centre occupational structures As with any occupational sector, there is no single structure that can be applied to all contact centres. However, there are broad categories and job titles which are generally recognised across the industry in that in addition to the operators/agents which comprise the largest occupational category most contact centres have: operations and client managers who are responsible for the strategy and organisation of the centre and planning resource use and are also the external face of the centre for client organisations (or departments of their own organisation) on whose behalf the centre is operating team leaders who generally work alongside their colleagues but also take supervisory responsibility for team performance, coaching and work allocation key support managers in IT, HR and training roles who provide the infrastructure on which successful team and agent performance depends senior agents who are experienced staff in a particular centre who undertake regular operator duties and may also take on mentoring and coaching duties with new agents new agents who undertake limited operator duties and are still part of a learning process related to the specifics of a centre and/or customer service skills agents with specialist monitoring roles dealing with quality assurance by sampling of transactions and/or processing more complex customer enquiries and complaints. While all of these functions are dealt with in different contact centres, they may not be grouped in exactly the same way into separate occupations. 5.2 Operator/agent occupations These occupations are the mainstay of the sector and the job count by which the size of a centre is generally measured. Most of the jobs involve direct voice contact with customers with a few dealing mainly or solely with on-line or written enquiries. The skills and knowledge required for these occupations can be grouped into two key sets as customer service skills covering the way in which agents relate to people and understand the organisation’s preferred approach to customers specific product and service knowledge and skills relating to what the organisation offers and how its delivery systems work. It is recognised that the skills levels required for these roles differ considerably from centre to centre and also that they are changing as the level of self-service intrudes on current personal contact systems. What is clear is that an accepted wisdom that ‘call centre’ jobs are repetitive and unskilled is now dated and in most cases the required skill levels are rising. This trend makes the tracking of changes in number of jobs over time more difficult as less skilled jobs disappear but more highly skilled jobs are created. © Skills CFA 2010 2010 Page 28 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations The simple grouping of operator/agent jobs should not be allowed to mask the considerable variations in those jobs. Both the nature of the organisation’s business and the activities of individual job holders make for very different jobs with generic themes of customer service and specific service provision. At an organisational level, contact centres are operated to provide services for retailers, financial service providers, emergency services, IT help-lines, travel services, Government departments and social support such as the Samaritans. At an individual job level agents may be expected to sell, provide product information, talk customers through regulatory requirements, deal with emergencies, provide personal counselling or give after sales support. The variety at both levels presents challenges to anybody seeking to develop skills that may adapt to a range of different jobs in the sector. 5.3 Senior operator/agent and managerial positions Excluding mini-centres, it is estimated that the mean size of a UK contact centre is 123 agent positions34. Inevitably, organisations of this size require structure and defined responsibilities. Management structures draw on hierarchical and flat models and roles are defined accordingly. Across the industry work teams are the basic unit of organisation and so the team leader role has particular significance. Generally, the team leader role involves a higher than average knowledge and skill set relating to the specific business of the organisation but also includes generic team leader skill sets. The other grouping that is common to most contact centres is a set of roles relating to the monitoring and quality assurance functions. These roles are held mainly by experienced operators who have progressed into the role sometimes through a team leader route and sometimes simply as a result of extensive experience in the agent role. The data recording, collation and analysis needed for these jobs tend to separate them from other roles. The gender of management positions in contact centres shown in Table 5.1 below shows a significantly higher rate for males in IT roles whereas females appear more in HR and training manager roles. Table 5.1 Management gender in contact centres Job title % male Contact centre manager 50% Contact centre IT manager 89% HR manager 34% Training manager 38% Source: DTI 2004 - The UK contact centre industry - a study, ContactBabel 34 % female 50% 11% 66% 62% UK Contact Centres in 2008, The State of the Industry (6th Edition), ContactBabel, July 2008. © Skills CFA 2010 2010 Page 29 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations 5.4 The contact centre workforce 5.4.1 Contact centre job roles The structure and balance of employment within contact centres naturally varies but it is possible to trace certain patterns. It has already been noted that measuring the numbers of agents in contact centres is a good way of gauging overall employment in that generally there is approximately one support post for two agent posts. There is little research evidence available to locate precise numbers across the industry but the results of one study were included in the 2004 DTI report and are shown in Table 5.2 below. Table 5.2 Employment of contact centre staff by job role Job role % of contact centre workers Sales advisor – inexperienced 10% Customer service advisor – inexperienced 17% Sales advisor - experienced 19% Customer service advisor - experienced 36% Sales team leader 3% Customer service team leader 5% Product specialist 2% Coach 2% Resource scheduling manager 1% Contact centre manager 2% New entrant (pre-training) 2% Source : DTI 2004 - The UK contact centre industry - a study and E-skills UK 2003 Contact Centre Survey It can be seen in this study that the proportion of agents to managers is higher than the 2:1 ratio identified elsewhere. However, it should be noted that these statistics do not include a range of other support functions which would form a normal part of any sizeable organisation. 5.4.2 Full and part time jobs and gender of agents The quantitative analysis of employment in the contact centre sector faces major challenges of variable results drawn from different sources. Wherever possible in this report all available sources are quoted and the commentary reflects an interpretation of the true picture. Table 5.3 Call centre agents and operators by full time and part time staff Full Time Part Time April – June 000s % 000s % 2002 56 72 22 28 2003 56 73 21 27 2004 70 75 23 25 2005 63 72 24 27 2006 80 71 31 28 2007 71 68 33 32 2008 68 71 28 29 2009 61 73 23 27 Source: ONS Labour Force Survey, Employment status by occupation and sex April 2002 – June 2009 © Skills CFA 2010 2010 Page 30 of 115 Total 000s 78 77 93 88 112 104 96 84 Contact Centre Labour Market Information April Section 5. Contact centre occupations The ONS data in Table 5.3 above shows a reasonably consistent picture of a 70:30 split of full and part time employment. It also indicates a significant decline in numbers from 2006 to 2009. However, this trend will be questioned when set alongside other sources. Once again, the ONS returns show a relatively consistent pattern of 40:60, male : female employees in contact centres as shown in Table 5.4 overleaf. Table 5.4 Call centre agents and operators by gender Male Female April – June 000s % 000s 2002 24 31 54 2003 29 38 48 2004 31 33 62 2005 37 42 51 2006 44 39 67 2007 36 35 68 2008 37 39 59 2009 39 46 46 Source: ONS Labour Force Survey, Employment status by occupation and sec April 2002 – June 2009 % 69 62 67 58 60 65 61 55 Total 000s 78 77 93 88 112 104 96 84 Table 5.5 is drawn from the DTI 2004 report 35 and provides supporting evidence of the gender split Table 5.5 Contact centre employee gender Type of employee Average tenure (months) % female Customer contact employees 32 69% Team Leader / First line supervisor 43 63% Manager 56 64% Source : DTI 2004 - The UK contact centre industry - a study and CCA/Sheffield University - “Human resource management in Call Centres” These figures confirm the higher proportion of female employees close to the 40:60 proportion shown above. This research however revealed an even higher predominance of female employees overall, indicating that at operator/agent level proportions are even greater. There is no immediately available data to confirm more recent observations of these proportions These figures can be compared with the broader sub major group of customer service occupations as shown in the Table 5.6 below. 35 DTI 2004 - The UK contact centre industry - a study and CCA/Sheffield University - “Human resource management in Call Centres” © Skills CFA 2010 2010 Page 31 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations Table: 5.6 All customer service employment full-time/part-time and male/female analysis by UK countries April 2008 to March 2009 United Kingdom Sub major group: customer service occupations Number All employed England per cent per cent Number 414,900 Wales per cent Number 16,900 Scotland per cent Number 341,500 Northern Ireland per cent Number 16,500 17,600 All employed full-time 278,200 67% 228,400 67% 10,400 59% 32,600 70% 6,800 72% All employed part-time 136,700 33% 113,100 33% 7,100 40% 13,800 30% 2,700 28% Males employed full-time 116,900 28% 92,800 27% 5,000 28% 14,900 32% 4,200 44% Males employed part-time 26,300 6% 21,300 6% 1,200 7% 3,000 6% 800 8% Females employed full-time 161,300 39% 135,600 40% 5,400 31% 17,700 38% 2,600 27% Females employed part-time 110,400 27% 91,800 27% 5,900 34% 10,800 23% 1,900 20% Source: ONS annual population survey - online workplace analysis, NOMIS December 2009 Totals may only add up to 99 per cent owing to rounding errors. The statistics suggest that the pattern of full and part time working in contact centres is close to the national average for customer service as a whole. The same is also true of the gender split although it would appear that the proportion of males in contact centres is nearly around 35 per cent higher. However, recent figures in Table 5.7 overleaf show that part time jobs are more evenly distributed between the genders within contact centres than in customer service as a whole. Table: 5.7 All contact centre employment full-time/part-time and male/female April 2005 to June 2009 Apr – June 2006 Sub major group: customer service occupations per cent 000 All employed 112 Apr – June 2007 per cent 000 104 Apr – June 2008 per cent 000 Apr – June 2009 000 per cent 97 84 All employed full-time 80 71% 71 68% 68 70% 61 73% All employed part-time 31 28% 33 32% 28 29% 23 27% Males employed full-time 39 35% 30 29% 30 31% 28 Males employed part-time * * * * * * 11 Females employed full-time 41 37% 41 39% 38 39% 33 39% Females employed part-time 26 23% 27 26% 22 34% 12 14% 33% 13% Source:ONS Labour Force Survey: Employment Status by Occupation and Sex: April 2005 to June 2009 * Sample size too small for reliable estimate. The independent estimates of employment in the sector produced by ContactBabel differ significantly from the ONS statistics shown in Table 5.7 above. Its ‘State of the Industry 2008 36’ report estimates that there are some 638,000 agent positions in 5,180 contact centres in the UK. These figures are not analysed by full/part time or gender and are estimates extrapolated from the database containing details of some 65% of the total number of centres in the UK. 36 UK Contact Centres in 2008, The State of the Industry (6th Edition), ContactBabel, July 2008. © Skills CFA 2010 2010 Page 32 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations If these figures are seen as more realistic estimates of total numbers in the industry, it is reasonable to assume that the proportions reported by the ONS data are representative of the sector as a whole. That assumption would lead to sector employment figures as shown in Table 5.8. Table 5.8 Estimated UK contact centre agent employment using ONS proportions and ContactBabel figures Contact centre employment 000s % All employed 638 100% All employed full time 447 70% All employed part time 185 29% Males employed full time 198 31% Males employed part time * * Females employed full time 249 39% Females employed part time 217 34% Source: ONS Labour Force Survey: Employment Status by Occupation and Sex: April 2007 to June 2008 percentage results applied to ContactBabel employment figures, July 2008 These significant numbers dwarf the estimates of all customer service occupations employment held by the ONS. The apparent discrepancy results from a continuing problem with classification and definition of these occupations. In particular, there is an issue with contact centre posts that exist within organisations in many sectors as opposed to contact centre posts in organisations that are solely dedicated to contact centre activities. In addition, data for 2009 would have been preferable but not available during the production of this report. 5.4.3 Age profile Figure 5.1 below illustrates that the percentage of young people aged 16 – 24 is significantly higher in sales and customer service than all other occupational groups at 39 per cent. Proportion of people by occupation and age - UK Wide Figure 5.1 60+/65+ 45 - 59/64 35 - 44 25 - 34 16 - 24 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Managers Professional Ass. Admin. and Skilled Personal and senior occs. professional secretarial trades occs. service officials & technical occs. Sales and Process, Elementary occs. Customer plant and Service machine occs. ops. Source: Analysis in brief, employment by occupation and industry, ONS, Labour Market Trends, June 2004 © Skills CFA 2010 2010 Page 33 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations The ContactBabel database does not contain information about the age profile of employees. However, extrapolating the proportions for all customer service occupations, it is reasonable to assume that the agent numbers in each age group would be approximately as shown in Table 5.9 below. Table 5.9 Estimated contact centre agent numbers by age group Age group % in customer service occupations 39 17 18 20 6 estimated agent numbers (000s) 16 – 24 25 – 34 35 – 44 45 – 59/64 60+/65+ Total Source: ICS extrapolation and analysis of Contact Babel data using ONS customer service age band proportions 249 108 115 128 38 638 Table 5.10 below shows other, somewhat dated figures available from the DTI but together with evidence from focus groups and site visits the DTI report indicates that there are several key groups of employees who are agents. The first of those groups is young women under 30 who may not have higher education qualifications but have significant length of service in the industry. There are some young men in the same category but they are not represented in such large numbers. A second group is made up of returning workers and those looking for a new start after structural redundancy. This brings in a more mature age group which raises the overall average age profile. The third group consists of students and new graduates who may not be seeing long-term prospects in the industry. Table 5.10 Average age of contact centre agents, by economic sector Economic sector Average age Business services 27 Consumer products 29 Distribution and transport 29 Entertainment and leisure 24 Financial services 27 Food and drink 32 Healthcare 24 Information Technology 28 Retail 29 Telecoms/cable 26 Travel/tourism 25 Utilities 31 Source : DTI 2004 - The UK contact centre industry - a study and Merchants International Call Centre Benchmarking Report 2000 5.4.3 Ethnicity No data for sub major occupational groups was found for ethnicity in customer service or contact centre occupations; therefore for the purpose of this section of the report sales and customer service occupations have been used alongside all major groups. Analysis from the ONS Annual Population Survey April 06-March 07 and the Raw Data available in this survey37 shows that sales and customer service occupations have the highest ethnic participation of all major occupational groups in the UK at 11 per cent. 37 Customer Service employment and skills, Appendix 20, ICS, 2008 © Skills CFA 2010 2010 Page 34 of 115 Contact Centre Labour Market Information April Section 5. Contact centre occupations In addition sales and customer service occupations have the highest ethnic participation in England at 12 per cent. This pattern is repeated in Wales and Scotland (both at 4 per cent); however, ethnic participation in professional occupations also reaches 4 per cent in these two countries. In Northern Ireland, elementary occupations have the highest ethnic participation at 3 per cent. For each ethnic group the raw data 38 shows that sales and customer service occupations in the UK have a participation of: 3 per cent for Indian 3 per cent for ‘other’ 2 per cent for Pakistani/Bangladeshi 2 per cent for ‘black’ 1 percent for ‘mixed’. This pattern is replicated in England but varies in the other three UK countries. The overall percentages of ethnicity in the UK for all major groups are as follows: Sales and customer service 11 per cent Professional occupations 10 per cent Elementary occupations 9 per cent Personal service occupations 9 per cent Associated professional and technical occupations 8 per cent Process, plant and machine operatives 8 per cent Administrative and secretarial occupations 7 per cent Skilled trades occupations 5 per cent. Although sales and customer service has higher than average ethnic participation across the UK, it is not possible to identify customer service or contact centres separately which would give a more accurate picture. Major group 'sales and customer service' by ethnicity and UK Countries Table: 5.11 Ethnic Group All United Kingdom per Number cent 2168000 England per Number cent Scotland per Number cent 1802800 198500 Wales Number per cent Northern Ireland per Number cent 106400 60300 White 1931700 89% 1580000 88% 189600 96% 102300 Mixed 22000 1% 20600 1% 500 0% ~ 96% 59900 Indian 60000 3% 57700 3% 2100 1% Pakistani/Bangladeshi 45000 2% 40200 2% 3700 2% 1100 1% ! Black 51300 2% 50100 3% ~ 700 1% ! Other Ethnic Group 57300 3% 53800 3% 1900 1% 1600 2% ! 99% ! ! ! - These figures are missing. ! Estimate and confidence interval not available since the group sample size is zero or disclosive (0-2) ~ Estimate is less than 500 Source: ONS Annual population survey, Table: T15 Employment by occupation and ethnic group, online November 2007 38 Ibid © Skills CFA 2010 2010 Page 35 of 115 Contact Centre Labour Market Information April Section 6: Contact centre and customer service skills 6 Contact centre and customer service skills 6.1 Contact centre agent jobs In common with many organisations and occupations, contact centre jobs have a customer service element requiring particular skill sets and another element involving technical and product or service knowledge and skills. For most contact centre agents the job involves the skills of handling a software system and a telephony system. This very specific skill set is normally limited to the organisation although if, for example, it involves a Microsoft Windows system, agents may come to it with some previous experience. Product and service knowledge is by definition unique to a particular operation. However if, for example, the centre is responding to IT helpline calls, agents may be expected to have a high level of IT expertise when entering the job. The same may be true of financial skills in finance sector contact centres. Thus there will always be varying levels of technical demand on agents subject to the business of the centre and the technology used. The customer service content of contact centre agents’ jobs can be seen as much more generic. Regardless of the communication channels being used, customer service skills are needed and this has been demonstrated through the significant take-up of customer service qualifications by contact centres as evidenced elsewhere in this report. The ability to deal effectively with customers in a wide range of situations as set out in the Customer Service NOS units is clearly one aspect of the agent’s role. These competences are at the heart of contact centre agent roles but it is not possible to quantify their importance alongside other skill sets. Rather it is the balance between each essential skill set for a contact centre agent that may vary somewhat according to the nature of the business in question. 