home working / apr 2013 Home Working Lessons Learned: Yahoo and Best Buy Home working continues to grow and deliver high value in organizations that provide well-defined expectations, job matching and strong cultures. By Michele Rowan, At Home Customer Contacts Pipeline Articles www.contactcenterpipeline.com Home Working Lessons Learned: Yahoo and Best Buy Y Michele Rowan At Home Customer Contacts ahoo and Best Buy recently announced that they were pulling back on their homeworking programs. Like many others around the world, I have taken a keen interest in understanding their reversed positions and the impact their decisions may have on the customer contact environment. Neither company has had much to say publicly—only small bits of information have been released. What we have seen is an outpouring of opinions and deductions from researchers, analysts, reporters and specialists who have either worked in, or have closely followed the explosion of U.S. work-at-home initiatives during the last decade. To frame the growth of telecommuting, a quick look at the facts: U.S. Census Bureau data released in March reports that some 13.4 million people were telecommuting in 2010, a rise of nearly 25% since 2000. When we include employees, contractors and business owners who work from home a minimum of once a month, the estimate expands to 33.7 million, per the Telework Coalition. Gartner estimates that, by 2016, 63 million Americans will telecommute. The service sector, particularly customer contacts, has experienced unprecedented growth and returns from home working, as evidenced in recent research by At Home Customer Contacts. In a 2013 benchmarking survey, participants reported that an average of 20% of their current customer contact populations were home based, and the plans were to double the mix of home-based representatives by year-end 2014 (see Figure 1). High Returns in Customer Care, Mid- and Back-Office Processing The survey participants were asked about the high-value results that they are experiencing from home working. And they are, indeed, reaching far beyond relief from unnecessary investments in real estate, as businesses recover from the recession and continue to expand their services: ●● 74% of participants reporting improved attendance of home workers vs. brick-andmortar staff ●● 64% reported improved employee retention ●● 58% reported productivity improvements ●● 45% reported seasonal staffing improvements ●● 38% reported intraday staffing improvements (see Figure 2) Marissa Mayer of Yahoo indicated that speed and quality were sacrificed when people worked from home. Best Buy stated in February that their ROWE (Results Only Work Environment) was fundamentally flawed from a leadership perspective. It’s no secret that both companies have struggled with their market positions of late, and are taking various steps to revive their standings. So that much, we know. At Home Customer Contacts has partnered with 500-plus companies in the past three years that have experienced tremendous returns in employee satisfaction, talent acquisition and retention, as well as the host of additional benefits listed above—specifically in the functions of customer care, mid- and back-office processing. Three consistent, affirmed factors for home-working success are as follows: 1. Job Match Highly transactional jobs including voice, non-voice, mid- and back-office processing are among the largest populations of home workers, and deliver the most compelling, incremental performance gains over any other work category. Well-defined expectations, metrics-driven performance checks, and desktop technology that furnishes clear visibility of production to both employees and to the business take the guesswork out of speed and quality deliverables. Pipeline Articles www.contactcenterpipeline.com 2 Home Working Lessons Learned: Yahoo and Best Buy 2013 % of CC Team at Home 2014 % of CC Team at Home 80% — 40% — 60% — 30% — 40% — 20% — 20% — 10% — 0% — 0% — 0-20% 21-40% 41-60% 61-80% 81% + 0-20% 21-40% 41-60% 61-80% 81% + U.S. Utilization Doubles in Contact Centers: 2013-2014 — Figure 1, Above 2. Employee Match Hiring the right people for home-based positions is essential to a program’s success. Self-starters who have full understanding of and/or experience working in a more isolated environment are top candidates. The business responsibility is to thoroughly assess for competencies required to fulfill job requirements, including those distinctive to home working. Evaluations tools include psychometric testing balanced with behavioral interviewing, complete background screenings and job skills assessments. Companies with consistently high yields in home-working programs make careful investments in the matching process on the front end. 3. Company Culture Both in house and at home, organizations are charged with establishing intense employee connections to their businesses—that’s what makes it all go. This includes processes, practices and leadership that furnish clear on-the-job support, creating a work experience that promotes well-being, and designing a landscape that inspires achievement of both work goals and personal best through a level of discretionary effort. Organizations that have to count on sustained productivity from a lean work force may experience problems with employee engagement. And when engagement starts to decline, companies become susceptible to measurable drops in productivity, customer service, absenteeism and turnover. What impact have the Yahoo and Best Buy actions had on decision makers in the customer contact arena? At Home Customer Contacts surveyed 200-plus leaders in mid-March 2013 with questions aimed directly at the vulnerabilities that Yahoo and Best Buy may have been experiencing with home working: ●● 96% of respondents reported that their home-working programs include well-defined Pipeline Articles www.contactcenterpipeline.com 3 Home Working Lessons Learned: Yahoo and Best Buy Cost Improvement Realization Real estate and related Attendance Employee retention Productivity improvements Peak or seasonal staffing improvements Intraday staffing improvements Equipment Performance management efficiencies Training efficiencies 0% 20% 40% 60% 80% High-Value Results Experienced from Home Working — Figure 2, Above performance expectations and highly visible results. ●● ●● 91% of respondents indicated that their organizations have strong company cultures and sustainable employee engagement. 96% of respondents reported that the Yahoo and Best Buy reversals hold little, if any, influence on their current or future state of home working. In conclusion, there is strong evidence to support that customer contact leaders are taking the lessons learned seriously, and rightfully so. But they are not headed back to cubicles any time soon. Michele Rowan is President of At Home Customer Contacts and former VP of Performance Management for Hilton Hotels. She has worked with over 500 companies across sectors in homeworking implementations. mrowan@customercontactstrategies.com www.athomecustomercontacts.com Pipeline Articles www.contactcenterpipeline.com 4 Home Working Lessons Learned: Yahoo and Best Buy About Contact Center Pipeline Contact Center Pipeline is a monthly instructional journal focused on driving business success through effective contact center direction and decisions. Each issue contains informative articles, case studies, best practices, research and coverage of trends that impact the customer experience. Our writers and contributors are well-known industry experts with a unique understanding of how to optimize resources and maximize the value the organization provides to its customers. To learn more, visit: www.contactcenterpipeline.com This issue is available online at: April 2013, Contact Center Pipeline Online Resource http://www.contactcenterpipeline.com/CcpViewIndex.aspx?PubType=2 Pipeline Publishing Group, Inc. PO Box 3467, Annapolis, MD 21403 (443) 909-6951 ❘ info@contactcenterpipeline.com Pipeline Articles www.contactcenterpipeline.com 5