Attrition is one of the contact center industry’s biggest and most controllable problems.
The constant outflow of talent erodes margins, demoralizes workers, and undermines CXs.
Most cost-of-attrition projections range between $5,000 and $10,000. Other estimates use a percentage (16% to 33%) or multiple (100% to 300%) of an employee’s wages. These guidelines suggest that the cost of attrition falls somewhere between $5,000 and $100,776, at $16.15 per hour [($16.15 x 2080) x 300%)].
COST OF ATTRITION PER AGENT BY EMPLOYMENT MONTH
One way to calculate the cost of attrition is to sum expenses:
$2,250 (recruiting) + $6,523 (training) + $2,109 (nesting) + $821 (inefficiency) + $2,042 (10 days lost productivity) = $13,745.
The problem is that attrition costs range from $10,882 in month one to $22,691 in month twelve.
Allocating expenses based on when an agent churns is a more accurate way to calculate the cost of attrition. The chart below illustrates how to compute the cost of churn by employment month.
WORKER CHURN AND COST OF ATTRITION BY EMPLOYMENT MONTH
The 100-seat center loses $660,167 annually to attrition (M1 = 3 x $10,882 + M2 = 14 x $10,882 + M3 through M12), an average of $15,718 per person.
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**Excerpt from The Hard and Hidden Costs of Attrition by Mark Alpern and Brent Holland published in December 2022 in the Contact Center Pipeline magazine
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