Northwest Call Center Group
Meeting the Workforce Management
Challenges of the 21st Century:
Presented by:
Copyright 2001 The Call Center School
Your Seminar Leaders
Penny Reynolds
is a Founding Partner of The Call
Center School where she heads up curriculum development. She
develops and teaches courses on a wide variety of call center
topics,
including
workforce
management,
performance
measurement, and call center technologies. Penny is a popular
speaker at industry conferences and association meetings and a
frequent contributor to industry trade publications. Her articles
have appeared in print publications such as Customer Interface,
Customer Interaction Solutions, and Customer Support
Management, and on-line sources such as ICCM Weekly, New
Frontiers, SourceCRM, and Workforce Weekly. She has recently
published a book entitled Call Center Staffing: The Complete,
Practical Guide to Workforce Management and has also coauthored the five textbooks for University of Phoenix’s call center
certification program. An honors graduate of Vanderbilt University,
Penny was one of the first recipients of Call Center Magazine’s
prestigious Call Center Pioneer award.
penny.reynolds@thecallcenterschool.com
615-812-8410
Copyright 2001 The Call Center School
Session Overview
In this session, you will :
 Identify the eight main workforce management
challenges associated with today’s call center.
 Describe the primary issues that complicate the
workforce management process.
 Outline potential solutions and alternatives for
addressing some of these challenges and
problems.
Copyright 2001 The Call Center School
Audience Poll
Let’s Take a Vote!
What are your biggest workforce
management challenges?
Copyright 2001 The Call Center School
WFM Challenges
Hiring Freeze
Increasing
Accessibility
Cutting Costs
Managing
Attendance &
Adherence
Attracting and
Retaining Staff
Designing
Effective
Schedules
Staff
Turnover
Managing Daily
Service
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Staff Turnover
Copyright 2001 The Call Center School
Turnover Challenges





First day no-shows
Loss during training
Competition in local area
Internal transfers
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
Calculating Turnover Rate
Calculation:
Turnover Rate =
Number of people that leave
Total number of positions
Example:
Turnover Rate =
80
200
= 40%
Copyright 2001 The Call Center School
Calculating Turnover Costs
Total number of agents
No. of agents transferred annually
No. of agents terminated annually
Average annual agent salary
Amount of revenue per call
100
5 Agent retention
20 Agent turnover
$20.00
7
Average no. of hours position open
80
Average no. of hours to train agent
80
No. of hours to achieve 100% eff.
25.0%
$30,000
Average no. of calls per agent hour
New agent's initial efficiency
75.0%
50%
160
Costs
Operating Costs
$10,500
Call revenue lost during hiring
$11,200
Call revenue lost during training
$11,200
Call revenue lost during ramp-up
$11,200
Copyright 2001 The Call Center School
Reasons They Leave and Stay
Why They Leave
Why They Stay
Motivation/Job fit
Compensation
Lack of career path
Work environment
Lack of recognition
Motivation/Job fit
Empowerment
Training
Career Path
Recognition/Rewards
Copyright 2001 The Call Center School
Turnover Solutions







Screen for better motivational fit.
Paint a clear picture of job before hiring.
Implement a buddy system.
“If you can’t fix it, feature it!”
Train supervisors and hold them accountable.
Rethink rewards and recognition.
Other:
___________________
______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Hiring Freeze
Copyright 2001 The Call Center School
Hiring Freeze Challenges
Frequently heard statements:
“The whole company is holding the line and
the call center is no exception.”
“Business is not growing
so contacts won’t either.”
Beware the dangers of inadequate staffing!
Does it really save money?
Copyright 2001 The Call Center School
Staffing Freeze?
Staffing for a 10% Increase in Calling
This
Year
Calls per hour
Number of staff
Resulting delay
Telephone sec/call
Telephone cost/hour
350
33
30 sec
310 sec
$109
Next Year
(Needed)
385
36
30 sec
310 sec
$119
Copyright 2001 The Call Center School
The Cost of Understanding
A “Hiring Freeze” Example
This
Year
Calls per hour
Number of staff
Resulting delay
Telephone sec/call
Telephone cost/hour
350
33
30 sec
310 sec
$109
Next Year
(Needed)
385
36
30 sec
310 sec
$119
Next Year
(No Hiring)
385
33
268 sec
548 sec
$211
Copyright 2001 The Call Center School
Staffing Tradeoffs
The Costs of Understaffing
Increased Telecom Costs
________________________
________________________
________________________
________________________
________________________
Copyright 2001 The Call Center School
Hiring Freeze Solutions
Track all costs, not just personnel.
Educate senior management.
Implement more self-service options.
Perform root cause analysis to reduce
calls.
 Other:
_______________________
_______________________




Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Cutting Costs
Copyright 2001 The Call Center School
Cost Reduction Challenges




The need for belt-tightening
Places to look
Dangers of reducing staffing numbers
Where else to look
Copyright 2001 The Call Center School
Cost Cutting Measures
Audience Poll
How many of you been asked to cut costs in
your center in the past 12 months?
Copyright 2001 The Call Center School
Cost Cutting Measures
Traditional Cost-Cutting Strategy:
Reduce staff.
Copyright 2001 The Call Center School
Staffing Example
175 calls per half-hour, 5 minute AHT (280 talk/20 acw)
(29.2 erlangs)
Number of Staff
Average Speed
of Answer
Service Level
(in 30 sec)
30
298 sec
24%
31
107 sec
46%
32
54 sec
62%
33
30 sec
74%
34
18 sec
82%
35
11 sec
88%
Copyright 2001 The Call Center School
Call Center Staffing Example
175 calls per half-hour, 5 minute AHT (280 talk/20 acw)
(29.2 erlangs)
Number of
Staff
Average Speed
of Answer
Service Level
(in 30 sec)
Staff
Occupancy
30
298 sec
24%
.97
31
107 sec
46%
.94
32
54 sec
62%
.91
33
30 sec
74%
.88
34
18 sec
82%
.86
35
11 sec
88%
.83
Copyright 2001 The Call Center School
Cost Cutting Measures
Traditional Cost-Cutting Strategy:
 Reduce staff.
Better Cost-Cutting Strategies:
 Alter workload.
 Utilize technology.
 Re-engineer processes.
Copyright 2001 The Call Center School
Workload Alterations
Workload = # Contacts x Average Handle Time
What are some ways to affect or alter the amount of
workload so not as many staff are needed?
Copyright 2001 The Call Center School
Technology Cost Cutting Measures
Making the Most of Contact Center Technologies
 ACD
 IVR
 CTI
 Contact Management
Copyright 2001 The Call Center School
Process Reengineering
Re-think some of your support center processes
and look for savings opportunities.
 Shrinkage
 Scheduling options
 Hours of operation
 Workload blending
Copyright 2001 The Call Center School
Cost Cutting Solutions




Re-engineer processes.
Educate senior management on trade-offs.
Make better use of existing technology.
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Managing Attendance and Adherence
Copyright 2001 The Call Center School
Attendance and Adherence Challenges






Mondays!
Time off (FMLA, Workers Comp)
Earned vacation days
Family friendly policies
Management enforcement
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
What Is the Impact of One Agent?
175 calls per half-hour, 5 minute AHT (280 talk/20 acw)
(29.2 erlangs)
Number of Average Speed Service Level
Staff
of Answer
(in 30 sec)
Staff
Occupancy
30
298 sec
24%
.97
31
107 sec
46%
.94
32
54 sec
62%
.91
33
30 sec
74%
.88
34
18 sec
82%
.86
35
11 sec
88%
.83
Copyright 2001 The Call Center School
Attendance and Adherence Solutions
Attendance recognition and rewards
Magnificent Mondays
Staggering earned days off
Formal adherence standards and
programs
 HR and staff education
 Other:




_______________________
_______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Attracting and Retaining Staff
Copyright 2001 The Call Center School
Attracting and Retaining Staff Challenges






Labor saturation rates
Wage competition
Aptitudes and attitudes
Skilled support staff
Generalists versus specialists
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
Attracting and Retaining Solutions









Systematic site selection
Compensation benchmarking
Systematic recruiting and screening
Creative labor sources
Mandatory retention programs by team
Supervisor education
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Increasing Accessibility
Copyright 2001 The Call Center School
Accessibility Challenges




Multiple channels
Hours of operation
Self-service expansion/staff impact
Growing expectations
 Other:
_______________________
_______________________
Copyright 2001 The Call Center School
What Happens?
When self-service handles more calls, what
happens to the calls agents handle?
 ______________________
 ______________________
When multi-media requirements increase, what
happens to agent skill requirements?
 _______________________
 _______________________
Copyright 2001 The Call Center School
Accessibility Solutions
Outsourcing
Multi-channel forecasting and staffing plan
Remote workers
Revised performance expectations and
rewards
 Other:




______________________
______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Designing Effective Schedules
Copyright 2001 The Call Center School
Scheduling Challenges






