The Business Impact of Contact Center Attrition

30 Jan 2014

Executive Summary

The impact of attrition on contact center performance is a growing area of focus for business leaders looking to utilize their contact center operations to drive new business growth. Everest Group has studied the issue of contact center attrition over the past several months with this report being the second of a two-part study on the topic. In our first piece,“Defining and Discussing Contact Center Attrition”, we establish a definition for attrition and identified key levers used by contact center managers to control attrition.

In the current report, we take the discussion on attrition forward by establishing how attrition not only drives up very specific operational costs, but also results in lost revenue opportunities. This report develops a framework for studying the business impact of attrition across both cost and revenue components.

  • Cost – This captures the costs borne by the company due to attrition. This includes the costs directly linked to the exit of existing and the costs of finding a new contact center employee
  • Revenue – This captures the leakage in revenue due to attrition due to gap in productivity between the exiting and the replacement contact center employee

The report illustrates how this one-two punch of attrition across cost and revenue could lead to a potential loss of US$1-2 million in business value over a period of one year for a typical U.S.-based 500-person contact center.

A key outcome of this research is to help contact center leaders develop targeted management practices that lessen the impact of attrition by:

  • Ensuring that resources are available to fill gaps and revenue targets are appropriately aligned with attrition impacts in mind
  • Minimizing revenue losses associated with attrition by bridging the gaps in productivity
  • Creating a highly-leverageable recruitment process that targets recruitment costs by hiring stronger candidates in the first place
  • Identifying attrition-reducing best practices that will not only lower operational costs but increase revenue generation potential

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