Improving High Contact Center Attrition Rates – Not Easy, but Worth the Effort

Ken Landoline
Ken Landoline

Summary Bullets:

  • A recent Dimension Data survey report based on an annual contact center global benchmarking survey concluded that front-line customer service staff (contact center agents) are leaving their positions at a growing rate.
  • The cost of replacing a contact center agent can amount to a year’s salary when the direct and indirect costs of recruiting, interviewing, training, start-up times and the disruption of customer service and satisfaction are considered.

I recently reviewed the summary findings of Dimension Data’s “2013/14 Global Contact Centre Benchmarking Report,” which is based on an extensive survey of 817 contact center decision makers across 79 countries and 11 vertical markets and has been implemented each year for the last 16 years.  Given the rapidly changing technology in the contact center industry, it was somewhat surprising to me that the study reports customer satisfaction levels are down for the fourth consecutive year and first-contact resolution rates were still showing no improvement.  However, most disturbing to me is that the agent attrition rate is up 26% since last year’s survey.  As anyone who works in customer care knows, the human resource portion of a contact center budget typically represents anywhere from 65% to 75% of total contact center expenses.  Given that the direct and indirect costs of replacing an agent could in many cases amount to an agent’s annual salary, and the average annual agent ‘churn rate’ across contact centers is approximately 35%, this trend can cut into company profitability very quickly, if not reversed. Continue reading “Improving High Contact Center Attrition Rates – Not Easy, but Worth the Effort”