Response Design Corporation: Kathryn's Blog

We established in a previous blog entry that managers need to focus resources on managing the negative consequences of turnover.

As you calculate your cost of turnover, document the negative consequences you are experiencing in your organization. Perhaps your organizational objectives are in jeopardy or the “brain drain” is negatively affecting first contact resolution. You might be seeing a decrease in the quality of your service. Whatever the case, it is important to identify the consequences and design practical solutions for managing them.

In a 1984 article, Richard Mowday provides extensive practical advice on how companies can manage these consequences. His suggestions include hiring excess employees, utilizing part-time and captive labor pools, training current employees, changing work rules, increasing commitment in those who stay, automating, redesigning jobs, and performing continuous and long-term recruiting.

There isn’t a “one size fits all” solution. Call center teams must document the consequences they are experiencing and then brainstorm viable (i.e., possible and cost-effective) solutions. Let’s take a couple of examples and figure out how they might apply to the call center.

Consequence - Operational disruption: Contact center managers understand that one of the most serious consequences of high turnover is the inability to meet the customer experience goals. These day-to-day activities include meeting customer-dictated service levels and achieving first contact resolution.

Possible strategies: If turnover is causing these negative consequences, then the management team might want to consider expanding training and development programs. Current agents can improve their efficiency (and handle more customer contacts without compromising quality), new agents can be brought up to speed faster, and people can be cross-trained to allow greater flexibility in scheduling. The team could also look into part-time workers who can be scheduled on an “as needed” basis.

Consequence - Strategic opportunity costs: Many times when employees leave, a company loses valuable capacity to grow. Departing agents may have been the most skilled at converting a sale. Perhaps they were particularly knowledgeable concerning a certain customer segment or account. What if you lose the agent to whom all other agents refer their disgruntled customers?

Possible strategies: Again, training and development is a possible solution. Also, depending on the value of the lost opportunity, a company should consider hiring excess employees who are ready to join the team as the projected turnover decreases the ranks of qualified personnel.

Begin by analyzing your turnover. What is causing it? What consequences are you experiencing? Remember treatment without diagnosis is malpractice.

Secondly, address how you are going to reduce the turnover or negate the consequences. Brainstorm with your team. But remember, not all strategies are right for you. You may be asking, “What have others done to combat turnover?” or “How do I know the strategies that are right for my organization? Stay tuned – I’m tackling those topics soon.

Mowday, Richard T. Strategies for Adapting to High Rates of Employee Turnover. Human Resource Management. 1984; 23, 4; page 365.