6.2 Employer views on skills needs The ContactBabel ‘UK Contact Centre Decision-Makers’ Guide - 2009’ sought the views of a random sample of 200 contact centres on a wide range of topics. Managers were asked to rank in order of preference a list of attributes or characteristics that they would most require in a contact centre agent. The three most popular choices were: empathy with customers reliability being a team player. It is interesting to note that no mention is made of ICT skills and that the possession of complex technical or product knowledge ranks as the third least important attribute in the opinion of managers see Figure 6.1 below. © Skills CFA 2010 2010 Page 36 of 115 Contact Centre Labour Market Information April Section 6: Contact centre and customer service skills Figure 6.1 Source: UK Contact Centre Decision-Makers’ Guide, ContactBabel, -2009 ICS focus group participants drawn from both operational roles and training functions were asked to define the skills that are most business critical to the sector. As always with the need to label and classify skills, this brought a mixed response from which common threads can be collated. Above all, the research showed that moving responsibility for the contact centre standards into the customer service arena will certainly be seen as most appropriate by the industry. Priority skills that were identified all had a focus on people and the ‘soft’ skills rather than technology skills that have previously been at the heart of contact centre standards and qualifications. It should be noted that most of those participating were viewing contact centres from a telephony base and that considerably more and wider research will be needed when the contact centre NOS units are next reviewed. The main findings about the skills seen as business critical for contact centre operational staff were as follows communication skills are seen as top priority regardless of the communication channel being used people skills which include influencing, negotiating, life skills and active listening are all seen as a central part of the agent’s role technical skills to operate the communication technology are important but can readily and easily be developed during an induction process © Skills CFA 2010 2010 Page 37 of 115 Contact Centre Labour Market Information April Section 6: Contact centre and customer service skills knowledge and skills needed to navigate the software are seen as important but, once again, as an area that can be developed once in post as well as more generic management skills, senior posts require expertise in resource planning and IT architecture the ability to empathise with the life experience of customers is seen as important but not necessarily as something that can be developed through training (this is something that is sometimes characterised as emotional intelligence) the contribution to teamwork especially through coaching and support of colleagues is particularly important for those seeking additional responsibility. These skills areas provide clear indication of the labour market requirements of contact centres which then indicate how employers see skills shortages and gaps. Once again, there is evidence that customer and people skills are a higher priority than technical know-how. However, a very detailed analysis of these skills will be needed for any revision of the contact centre NOS. It may be concluded therefore that, because of the match between these preferences and customer service principles as defined by the Customer Service NOS, customer service plays a very large part in contact centre agent jobs. However, it is equally important to recognise that there are other elements to the skills and knowledge sets required for these jobs. © Skills CFA 2010 2010 Page 38 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages 7. Contact Centres and Skills Shortages 7.1 Primary research evidence of skills shortages Participants in focus groups were asked questions about skills shortages and their effects on recruitment in order to: identify any shortages comment on whether the situation was improving or worsening identify effective strategies for dealing with the shortages. Subject to some understandable regional variations, there was a very significant level of agreement about shortages that are being experienced. Some of the discussion revolved around the unquantifiable aspect of the public image of contact centres. There was general agreement that the term contact centre has less negative connotations than in the past for potential employees. Some organisations have chosen to rename their operation as a ‘customer service centre’. However, overall it is believed that extending the length of service by many staff is contributing to the image of contact centre jobs as more stable and long lasting. Some consultees stress that improved control over skills shortages results from the reputation of the individual organisation. Where, locally, an organisation builds a strong reputation as an employer, both recruitment agency referrals and general word of mouth contribute to a level of interest drawing those with the right skills towards the organisation. Organisations therefore devise and use strategies to promote themselves as employer of first choice among the groups who are most likely to possess the skills that are needed. It is generally agreed that all these trends are also subject to the economic cycle and the general level of unemployment. Whilst outside of the control of individual employers, this factor clearly influences the availability of labour. At the time of this research, unemployment was high and still rising resulting in an increased level of applications for all contact centre employers. However, this in turn causes concern if it simply results in a reduction in the quality of applicants. Participants agree that to some extent this has been the case during the recent economic downturn but that there is a balance with a greater number of good quality applicants as well. Another difficult employment balance to measure is that between an essentially transient workforce and those seeking a much more permanent career path. In so far as employers prefer the latter (in some cases, employment for the defined period of a campaign or contract is mutually beneficial) they report an increase in numbers who are seeking longer term employment. The debate also becomes entangled with the question of employing recent graduates. Some employers believe that contact centre jobs with more complex technical demands are more appropriate for those with a degree. Others believe that a degree in itself is very little indication of skill level and that, as such, is irrelevant. However, in relation to skills shortages the research did not indicate any shortages of graduates prepared to consider contact centre jobs. © Skills CFA 2010 2010 Page 39 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages In relation to recruitment strategies for agents, many participants reported that they undertake demanding assessment centre activity before appointment. Employers complain about the tendency to drop out of agreed assessment centre commitments with the consequent cost of arranging such events for very small numbers. Nevertheless, overall they see the strategy of making significant demands on applicants as being a good investment to find employees who are more likely to become established. Another strategy that employers see as particularly successful is to increase the offer of flexible working. With ever more sophisticated methods of call volume monitoring and resource planning, together with more 24/7 customer demand on different types of contact centre, flexible working can be accommodated and is very appealing to many applicants. Specialist areas picked out for mention as skills shortages were in relation to posts for: resource planners those with team leader skills and outbound calling agents with sales skills. In those cases employers recognise that there are relatively long training demands for those without valid experience and hence would prefer to employ those with previously developed skills. As always in this area there is some difficulty of definition when seeking to distinguish between pro-active customer service skills and sales skills. However, on balance it is fair to report that employers generally see only limited skills shortages and place more emphasis on the importance of having the right approach to effective recruitment. 7.2. Secondary research evidence of skills shortages Analysis of quantitative research data about skills shortages in contact centres has again been problematic as the majority of the available data maintains a focus on Industrial Classifications and/or the occupational SOC Codes 39. SOC area 72 Sales and customer service is again the predominant measure and research has identified this occupational area as one with high levels of skills shortages40. These measures, although useful for customer service, do not unveil the contact centre aspects of these occupations. Nevertheless, some quantitative surveys have used ‘customer handling’ or ‘call handling’ as a defined skill area. These terms are often used interchangeably between researchers, research bodies and employers and this again underlines the parallels between customer service and contact centre skills discussed elsewhere in this report. To reach conclusions about contact centre skill shortages, we have had to draw as appropriately as possible on the available data and for the purpose of this section we will concentrate on those pieces of research that specify customer handling and call handling as measureable skill areas. However, where data shows overall skills shortages in ‘customer service and sales’ for a particular country or sector we will show this as an important part of the overall picture. 39 40 Standard Occupational Classification 2000 Volume 1, June 2000 Customer service employment and skills, Now and for the future, pages 61 to 83; ICS, 2008 © Skills CFA 2010 2010 Page 40 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages 7.3 Skills shortages by country 7.3.1 The evidence quoted above was collected from the primary research of focus groups and secondary research using government statistics. In the case of primary research, the events were restricted to gathering major aspects of the relevant data and it was not practical to make distinctions between the four countries. Government research fails to distinguish effectively between generic customer service occupations and contact centre occupations in that contact centre returns are limited to outsourcing organisations so information about contact centres operated directly by service providers is hidden. Although there are some organisations representing contact centres by region, it has not been possible to produce any analysis that is near enough to being comprehensive to be of any value. Under the circumstances, and mindful of the fact that in future monitoring activities must facilitate analysis by country, the ICS believes that extrapolating country information by using general customer service data is at the present time the best that can be achieved. Given the strong correlation that is believed to exist between customer service occupations and the specific category of contact centre occupations this data at least provides guidance which can be used in the construction of an initial qualification strategy and can be built on as monitoring activities are increased in future. 7.3.2 Skills shortages - England Less than half of all vacancies in England are considered hard-to-fill by employers41. Many of these vacancies are hard-to-fill due to a lack of applicants or because of employer perceptions about applicants’ attitude, personality or motivation. Figure 7.1 illustrates the numbers of vacancies, hard to fill vacancies and skills shortage vacancies reported for each major group occupation in England. 41 NESS 2005, Shury et al, 2006 © Skills CFA 2010 2010 Page 41 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Overall distribution of vacancies and recruitment difficulties by occupation - England Figure 7.1 Vacancies (000s) Hard to fill vacancies (000s) Prompted and unprompted skill-shortage vacancies (000s) 90 80 70 60 50 40 30 20 10 0 Managers & Professionals Assoc prof senior officials Unweighted base: Admin Skilled trades Personal service Sales & customer service Machine ops Elementary vacancies: 2305 4994 6584 6246 3905 5826 7610 4273 8110 employers with vacancies 1379 1923 2806 2999 2140 2489 2640 1585 2977 Source: Ness 2005 As illustrated in Figure 7.1, one-third of all vacancies in sales and customer service occupations, taken together at major group level, consist of hard-to-fill vacancies (Htf) of which just over two-thirds are specified as skills shortage vacancies (SSVs). While recruitment activity is high, the proportion of all vacancies that are skills related (19 per cent) is below the national average for all occupations of 25 per cent. However, in contradistinction, all the evidence from employers is that customer handling has become a major skills shortage both at the point of recruitment and once an employee is in the job. As illustrated in Figure 7.2, the NESS 2005 also showed that, overall, employers identified technical and practical skills (other than information technology) as the most difficult to obtain, with customer handling skills second. It should be noted from Figure 7.2 that the next three skills areas in order of significance cited by employers as being in short supply are ‘soft skills’ – communication (oral and written), teamworking and problemsolving – which are also an essential part of the customer service (customer handling) skills set. Similar data has been published in the 2006 Skills at Work Survey 42 confirming the continuing need for skills development work in this area. 42 Skills at Work, 1986 to 2006, Alan Felstead et al, published 2007, ESRC © Skills CFA 2010 2010 Page 42 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Figure 7.2 Skills sought in connection with skill shortage vacancies England Technical and practical skills 53% Customer-handling skills 38% Oral communication skills 35% Team working skills 34% Problem-solving skills 34% Written communication skills 30% Literacy skills 28% Management skills 24% Numeracy skills Office/admin skills 23% 14% General IT user skills 13% Foreign language skills 13% IT professional skills 10% Source: NESS05 (Shury et al. 2006) Base: All unprompted and prompted skills shortage vacancies (weighted=143,124; unweighted=11,326; unweighted employer base=4,846) Table 7.1 below shows skills shortages in England by occupation. Although the skills lacking among applicants vary by occupation, this shows that ‘customer handling’ follows technical and practical skills as the most frequently cited reason for SSVs . Lack of ‘customer handling’ skills is identified as causing the highest incidence of SSVs for the occupations of administration, personal services, elementary and, not surprisingly, sales and customer service. Customer handling skills shortages are also predominant in the following occupational groups: managers and senior officials (second to management skills) professionals (third to technical and practical and management skills) associated professionals (third to technical and practical and teamworking skills) personal services (second to oral communication skills) elementary occupations (second to oral communication skills). © Skills CFA 2010 2010 Page 43 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Table 7.1 Professionals Associated professionals Admin, clerical and secretarial Skilled trades Personal services Sales and customer service Machine and transport operatives Elementary Overall Column percentages Managers and senior officials Skills shortage by occupation – major groups – England % % % % % % % % % % Technical and practical skills 31 40 45 41 57 34 46 54 40 45 Customer-handling skills 36 23 33 42 24 49 67 29 49 38 Oral communication skills 26 22 28 39 21 52 50 40 50 35 Problem-solving skills 32 23 33 34 43 33 29 30 39 34 Teamworking skills 30 17 35 25 26 43 45 31 48 34 Written communication skills 27 21 27 37 23 44 35 28 36 30 Literacy skills 16 15 19 33 21 41 48 28 37 28 Management skills 46 30 22 25 16 24 33 11 27 24 Numeracy skills 16 13 12 29 17 27 41 27 33 23 Office/admin skills 27 21 22 35 18 23 28 18 15 22 Foreign language skills 13 11 9 13 23 17 7 11 14 13 General IT user skills 18 12 12 29 11 13 15 8 12 13 IT professional skills 17 15 10 21 6 10 14 4 6 10 Source: NESS 2005, Shury et al, 2006 Base: All skills shortage vacancies (unprompted and prompted). Note: Percentages do not sum to 100 since multiple responses were allowed. 7.3.3 Skills shortages - Scotland The skills which employers consider are lacking in applicants in Scotland are shown in Figure 7.3. These are: oral communication skills customer handling skills problem solving skills teamworking skills. In contrast with the results in England and Wales, SSVs in Scotland have ‘technical and practical skills’ considerably lower in the hierarchy of skills sought. The skills most commonly cited as being in short supply are “soft skills” with oral communication and customer handling skills being the most cited. As in England, other customer service related skills, e.g. teamworking and problem-solving are also identified as important skills shortages. 43 43 Future Skills Scotland, The Scottish Labour Market, 2006 © Skills CFA 2010 2010 Page 44 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Figure 7.3 Skills sought in connection with skill-shortage vacancies Scotland Oral communication skills Customer handling skills Problem solving skills Technical & practical skills Planning and organising Team working skills Written communication skills Strategic management skills Using numbers Literacy skills Advanced IT and software skills Basic computer literacy/using IT 64% 61% 57% 56% 55% 51% 46% 44% 39% 38% 34% 32% Source: Scottish Employer Skills Survey, 2006 Impact of hard-to-fill vacancies on employers in Scotland Where hard-to-fill vacancies occur in Scotland the impact on employers can be severe including: difficulties in meeting customer service objectives (cited by 41 per cent of employers with skills shortages) delays in developing new products or services (30 per cent) difficulties in meeting quality standards (26 per cent) increased operating/running costs (24 per cent) loss of business or orders to competitors (24 per cent) difficulties introducing new working practices (24 per cent) withdrawing from offering a product altogether (15 per cent). Table 7.2 shows that where there are vacancies, roughly two-thirds are hard-to-fill, the majority of which are caused by skills shortages. With sales and customer service occupations, nearly two-thirds of hard-to-fill vacancies occur because applicants do not have the right skills, experience or qualifications. This has important implications for developing the customer service skills of young people and giving greater opportunities for the attainment of customer service qualifications through work experience and placement offered through school programmes. © Skills CFA 2010 2010 Page 45 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Table 7.2 Hard-to-fill and skill shortage vacancies as a proportion of vacancies by occupation in Scotland No. of vacancies Major Groups Managers and senior officials Number of hard-to-fill vacancies Number of skills shortage vacancies Hard-to-fill vacancies as a % of vacancies Skills shortage vacancies as a % of vacancies Skills shortage vacancies as a % of hard-to-fill vacancies 4,600 3,000 2,700 65% 57% 88% Professionals 11,700 6,700 4,000 58% 34% 59% Associate professionals 10,000 5,500 4,000 55% 40% 74% Administrative staff 8,000 3,000 2,200 38% 27% 71% Skilled trades people 7,100 5,100 3,200 72% 45% 62% Personal service staff 8,800 2,700 1,200 31% 14% 45% Sales and customer service staff 9,300 3,600 2,300 38% 25% 64% Machine operatives 4,800 2,200 1,100 45% 22% 49% Elementary staff 9,700 3,800 1,900 39% 20% 50% All occupations 76,700 37,000 23,200 48% 30% 63% Source: Scottish Employers Skill Survey 2006 7.3.3.1 Skills shortage - Scottish regions Highlands and Islands - Scotland 44 Where skills shortages are evident in the Highlands and Islands45, it is the broad area of soft skills that are most frequently mentioned by local employers as lacking among job applicants. These include: problem solving oral communications teamworking and customer handling. However, a lack of technical skills was mentioned by two-fifths of local employers as a reason for not recruiting applicants. The vacancy figures show that skills shortage vacancies are no more a problem in the Careers Scotland Highlands and Islands area than in other parts of Scotland. This is not to say that skills shortages are unimportant as employers do recognise that they can affect performance. The most common impact reported includes: difficulties meeting customer service objectives delays developing new products or services. 44 Source FSS 2004, Careers Scotland Highlands and Islands Area, March 2005 © Skills CFA 2010 2010 Page 46 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages North East Area - Scotland 46 Vacancy rates in the North East Area of Scotland were highest for elementary jobs followed by sales and customer service. Two-fifths of all vacancies reported in the Careers Scotland North East area were hard-to-fill. Where skills shortages are evident in the North East it is the broad area of soft skills that are most frequently mentioned by local employers as lacking among job applicants. These include: written communication customer handling problem solving skills. However, a lack of technical skills was mentioned by two-fifths of local employers as a reason for not recruiting applicants. The vacancy figures show that skills shortage vacancies are no more a problem in the Careers Scotland North East area than in other parts of Scotland. This is not to say that skills shortages are unimportant as employers do recognise that they can affect performance. The most common impact reported includes: difficulties meeting customer service objectives difficulties meeting quality standards. South East Area - Scotland 47 The highest number of vacancies at March 2005 in the South East area of Scotland were in sales and customer service jobs with 7,000 or just over one-in-three of all vacancies. The next highest number of vacancies were for elementary jobs. These occupations can contain many entry level jobs and provide a significant opportunity for new workers in the labour market, either for permanent employment or as a starting point for career progression. Vacancy rates (vacancies as a proportion of employees) are highest for sales and customer service and elementary jobs. Half of all vacancies reported in the Careers Scotland South East area were hard-to-fill. Where skills shortages are evident in the South East area, it is the broad area of soft skills that are most frequently mentioned by local employers as lacking among job applicants. These include: oral communication planning and organisation problem solving skills. 