How to combat the staggering costs of employee turnover and agent attrition
Agent attrition is a constant challenge in the contact center industry, impacting productivity, morale, and customer experience. It’s estimated by Harvard Business Review that the cost of employee turnover is 100-300% of an agent’s salary. And according to a Deloitte survey, the average cost of replacing a frontline employee is approximately $12,000, which triples to $36,000 for a manager. However, in the context of a contact center, these costs escalate significantly. The price tag for merely filling an agent's position ranges from $10,000 to $20,000 per agent, excluding expenses associated with hiring, training, and other replacement costs.
But there is more to it than just the fiscal cost
When you consider the additional impacts of losing an agent, the cost of agent attrition just skyrockets. The tangible costs, such as HR expenses, decreased productivity among remaining agents, and the recruitment and training of replacements, only scratch the surface of its impact on your contact center. It's crucial to also consider the hidden costs, such as the productivity decline leading up to an agent's departure (the period when they disengage or exhibit signs of "quiet quitting" before officially resigning), the morale downturn linked to high attrition rates, and the subsequent drops in customer satisfaction following each departure.
So, why do agents leave?
To create effective programs that reduce agent turnover and mitigate its adverse impact on the customer experience, it's essential to begin by understanding the reasons behind your employees' departures and implementing strategies to prevent them from considering leaving before it becomes a critical issue.
A 2021 Pew Research survey asked workers why they quit their jobs. According to the survey, 63% of respondents said low pay and no opportunities for advancement were factors in their decision to leave. Additionally, 57% of respondents said they felt disrespected. Some additional reasons agents are leaving include:
Non-challenging or repetitive work
Lack of recognition
No career growth or development opportunities
Inflexible working environment
Employee disengagement
Excessive pressure or stress
Low job satisfaction
What can you do about it?
To combat this issue effectively, contact center managers need actionable strategies that address the root causes for dissatisfaction and promote a supportive work environment. Here are 10 practical tips to battle agent attrition and foster a thriving team:
1. Invest in training and development
Comprehensive training programs not only equip agents with the necessary skills but also demonstrate the company's commitment to their growth. Onboarding is vital, but it’s also critical to provide ongoing training opportunities to keep agents engaged and prepared for evolving challenges. Many contact center managers say they have no way to effectively measure their training and coaching efforts. Utilizing interaction and data analytics can help pinpoint targeted areas for individual training and coaching or identify process and technology roadblocks to agent success.
2. Create a positive work environment
Being an agent is a tough job and the stress can manifest itself on the front lines of your contact center with disastrous consequences. Agents who do not feel supported or valued for their contribution have been directly linked to KPIs such as poor productivity, longer average handle times and lower first call resolutions, as well as customer satisfaction and loyalty ratings. But creating a positive culture that emphasizes teamwork, open communication, and mutual respect can go a long way in efforts to retain agents. You can utilize leaderboards, direct messages, and community forums that foster a sense of belonging and camaraderie among agents can be used to acknowledge achievements and contributions. Don’t underestimate the value of positive public recognition.
3. Gather and act on feedback
The agent population today is made up vastly of a younger demographic that thrives on feedback. Both giving it and receiving it. So it’s important to consider programs and solutions that promote consistent feedback loops. QA scores based on generative AI evaluations that are impartial and consistent can be automatically shared with agents so they know how they are doing and alert managers to potential risks, so employees feel their personal success is valued and then supported by additional training and coaching. Consider also soliciting regular feedback from agents regarding their experiences, challenges, and suggestions for improvement. Use this feedback to implement targeted initiatives that address specific pain points and enhance agent satisfaction.
4. Offer career advancement opportunities
Most employees don’t dream of being a frontline agent as they are growing up. But it’s a job that offers a lot of benefits from the start. However, if agents don’t feel like they have a future outside of answering the phones eight hours a day, that can lead to boredom and lack of job satisfaction. Contact centers that outline clear career paths and opportunities for growth within the organization retain top talent and attract new agents with less HR effort. As part of the overall employee experience, companies can encourage agents to pursue professional development goals and provide guidance and support along the way.
5. Monitor and analyze attrition trends
Continuously monitor. Consistently analyze. If you can spot trends and patterns based on analytical data, it can lead to much effective agent retention programs. Speech analytics and sentiment analysis along with interaction analytics and employee performance and attrition information can identify the patterns that lead to resignation. Whether that’s a marked change in soft skills such as empathy and positivity, greater usage of key phrases such as “I don’t know” or “I’ll have to escalate this to another person,” or significantly longer hold times, AI-powered integrated analytics can reveal the hidden patterns that lead to “quiet quitting” and resignation. Real-time, data-driven insights help contact center leaders make informed decisions and proactively address attrition factors.
These are just five practical tips can help contact centers can proactively address agent attrition and create a supportive, fulfilling work environment that encourages long-term retention and success. Join in the conversation and share your top tips that you’ve implemented to help retain agents!