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The Cost of Employee Turnover in Call Centers

February 27th, 2020
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Mitigating turnover has always been a top priority for call center departments.

But in today’s candidate-driven market, where finding qualified workers is extremely difficult for even the most talented HR departments, improving retention in call centers and understanding the real costs of employee turnover is more important than ever.

Below, we’ll breakdown some of the significant costs behind employee turnover and share some tips on how you can improve retention.

Costs associated with turnover

Any exploration of turnover costs for a call center has to begin by acknowledging that this industry is repeatedly one of the highest turnover rate industries in the country. The average turnover rate for a call center in the US hovers around 30-45%—much higher than the 15% average for most other industries.

These starkly low employee retention patterns have direct effects on call center bottom lines. The cost of replacing a frontline employee is usually around 20% of that individual’s salary, according to The Center for American Progress.

Included in these costs are the expenses related to the recruitment and hiring process, the time and materials necessary to onboard new hires, and the loss of productivity in the interim of recruiting and hiring a replacement.

Depending on the size of a call center, these costs can easily eclipse six figures just due to turnover.

More than the quantifiable aspects of a low retention work environment, there is a perhaps even more damaging impact on employee morale, engagement, and overall company culture.

How to mitigate call center turnover

Build a strong culture

In a labor market where qualified candidates are spoiled for choice, a strong, attractive company culture has emerged as a crucial competitive advantage in the struggle for talent.

Today, it’s no longer just about the paycheck. Job seekers (especially those among the younger generations) want to work for an organization that has a tangible, healthy, and authentic culture. This has to extend beyond just what you list in your “About Us” section on your website, though.

Make sure your company takes time to acknowledge employee achievements, provides volunteering opportunities, offers competitive benefits, and plans team-building events outside of the office to increase employee engagement.

Emphasize career progression

One of the primary reasons workers choose to move on from their role at a call center is that they feel there isn’t a clear path to progress within the company.

Make sure to regularly communicate with employees how their current role in the call center can be excellent experience for an elevated position eventually. The last thing you want is for a promising professional to move on from your organization because they didn’t think they were working towards anything, especially if those opportunities do, in fact, exist.

Partner with an experienced staffing firm

Apart from everything you can do internally, enlisting the help of a staffing firm that specializes in high-turnover industries can be one of the more impactful steps you can take in minimizing your costs due to employee attrition.

At Bear Staffing, for over 15 years, we’ve helped call centers find quality candidates that align with the needs, vision, and culture of an organization and are committed to sticking around for the long haul.

In addition to providing dedicated and experienced candidates, we help our clients anticipate turnover, so we’re able to quickly place pre-sourced and pre-vetted replacement personnel at your company without having to take time to restart our search.

Get in touch with us today to learn more about how we can help you win the fight against turnover. 

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