Turnover Solutions: Why Do Employees Leave the Nest?
By Dan Campbell, CEO of Hire Dynamics
Contact centers have a reputation for notoriously high turnover rates, sometimes upwards of 200 percent depending on the industry. Some of the reason for that can be attributed to leaders focusing on improving the wrong metrics. Findings from the 2014 U.S. Contact Center Decision Maker’s Guide back that up: Contact centers place growing and maintaining staff numbers, employee attrition, and employee morale at the bottom of the list in terms of priority and expenditures while ranking improved customer satisfaction and revenue as top priorities.
But in order to reach their “top priority” goals, attention must be placed on lower priority items. It looks like this: Retaining experienced employees will cut down on expenditures, thus increasing revenues. Retaining trained, knowledgeable team members to interact with clients will improve customer satisfaction.
There is also the high price of employee turnover to consider. Actual turnover costs are multifaceted and include the expense of recruiting, training, and on-boarding new employees, drops in productivity, and negative employee morale. The Quality Assurance and Training Connection, an organization facilitating education and idea sharing for call center professionals, broke down the turnover costs for contact centers in its winter 2015 report. It estimated a price tag of more than $6,000 to replace a person making $12 per hour, which equates to more than $120,000 per year for twenty people. For centers that require a more extensive training program with longer ramp-up periods, the cost of turnover can exceed $12,000 per person.
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