Employee retention continues to challenge US call centers
Employee turnover plagues every industry.
Wal-Mart copes with staff turnover of 44 percent.
The Coca-Cola Retailing Research Council found that half of all new, hourly supermarket employees leave within 97 days of hire, at an average cost of $3,752 per lost employee.
The problem is particularly acute at U.S. call centers, with some reporting annual figures as high as 94 percent. Abroad, turnover rates reach 100 percent.
Across industries, the U.S. turnover rate was 20.2 percent in August 2004, up from 19.2 percent the previous year, reports Nobscot Corp., a leader in retention management and metrics. According to the Society of Human Resources Management, concern over labor shortages and retention rates remain a top trend among human resource professionals.
With such alarming statistics, hiring managers at the hardest hit U.S. call centers regularly devote precious time, energy and money to recruiting, hiring and training new customer service representatives (CSR).
Why Employees Leave
According to employment consultants John Menefee and Ryan Murphy, the most common reasons for employee turnover are low pay and benefits, poor management, and lack of career growth or inadequate skill development.
Complicating matters are miscommunications prior to hire. According to The Times (UK), Simon Lynch, the founder of Job Partners, believes that many problems originate during, “the recruitment process when companies present an inaccurate picture of job prospects and an over-rosy view of the company and its culture.”
Additional problems arise when customer service agents find that they lack the training they need to succeed, writes Jennifer O'Herron, who authored a case study on staffing and retention.
Employees want to know that they are important to the firm. Many become frustrated when not empowered to deviate from scripts or make decisions to help their customers.
Call center managers need to focus on retaining high-quality, customer-oriented customer service agents. Experts say the most effective steps toward improving retention are the recruitment of qualified applicants, provision of training, development of excellent supervisors and the implementation of performance-based incentive programs.
Recruiting Great Employees
Developing excellent recruitment techniques may be the best way to distinguish among potentially outstanding and average or poor employees before they are hired.
Experts recommend these recruitment steps:
- Determine what skills and attributes are necessary for success in your office.
- Screen applicants according to these criteria.
- Offer an assessment to applicants who pass the screening process.
- Interview only those applicants who pass all screening and assessment tests.
Constructing a hiring profile that takes into account the skills and characteristics of your business's best workers may be a good place to begin.
A firm should also examine its organizational culture, notes Call Center Magazine reporter Joe Fleischer. Applicants with attitudes and values similar to the organization's are more likely to fit-in and stay longer.
Capital One successfully screens call center applicants using an interactive voice response system and an online form. Applicants who pass its screening tests are then invited to the office for an assessment, which can consist of simulations to evaluate the applicant. Meanwhile, the simulations provide the applicant with a glimpse of the kind of work that can be expected of a new employee, notes Dr. Steve Brown.
By interviewing only those who have passed the company's screening and assessment hurdles, hiring managers conserve time and resources. Furthermore, notes Fleischer, managers will be able to base interview questions on the strengths and weaknesses that an applicant displays during the assessment period.
When Capital One introduced its new call center recruitment and assessment program in 2001, its initial contact-to-offer cycle time fell from 22 to 13.9 days. As a result, productivity metrics have improved, costs-per-hire have decreased and involuntary turnover has dropped.
Why Effective Training Matters
Most new-hires undergo on-the-job training often focusing on email use, text chat, web co-browsing, call handling, customer service and sales. A combination of instructor-led training (such as classroom lectures or job shadowing) and technology-based learning (computer-based simulations, for example) helps develop important skills.
Instructor-led training facilitates the development of “soft-skills,” which can motivate workers and make them more effective. Technology-based learning, in contrast, helps employees build product knowledge. The empowerment gained through training leads to higher employee and customer retention, experts say.
Continuous training may also be used. Some companies, for instance, will cover the cost of Microsoft, Novell, and Cisco product certifications for their workers, reports Industry Week .
The Importance of Great Supervisors
Most employees spend much of their time with their immediate supervisors. It should come as no surprise then that problems with supervisors are a common cause of CSR turnover.
According to a report published by the Institute of Management and Administration, customer call service representatives have certain expectations of their supervisors and turnover can result when those expectations are not met.
Unfortunately, few companies track turnover by department or supervisor. However, supervisors who are well-trained in effective retention techniques can improve their company's overall employee retention rates.
Supervisors in demand have qualities such as trustworthiness, flexibility, and good communication skills, reports the Institute of Management and Administration. Supervisors who understand and perform their roles well will improve employee retention.
Performance-Based Incentives
Call center employees and all workers must be rewarded for quality performance. Employees need to know when they have handled a call poorly and when they have handled a call well.
Career-pathing is also important. Promoting workers to sub-team or team leader can provide them with coveted career growth.
Awarding high performers greater responsibility and additional decision-making authority often improves employee performance and increases customer respect. Incentive programs that feature awards, gifts or cash bonuses may also improve retention and motivate employee performance.
Working from home or taking advantage of flex hours can be a valuable incentive for employees with proven track records. MasterCard used employee feedback when designing its incentive program to ensure the company met its employees' needs and wants.
This incentive-based program has been very well received by employees. The company presents awards and gift certificates to high performers and features monthly birthday celebrations as well as staff appreciation and theme days to promote a fun workplace.
But employers should remember that the most important part of retention through rewarding is finding out what motivates your employees and rewarding accordingly. After all, motivation is different for everyone.