What are the Business Impacts of Contact Center Attrition? - TELUS International Europe

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  • What are the Business Impacts of Contact Center Attrition?

    February 19, 2014

    Attrition CostsAttrition is considered a leading indicator of the health of contact center operations. The impact of attrition rates on business outcomes is a growing priority for business leaders looking to utilize the contact center to drive new business growth.

    New Study on the Business Impacts of Attrition

    The new study of Everest Group together with TELUS International develops a framework for studying the business impact of attrition. The study identifies operational cost and revenue leakage as the most directly affected by attrition.

    For the purpose of the study, cost and revenue, as they relate to attrition, are defined as such:

    – Cost – This captures the costs borne by the company when a customer service representative (CSR) exists. This includes the costs linked to the exit of the existing employee and the cost of finding a new employee.

    – Revenue – This captures the leakage in the revenue due to the attrition, given the gap in productivity between the existing CSR and the replacement CSR.

    In this article we will only focus on the cost demotion associated with attrition.  Our goal is to identify and describe the cost components of attrition and the key cost drivers associated with them.

    Key costs drivers related to the cost dimension of attrition

    1.       Recruitment: Cost of recruitment of new CSR to back-fill vacated position due to attrition

    Cost drivers:

    – Recruiters’ fee

    – Employee referral bonus

    – Hiring distribution through recruiter and employee referral

    2.       Onboarding and orientation: Salary cost born by the company during orientation white the replacement CSR is engaged in unproductive activities (e.g., induction, process training)

    Cost drivers:

    – Salary during orientation and onboarding

    – Cost of trainer

    – Duration of orientation and onboarding

    3.       Governance: Cost of support staff based on the time spent on attrition back-fill related activities (creating talent pipeline, screening resumes, and interviewing candidates)

    Cost drivers:

    – Admin staff (HR) compensation

    – Proportion of time spent on attrition back-fill activities

    4.       Fill-in: Cost of overtime due to the extra effort required by existing CSRs to fill-in for the vacant position due to hiring lead time

    Cost drivers:

    – Hiring lead time

    – Overtime benefits

    5.       Productivity lag: Salary cost during the productivity ramp-up by replacement agent after process training

    Cost drivers:

    – Ramp-up duration

    – Salary during productivity ramp-up

    The degree and range of cost impact associated with attrition is heavily impacted by the size of a given call center and the level of attrition at play there. Understanding the cost components and how they impact attrition is solid step towards better managing contact center business outcomes.

    Stay tuned for more insights on business impacts of contact center attrition! We’ll be sharing more on the topic in the following weeks!

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