Attrition

Attrition is a measure of employee turnover. It reflects the percentage of staff who leave the organization relative to the total number of employees.

Attrition in call centers can occur for various reasons, including job dissatisfaction, lack of career advancement opportunities, inadequate training, high-stress levels, or better employment opportunities elsewhere. High attrition rates can negatively impact a call center’s operations by increasing recruitment and training costs, reducing productivity, and affecting overall service quality and customer satisfaction.

Attrition Costs

The recruitment and training of new employees can be expensive. Attrition increases these costs as the contact center needs to invest in hiring and onboarding new agents to fill the vacant positions. Costs typically include most or all of the following:

• Compensation of new hires for the non-productive period (training time)
• Agency fees
• Cost of “lost” production opportunity (pay per call x number of calls/day)
• Period new hire is not “on the job”
• Cost of recruitment–internal and external (newspaper ads, job fairs, and CSP personnel time)
• Cost of training–the allocated costs per student for the training program
• Ramp-up costs—the efficiency of new hires versus experienced agents is commonly called “learning curve” costs. Typically, these costs include reduced production, accuracy (fixing errors made by new staff), and the resulting adverse impact on Client and Customer satisfaction.
• Overtime incurred due to reduced staff size

Managing Attrition

There are various strategies to manage attrition and minimize its negative effects, including:

• Employee Engagement: Fostering a positive work environment and promoting employee engagement can increase job satisfaction and reduce turnover. Providing recognition, rewards, and career development opportunities can help retain talented agents.
• Training and Development: Offering ongoing training and development programs can enhance agents’ skills and job satisfaction, making them less likely to seek opportunities elsewhere. Continuous learning opportunities can also contribute to a sense of professional growth.
• Performance Feedback and Support: Regularly providing constructive feedback and support to agents can help them improve their performance and feel valued. Managers can address concerns, provide coaching, and ensure agents have the necessary resources to excel in their roles.
• Competitive Compensation and Benefits: Offering competitive salaries and benefits packages can make the contact center attractive and help retain talented agents. Regularly reviewing compensation structures and benchmarking against industry standards can be important.

By implementing effective attrition management strategies, contact centers can enhance employee retention, maintain a stable workforce, and provide consistent and high-quality customer service.