Also called: Contact Center Workforce Optimization
Related terms: Workforce Management, Workforce Engagement Management
Abbreviations: WFO, WFM, WFEM
Who uses it: Contact center managers (internal or a BPO provider)
What is Workforce Optimization?
Workforce optimization ensures the efficiency and quality of a contact center by equipping agent teams with the appropriate support, tools, and training to fulfill their job duties. Call center BPO providers also optimize workforces through flexible agent scheduling, performance monitoring, and continuous agent coaching.
Benefits of Workforce Optimization
Workforce optimization affects contact center performance in key ways, directly influencing experiences and business success.
- Agent experience: When agents are supported and properly trained, performance, proficiency, confidence, and job satisfaction improve, reducing attrition rates and hiring costs. Forecasting tools anticipate staffing needs, reducing overwhelm and ensuring cost-effective solutions throughout fluctuating demand.
- Customer experience: High-quality service improves relationships with customers and enables personalized support that enriches every stage of the customer journey.
- Cost: Technologies for WFM, QA, team monitoring and collaboration, and more can incur additional charges but be highly cost-effective long-term for their capabilities in streamlining and automating processes, reducing errors, boosting performance, and optimizing efficiency.
- Quality: Workforce optimization strategies improve performance through efficient and proactive training, performance monitoring, personalized coaching, and process adherence.
- Compliance: Monitoring tools flag potential issues and regulatory violations for immediate action to ensure strict compliance and reduced errors.
Factors that influence Workforce Optimization
Workforce optimization strategies should be tailored to the needs of the organization, taking into account these factors for peak performance and cost-efficiency.
Technology: Organizations should be willing to invest in relevant Workforce Engagement Management and Quality Assurance platforms. AI features learn behaviors and forecast demand through historical data trend tracking, so data availability is crucial for relevant results.
Operational: Platforms should track the mix in volume across channels and time for comprehensive seasonality predictions and accurate staffing and training needs.
Policy and compliance: Technology features, integrations, setup, access controls, tools, and strategies must comply with PCI, HIPAA, GDPR, and TCPA regulations, as applicable. Recording, for example, is prohibited by HIPAA. Tools must limit recording in monitoring where necessary.
Improving Workforce Optimization
Assess the success of WFO strategies by evaluating workforce management metrics, performance (SLA, AHT, FCR, CSAT, and QA scores), and contact center efficiency. Watch these workforce management Key Performance Indicators for a deep look into workforce optimization needs and success.
- Employee attendance: How regularly agents show up for work as scheduled (including punctuality, partial attendance, and early departures).
- Agent Utilization: Indicates agent productivity by comparing total time spent on active work with total shift time.
- Attrition rate: The percentage of employees who leave a workforce over a specific period.
- Cost per hire: Recruitment, hiring, and onboarding costs. It can cost a contact center $10,000 to $20,000 to replace a single agent.
- Training completion rate: Tracks the number of employees who completed the training compared to the number of employees who were scheduled to attend the training.
- Speed to Proficiency: Describes the effectiveness of training and onboarding, with longer times potentially impacting overall efficiency.
- Employee satisfaction: A driver of productivity, employee satisfaction can decrease absenteeism while increasing attendance, retention rates, participation, productivity, tenure, and employee net promoter score.
Measure these metrics continuously, tracking trends by month to identify areas for improvement.
Workforce Optimization example
A global chocolate retailer needed to revamp support as a previous contact center partner removed themselves from the industry. Without staff, the company struggled to engage customers. Without technology, existing employees couldn’t analyze trends or adjust support to fix issues. The company required customizable tools and solutions for scaling support during crucial peak seasons.
The chocolatier turned to Global Response, who optimized their partner’s workforce with key strategies:
- Integrated with CRMs to manage orders and interactions, with custom data reporting solutions for more efficient workflows, accurate forecasting, and smarter planning.
- Customized training for smooth onboarding, faster proficiency, and constant improvement.
- Onboarded a scalable team of subject matter experts.
Global Response onboarded agents one week faster than the goal, reducing attrition. The team also reduced Average Handle Time by 2 minutes and surpassed the 85% QA goal at 90% QA. Global Response’s optimized workforce empowered the company to focus on long-term initiatives, setting them up for future success.
Workforce Optimization vs. Workforce Management vs. Workforce Engagement Management
Related but different, these areas help organizations meet business and performance goals through strategic workforce initiatives.
- Workforce Optimization is the broader approach of enhancing employee performance, productivity, and engagement.
- Performance analytics, quality tracking, skill development, and aligned workforce capabilities with business goals boost service quality and reduce costs.
- Workforce Management refers to the strategies, processes, and tools that plan, track, and manage employees.
- It primarily focuses on forecasting, scheduling, attendance, and compliance with labor laws, minimizing inefficiencies and controlling costs.
- Workforce Engagement Management improves employee engagement and satisfaction.
- It includes fostering a positive work environment, enhancing performance, and improving service.
Risks, limitations and compliance notes of Workforce Optimization
Inadequate planning or poor implementation of workforce optimization strategies can negatively impact contact center efficiency and quality.
- Talent shortages: Failing to target sourcing solutions with local political and economic factors in mind will lead to a lack of skilled employees to fill critical roles.
- Skill gaps: Underutilizing or misaligning skills can result in job dissatisfaction, reduced productivity and performance, and employee turnover.
- Inefficient resource allocation: Insufficient strategies, bottlenecks, and goals impact planning. Unsupported teams experience higher overwhelm, decreasing service capacity and quality.
- High attrition: Insufficient scheduling, support, and management raise attrition rates and recruitment and hiring costs, delaying service and success.
- Compliance risks: Failing to apply appropriate measures to optimize workforces in compliance with all relevant regulations puts customer safety and company reputation and success at risk.
Proper planning, secure frameworks, relevant processes, and expert Workforce Optimization experts mitigate these risks.
Contact center Workforce Optimization FAQs
What is contact center workforce optimization?
Contact center workforce optimization is the process of maximizing contact center efficiency and quality through proper agent training, scheduling, support, monitoring, and coaching.
What is call center optimization?
Call center optimization includes streamlining processes, reducing costs through outsourced strategies, implementing time-saving technology, improving agent performance and productivity, and enhancing each touchpoint of the customer journey for increased satisfaction.
What’s the best workforce management solution for call centers?
The best call center workforce management solution depends on the features and tools required to fulfill industry requirements, but advanced solutions are Talkdesk, Playvox, Genesys, and Verint.
What are the four key pieces of WFM?
The 4 key pieces of WFM include forecasting staffing needs, staffing scalable teams, scheduling when and where agents work, and monitoring and improving performance.