Operational Excellence in Contact Centers: Balancing Hiring, Training, and Costs

As a contact center matures its WFM (Workforce Management) capabilities and optimizes its operations by completing all the low-effort, high-reward tasks, it will inevitably look to create additional efficiencies. One area is the ability to create flexibility in its hiring and knowledge management capacity.

All contact centers face constraints when it comes to hiring and training, which revolve around the following questions.

1. How many frontline agents can we hire in a class?

2. How long does it take to train a class to proficiency?

3. What is the timeframe for hiring a class?

Based on the flexibility and capabilities of the contact center in these three areas, it can unlock operational efficiency that will distinguish it from its competitors.

For example, let's assume the peak season for a consumer-facing product is in Q4 (starting in October) because customers want to get the product before the holidays. During the peak season, the service department needs to add 100 additional frontline associates to handle customer service calls. After consulting with the training and knowledge management team, you find out these are the constraints:

- The maximum number of associates that can be hired per class is 25.

- It takes a month for the class to be trained and become proficient.

- The hiring team requires one month's notice before the start date to post the positions, interview candidates, and make hiring decisions.

Here's how the math works out (assuming there is no attrition to keep it simple):

Each green box represents a month of expenses the business will incur to reach 100 FTEs by October, the start of the peak month. If the fully loaded compensation cost is $5K per associate, then each box represents an incremental operating expense of $125K, totaling $1.25MM during this timespan.

Now, imagine a scenario where the business has the capability to hire and train all 100 FTEs in the month of September:

The total cost would then be $5K * 100 FTEs = $0.5MM.

Comparing these two scenarios, the latter option would result in operational savings of $0.75MM. Additional savings could be realized if Talent Acquisition requires less than a month to execute and fill the training classes. This provides the business with flexibility in determining closer to the start date if 100 FTEs are actually required. For instance, due to lower attrition or improved productivity, only 95 FTEs might be needed.

Effective workforce management in contact centers is not just about meeting immediate staffing needs; it's about strategic planning and flexibility. By understanding and addressing the constraints in talent acquisition and training, a contact center can significantly enhance its operational efficiency and cost-effectiveness.