46 47 Source: The Scottish Employers Skills Survey 2004, Results for the Careers Scotland North East Area, FSS, March 2005 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland South East Area, FSS, March 2005 © Skills CFA 2010 2010 Page 47 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages However, a lack of technical skills was mentioned by two-fifths of local employers as a reason for not recruiting applicants. The vacancy figures show that skills shortage vacancies are no more a problem in the Careers Scotland South East area than in other parts of Scotland. This is not to say that skills shortages are unimportant as employers do recognise that they can affect performance. The most common impact reported includes: difficulties meeting customer objectives difficulties meeting quality standards. The absence of customer handling as a key skill shortage area is surprising as this has been identified as such in all other areas of Scotland. Given the high vacancy rate of 7,000 in the sales and customer service occupation in the South East and the impact on meeting customer objectives reported by employers, it would be expected that customer handling or customer service would be high on the list of skills shortages. However, it may have something to do with the fact that the three skills shortages can in any case be seen as belonging to the customer service skill set. South West Area - Scotland 48 Research shows that the highest numbers of vacancies at March 2005 in the South West area were in elementary jobs – 3,300 or just under one-in-four of all vacancies. The next highest numbers were for skilled trade jobs followed by sales and customer service. Vacancy rates (vacancies as a proportion of employees) are highest for elementary, skilled trades and sales and customer service jobs. Two-fifths of all vacancies reported in the Careers Scotland South East area were hard-to-fill As with other areas of Scotland, elementary and sales and customer service occupations contain many entry level jobs and provide a significant opportunity for new entrants to the labour market either for permanent employment or as a starting point for career progression. Where skills shortages are evident, it is the broad area of soft skills that are most frequently mentioned by local employers as lacking among job applicants. These include: customer handling skills oral communication planning and organising problem solving skills. However, a lack of practical and technical skills was mentioned by almost half of local employers as a reason for not recruiting applicants. Employers do recognise that skills shortage vacancies can affect performance. The most common impact reported includes: 48 Source: The Scottish Employers Skills Survey 2004, Results for the Careers Scotland South West Area, FSS, March 2005 © Skills CFA 2010 2010 Page 48 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages difficulties meeting customer service objectives difficulties meeting quality standards. West Area - Scotland 49 Research shows that the highest numbers of vacancies at March 2005 in the West area were in sales and customer service jobs – 7,000 or just over one-in-three of all vacancies. This mirrors the findings in the South East area where sales and customer service also showed 7,000 vacancies. The next highest number was for personal service workers. Vacancy rates (vacancies as a proportion of employees) are highest for sales and customer service and personal service jobs. Half of all vacancies reported in the Careers Scotland West area were hard-to-fill These occupations tend to contain many entry level jobs and provide a significant opportunity for new entrants to the labour market, either for permanent employment or as a starting point for a career. Where skills shortages are evident, it is the broad area of soft skills that are most frequently mentioned by local employers as lacking among job applicants. These include: oral communication customer handling teamworking skills. However, a lack of technical skills was mentioned by two-fifths of local employers as a reason for not recruiting applicants. 7.3.4 Skills shortages – Wales As Table 7.3 shows customer handling appears as one of the top five major skills shortages in Wales. Taking all skills shortage vacancies in Wales, the skills area in greatest need is “other technical and practical skills” followed by customer handling. Skills required for skills shortage vacancies by occupation - Wales 49 % % Transport and Machine Operatives % Sales and customer service % Skilled Trades % Associate Professionals General IT user IT professional skills Other technical and practical skills Communication skills % Professionals Base: All occupations with SSVs followed up Total Table 7.3 14 13 50 43 16 20 31 13 13 17 52 49 15 10 70 39 8 7 21 66 14 4 74 39 Source: The Scottish Employers Skills Survey 2004, Results for the Careers Scotland West Area, Future Skills Scotland, March 2005 © Skills CFA 2010 2010 Page 49 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Skills required for skills shortage vacancies by occupation - Wales % % Transport and Machine Operatives % Sales and customer service % Skilled Trades % Associate Professionals Customer handling skills Teamworking skills Problem solving skills Management skills Using numbers Literacy skills Welsh language skills Work experience (unspecified) Lack of qualifications Others Don’t know/not stated/no answer Source: FSW 2005, published 2006 % Professionals Base: All occupations with SSVs followed up Total Table 7.3 47 36 38 27 27 31 11 4 5 3 15 12 6 19 54 14 11 3 6 5 5 18 58 42 48 35 21 30 9 6 14 5 9 41 37 45 21 27 34 18 3 3 0 9 67 20 35 5 36 19 7 1 1 15 27 40 44 44 15 37 43 5 1 10 An interesting conclusion reported in Future Skills Wales 2005 was that, in general terms, the larger the establishment, the greater was the likelihood that ‘general IT user skills’ and ‘other technical and practical skills’ would be cited as lacking among applicants. In contrast, micro organisations were more likely than larger organisations to cite communication and customer handling skills as lacking among applicants for skills shortage vacancies. 50 Figure 7.4 below shows that in the majority of cases and across all sectors, the skills that were being sought for skills shortage vacancies were 51: 50 51 other technical and practical skills customer handling skills communication skills problem solving skills. Future Skills Wales 2005, published 2006 Ibid © Skills CFA 2010 2010 Page 50 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Figure 7.4 Skills sought in connection with skill-shortage vacancies Wales Other technical and practical… 52% Customer-handling skills 44% Communication skills 43% Problem-solving skills 41% Team working skills 37% Literacy skills 30% Management skills 27% Using numbers 25% IT professional skills General IT user skills Welsh language skills 17% 15% 13% Source: Future Skills Wales 2005, published 2006 Future Skills Wales shows the highest overall SSVs across all employee size bands is: other technical and practical skills (52 per cent) customer handling skills (44 per cent) communication skills (43 per cent) problem solving skills (41 per cent) teamworking skills (37per cent). These results are very similar to those found in England with technical and practical skills being the highest cause of SSVs followed by other soft skills -customer handing, communication, teamworking and problem-solving. © Skills CFA 2010 2010 Page 51 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages 7.3.5 Skills shortages - Northern Ireland In Northern Ireland the Expert Group on Future Skills Needs 52 reported substantial evidence which indicates that generic skills are regarded as at least, if not more, important for employers as technical or job-specific skills for the 21st century workplace. “The other side of the picture is that, to varying extents, more advanced knowledge work has increased within occupations, driving consequential changes in the skills required, and is continuing to increase. For example, reduced cash transactions have eliminated much of the routine work for cashiers and counter clerks, while the share of work devoted to customer service and sales has increased steeply”. 53 The report stressed that employees would be required to acquire a range of generic and transferable skills and attitudes as, in most cases, work is becoming less routine with a requirement for flexibility, continuous learning and individual initiative and judgment. These findings supported the work of the Skills Monitoring Survey 54 where it was found that the most common skills reported by employers as lacking from applicants were: other technical and practical skills (35 per cent of external skills shortages) communication skills (30 per cent) customer handling skills (22 per cent) Total skills shortages in Northern Ireland are shown in Figure 7.5. Figure 7.5 Skills sought in connection with skill-shortage vacancies Northern Ireland Other technical and practical skills 35% Communication skills 30% Customer handling skills 22% Management skills 15% Using numbers 11% Problem solving skills 11% Literacy Skills 9% IT professional skills 9% General IT user skills 9% Team working skills None Other 8% 4% 15% Source: Northern Ireland Skills Monitoring Survey 2005: Summary Report, October 2006, DELNI 52 Tomorrow’s Skills: Towards a National Skills Strategy: 5th Report, Expert Group on Future Skills Needs, 2007 Ibid 54 The Northern Ireland Skills Monitoring Survey 2005: Summary Report, October 2006, Delni 53 © Skills CFA 2010 2010 Page 52 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages Impact of hard-to-fill vacancies on employers in Northern Ireland Where skills shortages do occur the impact on employers can be severe. Approximately one in 8 (12 per cent) of the hard-to-fill vacancies had not caused employers any particular problems. However, not being able to fill vacancies clearly has an impact on business activities including: difficulties in meeting customer service objectives (56 per cent) loss of business or orders to competitors (34 per cent) difficulties meeting required quality standards (33 per cent). In addition 11 per cent of the hard-to-fill vacancies had ‘other’ impact upon the business including additional work on other staff, difficulty in expansion and difficulty in meeting shift patterns. These results show that over half the difficulties employers experience in Northern Ireland is in meeting customer service objectives which demonstrates the importance of customer service to organisations and of customer service skills. 7.4 Skills shortages by sector As no secondary data for contact centre, customer handling or call handling skills shortages are available, the major occupational groups have been used for the following analysis. The results must therefore be read cautiously but do give an indication of customer service skills shortage vacancies by occupation. The results shown in Table 7.4 show the difficulties experienced by sectors when recruiting. The figures in red show the main skills shortage vacancies for each SSC, blue shows the second largest skills shortage vacancies and green the third. At 11 per cent, sales and customer service occupations have the third highest number of SSVs for occupational vacancies across all sectors. © Skills CFA 2010 2010 Page 53 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages © Skills CFA 2010 2010 Page 54 of 115 11 13 1 0 0 0 0 0 0 0 0 1 3 1 5 1 3 3 4 0 31 0 4 34 * 2 10 6 4 7 59 0 2 39 17 Unclassified 17 29 11 27 9 23 45 22 28 78 57 13 27 2 2 Elementary % Operatives % customer service Personal service % % % % SSCs Overall 11,326 143,124 4 10 18 7 Lantra 169 2,357 2 7 8 4 Cogent 172 1,412 3 2 38 8 Proskills UK 158 1,476 2 8 8 16 Improve Ltd 118 1,127 3 0 5 6 Skillfast-UK 110 1,223 3 6 3 2 SEMTA 572 6,669 2 9 12 3 Energy and Utility Skills 60 675 0 0 10 8 ConstructionSkills 1,058 11,899 4 31 13 4 SummitSkills 263 2,822 5 2 1 2 Automotive Skills 322 3,989 4 2 6 4 Skillsmart Retail 604 9,431 11 1 5 4 People 1st 1,061 12,900 6 0 1 4 GoSkills 398 3,471 1 * 3 8 Skills for Logistics 281 2,908 5 1 1 10 Financial Services Skills Council 344 4,442 3 8 35 35 Asset Skills 233 4,110 10 7 10 8 e-skills UK 388 6,649 4 17 13 9 Lifelong Learning UK 365 2,516 5 42 31 8 Skills for Health 555 6,618 6 5 42 8 Skills for Care and Development 1,077 7,721 4 7 22 4 Skillset 60 512 10 7 37 11 Creative and Cultural Skills 252 1,458 7 17 36 10 SkillsActive 249 1,558 3 0 33 5 Non-SSC employers 2,287 37,241 4 14 26 9 Base: All skill-shortage vacancies (prompted and unprompted). Notes: Percentages sum to 100 across each row (subject to rounding). Figures in italics denote base sizes of 25 to 49 and should be treated with caution. ‘*’ denotes a figure greater than 0 per cent but less than 0.5 per cent. Skills for Justice and Government Skills SSCs are not shown due to low base sizes. Source: NESS 2005 page 59 Skilled trades Administrative Associate professionals Professionals Managers Weighted Profile of skills shortage vacancies by occupation within Sector Skills Councils All SSVs Unweighted Table 7.4 % % % % 11 1 15 8 14 14 4 23 1 3 13 59 7 1 10 10 11 18 26 50 40 19 22 12 3 8 1 1 77 60 10 21 5 4 14 7 5 15 6 4 5 5 52 7 5 1 3 0 0 0 2 1 0 1 3 1 1 0 0 1 16 8 53 3 2 0 2 1 1 0 0 23 3 0 * 14 16 3 7 1 0 2 * 8 * * 1 3 2 10 3 12 9 Contact Centre Labour Market Information April 1 * * 0 * 1 * Section 7: Contact centre skills shortages Figure 7.6 shows the percentage of SSVs in sales and customer service occupations across all Sector Skills Councils. Figure 7.6 Sector Skills Councils - SSVs for Sales and Customer Service Occupations Skillsmart Retail e-skills UK Energy & Utility Skills Creative & Cultural Skills 59% 53% 23% 16% 16% 15% 14% 14% 14% 13% 10% 8% 8% 7% 4% 3% 3% 3% 2% 1% 1% 1% Cogent Skillset Skillfast-UK Improve Ltd Automotive Skills Skills for Logistics Asset Skills Proskills UK People 1st SEMTA SkillsActive Lifelong Learning UK SummitSkills Skills for Health GoSkills ConstructionSkills Lantra 0% 20% 40% 60% 80% Sales and customer service are the occupations experiencing the highest recruitment difficulties and SSVs for the sectors covered by the following SSCs: Skillsmart Retail (59 per cent) E-Skills UK (53 per cent) Energy and Utility Skills UK (23 per cent) and second largest for: Financial Services Skills Council (16 per cent) Cogent (15 per cent) Skillset (14 per cent) Improve Ltd (14 per cent) Automotive Skills (13 per cent) Skills for Logistics (10 per cent). © Skills CFA 2010 2010 Page 55 of 115 Contact Centre Labour Market Information April Section 7: Contact centre skills shortages 7.5 Contact centre specifics and country differences The analysis in this section is based on available information about the core generic skills set for contact centres, i.e. customer service. As already noted, data on specific contact centre skills and qualifications have proved difficult to obtain at this stage. Data collection and monitoring have therefore been identified as high priority activities in the next phase. Further analysis of contact centre trends is presented in section 8.5 of this report; this shows the trends that will affect the skills shortages and gaps. © Skills CFA 2010 2010 Page 56 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps 8. Contact centres and skills gaps 8.1. Primary research evidence of skills gaps Participants in focus groups were asked questions about skills gaps and the resulting training and development needs. In particular, they were asked about the relevance and importance of qualifications for ongoing staff development. Participants were asked to identify: the most common skills gaps to appear in contact centres the levels at which skills gaps are most likely to appear the training, development and qualifications available to help deal with skills gaps any additional qualifications they would like to see developed. Once again there was a significant consensus about the pattern of gaps together with the normal difficulties of identifying and labelling the skills that require development. The most commonly held view about skills gaps is that the process to update and maintain product knowledge is continuous and presents a real challenge to all contact centre management teams. A variety of strategies are used in an area that depends partly on the nature of the centre’s work. Many centres use on-line, video and other briefing techniques to remind agents of current changes and developments in small portions. Assessment and re-accreditation takes various forms from on-line testing to personal observation. Nearly all organisations see routine and structured monitoring through observation and sampling of recorded calls as vital components of the process. This drives the identification of skills gaps down to individual levels. The systematic monitoring of performance is seen as one of the most effective strategies for identifying and dealing with skills gaps. Despite the emphasis placed on recruitment processes which ensure that newcomers have strong people and empathy skills, the further development of those skills is seen as a prime need for dealing with skills gaps. Many of the concerns in this area are age related with considerable reservations being expressed about the skills and abilities of younger people. The concerns echo broader employer views that are often expressed but do not provide specific guidance on what actions might be appropriate to change the situation. Rather, the views place further emphasis on the need for effective recruitment processes. This is reinforced by consultee opinions about the need to match agent age and life experience to the type of service offered by a particular contact centre. Many organisations deal with customers in areas that create sensitive situations. What may be seen as a simple process of dealing with queries about relatively small bills, for example, can require considerable sensitivity when the matter is a major issue for a customer. To quote one consultee – ‘How can young people imagine the pressure produced by a small bill if they have never paid a gas bill themselves?’ Life skills are therefore seen as an essential component of creating empathy but clearly cannot be produced from nowhere. Qualifications and training are seen as having a somewhat limited role in filling this gap. © Skills CFA 2010 2010 Page 57 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps The consultation revealed significant reservations about the role of qualifications. On the one hand, both the Call Handling and, more particularly, the Customer Service S/NVQs have been used quite extensively by the sector as detailed elsewhere in this report. On the other hand, people express the view that competence based qualifications that accredit performance rather than developing skills are of limited value. As with many other sectors, a significant proportion of employers have reservations about providing access to qualifications that will make it easier for their staff to seek employment elsewhere. A not insignificant proportion of consultees declare that they do not see the relevance of workbased qualifications for the contact centre sector. This view clearly signals the need for effective promotion of any new qualifications that are to be developed. Coaching is seen as a principal route through which to tackle skills gaps. Buddying, mentoring and team leader coaching systems are very common in the sector and are believed to make a major contribution to skills development. It was agreed by consultees that this process needs to be systematic and thus that anybody looking to make progress in the sector needs coaching skills. This leads to the more general recognition of the challenges the sector faces in career development from agent, through team leadership, into management roles. Gaps in management skills are identified as a concern as detailed earlier and relate specifically to resource planning and pro-active sales skills. In conclusion, the sector has a relatively advanced approach to structured training and development but does not universally recognise the potential contribution of qualifications. 8.2. Secondary research evidence of skills gaps As explained in Section 6 of this report analysis of quantitative research data about skills gaps in contact centres has again been problematic as the majority of the available data maintains a focus on Industrial Classifications and/or the occupational SOC Codes55. SOC area 72 Sales and customer service is again the predominant measure and research has identified this occupational area as one with high levels of skills gaps 56. These measures, although useful for customer service, do not unveil the contact centre aspects of these occupations. Nevertheless, some quantitative surveys have used ‘customer handling’ or ‘call handling’ as a defined skill area. These terms are often used interchangeably between researchers, research bodies and employers and this again underlines the parallels between customer service and contact centre skills discussed elsewhere in this report. To reach conclusions about contact centre skills gaps, we have had to draw as appropriately as possible on the available data and for the purpose of this section we will concentrate on those pieces of research that specify customer handling and call handling as measureable skill areas. However, where data shows overall skills gaps in ‘customer service and sales’ for a particular country or sector we will show this as an important part of the overall picture. 55 56 Standard Occupational Classification 2000 Volume 1, June 2000 Customer service employment and skills, Now and for the future, pages 61 to 83; ICS, 2008 © Skills CFA 2010 2010 Page 58 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps 8.3. Skills gaps by country 8.3.1 The evidence quoted above was collected from the primary research of focus groups and secondary research using government statistics. In the case of primary research, the events were restricted to gathering major aspects of the relevant data and it was not practical to make distinctions between the four countries. Government research fails to distinguish effectively between generic customer service occupations and Contact Centre occupations in that Contact Centre returns are limited to outsourcing organisations so information about Contact Centres operated directly by service providers is hidden. Although there are some organisations representing contact centres by region, it has not been possible to produce any analysis that is near enough to being comprehensive to be of any value. Under the circumstances, and mindful of the fact that in future monitoring activities must facilitate analysis by country, the ICS believes that extrapolating country information by using general customer service data is at the present time the best that can be achieved. Given the strong correlation that is believed to exist between customer service occupations and the specific category of contact centre occupations this data at least provides guidance which can be used in the construction of an initial qualification strategy and can be built on as monitoring activities are increased in future." 