6 Challenges Associated with Workforce Management Presented by: Brad Justice August 25, 2016

• Identify the eight main workforce management challenges associated with today’s call center.

• Describe the primary issues that complicate the workforce management process.

• Outline potential solutions and alternatives for addressing some of these challenges and problems.

In this session, you will:

Session Overview

What are your biggest workforce management challenges?

Let’s Take a Vote!

Audience Poll

Designing Effective

Schedules

Cutting Costs

Managing Attendance &

Adherence

Managing Daily Service Hiring Freeze

Staff Turnover

WFM Challenges

Challenge #1

Staff Turnover

WFM Challenges

• First day no-shows

• Loss during training

• Competition in local area

• Internal transfers

• Other:

Turnover Challenges

Turnover Rate = = 40% 80

200

Calculation:

Example:

Turnover Rate = Number of people that leave

Total number of positions

Calculating Turnover Rate

Total number of agents 100

No. of agents transferred annually 5

No. of agents transferred annually 20

Average annual agent salary $30,000

Amount of revenue per call $20.00

Average no. of calls per agent hour 7

Average no. of hours position open 80

Average no. of hours to train agent 80

New agent’s initial efficiency 50%

No. of hours to achieve 100% eff. 160

Agent retention 75.0%

Agent turnover 25.0%

Costs

Operating Costs $10,500

Call revenue lost during hiring

$11,200

Call revenue lost during training

$11,200

Call revenue lost during ramp-up

$11,200

Calculating Turnover Costs

Why They Leave Why They Stay

• Motivation/Job fit

• Compensation

• Lack of career path

• Work environment

• Lack of recognition

• Motivation/Job fit

• Empowerment

• Training

• Career Path

• Recognition/Rewards

Reasons They Leave and Stay

• Screen for better motivational fit.

• Paint a clear picture of job before hiring.

• Implement a buddy system.

• Train supervisors and hold them accountable.

• Rethink rewards and recognition.

• Other:

Turnover Solutions

WFM Challenges

Challenge #2

Hiring Freeze

Frequently heard statements:

Beware the dangers of inadequate staffing!

Does it really save money?

“The whole company is holding the line and the call center is no

exception”

“Business is not growing so contacts

won’t either”

Hiring Freeze Challenges

Staffing for a 10% Increase in Calling

This Year Next Year (Needed)

Calls per hour 350 385

Number of staff 33 36

Resulting delay 30 sec 30 sec

Telephone sec/call 310 sec 310 sec

Telephone cost/hour $109 $119

Staffing Freeze?

The Cost of Understanding

A “Hiring Freeze” Example

This Year (Needed) Next Year (No Hiring)

Calls per hour 350 385

Number of staff 33 33

Resulting delay 30 sec 269 sec

Telephone sec/call 310 sec 548 sec

Telephone cost/hour $119 $211

Staffing Tradeoffs

The Costs of Understaffing

• Increased Telecom Costs

•

•

•

•

•

Hiring Freeze Solutions

• Track all costs, not just personnel.

• Educate senior management.

• Implement more self-service options.

• Perform root cause analysis to reduce calls.

• Other:

WFM Challenges

Challenge #3

Cutting Costs

Cost Reduction Challenges

• The need for belt-tightening

• Places to look

• Dangers of reducing staffing numbers

• Where else to look

Cost Cutting Measures

Audience Poll

How many of you been asked to cut costs in your center in the past 12 months?

Cost Cutting Measures

Traditional Cost-Cutting Strategy:

Reduce staff.

Staffing Example

Number of Staff Average Speed of Answer

Service Level (in 30 sec)

30 298 sec 24%

31 107 sec 46%

32 54 sec 62%

33 30 sec 74%

34 18 sec 82%

35 11 sec 88%

175 calls per half-hour, 5 minute AHT (280 talk/20acw) (29.2 erlangs)

Call Center Staffing Example

175 calls per half-hour, 5 minute AHT (280 talk/20 acw) (29.2 erlangs)

Number of Staff

Average Speed of Answer

Service Level (in 30 sec)

Staff Occupancy

30 298 sec 24% .97

31 107 sec 46% .94

32 54 sec 62% .91

33 30 sec 74% .88

34 18 sec 82% .86

35 11 sec 88% .83

Cost Cutting Measures

Traditional Cost-Cutting Strategy:

• Reduce staff

Better Cost-Cutting Strategies:

• Alter workload

• Utilize technology

• Re-engineer processes

Workload Alterations

What are some ways to affect or alter the amount of workload so not as many staff are needed?

Workload = # Contacts x Average Handle Time

Technology Cost Cutting Measures

Making the Most of Contact Center Technologies

• ACD

• IVR

• CTI

• Contact Management

Process Reengineering

• Re-think some of your support center processes and look for savings opportunities.

– Shrinkage

– Scheduling options

– Hours of operation

– Workload blending

Cost Cutting Solutions

• Re-engineer processes.

• Educate senior management on trade-offs.

• Make better use of existing technology.

