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Benchmark Study of Contact Center Workforce Management: A Mission-Critical but Flawed Tool



Presented By: DMG Consulting, LLC


In Q2 2010, DMG Consulting conducted a survey of 230 contact center, enterprise and IT executives, VPs, managers, directors and decision-makers from around the world to assess the market’s perception and satisfaction with contact center workforce management  (WFM) solutions. The study also evaluated agent attrition, channels used by contact centers, the role of social media, and the growing use of WFM outside of contact centers.

This benchmark study is a strong “call to action” for the workforce management market. The overall level of satisfaction among users of packaged contact center WFM solutions is strikingly low. When asked to rate their satisfaction with common WFM modules – scheduling, forecasting, multi-site, real-time adherence, agent self-service, administration, intra-day management, multi-skill, multi-channel, reporting and long-term planning – respondents returned scores ranging from a high of 3.5 to a low of 3.0, out of a possible 5.0. User disappointment was reported with all aspects of these applications, including core functionality, ease of use and price. See Figure 1. The results of this study beg the question of why WFM vendors are not making a greater effort to improve their functionality and increase customer satisfaction.

Figure 1: Satisfaction level with workforce management solutions (1 being very
dissatisfied and 5 being highly satisfied)

speech-fig1-may2010

Source: DMG Consulting LLC, May 2010

WFM Solutions are Mission-Critical

The good news is that 75.5% of contact centers use a third-party licensed or hosted WFM solution, and 84.4% of these organizations consider their WFM solution mission-critical. See Figure 2. Unfortunately, few respondents are highly satisfied with their WFM functionality. It’s interesting to note that all survey participants are involved in either an inbound or blended (inbound/outbound) contact centers, reflecting a gap in interest or knowledge about WFM solutions for outbound environments. 

All respondents, whether currently using a packaged WFM solution or not, appreciate the many benefits WFM solutions can provide. WFM helps reduce the time managers spend forecasting and optimizing agent schedules, reduces operating expenses, and improves customer and agent satisfaction. Despite strong and quantifiable benefits, however, the top issue preventing companies from adopting packaged WFM applications is their high purchase price.

Figure 2: Is your workforce management solution considered mission-critical
for your contact center? 
 
speech-fig2-may2010

Source: DMG Consulting LLC, May 2010

The Agent Attrition Challenge

Workforce management solutions are essential for optimizing contact center performance and reducing operating costs, but when used properly, they are also instrumental in improving agent satisfaction and reducing staff attrition. Agents understand that contact centers need to modify schedules, but they also want to be treated with fairness and respect, and expect advance notice of changes. All employees seek a work/home balance, but as many contact center agents are on the lower end of the enterprise compensation pyramid, it’s generally fairly easy for them to walk away when employment conditions become too onerous and find a comparable position in another company.

Figure 3 reflects the monthly attrition rates of the survey participants. Almost half of the survey participants, 48.7%, have an agent attrition rate of less than 5% monthly. While this is considered acceptable in the market, a 5% monthly rate represents an annualized agent attrition rate of 60%. 33% of respondents have a monthly agent attrition rate of 6% to 15%; 9.6% have a monthly rate of 16% to 25%; 5.2% have a monthly rate of 26% to 35%; and 0.4 percent of survey participants have a monthly agent attrition rate of more than 76%.

Figure 3: What is your average monthly contact center agent attrition rate?
 
speech-fig3-may2010

Source: DMG Consulting LLC, May 2010

To obtain a free copy of the 56-page report, The Winning Staffing Formula; A Benchmark Study of Contact Center Workforce Management, visit the DMG Consulting Website at www.dmgconsult.com, or contact Deborah Navarra at Deborah.Navarra@dmgconsult.com or 516-628-1098. This benchmark study analyzes what the solutions do well, and describes the areas where end users want to see improvements. Read this Report before making aWFM investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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