8.3.2. Skills gaps – England Employer performance is being hindered by a lack of skills including hard skills (technical and practical skills) and ‘soft skills’ “with teamworking, customer handling, oral communication and problem solving skills at a particular premium” 57. Table 8.1 shows the specific skills lacking among employees whom employers regard as not fully proficient. In 2003 and 2004, when identifying the skills lacking among their staff, employers focused significantly on soft skill areas, in particular teamworking and customer handling skills, each of which is mentioned as the cause of almost half of all skills gaps. 57 NESS 2005 © Skills CFA 2010 2010 Page 59 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps Table 8.1 All 2004 All 2005 Managers Professionals Associate professionals Administrative Skilled trades Personal service Sales and customer service Operatives 112,789 85,175 109,310 10,661 8,413 5,284 10,883 8,133 9,020 21,627 9,769 1,176 1,241 1,059 115 69 65 114 81 91 218 81 Elementary occupations All 2003 Unweighted base Weighted base (000s) Skills lacking in employees overall and by occupation – all England 25,520 226 % % % % % % % % % % % % Teamworking 52 47 48 47 35 41 43 39 55 48 50 55 Customer handling 55 47 46 34 30 39 52 33 47 63 29 51 Technical and practical 43 45 44 31 52 53 36 64 47 36 56 43 Oral communications n/a n/a 42 42 28 30 39 36 43 44 47 48 47 40 40 45 36 41 44 43 41 38 43 38 Skills lacking Problem solving n/a n/a 29 29 28 34 39 30 36 20 34 27 Management 32 25 26 76 30 23 23 18 16 23 11 15 General IT user 29 26 23 28 33 33 51 17 18 19 18 10 Literacy skills 24 19 22 10 18 22 24 23 32 16 27 27 Numeracy skills 21 16 21 14 16 17 18 19 21 20 28 26 n/a 20 20 31 22 23 55 15 11 15 8 8 13 12 12 19 26 21 29 9 8 7 5 5 7 9 9 13 5 4 7 6 13 8 12 11 Writtencommunications Office admin skills IT professional skills Foreign languages Base: All skills gaps followed up. Note: Column percentages do not sum to 100per cent because of multiple responses Source: NESS05 and NESS03 (Shuryetal.,2006; 2004) Employers also reported technical, practical or job-specific skills as lacking among employees. Over two-in-five (44 per cent) of employees described by their employers as lacking full proficiency are felt to lack technical, practical or job-specific skills. Other soft, generic skills such as oral communication, problem solving and written communication skills were the next most commonly mentioned. For sales and customer service staff, customer handling skills are the main area of skills that are lacking which explains, at least in part, nearly two-thirds of skills gaps in this occupational area. Oral communication skills were also identified more than averagely. English regions For the English regions as a whole, team working followed by customer handling were reported as the highest skills gaps. The pattern in each of the regions varies as shown in Figure 8.1 which compares the relative scale of each of the four most identified skills gaps areas. However in two-thirds of the regions, customer handling skills are seen as either the most or second most significant skills gap area. © Skills CFA 2010 2010 Page 60 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps Figure 8.1 Team working Skils Gaps by Region England Customer handling Technical and practical 70 Oral communication 60 50 40 30 20 10 0 All Eastern East Midlands London North East North West South East South West West Midlands Yorkshire and Humber Source: NESS 2005; Main Report, June 2006 The full regional pattern of all skills lacking among staff described by employers as not fully proficient is presented in Table 8.2. Yorkshire and Humber West Midlands South West South East North West North East London East Midlands Eastern Column percentages Skills gaps by region - England All Table 8.2 % % % % % % % % % % Teamworking 48 53 36 39 51 60 49 37 53 52 Customer handling skills 46 50 35 46 49 50 47 37 51 49 Technical and practical skills 44 48 39 24 48 48 47 34 54 58 Oral communication 42 45 38 36 38 49 41 36 49 44 Problem solving skills 40 44 34 32 46 56 39 29 44 44 Written communication 29 30 31 25 30 38 26 23 33 30 Management skills 26 30 27 29 21 30 21 22 25 26 General IT user skills 23 24 24 24 27 26 20 18 24 22 Literacy skills 22 22 22 17 21 31 20 14 26 24 Numeracy skills 21 16 21 21 22 30 18 15 23 21 Office admin skills 20 28 16 23 18 20 17 15 20 18 IT professional skills 12 15 17 15 9 11 8 10 15 11 9 15 10 12 5 10 8 5 8 6 Foreign languages Source: NESS 2005, Shury et al, 2006 Base: All skils shortage vacancies (unprompted and prompted). Note: Percentages do not sum to 100 since multiple responses were allowed. © Skills CFA 2010 2010 Page 61 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps 8.3.3 Skills gaps - Scotland Skills gaps in Scotland are more prevalent in occupations which generally require entry level skills. For example, skills gaps are more common in: elementary occupations sales and customer service occupations personal service occupations. than in professional and managerial occupations 58. This pattern is repeated in data collected by Careers Scotland for each Scottish area. Skills gaps in Scotland are more common than skills shortages, affecting one-in-five workplaces and nine per cent of employees. Two-thirds of skills gaps are seen as transitory and disappear as employees ‘learn the ropes’ or complete their induction. As Figure 8.2 shows, where skills gaps exist, employers most often cite soft skills such as customer handling, problem solving, teamworking and oral communication as those most lacking in employees. Highest Skills Gaps - All Scotland Figure 8.2 Planning and organising 54% Customer handling 52% Problem solving 50% Team Working 49% Oral communication 45% Source: FSS, Scottish Labour Market, 2006 8.3.3.1 Skills gaps – Scottish regions Highlands and Islands - Scotland Just under 3,000 (or one-in-five) organisations covered by Careers Scotland Highlands and Islands stated that they had a skills gap 59 with less than one-in-ten (9 per cent) individuals not fully proficient in their jobs, which is similar to Scotland as a whole. 58 59 FSS, Scottish Labour Market, 2006 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland Highlands and Islands, FSS, March 2005 © Skills CFA 2010 2010 Page 62 of 115 Contact Centre Labour Market Information April Section 8: Contact centres skills gaps Figure 8.3 illustrates the extent of local skills gaps within each occupation. Those occupations with the highest proportions of staff not fully proficient include elementary and sales and customer service occupations. These occupations contain a high proportion of entry level jobs where many people get their first experience of the labour market and have the highest vacancy and turnover rates. In some instances, skills gaps exist simply because the employee has not been in the post long enough to have received suitable training or to have gained the necessary experience. Such skills gaps are therefore temporary. Around two-fifths of all employers have also reported that skills gaps arise because of positive developments in the workforce, such as the introduction of new technology or working practices. Figure 8.3 Skills g aps by o ccupation Highlands an d Islands Man ag ers an d senior o fficials Pro fessionals Asso ciate p rofessionals Ad min istrative staff Skilled trad espeople Perso n al service staff Sales an d custo mer service staff Mach in e o peratives Elemen tary staff 0% 2% 4% 6% 8% 10% 12% 14% Skills Gaps as a p ercentage o f employment Source FSS 2004, Careers Scotland Highlands and Islands, March 2005 The most common causes of skills gaps are said to be a lack of soft skills. In the Careers Scotland Highlands and Islands area employers mentioned: customer handling planning and organising problem solving teamworking as the skills most frequently lacking in staff. The skills lacking among the existing workforce are very similar to those that cause skills shortages when employers are trying to recruit new staff. The impact of skills gaps in the workplace is also broadly similar to that caused by skills shortages. The most common impact reported includes: difficulties meeting customer service objectives meeting required quality standards. © Skills CFA 2010 2010 Page 63 of 115 Contact Centre Labour Market Information April Section 8: Contact centres and skills gaps North East Area - Scotland Figure 8.4 illustrates the extent of skills gaps in the North East within each occupation. Those occupations with the highest proportions of staff not fully proficient include elementary and sales and customer service occupations. These occupations contain a high proportion of entry level jobs where many people get their first experience of the labour market and have the highest vacancy and turnover rates. The proportion of associate professionals deemed to be not proficient in the North East (11 per cent) is well above the figure for the rest of Scotland (8 per cent)60. In some cases, skills gaps exist simply because the employee has not been in the post long enough to have received suitable training or to have gained the necessary experience. Such skills gaps are therefore temporary. Three-fifths of all employers have also reported that skills gaps arise because of positive developments in the workforce, such as the introduction of new technology or working practices. Figure 8.4 Skills gaps by occupation North East Area Managers and senior officials Professionals Associate professionals Administrative staff Skilled tradespeople Personal service staff Sales and customer service staff Machine operatives Elementary staff 0% 2% 4% 6% 8% 10% 12% 14% Skills Gaps as a proportion of employers Source FSS 2004, Careers Scotland North East Area, March 2005 The most common causes of skills gaps are said to be a lack of soft skills. In the North East area, employers mentioned: customer handling skills planning and organisation problem solving teamworking as those skills most frequently lacking in staff. The skills lacking among the existing workforce are very similar to those that cause skills shortages when employers are trying to recruit new staff. 60 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland North East Area, FSS, March 2005 © Skills CFA 2010 Information April 2010 Page 64 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps The impact of skills gaps at the workplace is also broadly similar to that caused by skills shortages. The most common impact reported includes: difficulties meeting customer service objectives meeting required quality standards. It should be noted, however, that the majority of employers with skills gaps report either no problems or only a minor impact on their business South East Area - Scotland Figure 8.5 illustrates the extent of skills gaps in the South East area within each occupation. Those occupations with the highest proportions of staff not fully proficient include 61 elementary and sales and customer service occupations. These occupations contain a high proportion of entry level jobs, where many people get their first experience of the labour market. They are also those with the highest vacancy and turnover rates. In some cases, skills gaps exist simply because the employee has not been in the post long enough to have received suitable training or to have picked up the necessary experience. Such skills gaps are therefore temporary. Around two-fifths of all employers have also reported that skills gaps arise because of positive developments in the workforce, such as the introduction of new technology or working practices. Figure 8.5 Skills gaps by occupation South East Area Managers and senior officials Professionals Associate professionals Administrative staff Skilled tradespeople Personal service staff Sales and customer service staff Machine operatives Elementary staff 0% 2% 4% 6% 8% 10% 12% Skills Gaps as a proportion of employers Source FSS 2004, Careers Scotland South East Area, March 2005 The most common causes of skills gaps are said to be a lack of soft skills. In the Careers Scotland South East area employers mentioned: 61 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland South East Area, FSS, March 2005 © Skills CFA 2010 Information April 2010 Page 65 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps oral communication skills planning and organisation problem solving teamworking as those skills most frequently lacking in staff. Skills gaps in the South East are similar to those that cause skills shortages when employers are trying to recruit new staff. The impact of skills gaps in the workplace is also broadly similar to that caused by skills shortages. The most common impact reported includes: difficulties meeting customer service objectives meeting required quality standards. It should be noted, however, that the majority of employers with skills gaps report either no problems or only a minor impact on their business. South West Area - Scotland Figure 8.6 illustrates the extent of skills gaps in the South West area within each occupation. Those occupations with the highest proportions of staff not fully proficient include personal services and elementary occupations. These occupations contain a high proportion of entry level jobs, where many people get their first experience of the labour market and have the highest vacancy and turnover rates62. Occupations in sales and customer service do not have the number of skills gaps as in other areas of Scotland. However, customer handling skills are still predominant among the skills lacking which demonstrates that these skills are relevant to all sectors, not just sales and customer service. Figure 8.6 Skills gaps by occupation South West Area Managers and senior officials Professionals Associate professionals Administrative staff Skilled tradespeople Personal service staff Sales and customer service staff Machine operatives Elementary staff 0% 2% 4% 6% 8% 10% 12% 14% Skills Gaps as a proportion of employers Source FSS 2004, Careers Scotland South West Area, March 2005 62 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland South West Area, FSS, March 2005 © Skills CFA 2010 Information April 2010 Page 66 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps The most common causes of skills gaps are said to be a lack of soft skills. In the Careers Scotland South West area, employers mentioned: customer handling planning and organisation problem solving oral communication skills as those skills most frequently lacking in staff. The types of skills lacking among the existing workforce are very similar to those that cause skills shortages when employers are trying to recruit new staff. The impact of skills gaps at the workplace is also broadly similar to that caused by skills shortages. The most common impact reported includes: difficulties meeting customer service objectives delays developing new products or services loss of business or orders to competitors. West Area - Scotland Figure 8.7 illustrates the extent of local skills gaps in the West area within each occupation. Those occupations with the highest proportions of staff not fully proficient include elementary and associate professional and technical occupations with sales and customer service in third place. Elementary and sales and customer service occupations contain a high proportion of entry level jobs where many people get their first experience of the labour market 63. Skills gaps by occupation West Area Figure 8.7 Managers and senior officials Professionals Associate professionals Administrative staff Skilled tradespeople Personal service staff Sales and customer service staff Machine operatives Elementary staff 0% 2% 4% 6% 8% 10% 12% 14% Skills Gaps as a proportion of employers Source FSS 2004, Careers Scotland West Area, March 2005 63 The Scottish Employers Skills Survey 2004, Results for the Careers Scotland West Area, FSS, March 2005 © Skills CFA 2010 Information April 2010 Page 67 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps The most common causes of skills gaps are said to be a lack of soft skills. In the Careers Scotland West area employers mentioned: customer handling planning and organisation problem solving skills teamworking as those skills most frequently lacking in staff. 8.3.4 Skills gaps - Wales As Figure 8.8 illustrates the skills most commonly reported in 2005 as lacking among employees in Wales were ’soft’ skills, for example, problem solving skills (58 per cent), and customer handling skills (57 per cent). Skills lacking amongst employees with skill gaps - Wales Figure 8.8 Problem solving skills 58 Customer handling skills 57 Other technical and practical skills 52 Communication skills 49 Team working skills 49 Management skills 40 General IT user skill 40 IT professional skills 26 Using numbers 25 Literacy skills 23 Welsh language skills 23 Work Experience (unspec) 3 Sales/marketing skills 3 Time management/keeping 2 Motivation/behaviour 2 Other 2 Don't know/no answer 3 0 Source: Future Skills Wales, 2005 10 20 30 40 50 60 70 percentage of establishments As Table 8.3 shows below the major group occupations with the highest incidence of skills gaps in Wales were sales and customer service (10 per cent), transport and machine operatives (8 per cent) and skilled trade occupations (7 per cent). © Skills CFA 2010 Information April 2010 Page 68 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps By comparison, managers and senior officials and professional occupations had disproportionately fewer skills gaps relative to the proportion of people employed in each category (3 per cent). The Future Skills Wales 2005 survey also investigated which occupations with skills gaps were deemed to be most critical in terms of hindering achievement of business objectives; half of employers (53 per cent) in organisations reporting skills gaps said that no single occupation was more critical than the others. However, 14 per cent of organisations reported that skills gaps among sales and customer service occupations were most critical, while 9 per cent thought that skills gaps among managers and senior officials were most critical 64. Table 8.3 Distribution of skill gaps in Wales by occupation Total number of employees Total number of employees with skill gaps Total number of employees with skill gaps as a proportion of total employment Sales and customer service 155,427 15,431 10 Transport & machine operatives Occupation by soc major groups 132,414 11,146 8 Skilled trades 91,044 6,109 7 Personal services 90,916 5,591 6 Elementary occupations 134,109 7,426 6 Administrative & secretarial 117,897 5,873 5 Associate professionals 75,004 3,141 4 Managers & senior officials 139,653 4,798 3 Professionals 147,330 4,290 3 Source: FSW 2005 8.3.5 Skills gaps - Northern Ireland In Northern Ireland the majority of employers (91per cent) said in 2005 that their staff already possessed the skills needed to help the business meet its objectives. At the time of the interview, the remaining nine per cent indicated that there was some gap between the types of skills that their current staff possessed and those that the organisation needed to meet their business objectives 65. 64 65 Future Skills Wales, 2005 The NI Skills Monitoring Survey 2005, DELNI, October 2006 © Skills CFA 2010 Information April 2010 Page 69 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps Table 8.4 provides a breakdown of the skills employers stated that their staff needed to improve by occupational group. Employers could report more than one skill as lacking and for that reason the percentages appear to sum to more than one hundred. Overall, two out of five employers said that their staff needed to improve their: customer handling skills communication skills technical and practical skills . Of the 7 per cent who reported ‘other’ skills as lacking from their staff, half of the employers referred to various personal characteristics including behaviour, commitment, motivation and use of initiative. Managers Professionals Associate professionals Administrative Skilled trades Personal service Sales and customer service Operatives Elementary occupations Skills lacking among employees with skills gaps by occupational group – Northern Ireland All Groups Table 8.4 % % % % % % % % % % Customer handling skills 40 21 27 12 29 3 37 62 20 38 Technical and practical skills 40 15 29 29 16 79 65 13 54 60 Communication skills 37 21 27 34 40 6 19 44 18 33 Teamworking skills 24 23 9 24 20 13 22 24 22 General IT user skills 20 55 7 6 56 4 8 27 13 Problem solving skills 18 19 31 14 24 9 9 10 23 12 Management skills 15 40 33 35 7 2 - 2 1 7 Using numbers 10 5 1 4 6 1 - 20 11 10 Literacy skills 10 5 7 6 16 2 9 13 7 IT professional skills 8 9 8 36 9 1 Any other difficulties 7 1 7 3 8 2 13 2 14 7 None 5 5 10 2 4 10 1 1 6 2 392 76 48 47 109 64 55 89 69 66 Base*** = 100% 3 - 0 - 25 - - Source: NI Skills Monitoring Survey 2005, DELNI Oct 2006 Figure 8.9 shows how skills gaps have impacted on the employer’s business. Considering the definition of a skill gap, i.e. a gap between the skills of current employees and those needed by the establishment to meet its business objective, it is surprising that in 30 per cent of cases a lack of full proficiency had no impact on the business. However for other employers, the skills gaps created difficulties in: meeting customer service objectives (36 per cent of employers) meeting required quality standards (39 per cent of cases). © Skills CFA 2010 Information April 2010 Page 70 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps Figure 8.9 Impact of skills gaps in Northern Ireland Difficulties meeting required quality standards Difficulties meeting customer service objectives No particular problems Increased operating/running costs Delays developing new products Loss of business or orders to competitors Difficulties introducing new working pratices Difficulties introducing technological change Other 39% 36% 30% 16% 13% 12% 8% 8% 5% 2% 0% 20% 40% 60% N.I. Skills Monitoring Survey 2005, 8.4 Skills gaps by sector Table 8.5 shows the main types of skills gap by Sector Skills Council (SSC). For each SSC, the figures in red show the highest percentage skills gaps, blue the second highest and green the third. © Skills CFA 2010 Information April 2010 Page 71 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps Technical and practical Problem solving General IT user Management Office admin. Literacy Numeracy All % 51 % 47 % 47 % 45 % 40 % 26 % 25 % 20 % 19 % 16 Lantra 41 33 37 60 26 28 32 19 17 16 10 Cogent 47 24 56 55 51 25 30 20 20 21 12 Proskills 53 34 57 65 48 34 32 25 30 30 20 Improve 62 21 65 73 53 28 24 17 32 26 12 Skillfast-UK 52 26 57 46 42 21 25 15 35 27 5 SEMTA 49 29 52 63 47 23 30 16 18 18 9 Energy and Utility Skills 52 50 46 32 43 30 27 21 19 14 14 ConstructionSkills 42 29 35 54 30 23 25 19 22 17 13 SummitSkills 45 42 35 61 40 23 23 19 16 13 9 Automotive Skills 46 46 43 60 40 26 24 25 21 17 14 Skillsmart Retail 55 62 47 35 38 20 20 15 14 16 7 People 1st 57 65 53 41 43 15 23 13 17 17 9 GoSkills 53 53 52 27 48 36 19 30 14 11 11 Skills for Logistics 52 47 61 38 42 30 24 24 30 21 12 Financial Services Skills Council 56 55 31 39 37 41 23 31 12 12 10 Asset Skills 50 56 49 42 43 24 27 19 16 18 13 e-skills UK 61 60 47 35 34 42 30 25 14 11 23 Government Skills 12 46 17 25 45 17 12 14 4 1 13 Skills for Justice 61 51 50 32 48 50 42 46 19 20 13 Lifelong Learning UK 51 46 42 42 34 39 35 30 13 11 18 Skills for Health 34 32 30 63 23 23 13 15 14 9 11 Skills for Care and Development 53 42 56 46 38 25 28 17 28 16 13 Skillset 62 53 53 35 29 17 25 13 6 12 8 Creative and Cultural Skills 54 47 42 48 34 35 40 32 17 21 24 SkillsActive 52 68 55 37 38 18 28 16 12 12 10 Non-SSC employers 53 42 49 44 42 32 Base: All skills gaps followed up. Notes: Column percentages do not sum to 100 per cent because of multiple responses. 