Why Simulation Training?
Software based simulators are the leading vehicle to delivering effective training solutions to organizations demanding complex skill-sets from their staff. To illustrate this fact, consider professions such as surgeons, astronauts, or pilots. Each of these professions employ software based simulators because the costs of not doing so are too great. Simulators allow individuals to exercise the procedural knowledge and subject matter acquired, in a safe environment, without damaging organizational assets or accruing expenses due to accidental but costly mistakes.The Global Problem With Call Centers is Attrition
The global contact center industry has suffered from some of the highest attrition rates of any industry. Despite the various types of training methods that have evolved over the past two decades, global call center attrition rates remain virtually unchanged, averaging around 35%. This means that at least 1 in 3 agents answering the phone at any time is new and less than proficient in the job they have been hired for. Acceptance of the high costs associated with attrition have become ingrained in the call center culture. It is an expected cost to do business."At 35% attrition, at least 1 in every 3 agents is new and less than proficient at their job."
Call Center Attrition by Country
%
US
%
Australia
%
Europe
%
India
The True Cost of Attrition
To calculate the true cost of attrition, you must consider both the direct and indirect costs associated therewith. Once these costs have been accounted for, only then can the true costs be realized. Globally the average breakdown is as seen below.Direct Costs / Hard Costs
- Recruiting and Hiring
- New-hire Training
- Cost of lost productivity during the ramp up period of a new agent
- Cost of increased re-work and overheads to accommodate performance gaps of new agents
- Cost of reduced performance prior to leaving
- Costs associated with compromised quality of customer service, resulting in reduced customer satisfaction, lost upsell/cross-sell opportunities, customer churn, etc.
True Cost = Direct Costs + Indirect Costs
Cost perspective:
- $15,000- $20,000 per turn over.
- Average US salary for a contact center agent is $28,000.
- 60-70% of the annual salary of a new agent.
- Call Center with 200 agents = >1.2 million annually
- Call Center with 5,000 agents = >30 Million annually
Obstacles to Call Center Success
- Not enough budget 19%
- Not enough resources 38%
- Other goal(s) in conflict 24%
- Organizational Alignment 22%
- Agent Attrition 53%
- Agents without the right skills 41%
- Agents not the right personality 30%
- Other 14%
A survey exposing the global contact center industries key obstacles to success is displayed on the left. A close examination reveals how systematic many of these obstacles are of each other. For example, attrition to a large degree is systematic of hiring agents without the right skills and personality type to handle the unique skill-set and atmosphere required of a customer service rep. This is why most attrition occurs within a short period (30-60 days) after the newly trained agent has hit the call center floor. The unique stresses and complexities of a call center quickly take their toll on an agent who has been trained with todays traditional methods. The agent has a working knowledge, but lacks the much desired experience in the environment they have been trained for.
With 1 in 3 agents always new on the floor, organization alignment is difficult to maintain and standard operational procedures become victim to floor lore, or the "he said, she said" of new agent training.
Lack of budget and resources are direct symptoms of high attrition as the cost associated with attrition are extremely high for any organization.
How Simulation Training Addresses Them.
Many forms of simulation training exist. Some are fictitious or generic in nature meaning that they may provide an interactive experience to the trainee, but are not modeled to replicate the clients agent environment. Others simulators provide multiple choice style, choose your own adventure methods that allow trainee's to listen to a simulated dialog where they must then pick the most appropriate response.
CRMT Solutions provides custom simulation training that both replicates the agent environment and encompasses each respective clients subject matter. It is our purpose to provide a learn by doing approach to new agent training. This addresses attrition in two distinct ways that other forms of simulation training cannot.
First, we stop attrition where it starts, during the intake and interview process. What if you could give interviewees a "try before you buy" opportunity before coming on board with your organization? This alone weeds out candidates who feel they themselves are incompatible with the job. It also allows the new hire manager to review their abilities within a simulated environment to determine if they have the right skills and or personality fit required for the position they are being hired for.
Secondly, exposing new hires to virtual on the job training during the training phase allows agents to turn there acquired knowledge into real world practical experience within a simulated environment, increasing agent morale, confidence, and productivity further reducing attrition.
Benefits of Simulation Training
- Increased Agent touch time.
- Reduction in time to agent deployment.
- Reduction in training costs.
- Organizational wide consistency in the training process.
- Reduction in "double jacking" agents, increasing productivity on the floor.
- Decreased floor lore.
- Increase agent confidence and morale.
- Optimal "learn by doing" approach vs traditional training.
- New hire screening reduces attrition where it starts.
How Does it Work?
