Agent Utilization

What is Agent Utilization?

Agent utilization determines the percentage of time an agent spends on active work (calls, interactions, related tasks, and post-interaction work) compared to available working hours. It seeks to measure agent productivity, efficiency, and effective resource allocation, while taking into account breaks and idle time.

Higher rates suggest good resource use and lower costs per contact, while lower rates indicate underutilized resources or overstaffing. Too-high rates can point to overworked employees, risking burnout and high rates of attrition.

How to measure Agent Utilization

Define variables.

• Active Work: Time spent handling phone, chat, email, social media, or text interactions.
• Shift Time: Also called Logged-In Time, or time spent on a shift.

Gather data. The Workforce Engagement Platform may automatically track this or require additional software or programs to do so.

Beware pitfalls. Double-counting tasks, omitting metrics (such as hold time), or failing to address or correct sample bias can lead to inaccurate rates.

AU formula

Agent Utilization (%) = (Total Time on Active Work  / Total Shift Time) x 100

Example: (6 hours on active work / 8-hour shift) x 100 = 75% AU

Why Agent Utilization matters

• Customer and agent experiences: Effective AU balances productivity with agent satisfaction while providing customers with dedicated attention. 
• Costs: Ideal AU optimizes cost-per-interaction, ensuring appropriate staffing and scheduling for cost efficiency and satisfaction.
• Speed: Accurately staffed teams can provide prompt, high-quality care.

Benchmarks or target ranges

Most centers aim for 75% to 85% to optimize productivity without risking fatigue.

Factors that influence Agent Utilization

From the metrics that comprise the AU formula to organizational setup, these factors influence agent utilization.

Data

• Total Handle Time
• After-Call Work Time
• Logged-In Time
• Breaks
• Idle Time

Operational 

• Interaction type and complexity: More complex interactions and situations require more time.
• Staffing: Overstaffing can lead to paying more for idle time. Understaffing overwhelms employees, increases wait times, and decreases service quality.
• Training: Insufficient training decreases proficiency and requires more time and resources spent in correcting issues and on-the-job training.
• Seasonality: Demand forecasting prepares centers to adjust staffing to accommodate demand fluctuations and urgent hiring needs. 

Technology

• Automatic Call Distribution (ACD) improves efficiency through routing to appropriate teams.
• Interactive Voice Response (IVR) menus handle routine queries and efficiently manage queues.
• Workforce Engagement Management (WEM) platforms track activity and can automate reports to assess AU.
• Quality Assurance (QA) tools and platforms automatically score interactions, offer coaching tips for more effective and efficient service.

Policy and compliance

• Automatic issue flagging and adherence tips reduce hold time and improve service quality.

Monitoring and improvement

Regularly track these KPIs to monitor AU and find room for improvement.

• Service Level Agreement (SLA): Set an outsourcing partnership up for success by defining clear expectations based on high performers and realistic staffing capabilities.
• Average Handle Time (AHT): Streamline interaction handling to reduce AHT without sacrificing quality.
• First-Call Resolution (FCR): Improve the effectiveness of solutions to reduce the amount of time customers call back for assistance, boosting FCR rates and efficiently allocating agents’ time.
• Customer Satisfaction (CSAT): Measure how satisfied customers are with services and products to inform agent coaching and performance.
• QA score: Assess service quality and process adherence or optimal performance in streamlined interactions. 

Agent Utilization improvement in action

The challenge

Global Response addressed a healthcare partner’s challenges with a previous BPO. Inadequate workload management, processing deficiencies, and lack of transparencies created operational hurdles, negatively impacting compliance and agent utilization. Issues of non-compliance incurred financial penalties, damaging operations, reputation, and trust.

The solution

Global Response implemented a powerful and comprehensive strategy:

• Secure technology integration
• Efficient scripting and reporting
• HIPAA compliance adherence
• Streamlined training
• Continuous coaching based on Voice of the Customer feedback
• Disposition matching
• Soft skills training
• Meticulous performance quality monitoring
• Daily communication
• Demand forecasting, and
• Strategic decision-making.

The results

Global Response boosted agent utilization rates, spending 15% to 20% more time on calls compared to the previous vendor. The team surpassed the 3-minute AHT target at under 2 minutes, achieving an outstanding average QA score of 98.89%. Attendance rates reached 92% or above, and agent utilization flew to 91%. 

Global Response expanded the team size by 77% to accommodate additional business. The company named Global Response the Preferred Vendor for their impactful partnership and game-changing shift toward operational excellence and client satisfaction in healthcare payer solutions.

Agent Utilization vs. occupancy

While agent utilization focuses on time spent on active work over the course of a shift, occupancy describes the time spent actively handling or being ready to handle interactions. 

• Occupancy measures the agent’s available or “ready” time.
• Occupancy focuses on real-time workload balance and efficiency.
• Utilization measures overall productivity across an entire shift.

Agent Occupancy Rate (%) = [Handling Time / (Handling Time + Available or Idle Time)] x 100