31 25 23 17 17 Communication Teamworking IT Professional Skills The nature of skills gaps by SSC Customer handling Table 8.5 % 12 Source: NESS 2005 Sectors fall into two broad categories in terms of the types of skills lacking in their workforces. There are those where the greatest gaps are in technical or practical skills: Lantra (60 per cent) Cogent (55 per cent) ProSkills (65 per cent) Improve (73 per cent) SEMTA (63 per cent) Construction Skills (54 per cent) Summit Skills (61 per cent) Automotive Skills (60 per cent) Skills for Health (63 per cent). © Skills CFA 2010 Information April 2010 Page 72 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps For nearly all the sectors represented by the remaining SSCs, the skills most likely to be lacking are either communication skills, customer handling or teamworking skills. Communication skills are identified as the highest level of skills gaps across all SSCs at 51 per cent followed by customer handling and teamworking, both with 47 per cent, technical and practical skills then follow with 45 per cent. The SSCs who have recorded customer handling as the highest skills gap in their sectors are: Skills Active (68 per cent) People 1st (65 per cent) Skillsmart (62 per cent) Asset Skills (56 per cent) GoSkills (53 per cent) Government Skills (46 per cent). Those SSCs reporting customer handling as the second highest skill gap in their sector are: e-skills (60 per cent) Financial Services Skills Council (55 per cent) Skillset (53 per cent) Skills for Justice (51 per cent) Energy and Utility Skills (50 per cent) Automotive Skills (46 per cent) Lifelong Learning UK (46 per cent). As an overview Table 8.6 shows the main skills gaps by each sector and identifies the areas where there are much higher than average skills gaps. This chart shows that 50 per cent of SSCs report customer handling as one of the two main skills gaps area in their sectors. Of these the SSCs that report a much higher than average skills gaps in customer handling are: Skillsmart Retail People 1st Skills Active Table 8.6 SSC Main two skills gap area by Sector Skills Council Main two skills gap area Areas with much higher than average skills gaps Lantra Technical and practical skills (60%) Communication skills (41%) Technical and practical skills Cogent Teamworking skills (56%) Technical and practical skills (55%) Problem solving and Teamworking Technical and practical skills Proskills Technical and practical skills (65%) Teamworking skills (57%) Technical and practical skills Literacy and numeracy Improve Technical and practical skills (73%) Teamworking (65%) Technical and practical skills a number of soft skill areas and literacy © Skills CFA 2010 Information April 2010 Page 73 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps Table 8.6 Main two skills gap area by Sector Skills Council SSC Main two skills gap area Areas with much higher than average skills gaps Skillfast-UK Teamworking skills (57%) Communication (52%) Literacy and numeracy SEMTA Technical and practical skills (63%) Teamworking skills (52%) Technical and practical skills Energy and Utility Skills Communication skills (52%) Customer handling (50%) – ConstructionSkills Technical and practical skills (54%) Communication skills (42%) – SummitSkills Technical and practical skills (61%) Communication skills (45%) Technical and practical skills Automotive Skills Technical and practical skills (60%) Customer handling (46%) Communication skills (46%) Technical and practical skills Skillsmart Retail Customer handling (62%) Communication skills (55%) Customer handling People 1st Customer handling (65%) Communication skills (57%) Customer handling GoSkills Customer handling (53%) Communication skills (53%) – Skills for Logistics Teamworking skills (61%) Communication skills (52%) Teamworking skills and Literacy Financial Services Skills Council Communication skills (56%) Customer handling (55%) General IT user skills Office admin skills Asset Skills Customer handling (56%) Communication skills (50%) - Central Government Customer handling ( 46% ) Problem solving skills ( 45% ) - Skills for Justice Communication skills (61%) Customer handling (51%) Management skills General IT user skills and Office admin. skills Lifelong Learning Communication skills (51%) Customer handling (46%) General IT user skills Skills for Health Technical and practical skills (63%) Communication skills (34%) Technical and practical skills Skills for Care and Development Teamworking (56%) Communication skills (53%) – Skillset Communication skills (62%) Customer handling (53%) Teamworking (53%) Communication skills Creative and Cultural Skills Communication skills (54%) Technical and practical skills (48%) Management Office admin. skills and IT professional skills SkillsActive Customer handling (68%) Teamworking skills (55%) Customer handling Non-SSC employers Communication skills (53%) Teamworking skills (49%) – Base: All skills gaps followed up. Notes: In the final column ‘much higher than average’ has been defined as a skill area being 11 per cent or more likely to be mentioned within an SSC sector than the all-sector average. Source: NESS 2004, published 2005 © Skills CFA 2010 Information April 2010 Page 74 of 115 Contact Centre Labour Market Section 8: Contact centres and skills gaps 8.5 Contact centre specifics by country From the customer service trends identified in the previous sections, it can be assumed that similar trends apply to the contact centre sector. However, there is a risk employers may have reservations with this approach in respect of the direct correlation between the broad customer service statistics and the specifics of the contact centre sector. The patterns of occupational change and employment projections outlined in Section 10 of this report give clear indications of the predicted number of jobs in the sector and trends anticipated by the private sector research sources that represent the most reliable data for the industry. Given that the data includes details of the four countries, of regions in England relating to employment levels and also that primary research investigated opinions on regional training patterns, there is no reason to believe that significant regional variations in skills shortages or gaps is a major challenge. More detailed work will be needed on a country by country basis and within regions when actions and priorities are considered within the Sector Qualification Strategy to be developed from this LMI. The distribution of contact centres by country and region are shown in Section 10.3 of this report. In England, the North East, the North West and Yorkshire were the dominant regions in 2007. Sector employment in Scotland equated to a single large English region. Relevant employment in Wales and Northern Ireland was in each case smaller than the smallest English region. No feature of these statistics gives any cause to believe that skills shortages and gaps for contact centres differ from the patterns revealed by the generic customer service data. Predicted growth rates 2007 to 2011 shown in Table 10.10 show high rates of growth in Northern Ireland, Scotland and Wales. However, those growth rates do not differ significantly from the rates for the larger English regions so there is no evidence of a rapid catch-up by those countries. Skills shortages and gaps specific to the sector are therefore likely to involve relatively small numbers in the foreseeable future. © Skills CFA 2010 Information April 2010 Page 75 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9. Contact centre qualifications and training 9.1 Contact centre qualifications Qualifications undertaken and already gained in the contact centre sector vary considerably. As this report shows individuals and groups in the contact centre sector have often chosen to use customer service qualifications rather than those designed specifically for contact centres. However there are still a significant number of contact centre qualifications in the National Framework as shown in Figure 9.1. These qualifications range from Levels 1 to 5 and are made up of NVQs/VRQs and new QCF qualifications. Table 9.1 National qualifications in contact centres Qualification No. Qualification Title Current Level Qualification Type City & Guilds Level 1 Certificate in Introduction to the Contact Centre Industry 100/5317/7 1 VRQ City & Guilds Level 1 NVQ in Contact Centre Operations 100/5899/0 1 NVQ City & Guilds Level 2 Certificate in Contact Centre Skills 100/4422/X 2 VRQ City & Guilds Level 2 NVQ in Contact Centre Operations 100/4758/X 2 NVQ City & Guilds Level 3 Certificate in Contact Centre Skills 100/4423/1 3 VRQ City & Guilds Level 3 NVQ for Contact Centre Professionals 100/4759/1 3 NVQ CCN Level 3 Certificate in Financial Services Call Centre Operations 500/7956/6 3 QCF City & Guilds Level 1 Certificate for Introduction to the Contact Centre Industry 500/7441/6 1 QCF EDEXCEL Level 1 BTEC Award in Introduction to Contact Centres 100/5007/3 1 VRQ EDEXCEL Level 1 NVQ in Contact Centre Operations 100/4761/X 1 NVQ EDEXCEL Level 2 BTEC Award in Contact Centre Skills 100/5008/5 2 VRQ EDEXCEL Level 2 BTEC Certificate in Customer Contact (QCF) 500/5535/5 2 QCF EDEXCEL Level 2 NVQ in Contact Centre Operations 100/4762/1 2 NVQ EDEXCEL Level 3 NVQ for Contact Centre Professionals 100/4763/3 3 NVQ OCR Level 1 NVQ in Contact Centre Operations 100/4643/4 1 NVQ OCR Level 2 NVQ in Contact Centre Operations 100/4644/6 2 NVQ OCR Level 3 NVQ for Contact Centre Professionals 100/4645/8 3 NVQ OCR Level 4 NVQ for Contact Centre Professionals (Original NQF Level) 100/4646/X 4 NVQ OCR Level 5 NVQ for Contact Centre Professionals (Original NQF Level) 100/4647/1 5 NVQ Skillsfirst Level 2 NVQ in Contact Centre Operations 500/8003/9 2 NVQ Skillsfirst Level 3 NVQ for Contact Centre Professionals 500/8004/0 3 NVQ In a search of the national data for statistical information about NVQ/SVQ contact centres qualifications again, only major group trends were found and limited records of take-up for contact centres were found. Therefore, for the purpose of this section, sales and customer service qualifications have had to be used from the major groups. As indicated in Table 9.2 overleaf “N/SVQ uses SOC for analytical purposes to identify the major occupation group where the qualification would best fit. It does not mean that the person who achieved the award works in the same occupational area” 66. 66 The Data Service, Supplementary release to Statistical First Release: DS/SFR2, 26th March 2009 © Skills CFA 2010 Information April 2010 Page 76 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Given the link between customer service and contact centres found throughout this report there is no reason to believe that the patterns of take-up of sales and customer service occupations could not be used as a similar measure in terms of contact centres qualifications. In particular, the data in Table 9.2 shows that Level 2 NVQs/SVQs in sales and customer service have significantly higher take up (41,000) than Levels 1 (2,000) and 3 (8,000) with none shown at levels 4 and 5. Table 9.2 Source: The Data Service, Supplementary release to Statistical First Release: DS/SFR2, 26th March 2009 © Skills CFA 2010 Information April 2010 Page 77 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training This assumption is demonstrated by the statistical information that was available for contact centre qualifications take-up as detailed in Table 9.2(a). As mentioned previously, this information is limited as it reflects take-up and achievements for 2006/2007 and 2007/2008 for contact centre qualifications currently on the National Framework as well as which were available during this period for England and Wales only. However, the table shows that the take-up for Level 2 NVQs in contact centres (2,057) was significantly higher than that for Level 1 (30) and Level 3 (510) although there was a small take-up at Level 4 (4) and none at Level 5. The achievement rates for the same period reflect a similar pattern. Figures for Scotland were not available. Table 9.2(a) Contact centre qualifications - achievements and enrolments Achievements Qualification Title Level Type BTEC Award in Contact Centre Skills* BTEC Award in Contact Centre Supervisory Skills* BTEC Award in Introduction to Contact Centres* Call Centre Operations 2006/ 2007 2007/ 2008 6 TOTAL 2007/ 2008 TOTAL 13 19 6 19 25 181 74 255 225 84 309 4 17 21 7 20 27 15 Certificate in Call Handling VRQ 5 Certificate in Contact Centre Skills 1 VRQ Certificate in Contact Centre Skills* 2 VRQ Certificate in Contact Centre Skills* 3 VRQ 21 VRQ 339 Certificate in Contact Centre Techniques Certificate in Introduction to the Contact Centre Industry* 1 Enrolments 2006/ 2007 VRQ National Award in Call Centre Skills 15 15 1 6 14 9 9 15 5 19 11 11 0 1 1 92 113 45 229 274 6 345 383 7 390 51 51 53 53 10 10 20 20 NVQ In Contact Centre Operations* 1 NVQ 24 19 43 48 30 78 NVQ In Contact Centre Operations* 2 NVQ 1171 1270 2441 1923 2057 3980 NVQ for Contact Centre Professionals* 3 NVQ 244 306 550 466 510 976 NVQ for Contact Centre Professionals* 4 NVQ 7 4 11 11 4 15 NVQ in Call Handling Operations 2 NVQ 23 3 26 32 5 37 NVQ in Call Handling Operations 4 NVQ 14 2 16 16 2 18 2054 1877 3931 3192 3056 6248 * Current qualifications on the National Framework The higher demand for Level 2 qualifications is also evidenced in the completion numbers for Apprenticeships in England and Wales as detailed Table 9.2(b) which shows a similar pattern of demand year on year since 2005/2006. However, during 2009/2010 the number of completions for both Modern Apprenticeships and Advanced Apprenticeships significantly increased by approximately 200 per cent which indicates a continued demand for contact centre qualifications. It is assumed that there have been few, if any, completions of the Higher Apprenticeships in contact centres. Note: the figures included in Table 9.2(b) are for a full year. © Skills CFA 2010 Information April 2010 Page 78 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Table 9.2(b) Contact Centre Apprenticeships - Completions and Registrations Academic Year Apprenticeships Country 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 Totals Modern Apprenticeship in Contact Centres England 172 533 521 348 1260 2834 Modern Apprenticeship in Contact Centres Wales 31 84 122 117 75 429 Advanced Apprenticeship in Contact Centres England 20 43 53 59 161 336 Advanced Apprenticeship in Contact Centres Wales 10 10 18 16 23 77 All Apprenticeships Registrations Scotland 33 14 18 6 26 97 All Apprenticeships Completions Scotland 218 58 40 27 0 343 484 742 772 573 1545 4116 In Table 9.3 the results for this major group in England and Wales show that the highest take-up in qualifications overall are for Level 2 (30 per cent), followed by Level 1 (20 per cent) and Level 3 (10 per cent). Of additional interest is the number of qualifications at Levels 4 and 5 in an occupational area where NVQs and SVQs are not popular at these levels, and the 72 per cent take up of qualifications by females with 28 per cent male. Table 9.3 Gender and level of qualification for major group sales and customer service England and Wales Sales and customer service occupations All people Males qualification levels Female qualification levels All No qualifications Level 1 Level 2 Level 3 2,450,903 575,718 547,725 717,228 325,502 677,683 113,781 130,861 215,677 1,773,220 461,937 416,864 501,551 Level 4/5 Other qualifications level unknown 183,949 100,781 120,516 69,713 27,135 204,986 114,236 73,646 All people aged 16 - 74 Note: 1. The highest level of qualification variable uses both the educational and vocational qualifications question, and the professional qualifications question. No qualifications: No academic, vocational or professional qualifications. Level 1: 1+ ‘O’ levels/CSE/GCSE (any grade), NVQ level 1, Foundation GNVQ. Level 2: 5+ ‘O’ levels, 5+ CSEs (grade 1), 5+ GCSEs (grade A – C), School Certificate, 1+ ‘A’ levels/’AS’ levels, NVQ level 2, Intermediate GNVQ or equivalents. Level 3: 2+ ‘A’ levels, 4+ ‘AS’ levels, Higher School Certificate, NVQ level 3, Advanced GNVQ or equivalents. Level 4/5: First degree, Higher Degree, NVQ levels 4 – 5, HNC, HND, Qualified Teacher Status, Qualified Medical Doctor, Qualified Dentist, Qualified Nurse, Midwife, Health Visitor or equivalents. Other qualifications/level unknown: Other qualifications (e.g. City and Guilds, RSA/OCR, BTEC/Edexcel), Other Professional Qualifications. Source: ONS, Census 2001, Table S113 In addition, the ONS survey shows that females have the highest achievement rates at Level 1 (24 percent) whilst males show the highest percentage achievements for Level 2 (32 per cent), Level 3 (18 per cent) and Level 4 (10 per cent). © Skills CFA 2010 Information April 2010 Page 79 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Regardless of which qualifications people in contact centres already possess or choose to undertake, focus group input suggested that employers in the sector are suspicious of qualifications. Many feel that the secret of success in relation to staff skills lies with recruitment of the right people. They believe that attitude and personality are the determinants of good personal performance and that qualifications, especially those which simply provide recognition of current performance rather than developing skills further, add little value to staff development. In a few cases, employers express concern about providing staff with qualifications which they subsequently use to move to other jobs. There is no extensive data available on the use of qualifications in the sector beyond that outlined above. 9.2 Contact Centre Apprenticeships 9.2.1 Background to Apprenticeships Contact Centre Apprenticeships are offered at Levels 2 and 3 across the four UK Countries. Contact Centre Apprentices work in a range of job roles for example: Level 2 Apprentices could work in roles such as Receptionist; Administrator; Help Desk; Customer Services Advisor, Contact Centre Operator and Contact Centre Agent Level 3 Apprentices could work in roles such as Customer Services Team Leader; Senior Contact Centre Agent; Operations Manager; Contact Centre Manager; Product Specialist; Sales Advisor; Sales Team Leader; Sales Team Manager; Scheduling and Resource Manager with additional opportunities to move into the more ‘back office’ roles such as human resources, marketing, quality control and training. At both levels jobs in contact centres could involve working in a diverse number of industries for instance; IT, Telecommunications, Finance, Administration, National Health Service, Police, Ambulance Service, Retail, Travel, Sales, Hospitality etc. There is also the opportunity for an apprentice to progress to a Higher Apprenticeship involving a Foundation Degree for Contact Centres. Contact Centres span virtually all industries, offering employment opportunities and transferability in Finance, Travel and Tourism, Hospitality, Marketing and Retail to name just a few. Evidence has shown 67 that Customer Service Apprenticeships follow the same pattern of employment as Contact Centre Apprenticeships and leave the same footprint. However Customer Service Apprenticeships in Contact Centres enjoy higher volumes of take-up with 10 per cent of Apprentice Achievers in Customer Service coming from employer ‘identified’ ‘Contact Centres’. 67 Customer Service Skills, now and the future, ICS, 2008, page 28 © Skills CFA 2010 Information April 2010 Page 80 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9.2.2 Apprenticeship take up Figure 9.1 below shows Apprenticeship starts for both Contact Centres and Customer Service in England and Wales with total starts over the four years of 7,100 for Contact Centres and 103,500 for Customer Service. Figure 9.1 Source: the Data Service: Table S6.1: Apprenticeship Programme Starts by Sector Framework Code (2003/04 to 2008/09) Figure 9.2 Source: the Data Service: Table S11.1 : Apprenticeship Framework Starts (2005/06 to 2008/09) and ICS Customer Service Apprenticeship Database © Skills CFA 2010 Information April 2010 Page 81 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Figure 9.2 above shows the number of bespoke contact centre Apprentices against the 10 per cent of Customer Service Apprentices who worked in Contact Centres over the years 2003-2009. ICS believes that this 10 per cent should be much higher as not every employer would have identified their organisation as a contact centre where the contact centre work would take place in just one section of their organisations. In this case they would be more likely identify themselves in a sector capacity such as financial services, hospitality etc. Nevertheless with just this basic raw data, employer preferences for Customer Service Apprenticeships over Contact Centres does begin to be identified. In the year 2009-2010* a total of 937 Contact Centre Apprentices achieved their Frameworks. Of these 847 were in England, 62 in Wales and 28 in Scotland. In terms of the Level that these Apprentice achievers were taking, 89 percent in England and 73 per cent in Wales were working at Level 2. In Scotland all were at Level 3 as the Contact Centre apprenticeship at Level 2 in Scotland was not available at that time 68. * Note: the figures included in this section are partial year figures which were available at the time of the original submission of this report. 