Navigating New Norms: Strategic Workforce Planning for Enhanced Operational Efficiency in 2024

Last year, companies shifted their focus towards creating operational efficiencies due to the end of the Zero Interest Rate Policy (ZIRP) era. Central banks raised policy rates to a 20-year high to combat inflation. This had a significant downstream impact: companies that were not profitable had to extend their burn rate to avoid running out of cash. I believe this signals the market moving towards an equilibrium, where a robust market of healthy companies demonstrates sustainable growth and profitability.

In the realm of customer service and contact center departments, especially in growth companies, 2024 is poised to be another year driving improvements in operational capabilities. As a workforce planner, it's wise to consider various levers to support these efficiency initiatives. Here are some key areas I've been pondering:

1. Can operations enhance hiring practices to ensure a supply of associates who are ready to produce closer to peak demand periods? Additionally, is it possible to adjust the associates' weekly hours as peak demand decreases?
2. Are there opportunities to modify the mix of Business Process Outsourcing (BPO) support, balancing higher labor rates with lower ones? It's probably prudent to weigh the financial benefits against any potential decline in customer experience.
3. Instead of hiring additional staff, can other areas within the department provide frontline support? For instance, could team leaders or other departments assist the contact center during peak weeks? This approach could further reduce the need for new hires.
4. What is the willingness to alter response times for segments of clients that are less valuable to the business? Increasing response times for specific transactions could lead to a reduction in full-time employee requirements.
5. Are there significant process improvements that could reduce the contact center's workload? How confident are we in the success rate and impact of these changes? Is it feasible to incorporate these improvements into the plan before the actual reduction in workload occurs?

The landscape has evolved, and a focus on operational efficiency in contact centers will be a key theme for the foreseeable future. Companies can no longer rely on continual capital raising to outgrow their expenses. Investor expectations have shifted; they now seek not only growth but also profitability. As a planner, you have the opportunity to influence the profitability aspect, particularly since customer service departments often account for a large portion of operating expenses. It's crucial to take stock of all potential levers for improving operational efficiencies and devise a plan to implement them effectively!