Why Is Attrition Becoming an Increasing Problem?

Paul Chance at NICE discusses why attrition is becoming such a prominent issue for contact centres.

Attrition has a wide-ranging impact on the contact centre. Customer satisfaction (CSAT) can take a hit in contact centres with high levels of attrition due to missed service levels or inexperienced agents.

Callers are likely to experience higher average handle times (AHT), more transfers and lower first-call resolution. Supervisors are forced to deal with a greater number of absence- and attendance-related issues, while the business overall is affected by increased costs related to recruitment, onboarding and attrition during onboarding.

Attrition in the contact centre is high — 25% to 40% on average — but can reach 100% in some contact centres, such as ones operated by business process outsourcing companies (BPOs).

In fact, the 2020 Contact Center Pipeline Survey found that attrition is the No. 1 challenge for contact centres – yet most contact centre leaders have no plans to address it.

So why is attrition such a problem? Among the most common reasons for turnover in the contact centre are:

• Inappropriate candidate selection for the role and the culture: Regardless of industry, survey after survey finds employers complaining about how difficult hiring is. When organizations are unable to identify individuals who will do their job well within their specific organization, attrition skyrockets.
• Employee disengagement: Employees who aren’t engaged are more likely to leave. One Gallup survey found that organizations whose employees reported high engagement had 25% to 65% less attrition than their peers.
• Low job satisfaction: Employee satisfaction is directly linked to attrition, both in the short-term (immediately after hire) and the long-term.
• Excessive pressure and stress: Workplace stress in America is estimated at over $300 billion annually, and some experts estimate that up to 40% of turnover is due to stress.
• Inflexible working environment: Employees who are unable to balance their professional and personal lives, including taking time off for doctor’s appointments and to care for children, are more likely to search out other, more flexible, employers. In fact, one survey reported by the Society for Human Resource Management found that a majority of employees (78%) said a flexible work arrangement would allow them to live a healthier life, while 86% said they would be less stressed.
• No career growth or development opportunities: Global Talent Monitor’s report on workforce activity shows that the lack of future career development remains a key driver of employee attrition — 40% of departing employees say it led them to be dissatisfied with their jobs, Gallup reports.
• Lack of recognition: More than 65 percent of employees report they don’t feel recognized at work, according to Human Resources Today, and this fuels attrition.
• Abusive calls: One researcher found that agents can average up to 10 hostile encounters a day, which takes a toll on morale and encourages employees to leave the organization.

Paul Chance

On their own, each of these factors has a significant impact on attrition. Together, they magnify the challenge contact centres face in keeping attrition at a manageable level.

The good news is that by more effectively managing attrition, contact centres can position themselves to meet service levels, provide great customer service and reduce hiring- and onboarding-related costs.

For more information about NICE - visit the NICE Website

About NICE

NICE is a leading global enterprise software provider that enables organizations to improve customer experience and business results, ensure compliance and fight financial crime. Their mission is to help customers build and strengthen their reputation by uncovering customer insight, predicting human intent and taking the right action to improve their business.

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Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper.

Author: NICE