Email add angst -- did not understand cost on biz. Anxiety. Either did we.
Problem but not the solution. Touch base on what we accomplished with them.
Would you like to know?
Reference the article or payroll. Would you like it?
Add value. Not necessarily an immediate discussion.
Size of the impact.
Account specific as to who gets it?
BS no
BS notes
importance of documenting assumptions, rfreferencing payroll chart in subtle way
base hourly wage
note - does not calculate lost hours or silent attrition - the higher the PT rastio the larger the impact
do we have any costs to customer? impact on c omplexity and value - tab 3 highlights?
costs of licensing - one-time and ongoing should be a line even if not always used - many centres have
BS notes
do an intgroduction, make it someone with a license or do a high-end and low end
might do 2 scenerios - lower-end skill-set requirement VS high-end
average time-to-competency (dovetail to training roadmap)) most com panies do not know how long the
rastio the larger the impact
ab 3 highlights?
ways used - many centres have a license (fin for example, travel or a tech support group for another)
panies do not know how long their competency takes
BLUE TAB: My Current Cost of Attrition (START HERE)…
1
2
3
4
ORANGE TAB: Calculating Savings (FINISH HERE)
5
6
7
This sheet is password protected.
HOW TO USE THIS TOOL!!
BLUE TAB: My Current Cost of Attrition (START HERE)…
Your goal is to calculate the COST OF YOUR CURRENT AGENT ATTRITION IN Row 56
at the bottom of the calculator. In the sample scenario we created, the current cost of
Attrition is $1,170,159 which adds 14.1% to payroll.
To find your Call Centre's attrition costs, replace sample data in the -- Yellow squares with
Red Font -- using data from your company.
All other cells that are not Yellow with Red font will be calculated for you.
Check out the cells with red triangles in top right corner. These describe the information
required for that row.
ORANGE TAB: Calculating Savings (FINISH HERE)
Your goal is to find operational SAVINGS from managing the costs associated with
Attrition. be a creative operating exercise -- do this with your team. Use it as a learning
This can
opportunity!
The Green and Purple boxes include identical calculators that allow you to play with new
assumptions to see the savings vs. Current. You can test new standards of excellence
Fill in the extended Tabs to the left in Green or Purple and the Yellow/Red cells to see the
savings at the TOP.
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BS
note
s
WIIFM and
Purpose: this
is a proactive
tool,
designed to
help the
operation
and
organization
understand
the issue,
this is not a
solution.
assumption,
hints,
variables
(when loss
occurs - ref a
life-cycle
model for
agent
attrition),
might
mention
academy
bay or other
sequences
where lost
occures
learnings for
every group:
Training, HR,
floor Ops,
WFM,
marketing,
etc - how do
we make this
a wider-
audience
when most
people
manage
attrition - this
is a
symptom,
not the issue
itself.
some of the
notes and
insights from
the Fin acct
course might
help here.
All sheets are password protected - you can only change bright Yellow cells.
CALL CENTRE ATTRITION CALCULATOR START HERE!!
BASELINE SALARY STEP 1: Read the Red triangle cells to understand what each
# of FTE Agents 300 represents.
BASELINE
Paid Hours Per Year Per Agent 1,875 STEP 2: Fill in the Yellow/Red squares with your data.
Total Agent Hours 562,500 STEP 3: Read the Total Cost of your Attrition in Row 54
Base Rate $ 12.75
Add: Benefits at 16.0% $ 14.79
Total Direct Agent Payroll $ 8,319,375 Yellow cell, red font requires entering an
Annual Turnover % 50% input based on your company operating metrics.
Replacements Required incl early Turnover 20.0% 180.00 White cell is a calculated cell. Cannot be changed.
MY ANNUAL COST OF ATTRITION: Non-bright Yellow cells are calculated & cannot be changed.
Recruiter Salary $ 46,250 Scroll over cell with red triangle. To see all
Fully Loaded Recruiter Cost 16.0% $ 53,650 comments, "View" --> "Comments"
Hourly Rate for Recruiter $ 33.69
RECRUITING COSTS
Hours per candidate screen 2.50
Desired Ratio: Candidates/Required Hire Quality Metric) 2.50 Version 8.2: MAY 2007
Total Candidates to Attract 450.00
Hours screening Candidates 1,125.00
Cost for Screening $ 37,900
Double the cost for Management Screen $ 75,801
Recruiting Agency Fees ???