9.2.3 Contact centre apprentice male/female take up Of the 937 Contact Centre Apprentices who achieved their Frameworks in the year 2009-2010 60 percent in England, 61 per cent in Wales and 60 per cent in Scotland were female. These results support the finding throughout this report that more significantly more females than males work in contact centres. 9.2.4 Contact centre apprenticeship employers and apprentice job roles Table 9.4 gives a list of actual job roles of the apprentices and a list of employers who are currently using contact centre apprenticeships across the UK. Table 9.4 Apprentice job roles and employer engagement Apprentice Job Roles Employers using CC Apprenticeships 68 Advisor AA Insurance Agent Abbey Agent - Helpdesk Alphyra UK Ltd Bank Clerk Ambulance Service BT Operator Atos Origin BT Sales Advisor Blackhorse Finance Business Developer Executive British Gas Call Centre Advisor Bron Afon ICS Contact Centre Certificated Achievers dbase - ongoing © Skills CFA 2010 Information April 2010 Page 82 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Centre Manager BT Communication Officer Butlins Contact Centre Chums Ltd Contact Centre Administrator Come Shopping Contact Centre Advisor Comms Direct Control Assistant Conwy County Borough Council Crime Recorder Conwy County Council CS Rep Cosmos CSA Dial-a-cab Customer Care Advisor Domestic & General Customer Service Advisor Dovetail Services Customer Service Agent Epay Ltd Customer Service Officer Garlands Call Centre Customer Service Representative Gasbox DMG Customer Support Officer Haven Holidays Help Desk Agent HPB Travel Helpdesk Advisor HSBC Bank Helpdesk Advisor ING Direct Insurance Advisor Legal Advice Bureau Internal Sales Consultant Loop customer Management Sales / Telesales Microheaven Sales Advisor Motor Services Sales Agent Open Contact Sales/Customer Service Pearson Education Team Coach Royal Bank of Scotland Team Manager Royal College of Nursing Telephonist RPMI Telesales Scottish and Southern Training Manager Siemens Energy Services Travel Advisor Sitel Smart Contact T.Mobile The Hartford Tick Insurance T-Mobile University of Wales Vodafone Wales Domestic Abuse Helpline Zerographics Zurich Source: ICS Contact Centre achievers database – December 2009 © Skills CFA 2010 Information April 2010 Page 83 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9.3 Contact centre training More and more companies are starting to realise that the Contact Centre is vital to brand management and customer satisfaction. Many customers only contact with a company will be dealt with by their Contact Centre. This has resulted in major investment by companies into the development of their contact centre workforce and improving the working conditions for their employees. Evolving from the old style Call Centres of a few years ago, modern day Contact Centres now handle a range of customer enquires through numerous forms of media. These days Customer Service Agents will not only use a telephone but also the Internet, e-mail, SMS messaging, fax and regular post. The exploitation of new technology and efforts to improve customer retention through providing added value services mean that employees working in a contact centre or as the first point of contact in an organisation now require new levels of technical, linguistic and interpersonal skills. As shown in this report, the profile of a good contact centre agent is defined in terms of attributes and characteristics with empathy, reliability and team skills the most important in the eyes of employers. Drawn from the UK Contact Centre DecisionMaker’s guide 2009 69, this evidence is set alongside findings on training and coaching which place the skills agenda very high for contact centres as they strive to improve customer satisfaction and quality in an ever more competitive field. The skills required of contact centre agents often vary with the basics of call handling and information giving often supplemented by up-selling and cross-selling requirements. It is anticipated that the required skill set will continue to expand and therefore that training and coaching will continue to be a central part of contact centre activities as well as a recruitment focus on finding the right people in the first place. The continuing issue of high attrition rates places further emphasis on these needs for skills development. In its Decision Maker’s Guide based on a 2008 survey of a random sample of some 200 contact centres, ContactBabel reports that most employers divide skills needs into hard skills and soft skills. The hard skills are seen as including: 69 data entry speeds system navigation product knowledge application use understanding of relevant business processes. UK Contact Centre Decision-Maker’s guide 2009, ContactBabel © Skills CFA 2010 Information April 2010 Page 84 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training The relevant and related softer skills match more closely to behaviour and the less measurable areas of empathy and listening skills cross-selling and up-selling team working skills self-motivation dealing with difficult customers. The study identifies a series of key stages of training separating induction and basic training from on-going training, specialist agent training and finally team leader training. The cost of bringing an agent up to speed is a significant consideration in the replacement and growth process and hence there is considerable interest in establishing what the most cost-effective methods for training are. An earlier expression of industry views of skills and training is outlined in the 2004 DTI Report 70. This makes a firm distinction between education and skills training. The report points out that much is often made of the availability and desirability of graduates for the industry but that there is no clear evidence about whether a degree makes any difference to how well most contact centre jobs are performed. The report further lists the skills which employers consider essential in their agents as being verbal communication skills interpersonal skills keyboard skills work experience in customer service experience in telephone working educational qualifications. Most contact centres reported a very active training regime and an expectation that new recruits would require substantial training during the probationary period. It is reported that the average agent receives 12 days training a year and 50% more than in the case of outbound operations. The report also gives a profile of the typical educational attainment of staff in UK contact centres which is shown in Table 9.5 below. 9.5 Typical educational attainment of staff in UK contact centres Type of employee GCSE / ‘O’ Level ‘A’ Level Degree Core employees 77% 10% 13% Team Leaders 45% 33% 20% Managers 17% 27% 50% Source : DTI 2004 - The UK contact centre industry - a study and CCA/Sheffield University - “Human resource management in Call Centres” 70 DTI 2004 - The UK contact centre industry - a study © Skills CFA 2010 Information April 2010 Page 85 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training The DTI report also makes reference to the Contact Centre Association Standard Framework for Best Practice and the National Occupational Standards (NOS) for Contact centres (at that time the responsibility of e-Skills UK). These two frameworks underpin a range of accreditations and qualifications that can be gained at individual and organisational level alongside more generic quality accreditations such as ISO and Investors in People. The training section of the DTI report summarises the situation as follows “The need for more training is widely felt, and although some detailed skills and qualifications frameworks have been put in place recently, the industry needs to be encouraged and educated in how best to use them. Some businesses do not support qualifications which prove - rather than develop - employees’ skills, as they fear that these only make the employee more attractive to other organisations 71.” In summary the training market in contact centres is not yet mature and it is therefore hard to analyse supply in any detail. The key features of the supply side revealed by available data are that: because many contact centres opt for customer service training and qualifications, trends can be interpreted from that data the emphasis on in-house training is significant and, as such, is hard to quantify beyond what is made available in industry surveys the recent transfer to the ICS of responsibility for the contact centre standards means that reporting patterns on take-up of dedicated contact centre qualifications are still being established there is evidence particularly of private training provider activity regionally where demand makes it viable. These features combine with a level of disinterest in qualifications within the sector to mean that provision across the sector is fragmented other than where the more generic customer service approach is used. 9.4 Matching training supply with demand 9.4.1 Overview of training mismatches Given the pattern of training use outlined elsewhere in this report, there is limited information available at this stage about the match or mismatch between supply and demand. However, it is possible to draw broad conclusions both from the evidence of primary research in the focus groups and from secondary research, especially that carried out by ContactBabel in the UK Contact Centre Decision Makers’ Guide (7th edition 2009). In overview, the most important features to note are the overwhelming industry preference for in-house training and the problems associated with collecting detailed data that is representative of more than 5,000 contact centres spread across many economic sectors. 71 Source : DTI 2004 - The UK contact centre industry - a study and CCA/Sheffield University - “Human resource management in Call Centres” © Skills CFA 2010 Information April 2010 Page 86 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9.4.2 No evidence of unfulfilled demand Primary research through focus groups provided no evidence of employers seeking courses or qualifications that are not being offered. Employers show an overall awareness of provision by both public and private sector providers without stating that there are gaps in that provision. Providers active in this sector appear to form strong links with employers in their area. The take-up of apprenticeships has been limited but the reasons for this are not currently clear. However, there is no reason to believe that funding patterns are a major influence. Employers express only a limited interest in Government funding patterns. This appears to be because of a determination for all training to be tailored closely to organisational needs and a sense that this is not easily achieved with external funding. The focus groups and other consultative activities did not reveal any significant regional differences in demand and supply. 9.4.3 Specific gaps in training provision Focus group feedback revealed no specific gaps in provision relating to the mainstream occupations in the sector. There is general recognition of specialist provision in various interpersonal skills areas such as anger calming and customer service. Employers also acknowledge that there is a strong provision for more technical skills such as data entry and software system navigation, The general view of specialist training is positive although much of that positive view results from it being arranged and delivered in-house. The area in which some training gaps are reported correspond to reported skills gaps in project management, resource planning, IT architecture and commercial skills, all of these at more senior levels. Whilst some of these areas are sufficiently generic to provide training opportunities together with learners from other sectors, there is concern that it is hard to source training that is specific to the industry. Identification of further trends and patterns in this area will require further research and monitoring especially of the direction that the sector wishes to take with inhouse training. 9.4.4 Limited take-up of existing provision As reported elsewhere, it has been difficult to establish take-up figures for available NVQ / SVQ contact centre qualifications. The apprenticeship figures reported above show a low take-up from over 600,000 agents/operators. However, this is offset to an indeterminate level by numbers taking customer service qualifications as their preferred option. Overall, there is no substantial evidence of courses and training on offer that are not being accesses. © Skills CFA 2010 Information April 2010 Page 87 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9.4.5 Attributes of new recruits Focus group input reports the easing of the labour market for operators in that applicants tend to be better qualified than in the past and see the employment options in contact centres as longer term rather than stop-gap. Employers are keen to find applicants with a complimentary set of skills that includes hard technical skills and soft interpersonal skills. Employers report that it is the combination of hard and soft skills that create any shortages. Those shortages can be exacerbated by higher attrition rates with employers reporting the natural feeling that it is too often those with higher skill levels who leave. 9.4.6 Skills supply matches demand In the most important employment area for the sector, employers in the focus group report that it is generally possible to recruit in sufficient numbers when seeking operators/agents. In particular, they quote a willingness on the part of applicants to see the role as longer-term and a possible career step rather than as a short-term placement. This fit between supply and demand contrasts somewhat with mismatches at higher and technical levels that are reported elsewhere. 9.4.7 Skills supply does not meet demand Using information provided by focus groups and supported in ContractBabel reports, there is evidence that in some specific technical and managerial areas it is hard to find recruits or to promote staff progression. The skills areas most often identified in this regard are: resource planning project management team leader and people skills skills in management of teams remotely IT architecture commercial skills. It is hard to identify the causes of these difficulties and it is equally difficult to understand what actions might be taken to address such specialist needs. 9.4.8 Employer recruitment preferences The contact centre sector attracts a very wide range of recruits. Many employers adopt complex recruitment processes to identify combinations of skills that they require from recruits. They express no preference for any particular qualifications held by recruits including the types of degree held by the many graduates who join the sector. Expressed in stronger terms by some, qualifications may even be seen as irrelevant beyond the point where they offer proof of functional literacy, numeracy and IT awareness. © Skills CFA 2010 Information April 2010 Page 88 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training Perhaps the only preferences expressed are those for recruits with previous experience and who can also display the more abstract attribute of emotional intelligence with a level of maturity. In summary, the attributes most respected by employers are not easily evidenced by qualifications. 9.4.9 Skills requirements and qualifications The match between skills requirements and the existing suites of NOS and workbased qualifications indicates various needs that should be addressed in the Sector Qualifications Strategy. Firstly, the possibility of drawing customer service and contact centre standards closer together should address some of the concerns about the combination of skills needed in the sector. A further development that is likely to influence skills needs in the future relates to a general industry move to extend self-service. This is likely to reduce the number of jobs available demanding only lower level skills and thus raise the average skill level demanded of operators / agents. If a Qualification Strategy is to succeed, it will need to forge a firm link with the development of personal confidence and emotional intelligence. 9.5 Investment in skills 9.5.1 Overview of skills development and costs Primary research in focus groups indicates that there is substantial investment in skills development across the contact centre industry. The focus on in-house training clearly outlined elsewhere in this report makes that investment hard to quantify. However, ContactBabel data gives a clear indication of the direction taken generally in the industry. Most, if not all, organisations provide structured induction, regular updates and encouragement of career progression. As has been indicated elsewhere, the balance of funding for this investment is unclear due to the difficulty of establishing take-up of contact centre qualifications. However, it is clear that the relatively low levels of Apprenticeship participation indicate that very limited public funding has been applied to the sector. 9.5.2 ContactBabel evidence In the Decision Makers’ Guide of 2009, ContactBabel reports on training and coaching in the industry. The report emphasises increased attention to customer service as a driver for training together with the increasingly complex roles that operators/agents are expected to undertake. It reports substantial investment as being the norm while recognising that some organisations are reluctant to indulge in training leading to qualifications that will enable staff to change jobs more easily. The report also lists examples of the hard and soft skills that employers consider most important to deliver. Examples of the hard skills include data entry speeds system navigation product knowledge © Skills CFA 2010 Information April 2010 Page 89 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training software application use understanding of business processes. Examples of the soft skills include: empathy and listening skills cross-selling and up-selling managing team dynamics developing self-motivation dealing with abusive customers. These findings support the need for integration of the hard and soft skills in the qualification offers that should be developed. 9.5.3 Induction training and getting up to speed Induction is seen as a very important element of operator/agent training. The effectiveness of this training is seen as an important contribution to the costeffectiveness of the operation as a whole. Induction training is reported to include mentoring, on-the-job practice, buddying classroom activities and some e-learning. Induction course costs are estimated by ContactBabel to average over £1,500 per operator/agent. However, the figure is considerably lower in outsourcing operations at £400. This can be explained mainly by the higher incidence of ‘campaign work’ in those centres and the greater number of transient staff. When asked about the time taken for a new operator/agent to become fully productive the average answer is 7.7 weeks. There is variation between the sectors with the longest period being some 12.8 weeks in the highly regulated Insurance sector and the shortest period being 4.8 weeks in outsourcing operations. It is clear that all of these results represent substantial investment on the part of employers. 9.5.4 On-going training and coaching After and operator/agent has achieved basic competence, most organisations switch responsibility for their day-to-day development. That responsibility is supported by regular and targeted formal training, either in-house or run externally, in addition to e-learning opportunities. The pattern of training varies but an average consists of 30% product and market updates, 30% behavioural and soft skills training and 40% training on internal systems and processes. Concern is expressed by employers about the proportion of training that needs to be undertaken to update on systems as the legacy of older software is overtaken by incremental improvements. This training, therefore, should probably be seen as a cost of system development rather than as a contribution to skills development. With regard to the types of training and hours of training undertaken by operators/agents, ContractBabel reports a wide variety as illustrated in the table below. © Skills CFA 2010 Information April 2010 Page 90 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training 9.6 Types of on-going training (hours per agent week) Sector Coaching eLearning Classroom training 0.9 1.4 0.8 Total ongoing training 6.0 3.4 3.3 Finance 3.7 1.4 Insurance 1.5 0.4 Transport & 1.4 1.0 travel Outsourcing 2.0 0.6 0.7 3.2 Public sector 1.8 0.5 0.9 3.2 Retail & 1.9 0.4 0.8 3.1 Distribution Services 2.1 0.2 0.8 3.1 Manufacturing 1.7 0.4 0.7 2.8 IT 1.3 0.2 1.1 2.6 Telecoms & 1.6 0.4 0.4 2.4 Utilities Average 1.9 0.5 0.8 3.3 NB ‘Classroom training’ data converted from ‘days per year’ into ‘hours per week’ by assuming 8 hours per day, and dividing by 52 weeks. Source: The UK Contact Centre Decision-Makers’ Guide (2009) ContactBabel This illustrates both the variety of investment in training by the industry and, with an average of 3.3 hours per day, the high level of that investment. It is indeed unusual for some 8% of total time worked to be allocated to training on a regular basis. 9.5.5 Team leader coaching and development There is general recognition across the industry that team leaders have an important role to play in the development of their own operators/agents. ContactBabel research has investigated the time which this group spends on coaching and development of their own team leader skills. The results are shown in the table below. 9.7 Weekly hours of coaching and development for team leaders Sector Weekly hours of coaching and development for team leaders Finance 2.8 IT 2.3 Insurance 2.3 Transport & Travel 2.3 Outsourcing 2.2 Manufacturing 2.0 Telecoms & Utilities 1.9 Public Sector 1.7 Services 1.7 Retail & Distribution 1.5 Average 2.0 Souce: The UK Contact Centre Decision-Makers’ Guide (2009) ContactBabel © Skills CFA 2010 Information April 2010 Page 91 of 115 Contact Centre Labour Market Section 9: Contact centre qualifications and training This coaching and development maybe carried out by more senior line managers or by dedicated in-house or external trainers. This time allocation is in addition to the average of just less than two hours per week that a team leader spends coaching their own team members. That commits some 60% of the average team leader’s time. The cost of team leaders’ time allocated to learning and to coaching others is therefore a substantial investment for the industry. 