6 Challenges

Associated with
Workforce Management
Presented by: Brad Justice

August 25, 2016

Session Overview

In this session, you will:

• 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.
Audience Poll

Let’s Take a Vote!

What are your biggest workforce

management challenges?
WFM Challenges

Cutting Costs Staff Turnover

Managing Designing
Attendance & Effective
Adherence Schedules

Managing
Hiring Freeze Daily Service
WFM Challenges

Challenge #1
Staff Turnover
Turnover Challenges

• First day no-shows

• Loss during training
• Competition in local area
• Internal transfers
• Other:
Calculating Turnover Rate

Calculation:
Number of people that leave
Turnover Rate =
Total number of positions

Example:
80
Turnover Rate = = 40%
200
Calculating Turnover Costs

Total number of agents 100 Agent retention 75.0%

No. of agents transferred annually 5 Agent turnover 25.0%
No. of agents transferred annually 20
Average annual agent salary $30,000 Costs
Amount of revenue per call $20.00 Operating Costs $10,500
Average no. of calls per agent hour 7 Call revenue lost $11,200
during hiring
Average no. of hours position open 80
Call revenue lost $11,200
Average no. of hours to train agent 80
during training
New agent’s initial efficiency 50%
Call revenue lost $11,200
No. of hours to achieve 100% eff. 160 during ramp-up
Reasons They Leave and Stay

Why They Leave Why They Stay

• Motivation/Job fit • Motivation/Job fit

• Compensation • Empowerment
• Lack of career path • Training
• Work environment • Career Path
• Lack of recognition • Recognition/Rewards
Turnover Solutions
• 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:
WFM Challenges

Challenge #2
Hiring Freeze
Hiring Freeze Challenges

Frequently heard statements:

“The whole company is

“Business is not
holding the line and
growing so contacts
the call center is no
won’t either”
exception”

Beware the dangers of inadequate staffing!

Does it really save money?
Staffing Freeze?

Staffing for a 10% Increase in Calling

Next Year
This 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
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

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

(29.2 erlangs)

Number of Staff Average Speed of Service Level

Answer (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%
Call Center Staffing Example

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

(29.2 erlangs)

Number of Average Service Level Staff Occupancy

Staff Speed of (in 30 sec)
Answer
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

Workload = # Contacts x Average Handle Time

What are some ways to affect or alter the amount of workload so

not as many staff are needed?
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 Service Level Staff Occupancy

Answer (in 30 sec)
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

As you build schedules, try and expand your mix:

• Full vs part-time mix

• Different shift lengths
• Days on/off mix
• Staggered start times

Flexibility is the key.

Schedule Inflexibility
People

6 am 10 pm
Think of your shifts as LEGO building blocks.
The more sizes and types of blocks,
the better you can build your model.
Optimized Schedule
People

6 am 10 pm

The Result:
A better fit with less understaffing and overstaffing
Staggered Start Times

Catalog Case Study Example

60-Minute 30-Minute 15-Minute
Start Times Start Times Start Times

132 FTE 124 FTE 114 FTE

Staggering (!) Results:

8% Headcount Savings over Traditional 30-Minute Start Times
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 Forecast Forecast Forecast Actual Actual New Staff Net Staff
Day Calls AHT Staff Calls AHT

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 Forecast Forecast Forecast Actual Actual New Staff Net Staff
Day Calls AHT Staff Calls AHT

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 @ $15/hour @$20/hour
Agents wage rate 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:
WFM Challenges

 Cutting Costs  Staff Turnover

 Managing  Designing
Attendance & Effective
Adherence Schedules

 Managing
 Hiring Freeze Daily Service
Thank You!

Good luck with your workforce

management challenges!