Balancing business/human needs
Efficiency versus acceptability
Long versus short horizon
Skill-based scheduling complexities
Multi-channel complexities
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
Scheduling Strategies
As you build schedules, try and expand your mix:
 Full vs part-time mix
 Different shift lengths
 Days on/off mix
 Staggered start times
Flexibility is the key.
Copyright 2001 The Call Center School
People
Schedule Inflexibility
10 pm
6 am
Think of your shifts as LEGO building blocks.
The more sizes and types of blocks,
the better you can build your model.
Copyright 2001 The Call Center School
People
Optimized Schedule
10 pm
6 am
The Result:
A better fit with less understaffing and overstaffing
Copyright 2001 The Call Center School
Staggered Start Times
Catalog Case Study Example
60-Minute
Start
Times
30-Minute
Start
Times
15-Minute
Start
Times
132 FTE
124 FTE
114 FTE
Staggering (!) Results:
8% Headcount Savings over Traditional 30-Minute Start Times
Copyright 2001 The Call Center School
Scheduling Solutions
 Implement schedule mix to:
 Utilize sufficient part-time staff.
 Expand shift definitions.
 Stagger start times.
 Consider performance-based versus senioritybased schedules.
 Use simulation for complex scenarios.
 Other:
______________________
______________________
Copyright 2001 The Call Center School
WFM Challenges
Challenge:
Managing Daily Service
and Performance
Copyright 2001 The Call Center School
Daily Management Challenges





Managing schedule exceptions
Schedule adherence
Real-time statistics
Service level variations
Other:
_______________________
_______________________
Copyright 2001 The Call Center School
Tracking Daily Performance
Three Components:
 AHT
 Call Volume
 Staff
Copyright 2001 The Call Center School
Forecast versus Actual
What if calls take 30 seconds longer to handle?
Time
of Day
Forecast
Calls
Forecast
AHT
Forecast
Staff
Actual
Calls
Actual
AHT
New
Staff
Net
Staff
6:00
280
320
56
280
350
61
-5
6:30
310
320
62
310
350
68
-6
7:00
350
320
69
350
350
76
-7
7:30
380
320
75
380
350
82
-7
8:00
420
320
82
420
350
90
-8
8:30
450
320
88
450
350
96
-8
Copyright 2001 The Call Center School
Forecast versus Actual
What if volume is 10% below forecast?
Time
of Day
Forecast
Calls
Forecast
AHT
Forecast
Staff
Actual
Calls
Actual
AHT
New
Staff
Net
Staff
6:00
280
320
56
252
320
51
+5
6:30
310
320
62
279
320
56
+6
7:00
350
320
69
315
320
63
+6
7:30
380
320
75
342
320
68
+7
8:00
420
320
82
378
320
75
+7
8:30
450
320
88
405
320
80
+8
Copyright 2001 The Call Center School
Analyzing and Reporting Service Level
Time of Day
Call Volume
Daily %
SL (in 20 sec)
6:00 – 7:00
85
4.5%
100%
7:00 – 8:00
90
5.0%
95%
8:00 – 9:00
95
5.5%
95%
9:00 – 10:00
145
8.0%
90%
10:00 – 11:00
185
10.0%
75%
11:00 – 12:00
195
10.5%
70%
12:00 – 1:00
165
9.0%
80%
1:00 – 2:00
185
10.0%
80%
2:00 – 3:00
220
12.0%
65%
3:00 – 4:00
210
11.0%
70%
4:00 – 5:00
145
8.0%
80%
5:00 – 6:00
125
6.5%
85%
Copyright 2001 The Call Center School
Reporting Service Level
Activity
An executive calls and wants to know how service level
looked yesterday.
Your service level goal is 80% in 20 sec.
Questions:
Did you meet your goal?
Why or why not?
What are the possibilities for reporting the numbers?
Which method do you think is best?
Copyright 2001 The Call Center School
Payback Example
Real-Time Adherence Monitoring
Number of
Agents
@ $15/hour
wage rate
@$20/hour
wage rate
100
$ 32,500
$ 43,333
250
$ 81,250
$108,062
500
$162,500
$ 216,125
1000
$325,000
$ 432,250
Assumption: 5 minutes savings per agent per day
Copyright 2001 The Call Center School
Daily Management Solutions






Reliable schedule exception process
Tracking/reporting of activity categories
New service definitions
Real-time adherence monitoring
Reaction strategies “handbook”
Other:
______________________
______________________
Copyright 2001 The Call Center School
WFM Challenges
Cutting
Costs
Hiring
Freeze
Accessibility
Managing
Designing
Attendance &
Adherence
Attracting and
Retaining Staff
Increasing
Effective
Schedules
Daily
Staff Managing
Service
Turnover
Copyright 2001 The Call Center School
Thank You!
Good luck with your workforce
management challenges!
Leave a business card for copy of today’s slides.
Copyright 2001 The Call Center School