9.5.6 Financial estimates of investment in training Despite the extensive evidence of time spent in training and development activities, there is very little indication of what that represents in financial terms. A substantial amount of training is undertaken in-house so some costs are bound to be hidden in fixed overheads. Spending on training is regarded as commercially confidential as is the revenue derived from the industry by training providers, both public and private. No figures are easily available regarding public funding allocated to the sector. The conclusion must be that the industry invests more heavily than many in training but that this statement cannot be quantified. © Skills CFA 2010 Information April 2010 Page 92 of 115 Contact Centre Labour Market Section 10. Occupational change and employment projections in contact centres 10. Occupational change and employment projections in Contact Centres 10.1 UK growth in contact centres and employment 10.1.1 Measuring contact centre employment Measuring the numbers of people employed in UK contact centres presents various challenges. The statistics that are available sometimes represent total employment but more often are restricted to the numbers of agents or "seats" within contact centres. Both measures are valid especially since it is difficult to achieve any precision about non-agent positions where the contact centre is incorporated into the general operational structure of an organisation as opposed to where it is run by an outsourcing organisation dedicated to contact centre operations. A further challenge is presented by the mixture of full-time and part-time employment as there are a significant number of part-time posts in the sector. However, this becomes a marginal issue if the statistics are being considered from the point of view of skills development as part-time staff are equally likely to have significant skills needs. It is also likely that part-time employment in the sector is seen as a progression route by many and thus that it is the total number employed that should be of interest here. In relation to the contact centre sector, various assumptions are commonly made as they became accepted wisdom during the most aggressive growth period of the industry and customers more commonly experienced the use of contact centres for the first time. The most frequently quoted assumptions are that: staff turnover is high and very few people stay in the contact centre environment for very long contact centre work is extremely repetitive and mechanical requiring little more than the ability to follow a script many of the jobs in contact centres are carried out by students on vacation or in gap years new graduates use contact centre jobs as a stop-gap whilst waiting to find a career path most agent positions are held by women. It is not appropriate here to analyse or challenge the veracity of these assumptions but many of them are challenged by the evidence that appears elsewhere in this report. Suffice it to say at this point that employment patterns in the industry present far more balance than is represented by these commonly held views and consequently that the range of evidence presented should be considered carefully. © Institute of Customer Service Page 93 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres 10.1.2 ONS employment evidence Once again, there are difficulties associated with tracking these changes due to the problem of reconciling Government statistics of the ONS with the broader base acknowledged by the Industry. In 2004 the Department of Trade and Industry (DTI) commissioned a study of The UK Contact Centre Industry. Since 2004 trends have been tracked using an extensive Industry database by ContactBabel, an independent research Agency. The estimates in this section are therefore formed from a combination of these sources to provide evidence of very considerable growth patterns that seem set to continue in the Industry. However the ONS figures are at odds with industry estimates of growth. As shown in Table 10.1 the ONS report shows a decline in numbers from 2006. One possible explanation, if the balance of sector employment has shifted from outsourced contact centre services to centres being run in house, is that contact centre employment pattern will be reported elsewhere in ONS statistics among separate sectors. Evidence to this effect is shown below. Table 10.1 April – June C all centre agents and operators Total 000s 2002 78 2003 77 2004 93 2005 88 2006 112 2007 104 2008 96 2009 84 Source: ONS Labour Force Survey, Employment status 2002-2009 % Increase / Decrease n/a -1.3% 20.8% -5.4% 27.3% -7.1% -7.7% -12.5% 10.1.3 DTI and independent employment evidence These figures are in marked contrast with the growth pattern reported by the Industry. However, this could be explained if they represent only outsourced services and the increases can be traced to contact centres run in-house. Based on the DTI 2004 survey, collated and analysed data showed steady growth in the number of contact centres in the period 1995 and predicted continuing growth through to 2007 as shown in Table 10.2 below. © Institute of Customer Service Page 94 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres Table 10.2 The UK Contact Centre Industry - contact centres, 1995-2007 Year Contact centres % increase 1995 2515 n/a 1996 2740 9% 1997 3070 12% 1998 3470 13% 1999 3990 15% 2000 4470 12% 2001 4825 8% 2002 5065 5% 2003 5320 5% 2004 5535 4% 2005 5700 3% 2006 5845 3% 2007 5980 2% Sources: Collation and analysis of data from Gartner Dataquest, Data monitor and ContactBabel based on the DTI report, The UK contact centre industry - a study 2004 These numbers were subsequently reduced by the on-going monitoring carried out by Contact Babel shown in Table 10.3. However, the results still reflect continuing growth through to the 2011 forecast. It is also significant that the forecasts indicate a growth in the average size of each centre meaning that the growth in employment will be greater again. Table 10.3 Year Growth of UK contact centres 2007 - 2011 Contact centres % growth 2007 5180 2.8% 2008 5250 1.4% 2009 5300 1.0% 2010 5350 0.9% 2011 5400 0.9% Source: - UK contact centres in 2008 - The state of the industry; ContactBabel, 2008 Average centre size (agent positions) 123 128 132 136 140 Further collated and analysed data based on the DTI report extended reporting from centre numbers to employment numbers by measuring the agent positions for all centres. It should be noted that this reporting still does not cover all employment in the sector because the figures do not include management and support positions. Indeed it is estimated that there is one additional post for each two agent positions making the total employment in the sector in 2007 over one million. Table 10.4 UK Contact Centre Industry - Agent Positions, 1995-2007 Year Agent positions (000s) % increase 1995 143.9 n/a 1996 169.8 18% 1997 203.8 20% 1998 264.9 30% 1999 331.2 25% 2000 387.5 17% 2001 430.1 11% 2002 460.2 7% 2003 494.3 7% 2004 538.7 9% 2005 581.8 8% 2006 616.7 6% 2007 647.6 5% Sources: Collation and analysis of data from Gartner Dataquest, Data monitor and ContactBabel based on the DTI report, The UK contact centre industry - a study 2004 © Institute of Customer Service Page 95 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres From 1995 to 2007 predicted growth in agent positions was in the order of 350%. Once again the Contact Babel figures for 2007 were somewhat lower than the collated analysis in Table 10.4 above. Their estimates for 2007 - 2011 are shown in Table 10.5 below. It should be noted once again that only agent positions are measured and thus that using the 2:1 ratio of agents:support total employment for the sector in 2011 may be in the order of 1.1 million. Table 10.5 UK Agent positions 2007 - 2011 Year Agent positions (000s) 2007 638 2008 673 2009 702 2010 730 2011 755 Source - Contact Babel - UK contact centres in 2008 - The state of the industry % growth 7.8% 5.5% 4.2% 4.0% 3.5% Once again these statistics are in marked contrast with ONS figures showing a decline in outsourced services. However, they do reflect the evidence of qualification take-up presented later in this report and on-going growth is certainly the pattern that should be heeded in relation to qualification strategies. The final analysis in this section reflects the apparent growth in average size of contact centre. It highlights the importance of the concentration of employment in the industry within the largest units despite the significant number of smaller operations. Table 10.6 Agent positions and contact centres by size of contact centre Agents per centre Contact centres % of contact centres Agent positions 10 - 50 304 62.1% 51 - 100 904 17.0% 101 - 150 303 5.7% 151 - 200 165 3.1% 201 - 250 138 2.6% 251 - 500 277 5.2% 501 - 1000 170 3.2% 1001+ 59 1.1% Total 5,320 100% Source : DTI 2004 - The UK contact centre industry - a study 69,228 56,721 34,364 27,348 29,748 83,520 105,125 88,200 494,254 % of agent positions 14% 11% 7% 6% 6% 17% 21% 18% 100% Given that there may be very different patterns of recruitment, attrition, training, career progression and skills between large and small centres, this data is important. It has not been possible to source any more recent data but there is no evidence of major changes other than the rising average size of centre reported above. Most significantly the data indicates that not all contact centres are very large operations © Institute of Customer Service Page 96 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres 10.2 UK contact centres and employment by sector 10.2.1 DTI and independent evidence Contact centres are spread across many sectors of the economy. Several sectors have been dominant since the early days with retail and distribution, financial services, transport and travel and general services most notable. The 2004 DTI study of UK contact centres provided a detailed breakdown shown below together with a 2011 update projection by Contact Babel. Table 10.7 Economic sector Contact centres by sector 2003 - 2011 Contact % of all Contact % of all % change centres 2003 contact centres 2011 contact 2003 - 2011 centres 2003 centres 2011 Retail and distribution 621 11.7% 780 14.4% 25.6% Finance 818 15.4% 630 11.7% -23.0% Transport and travel 569 10.7% 510 9.4% -10.2% Services 578 10.9% 490 9.1% -15.2% Outsourcing / telemarketing 398 7.5% 460 8.5% 15.6% Manufacturing 437 8.2% 440 8.1% 0.7% IT 345 6.5% 415 7.7% 20.3% Public services 274 5.2% 350 6.5% 27.7% Publishing and printing 269 5.1% 265 4.9% -1.5% Entertainment and leisure 157 2.9% 185 3.4% 72.5%% ISP 171 3.2% 160 3.0% -6.4% Telecoms 241 4.5% 150 2.8% -37.8% Food and drink 110 2.1% 135 2.5% 22.7% Motoring 107 2.0% 110 2.0% 2.8% Medical 71 1.3% 105 1.9% 47.9% Utilities 152 2.9% 95 1.8% -37.5% Engineering and construction n/a n/a 70 1.3% Recruitment and training n/a n/a 50 0.9% Total 5,320 100% 5,400 100% 1.5% Source : DTI 2004 - The UK contact centre industry - a study and Contact Babel - UK contact centres in 2008 - The state of the industry These statistics reveal considerable variation between the different sectors as service offers, and style and fashion for service delivery change. A further reason for the variation is that some sectors have made far greater commitment to off-shoring than others. In relation to employment, variations in average size of centre can also make these figures misleading but they provide valuable guidance on the number of employers involved in contact centres from each economic sector. The pattern of employment shows similar variations and is tabulated below drawing once again on the 2004 DTI report updated with 2011 projections from ContactBabel. Table 10.8 Economic sector Finance Outsourcing / telemarketing Retail and distribution Transport and travel © Institute of Customer Service Agent positions by sector 2003 - 2011 Agent posts % of all 2003 agent posts 2003 125,983 25.5% 49,244 10.0% 64,816 13.1% 42,169 8.5% Page 97 of 115 Agent posts 2011 % of all agent posts 2011 % change 2003 - 2011 318,905 115,365 111,652 68,958 18.4% 15.3% 14.8% 9.1% 153.1% 134.3% 72.3% 63.5% Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres Table 10.8 Agent positions by sector 2003 - 2011 Agent posts % of all Agent posts % of all agent % change 2003 agent posts 2011 posts 2011 2003 - 2011 2003 Services 32,024 6.5% 45,446 6.0% 41.9% Telecoms 36,150 7.3% 42,658 5.6% 18.0% IT 24,175 4.9% 41,515 5.5% 71.7% Utilities 30,740 6.2% 32,205 4.3% 4.8% Entertainment and leisure 16,226 3.3% 27,986 3.7% 17.2% Manufacturing 15,948 3.2% 24,165 3.2% 51.5% Public Services 14,620 3.0% 23,529 3.1% 60.9% Motoring 11,989 2.4% 20,100 2.7% 67.7% Printing and publishing 9,858 2.0% 18,465 2.4% 87.3% ISP 10,439 2.1% 15,245 2.0% 46.0% Medical 3,038 0.6% 11,590 1.5% 281.5% Food and drink 4,897 1.0% 8,925 1.2% 82.3% Recruitment and training n/a n/a 4,545 0.6% Engineering and construction 1,898 0.4% 3,985 0.5% 110.0% Total 494,254 100% 755,239 100% 52.8% Source : DTI 2004 - The UK contact centre industry - a study and Contact Babel and UK Contact Centres in 2008 – The State of the Industry, ContactBabel Economic sector 10.3 UK contact centres and employment by region 10.3.1 DTI and independent regional employment evidence The DTI Report of 2004 provides an analysis of total employment in contact centres by English region together with figures for Northern Ireland, Scotland and Wales. Those figures for 2003 are updated to 2007 by Contact Babel and both sets are shown in Table 10.9 below. Table 10. 9 Country/Region UK contact centre employment by region Contact centre Contact centre % Contact centre Contact centre % employed of total employment of total employment employment 2003 2003 2007 2007 Northern Ireland 13,351 1.80% 19,330 2.47% Scotland 92,925 3.92% 125,197 4.94% Wales 26,935 2.13% 35,687 2.68% East Anglia 30,376 1.68% 38,432 2.07% East Midlands 47,313 2.35% 62,853 2.93% London 47,755 1.39% 62,437 1.68% North East 47,466 4.31% 61,916 5.29% North West 129,524 4.26% 172,079 5.37% South East 152,143 3.03% 195,421 3.78% South West 40,093 1.68% 51,616 2.00% West Midlands 69,653 2.85% 94,434 3.77% Yorkshire 93,271 3.99% 120,946 4.92% Total 790,806 2.83% 1,040,348 3.53% Source : DTI 2004 - The UK contact centre industry - a study and Contact Babel - UK contact centres in 2008 - The state of the industry These statistics clearly illustrate the growth of the sector and its growth as a proportion of the total working population. Growth has been evident in every country and region but has generally been stronger the further north one goes. © Institute of Customer Service Page 98 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres The figures make it clear that in terms of straightforward size Scotland, Yorkshire, the West Midlands and the North West and North East of England dominate together accounting for over 70 per cent of employment in the sector. However, the South East continues to have the highest numbers of contact centre staff employed of any single region. The contact Babel analysis goes further by using all available sources and growth trends to predict sector growth in employment from 2007 to 2011. These are shown in Table 10.10 below. 10.10 Country/Region Northern Ireland Scotland Wales East Anglia East Midlands London North East North West South East South West West Midlands Yorkshire Total Source : Contact Babel UK contact centre projected employment changes by region 2007 - 2011 Predicted growth in contact centre % growth in contact centre jobs employment 2007 - 2011 4,760 25% 28,151 22% 8,159 23% 7,060 18% 14,231 23% 9,904 16% 14,111 23% 36,095 21% 41,160 21% 11,761 23% 19,056 20% 26,454 22% 220,902 21% Anticipated growth is clearly significant in every area with only marginal changes anticipated in the existing balances between the regions except for a predicted decline in London’s share of the sector’s employment. There is also variation in the distribution of contact centres of different sizes as revealed in the DTI 2004 report and shown in the Table 11 below. No more recent data is available but there is no evidence of major changes other than a steady increase in the overall size of the average contact centre. Table 10.11 Country / Region Contact centres by region and size band 51 101 151 201 251 100 150 200 500 500 Northern Ireland 31 5 2 2 4 Scotland 219 72 21 13 11 33 Wales 82 22 6 6 7 East Anglia 170 40 13 11 5 13 East Midlands 198 45 13 9 11 30 London 375 85 23 9 13 13 North East 85 26 9 2 6 13 North West 295 113 28 28 30 51 South East 1,032 256 89 56 25 38 South West 168 63 30 9 8 21 West Midlands 362 130 47 11 13 26 Yorkshire 286 48 23 15 6 27 Total 3,304 904 304 167 136 278 Source : DTI 2004 - The UK contact centre industry - a study 10 - 50 © Institute of Customer Service Page 99 of 115 501 1000 5 32 7 4 5 5 15 33 26 7 12 19 168 1001+ Total 1 8 4 1 4 1 7 12 4 1 16 59 50 414 135 256 314 519 164 599 1,516 310 605 438 5,320 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres The main interest of these figures lies in the way that the larger contact centres are concentrated in a few regions. This also means that East Anglia, London, East Midlands, the South East and Yorkshire are heavily weighted towards quite small centres. The DTI report further sets out the implications of this distribution for agent numbers employed by region and size band and this is set out in the table below. Once again there are no equivalent figures available for more recent years but Table 10.12 below provides a clear indication of the importance to employment patterns of each size of contact centre. Table 10.12 Country / Region Agent positions by region and size band 51 101 151 201 100 150 200 500 Northern Ireland 638 314 240 307 Scotland 4,594 4,557 2,403 2,151 2,509 Wales 1,723 1,414 721 1,434 East Anglia 3,573 2,514 1,442 1,844 1,075 East Midlands 4,147 2,828 1,442 1,536 2,509 London 7,848 5,342 2,643 1,536 2,867 North East 1,787 1,571 961 307 1,434 North West 6,189 7,070 3,124 4,609 6,451 South East 21,630 16,026 10,093 9,218 5,376 South West 3,509 3,928 3,364 1,536 1,792 West Midlands 7,593 8,170 5,287 1,844 2,867 Yorkshire 5,998 2,985 2,643 2,458 1,434 Total 69,228 56,721 34,364 27,348 29,748 Source : DTI 2004 - The UK contact centre industry - a study 10 - 50 251 500 1,106 9,956 2,212 3,872 8,850 3,872 3,872 15,487 11,615 6,637 7,744 8,297 83,520 501 1000 3,218 19,309 4,291 2,145 3,218 3,218 9,654 20,381 16,091 4,291 7,509 11,800 105,125 1001+ Total 2,520 12,600 5,040 2,520 5,040 2,520 10,080 17,640 5,040 2,520 22,680 88,200 8,344 58,078 16,835 18,985 29,571 29,847 29,666 80,953 95,090 25,058 43,533 58,295 494,254 Large contact centres are the most significant employers in Northern Ireland, the North East and Scotland. London and the South East in particular rely much more on employment within small centres. © Institute of Customer Service Page 100 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres 11 Priorities and the next steps 11.1 Identifying priorities The findings of this extensive Labour Market Information (LMI) indicate the need for three priority areas which will provide the basis for the development of a Contact Centre Qualification Strategy (CCQS) and subsequently a Contact Centre Action Plan (CCAP). The (CCQS) and the CCAP will give detailed planning and direction for the future of contact centre National Occupational Standards (NOS) and qualifications. Contact centre priorities: 1. 2. 3. 11.2 Repositioning understanding of contact centre skills needs to establish the correct balance between specialist contact centre skills and broader customer service skills Flexibility, credibility and direct relevance to job roles now and in the future Identifying and monitoring contact centre trends that will impact on continuousdevelopment of sector qualifications. Vision of future qualifications This report has gathered together extensive evidence regarding the current state of the contact centre labour market and its skills needs. The evidence covers the needs of employers and learners and the implications for future approaches to training and qualifications. The research has been carefully analysed in order to draw conclusions about priorities for action. These priorities will form the spine of the ICS strategy for developing qualifications in the contact centre sector. They are not listed in order of preference or implementation but they do represent a complementary set of action areas that together will advance the recognition and use of contact centre qualifications. By giving due recognition to the customer service focus of contact centres without losing key technical and specialist contact centre skills, the new qualification strategy will enable Awarding Organisations and training providers to make real inroads into an extensive market. 