Contact centre turnover rates are rising again, showing no signs of slowing down. This uptick can be attributed to several factors, including the rise of AI and automation, increasing agent burnout, and the ongoing challenge of finding qualified agents. High turnover can lead to negative customer experiences, tarnish brand reputation, and result in lost revenue. But with the right strategies, businesses can address these challenges and reduce turnover. This article will explore key reasons behind the turnover and provide actionable tips to mitigate it.
What is Turnover Rate and How Is It Calculated?
In contact centres, the turnover rate measures the percentage of agents who leave their roles in a given year. These departures may be voluntary, due to layoffs, or the result of performance issues. Some organisations distinguish between turnover and attrition, with turnover being the percentage of agents who leave and are replaced, while attrition includes those who leave and are not replaced.
According to Metrigy’s research, turnover rates have fluctuated over the years. In 2017, turnover was at 38.1%, dropping to 21% by 2019. However, the COVID-19 pandemic caused a spike, with rates climbing back to 30.5% in 2021. Despite a temporary decline to 21.8% in 2022, turnover rates surged again, reaching 28.1% in 2023. Projections suggest a further rise to 31.2% by the end of 2024.
For contact centres, a “good” turnover rate falls between 10% and 15%, but some organisations face rates as high as 85%, which significantly hinders their ability to deliver positive customer experiences.
Factors Contributing to High Turnover Rates in Contact Centres
Several factors contribute to the rising turnover rates in contact centres. Here are the top reasons why agents are leaving:
- AI’s Impact on Agent Productivity
AI and automation tools have made agents more productive by handling after-call work and automating customer interactions. While this boosts efficiency, it also reduces the need for agents, leading to fewer opportunities for employment. - Higher Pay Opportunities
With the demand for experienced agents growing, salaries have increased, prompting agents to leave their current roles for higher-paying positions. This market dynamic has significantly contributed to turnover. - Agent Burnout
Agents are handling more complex customer issues due to AI handling routine tasks. This, combined with the lack of downtime, is causing burnout. A recent study revealed that 52% of customer experience (CX) leaders cite burnout as a leading cause of turnover. - Resistance to AI
Not all agents are keen on the increasing integration of AI. Long-time employees who are uncomfortable with new technologies are opting to leave rather than adapt to automation and AI-powered tools. - Company Layoffs
A large number of contact centres reduced their headcount in 2023, with 36.8% of businesses laying off agents due to cost-cutting measures or the introduction of AI tools. These layoffs, combined with the reduction in new hires, have also driven turnover.
Consequences of High Turnover Rates
High turnover rates can wreak havoc on a contact centre’s ability to deliver quality customer service. The more agents that leave, the faster the revolving door spins, and remaining agents are often left to pick up the slack. This increases their workload, which can further drive burnout and dissatisfaction.
Moreover, customer satisfaction declines as wait times increase and service quality drops. In a Metrigy survey, only 19.6% of consumers reported that customer service had improved in the past year, highlighting the link between agent turnover and poor customer experiences.
From a business perspective, the cost of replacing agents, training new hires, and managing overall productivity loss can be significant. For contact centres focused on generating revenue, these disruptions can lead to missed opportunities and reduced profits.
How to Combat High Turnover Rates
To address the growing challenge of agent turnover, contact centre leaders can implement several best practices. These strategies can improve job satisfaction, loyalty, and retention:
- Focus on Agent Satisfaction
Building a formal retention program that promotes flexible work schedules, increased compensation, and career development opportunities can significantly improve agent satisfaction and loyalty. - Deploy AI Strategically
While AI has numerous benefits, it’s essential to roll it out strategically and communicate its value to both agents and customers. Proper training and explanations can increase buy-in and ensure the technology’s return on investment. - Provide Adequate Support
By integrating unified communications and contact centre platforms, businesses can improve collaboration between agents and other departments, such as sales and marketing. This support not only helps agents resolve issues faster but also opens up new career paths within the company. - Develop Comprehensive Training Programs
Ongoing training is essential for keeping agents engaged and skilled. AI-enabled training can boost agent confidence, help them meet key performance indicators (KPIs), and ultimately improve customer interactions. - Use AI to Monitor Burnout
Sentiment analysis tools and performance metrics can help identify when agents are approaching burnout. By recognizing the early signs, supervisors can adjust workloads, offer coaching, or provide schedule flexibility to prevent turnover.
Agent turnover remains a significant challenge for contact centres. However, by addressing the root causes—such as burnout, AI integration, and competitive salaries—businesses can reduce turnover and create a more stable, satisfied workforce. Implementing the right strategies will not only improve agent retention but also enhance customer experiences and, ultimately, protect the company’s bottom line.
This article was inspired by insights from Metrigy, and at Telecoms Channel, we are committed to keeping South African ICT companies informed with the latest trends and updates from the industry’s top vendors. Our expertise in the telecoms sector makes us the central hub for news and resources to help you stay ahead in the fast-evolving world of communications.