Fixed Marketing Costs - Recruiting $ 9,600
Admin/Set-up Costs per Recruit $ 30.00 $ 5,400
INDUCTION WAGES
Annual Turnover 180.00
Hours per Day / Hours Per Inductee 6 90
Total Annual Induction Hours 16,200
Wage Per Induction Hour (No Benefits) $ 12.75
Induction Wages $ 206,550
Trainer Salary $ 55,000
Fully Loaded trainer Cost 16.0% $ 63,800
COST OF TRAINER
Day Rate for Trainer $ 260
Days of Induction Training - company specific 15.00
Trainer Cost per Induction Class $ 3,906
Average Recruits per Induction Class 10.00
# of Induction Classes 18.00
Base Trainer Cost $ 70,310
Complete Cost of Trainer from Attrition 1.50 $ 105,465
Lost Rookie Productivity in Month 1-2 @ 50.0% $ 419,297
PRODUCTIVITY
Lost Rookie Productivity in Month 3-4 @ 25.0% $ 209,648
LOST
Lost Rookie Productivity in Month 5-6 @ 10.0% $ 83,859
Buddy Training Time @ Hours/Recruit 5 900
Buddy Training Time as Lost Productivity $ 16,639
MY COST OF ATTRITION $ 1,170,159
As % of Direct Payroll 14.1%
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This sheet is password protected - you can change bright Yellow cells, green/purple tabs..
CALCULATING POSSIBLE ATTRITION SAVINGS: HAVE FUN, BE CREATIVE!!
Objective: To determine how to reduce the costs of Attrition.
What are the savings by reducing attrition from 50% to 45%? Or reducing induction training by 4 days? Or lowering lost produc
speed to proficiency? These calculations are useful to make new decisions about how much to invest in lowering attrition -- How
the savings? What is the break-even of a $1.00 wage increase if it reduces Attrition by 10%? More coaching investment? Bette
Are you already using all the "no cost" techniques that lower Attrition?
MY CURRENT COST OF ATTRITION
$ 1,170,159
SAME CRITERIA AS TAB 1
BASELINE SALARY
# of FTE Agents
BASELINE
Paid Hours Per Year Per Agent
Total Agent Hours
Base Rate
Add: Benefits at
Total Direct Agent Payroll
Annual Turnover %
Replacements Required incl early Turnover
ANNUAL COST OF ATTRITION:
Recruiter Salary
Fully Loaded Recruiter Cost
Hourly Rate for Recruiter
RECRUITING COSTS
Hours per candidate screen
Desired Ratio: Candidates/Required Hire (Quality Metric)
Total Candidates to Attract
Hours screening Candidates
Cost for Screening
Double the cost for Management Screen
Recruiting Agency Fees
Fixed Marketing Costs - Recruiting
Admin/Set-up Costs per Recruit
Annual Turnover
INDUCTION
Hours per Day / Hours Per Inductee
WAGES
Total Annual Induction Hours
Wage Per Induction Hour (No Benefits)
Induction Wages
Trainer Salary
Fully Loaded trainer Cost
COST OF TRAINER
Day Rate for Trainer
Days of Induction Training - company specific
Trainer Cost per Induction Class
Average Recruits per Induction Class
# of Induction Classes
Base Trainer Cost
Complete Cost of Trainer from Attrition
Lost Rookie Productivity in Month 1-2 @
PRODUCTIVITY
Lost Rookie Productivity in Month 3-4 @
LOST
Lost Rookie Productivity in Month 5-6 @
Buddy Training Time @ Hours/Recruit
Buddy Training Time as Lost Productivity
NEW TOTAL COST OF ATTRITION
green/purple tabs..
TTRITION SAVINGS: HAVE FUN, BE CREATIVE!!
mine how to reduce the costs of Attrition.
%? Or reducing induction training by 4 days? Or lowering lost productivity by improving
e new decisions about how much to invest in lowering attrition -- How will you reinvest
ase if it reduces Attrition by 10%? More coaching investment? Better sales incentives?
g all the "no cost" techniques that lower Attrition?
POSSIBLE SAVINGS
Scenario 2: Scenario 3:
$ 200,417 = SAVINGS = $ 315,285
Same Attrition/ Same Costs/
Lower Costs Lower Attrition
Adjust Adjust
Here Here
300 300
1,875 1,875
562,500 562,500
$ 12.75 $ 12.75
16.0% $ 14.79 16.0% $ 14.79
$ 8,319,375 $ 8,319,375
50% 38%
20.0% 180.00 15.0% 131.10
$ 46,250 $ 46,250
16.0% $ 53,650 16.0% $ 53,650
$ 33.69 $ 33.69
2.00 2.50
2.00 2.50
360.00 327.75
720.00 819.38
$ 24,256 $ 27,604
$ 48,512 $ 55,208
??? ???
$ 9,600 $ 9,600
$ 25.00 $ 4,500 $ 30.00 $ 3,933
180.00 131.10
5.5 71.50 6.0 90.0
12,870 11,799
$ 12.75 $ 12.75
$ 164,093 $ 150,437
$ 48,000 $ 55,000
16.0% $ 55,680 16.0% $ 63,800
$ 227 $ 260
13.00 15.00
$ 2,954 $ 3,906
12.00 10.00
15.00 13.11
$ 44,317 $ 51,209
1.50 $ 66,475 1.50 $ 76,814
45.0% $ 377,367 50.0% $ 305,388
23.0% $ 192,876 25.0% $ 152,694
8.0% $ 67,087 10.0% $ 61,078
4.5 810 5.0 656
$ 14,975 $ 12,119
$ 969,742 $ 854,874
Scenario 2 Scenario 3
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