11.3 Priority 1 - Repositioning understanding of contact centre skills needs to establish the correct balance between specialist contact centre skills and broader customer service skills. At the time of the LMI research, some 50 per cent more learners taking M/Apprenticeships in the contact centre sector chose a customer service Framework than those who chose a contact centre framework. The combined annual certification is in the order of 3,000 out of total employment estimated at over 700,000 in the sector counting only agent/operator positions. Taking just this one indicator as a guide to activity levels, there is clearly considerable scope for additional use of accredited training and qualifications. © Institute of Customer Service Page 101 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres The ICS conclusion from current trends and primary research is that increasing the emphasis on generic customer service skills within qualifications for the sector will increase the attraction of those qualifications for both employers and learners. This increased acceptance can come only from awareness of the options available and the potential benefits on offer to organisations, employers and learners. The ICS report outlining LMI for the customer service sector in June 2008 identified the importance of service industries in general and of customer service skills to the UK economy. Its importance to the UK’s international competitive position surely stretches to the importance of the contact centre sector with its very significant number of employees. There can be little doubt, given the UK sector’s disadvantages on cost that the high quality of customer service offered by contact centres in the UK will be of major importance in relation to international competition for the sector. The aim of the CCQS will be to ensure that this competitive advantage can be exploited fully. To achieve this, key issues must be addressed as components of priority in that: The recognised language of customer service developed by the ICS must be fully integrated with new contact centre qualifications. The term ‘customer service’ used by the ICS has developed over more than 15 years following extensive research and consultation. The intention is that the term denotes respect and positive action. The contact centre sector formerly used ‘Call Handling’ standards and has moved towards the partnership concepts of customer service in which the formation of an appropriate relationship between supplier and customer is a crucial component. This change is particularly important in the light of the more complex support being provided by contact centres. The time is therefore right to draw the language and terminology of contact centres and customer service closer together. More reliable and more complete statistics are needed about contact centre occupations and organisations. The presence of some excellent private sector research data is the result of a DTI initiative in 2004 and the weaknesses of official government ONS figures on employment in the contact centre sector. The difficulties result from both the grey areas of definition in the softer skills such as customer service and the confusion about whether the business of a contact centre should be grouped with other contact centres or with the main business of the products or services the Centre is supporting. If there is to be successful integration of contact centre and customer service skills the ICS will need to have access to readily updated employment statistics for the sector. Private research depends on subscription and extrapolation from a high level of participation provides a good confidence limit for the available statistics. © Institute of Customer Service Page 102 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres It is important that the combined economic significance of the contact centre and customer service sectors is not lost because of under‐estimates of employment. Recognition of higher skills needed in contact centres must be maintained alongside focus on the agent/operator role. The influence of numbers of ‘seats’ on thinking about employment in the contact centre sector can cast a shadow over higher level skills and specialist roles. The customer service sector has experienced similar symptoms with an emphasis on front‐line delivery roles detracting from employer interest in higher level organisational skills. At the higher levels there are inevitable overlaps with generic management skills. Proposed actions to implement the CCQS must include steps to address contact centre and customer service integration at all levels. Consistency of standards must be established and maintained to ensure that customer service skills are integrated at the right levels and retain their generic functions within contact centre qualifications. The success of generic customer service qualifications across many sectors, not least of the entire contact centre sector, is well recognised and easily quantified. There has always been pressure to tailor customer service standards and qualifications to the needs of individual sectors and those pressures have been resisted to maintain the generic integrity of customer service skills. The unique position of contact centres as organisations whose main business is the provision of customer service means that integration of customer service standards is totally appropriate in this case. However, it will be important to ensure that the integration which takes place does not result in undue prominence for either the technical and specialist contact centre skills or the generic customer service skills. To facilitate the issues raised in Priority 1, detailed Action Plans will be prepared that are designed to: integrate the language of customer service more completely within contact centre standards and qualifications establish a routine for updating the collated contact centre employment data held by the ICS give more emphasis to the higher level and specialist skills that are a vital part of contact centre organisations develop understanding of the mapping and equating of contact centre specialist skills with customer service skills extend the pattern of recognition for contact centre career paths through the further development of qualifications and progression routes ensure that contact centre skills are clearly identified on qualification training and occupational databases. © Institute of Customer Service Page 103 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres These outcomes will require a wide range of actions involving close co‐operation with other stakeholders and partners. 11.4 Priority 2 - Developing contact centre qualifications that meet employer and learner needs for flexibility, credibility and direct relevance to job roles The ICS recognises that ongoing actions are needed to develop qualifications that truly meet employer needs. There are two key routes for networking with contact centre employers that are open to the ICS. Contact and engagement through Government funded training schemes provides strong connections with employers who already use contact centre qualifications. It is harder to identify specific employers who use customer service qualifications in a contact centre environment. However, steps can be taken to begin the collection of that data. A second networking opportunity is presented through ICS relationships with contact centre trade bodies. Initial connection has been established following the transfer of the contact centre NOS to the ICS early in 2009. This has been developed through the primary research carried out for this LMI project. It will be important to build on those relationships by establishing clear co‐operative roles that provide proper industry opportunities and space for all concerned. Linking current take‐up figures for accredited qualifications in contact centres with primary research revealing interest in flexible relevant smaller qualifications, it will be important to provide choice and credibility in any new qualifications. This can be achieved only with full use of the contacts formed with employers and through indirect engagement via the market mechanisms for training and qualifications. In the customer service sector much of the engagement with employers is through training provider contacts because of the pan‐sector features of customer service. Whilst the same is not true of the contact centre footprint, training providers must be a valuable conduit for contact with employers in the sector. Many employers currently make the choice of limiting their training and assessment offer to in‐house, company specific activities at least partly because of the flexibility with which it can be delivered. The problem is that the quality and transferability of learning from that source are unknown and largely immeasurable. It is reasonable to assume that a new offer of smaller and more flexible qualifications could add to the overall stock of learning. Another related issue for employers and learners is the narrow age‐group to which funding is applied.This can exclude groups of employees and in particular may impact on the ability to provide career progression opportunities. To facilitate the issues raised in Priority 2, detailed action plans will be prepared that are designed to: © Institute of Customer Service Page 104 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres improve delivery, employer satisfaction, achievement rates, employer engagement and flexibility of delivery for existing qualifications develop new contact centre qualifications that are credible, flexible, cost effective, meet employer and learner needs and complement current qualifications without threatening their success ensure that contact centre qualifications become more accessible to a broad and diverse group of learners develop a clear progression path based on credible and innovative qualifications for young people in schools and learners already working or preparing to work in contact centre customer service roles. These plans will require a wide range of action involving close co‐operation with other stakeholders and partners. 11.5 Priority 3 - Identifying and monitoring contact centre trends that will impact on continuous development of sector qualifications The contact centre sector is innovative, responsive to technological change and subject to regulatory pressures in many different sectors. The result of these and other external influences is that features of occupations in the sector may change relatively rapidly. Government statistics, trade associations and private research organisations seek ways to monitor and track aspects of these changes and attempt to predict the direction of travel in the industry as a whole. The international spread of contact centre services makes this task no easier and many one‐off innovations can be misleading. Training and qualifications have a development lead time and must then be launched onto a market that may already have moved on. By comparison, the world of customer service generic skills arguably changes more slowly. Because it is generic, pathfinder organisations or sectors can be identified which enable the ICS to promote best practice through keynote research. Developments in contact centres are both faster and less easy to identify as trends that will have industry‐wide effects. It will be equally important for the ICS to avoid creation of qualifications in response to short term innovations which do not extend across the industry and to respond quickly enough when real trends become apparent. To facilitate the issues raised in Priority 3, detailed Action Plans will be prepared that are designed to: establish a formal framework of sector consultation that will enable the ICS to track trends and changes in the sector that will impact on qualifications and training devise an internal monitoring system to track developments on an annual or half‐yearly basis in order to support a rolling three year qualifications development plan link the business case for development of new contact centre qualifications with clear evidence of industry changes. © Institute of Customer Service Page 105 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres 11.6 The next steps 11.6.1 Support for priorities and proposed actions The ICS has identified priorities for the next phase prior to the development of detailed Action Plans. Each priority presents a number of challenges and target outcomes that are outlined earlier in this section. Confirming these outcomes will require full consultation on the final draft of the CCQS with representatives of all stakeholders. Following that consultation detailed Action Plans will be prepared for implementation by 2011. 11.6.2 Reposition understanding of contact centre skills to establish the correct balance between specialist contact centre skills and broader customer service skills When finalised, the CCQS will: engage with key employers and key customer service ‘champions’ in Government Departments to promote the importance of combining customer service and specialist contact centre content in training and qualifications offers to staff work with key employers to promote the contact centre case to the UKCES develop case studies of contact centre career paths that rely on broad skill sets that include customer service and specific contact centre skills review the contact centre NOS and NVQ/SVQ structures with a view to detailing them clearly so that employers and learners have many options review the contact centre Apprenticeship framework with a view to providing broader customer service options and recognising different career routes explore opportunities for developing links between contact centres and the 14 ‐19 curriculum which will introduce young learners to the possibilities of contact centre and customer service careers. 11.6.3 Develop contact centre qualifications that meet employer and learner needs for flexibility, credibility and direct relevance to job roles The ICS will: carry out a range of actions and support to improve delivery and assessment through guidelines of best practice which will improve retention and achievement rates especially on extended programmes engage with key partners and stakeholders to devise ways of promoting participation by different age groups, different ethic backgrounds, part‐time employees and male employers engage with employers to encourage the integration of in‐house training and development programmes and CPD activities with accredited qualification options through unitised offers on the QCF © Institute of Customer Service Page 106 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres investigate options for development of specialist qualifications covering resource scheduling and team leadership specifically related to the contact centre environment develop smaller qualifications at each stage of progression to encourage participation which may lead to longer term industry and qualification commitment. 11.6.4 Identify and monitor contact centre trends that will impact on continuous development of sector qualifications • • • • review the available mechanisms for partnering with industry stakeholders devise internal monitoring systems to identify and report on contact centre developments that may influence training and assessment activities devise regular updates of a business case for developing contact centre qualifications that link with current sector developments analyse current best practice in learning and development activities that make most contribution to sector progress. 11.7 Future evolution of the CCQS 11.7.1 From development to implementation Development of the CCQS has been overseen by a Project Board of four senior managers and the Chief Executive representing every aspect of the ICS operation. The importance of the CCQS to the organisation is well recognised and the Project Board will therefore continue to oversee the transition through approval and endorsement of the CCQS to Action Planning and early implementation of the first actions. The scrutiny of the Board has provided the research and writing team with a valuable independent view and has initiated original lines of enquiry which have extended the scope and vision of the strategy. The post‐implementation monitoring structure that has been devised is intended to provide comparable support into the future. This will also mean that the stakeholder networks especially of employers, providers, SSCs and Awarding Organisations/Bodies that have evolved during the CCQS research and the development phase can provide a solid foundation for ongoing consultation during the monitoring and incremental development phase which will follow. 11.7.2 Post‐implementation monitoring The CCQS Review Group will be formed as soon as the strategy has received official endorsement. The core of the CCQS Review Group will be provided by some or all members of the CCQS Project Board and it will include representation from the ICS Board, therefore also covering representation of employers. © Institute of Customer Service Page 107 of 115 Contact Centre Employment and Skills January 2010 Section 10. Occupational change and employment projections in contact centres Network contact with SSCs and Awarding Organisations/Bodies will be provided through other Review Group members who regularly convene Awarding Organisation Forums and other meetings to cover all stakeholder views. This of course also means that the separate perspectives of England, Scotland, Wales and Northern Ireland will be identified through representation especially from qualification regulator representatives in those four Nations. The ICS also plans to continue with its annual employer survey and to include enquiries relevant to the CCQS in other periodic consultative activities such as that carried out when National Occupational Standards are reviewed. The CCQS Review Group will report annually on progress made with existing Action Plans and the need for revision of Action Plans. The recommendations of that report will feed into the wider ICS exchanges with Government about the ongoing development of contact centres at a national level. 11.8 Summary Based on the evidence of Apprenticeships, the contact centre sector has displayed a significant preference for generic customer service qualification as shown in Figure 9.1. However, as a proportion of total sector employment outlined in Section 10 of this report, the take-up of accredited vocational qualifications is low. Primary research indicates significant commitment to closely tailored in-house training and there is evidence that employers in the sector are happy to support commitment to accredited professional qualifications delivered externally. This has led to ICS concluding that there is potential for significant expansion of industry take-up once employers develop a greater understanding of what is available. As a result of the information currently available and the analysis set out above, it is anticipated that the Sector Qualification Strategy (SQS) will prioritise further data collection and monitoring in this area. It is accepted that low take-up as such does not automatically indicate scope for additional use of accredited qualifications. However, when combined with initial primary research indicating the current strength of in-house training and willingness to commit to external professional qualifications, it is reasonable to conclude that there is scope for significant expansion after an effective programme of employer engagement and the development of appropriate training programmes and qualifications. © Institute of Customer Service Page 108 of 115 Contact Centre Employment and Skills January 2010 Appendix 1 Sandra Busby Sharon Jones John Wyn Jones Mair Miskell David Titley Lisa Notley Rachael Edwards Daryll Newman Kate Rutland Katy Forsyth Kevin Gareth Berkley Stephanie Martin Carol Leworthy Lynn Wilkinson Annette Ritson Emma Smith Tom Kirby Peter Betts Gill Ashton Barbara Blackburn Joanne Barlow Therese Eltringham Caroline Cain Michael Sweeny Gill Huxam Janette Morgan Rachael Robinson Martin Stacey Attendees at ICS Contact Centre / LMI Focus groups The Welsh Contact Centre Forum Zurich Insurance Eaga Plc Rhondda-cynon-taf Caerphilly County Borough Council Tesco Admiral Group Plc Computershare Investor Services UCAS Red Recruitment Dix Capita Brittany Ferries BWBSL CAM Computershare Expotel Expotel Call North West University of Central Lancashire Lancashire Police BOC Call North West RK Connect MIDAS Good People Riverside Group Riverside West Cheshire College Call North West Attendees at West Yorkshire Employer Consortium/presentation by the ICS Sarah Ager Best Ltd Kathryn Aird Remploy Heather Barraclough Job Centre Plus Jo Bedford first direct Gemma Bishop Ventura Val Booth Leeds City Council Bernadette Clayton City Region Employer Coalition Les Clay Directline/RBS Hannah Compton Leeds City Council Beverly Dann Institute of Customer Service Julie Deeley Jobcentre Plus Sam Donaldson City Region Employer Coalition Julie Drake (JDr) University of Huddersfield Rachel Goodway HSBC Susanne Grinham City Region Employer Coalition Julie Harling Ventura Paul Johnson LSC © Institute of Customer Service Page 109 of 115 Contact Centre Employment and Skills January 2010 Appendix 1 Safia Sheikh Sally Spawforth (SSp) Paul Swain Mark Walsh Jill Wheeler Chris Whitehouse Provident City Region Employer Coalition Freeman-Grattan HML North East Coalition HSBC Attendees at ICS Contact Centre and Customer Service NOS / Skills /Qualifications workshops Jackie Walker Scotland's Courts Service Deborah Dickenson DWP Elaine Seaton HMRC Julie Randhawa Heart of Birmingham Alexandra Kustas Heart of Birmingham Anne Milne DWP Dawn Crow DWP John Norcliffe HMRC Martin Stacey Call North West Roger Kirkpatrick HMRC Tracy Brooks Kent Police Natasha Brown Kent Police Steven Horner Account NI Margaret Boyle Working Age Benefit Brian Cullen Disability and Cares Janice Barbour DARD Direct Colin Hart DARD Hayley Barr Rutledge Joblink Paula Dalton Rutledge Joblink Laura Burman Her Majesty's Education Inspectorate George Kane DWP Judi Erskine DWP Julianne Fraser LAGTA Group Training Margaret Jenkinson City of Edinburgh Council Maureen Stewart NHS Sandra Cohoun NHS Susan Donnelly NHS 24 Jean Costello CED Audrey Heatlie SAAS Matthew Collins Welsh Assembly Government Duncan Hamer Welsh Assembly Government Jon Linford Welsh Assembly Government Marie Pennell HMRC Jason Thomas HMRC Susanne Rees HMCS Court Service Val Jasinski Companies House BERR Nigel Dumont-Jones Companies House BERR Kevin Keenan DWP Jill Belton DWP Stuart Cochrane Department of Health Patricia Taylor OPD © Institute of Customer Service Page 110 of 115 Contact Centre Employment and Skills January 2010 Appendix 1 ICS Project Team one to one consultation and visits to Contact Centres Pete Carruthers and Isa Anderson Registers of Scotland Lynda Watters and Colin Gough Emergency Medical Dispatch Centre Jackie Mc Cammon Student Loan Company in Glasgow David Archibald and Elizabeth Taylor Standard Life Deborah Ashton UK Borders Agency Vicky Smith Stannah Stairlifts Richard Parker Itex Geoff Doyle Government Skills Attendees at UnionLearn/ICS Seminar/consultation on Contact Centre Skills and Qualifications Adrian Slassor FBU Ann Murphy USDAW Anne Goldsbury Unison Anne Hansen Unison Bill Miller Aspect David McEvoy PCS David Massey BFAWU Davinder Sandhu Unison Denise Linay RCM Gerald Crookes Unity the Union Helen Osgood Unite Ivor Riddell RMT Karl List Prospect Kate Elliot BECTU Kate Quigley ATL Laura Wright CWU Liz Salem SCP Lynn Ferguson GMB Marilyn Owens NAPO Michael Bond Unite Neil Rider FDA Paul Dovey CWU Peter Knight PCS Roy Wildgoose POA Stephanie Hague Merseytravel Steve Craig UCATT Teresa Williams RMT Trevor Shanahan FBU Yvonne Smith BECTU Marg Ben-Tovim unionlearn Judith Swift unionlearn Catherine McClennan unionlearn Pauline Murphy unionlearn Mark Rowe unionlearn © Institute of Customer Service Page 111 of 115 Contact Centre Employment and Skills January 2010 Appendix 1 ICS Expert Panel Contact Centre and Customer Service NOS / Skills /Qualification Panel Geoff Doyle Government Skills Lee Buck Active IQ Linda Orr City and Guilds Allen Kaye Edexcel Sylvia Simms City and Guilds Mike Dods Edexcel Jan Way EDI Paul Turner NCFE Mo Everett OCR John McLarty SQA Gillian Pope OCR © Institute of Customer Service Page 112 of 115 Contact Centre Employment and Skills January 2010