• Other:

WFM Challenges

Challenge #4

Managing Attendance and Adherence

Attendance and Adherence Challenges

• Mondays!

• Time off (FMLA, Workers Comp)

• Earned vacation days

• Family friendly policies

• Management enforcement

• Other:

What Is the Impact of One Agent?

175 calls per half-hour, 5 minute AHT (280 talk/20 acw) (29.2 erlangs)

Number of Staff Average Speed of

Answer Service Level

(in 30 sec) Staff Occupancy

30 298 sec 24% .97

31 107 sec 46% .94

32 54 sec 62% .91

33 30 sec 74% .88

34 18 sec 82% .86

35 11 sec 88% .83

Attendance and Adherence Solutions

• Attendance recognition and rewards

• Staggering earned days off

• Formal adherence standards and programs

• HR and staff education

• Other:

WFM Challenges

Challenge #5

Designing Effective Schedules

Scheduling Challenges

• Balancing business/human needs

• Efficiency versus acceptability

• Long versus short horizon

• Skill-based scheduling complexities

• Multi-channel complexities

• Other:

Scheduling Strategies

• Full vs part-time mix

• Different shift lengths

• Days on/off mix

• Staggered start times

As you build schedules, try and expand your mix:

Flexibility is the key.

Schedule Inflexibility

6 am 10 pm

Peo

ple

Think of your shifts as LEGO building blocks.

The more sizes and types of blocks,

the better you can build your model.

Optimized Schedule

6 am 10 pm

Peo

ple

The Result:

A better fit with less understaffing and overstaffing

Staggered Start Times

Catalog Case Study Example

Staggering (!) Results:

8% Headcount Savings over Traditional 30-Minute Start Times

60-Minute Start Times

30-Minute Start Times

15-Minute Start Times

132 FTE 124 FTE 114 FTE

Scheduling Solutions

• Implement schedule mix to: – Utilize sufficient part-time staff.

– Expand shift definitions.

– Stagger start times.

• Consider performance-based versus seniority-based schedules.

• Use simulation for complex scenarios.

• Other:

WFM Challenges

Challenge #6

Managing Daily Service and Performance

Daily Management Challenges

• Managing schedule exceptions

• Schedule adherence

• Real-time statistics

• Service level variations

• Other:

Tracking Daily Performance

Three Components:

• AHT

• Call Volume

• Staff

Forecast versus Actual

What if calls take 30 seconds longer to handle? Time of

Day Forecast

Calls Forecast

AHT Forecast

Staff Actual Calls

Actual AHT

New Staff Net Staff

6:00 280 320 56 280 350 61 - 5

6:30 310 320 62 310 350 68 - 6

7:00 350 320 69 350 350 76 - 7

7:30 380 320 75 380 350 82 - 7

8:00 420 320 82 420 350 90 - 8

8:30 450 320 88 450 350 96 - 8

Forecast versus Actual

What if volume is 10% below forecast? Time of

Day Forecast

Calls Forecast

AHT Forecast

Staff Actual Calls

Actual AHT

New Staff Net Staff

6:00 280 320 56 252 320 51 + 5

6:30 310 320 62 279 320 56 + 6

7:00 350 320 69 315 320 63 + 7

7:30 380 320 75 342 320 68 + 7

8:00 420 320 82 378 320 75 + 8

8:30 450 320 88 405 320 80 + 8

Analyzing and Reporting Service Level

Time of Day Call Volume Daily % SL (in 20 sec)

6:00 – 7:00 85 4.5% 100%

7:00 – 8:00 90 5.0% 95%

8:00 – 9:00 95 5.5% 95%

9:00 – 10:00 145 8.0% 90%

10:00 – 11:00 185 10.0% 75%

11:00 – 12:00 195 10.5% 70%

12:00 – 1:00 165 9.0% 80%

1:00 – 2:00 185 10.0% 80%

2:00 – 3:00 220 12.0% 65%

3:00 – 4:00 210 11.0% 70%

4:00 – 5:00 145 8.0% 80%

5:00 – 6:00 125 6.5% 85%

Reporting Service Level

Activity An executive calls and wants to know how service level looked

yesterday.

Your service level goal is 80% in 20 sec.

Questions • Did you meet your goal?

• Why or why not?

• What are the possibilities for reporting the numbers?

• Which method do you think is best?

Payback Example

Real-Time Adherence Monitoring

Number of Agents

@ $15/hour wage rate

@$20/hour wage rate

100 $ 32,500 $ 43,333

250 $ 81,250 $108,062

500 $162,500 $ 216,125

1000 $325,000 $ 432,250

Assumption: 5 minutes savings per agent per day

Daily Management Solutions

• Reliable schedule exception process

• Tracking/reporting of activity categories

• New service definitions

• Real-time adherence monitoring

• Reaction strategies “handbook”

• Other:

Designing Effective

Schedules

Cutting Costs

Managing Attendance &

Adherence

Managing Daily Service Hiring Freeze

Staff Turnover

WFM Challenges

Thank You!

Good luck with your workforce management challenges!