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 yo