Agent turnover in a call center refers to the rate at which agents leave a call center and are replaced by new hires. Low employee retention rates are a persistent issue in call centers. This actively increases recruitment and training costs. A high turnover rate is also bad for service quality and customer satisfaction levels. That’s why call center leaders constantly try to retain talent and reduce turnover rates. Agent turnover rates can be calculated using the following formula:
Turnover Rate = (Number of Agents Who Left / Average Number of Agents) × 100
Here the turnover rate is the number of agents divided by the average number of agents, then multiplied by a hundred to get a percentage. In this equation, the number of agents who left is the number of agents that left the contact center. The Average Number of Agents is the average number of agents during any given time.
Common Causes of Call Center Agent Turnover
Employee turnover is not a new problem, it’s something that has existed in the industry for a long time. So much so, that outsourced contact centers have an average turnover rate of 38%, which is higher than a physically intensive industry like manufacturing. Some of the most common causes that lead to these high turnover rates are:
- Job Stress: Customer service can be a high-stress job role. Handling multiple calls with strict targets and difficult customers is not for everyone. Call center agents are also required to work during nights and holidays, something that is not ideal for everyone.
- Limited Career Prospects: Opportunities in the call center industry are limited. Most call center employees don’t see a long-term path for themselves. Going into management roles often requires higher education, which deters agents from sticking with the same organization in the long term.
- Compensation and Benefits: If agents feel underpaid or undervalued, they will leave for better-paying opportunities.
- Lack of Support and Training: Without proper support and training, agents will not feel confident in serving customers. This will lead to lower job satisfaction, which will lead to more agents resigning.
- Bad Management: We can’t gloss over the fact that many call center agents quit because they face bad management and toxic work culture. In an industry run by metrics, we often see management blaming and penalizing agents for bad performance. This creates a hostile work environment that many agents choose to leave. This also discourages struggling agents from asking for help. They find it easier to quit than to navigate a toxic workplace.
Strategies to Reduce Turnover Rates
High call center turnover is an addressable problem. With certain strategies and systems in place, you can ensure that agents feel that they are valued, making them stick with your organization in the long term. Some of these strategies include:
- Enhance Training and Development: A thorough onboarding process and continuous development opportunities can help agents feel more confident in their roles. If they can successfully help customers and resolve calls, they will feel that their job is worthwhile. You will find that people are willing to learn and improve, you just need to provide them with time and opportunity.
- Career Progression Pathways: Agents should not feel stuck in their roles. While most of their role is repetitive, they should see a growth trajectory for themselves. Promoting agents to more management-oriented roles helps them see themselves in a customer service role.
- Employee Engagement Programs: Recognizing and rewarding great performance helps improve job satisfaction. Incentives and benefits can help hardworking agents feel recognized. For others, its something that they can strive towards.
- Flexible Arrangements: Whenever feasible, you should offer your agents the opportunity to work remotely or at the very least pick their shifts. Flexible schedules allow contact center agents to have a better work-life balance.
- Creating a Better Culture: A team-oriented culture helps each agent feel valuable. An engaging and supportive work environment helps underperforming agents, instead of blaming or penalizing them. When agents feel supported, they are more forthcoming with their issues. You can then coach them to get better at their roles. This will boost loyalty and help control your turnover rate.
Impact of Agent Turnover on Contact Centers
High turnover rates are a wrench in the works for call center operations. These severely impact customer satisfaction, as there is a lack of experienced agents leading the charge on complex queries. New agents often need time to reach peak productivity, which leads to inconsistent performance. This can lead to slower resolutions, longer wait times and more unresolved issues.
A higher turnover rate can also increase operational costs as there is a constant need to hire, train, and replace agents. As a contact center, you need to prioritize the agents as well. Providing adequate training and possible career pathways is a great starting point. You must also incentivize good performance with incentives and bonuses wherever necessary. Lastly, a better work culture that values agents and their growth will always be cardinal to retaining agents. When combined, these strategies will help you retain talent, reducing your call center turnover rate in the long term.
