Hello,
I hope the information provided below helps the members here.
Thank you,
Octavious
For various links to my posts, kindly visit the links provided below:
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While turnover is a fact of life in any organization, turnover rates differ greatly from one organization to the next. For example, some call centers operate with annual rates of less than 5%, while others see rates of well over 50%. According to ICMI research, many call centers are in the 15% to 30% range. An important first step in managing turnover is to calculate your annualized turnover accurately so that you have a consistent basis for comparison and trending.
There are two figures you'll need to calculate annualized turnover - the number of agents exiting during each month, and the average number of staff during those months. The formula ICMI recommends for calculating turnover is as follows:
Turnover = (number of agents exiting the job average number of agents during the period) x (12 number of months in the period)
For example, let's say your data is as follows in the chart provided. Using the formula, your annualized turnover rate comes out to just under 29%.
While knowing your overall turnover rate is valuable, breaking it down further into internal/external and voluntary/involuntary categories can provide more insights. Internal turnover refers to employees that leave the call center but stay within the organization, while external turnover refers to employees that leave the organization entirely. Voluntary turnover is when employees decide to leave, while involuntary separation occurs when management makes the decision to end employment (e.g., through layoffs or firing).
Turnover can bring both costs and benefits to the call center. Costs are often broadly categorized as recruiting and hiring costs, training and orientation costs, and costs associated with poor customer service leading to lost sales and reduced loyalty.
Retention strategies are essential for agent retention, including improving hiring and job fit, providing competitive pay and benefits, offering timely coaching and feedback, and opportunities for ongoing skill and career development.
Finding the right balance between turnover and retention is crucial for organizations. It is essential to understand the full cost of turnover and compare it to the costs associated with staff retention programs to achieve an optimal balance.
Calculating attrition in monetary terms includes costs due to a person leaving, recruitment costs, training costs, lost productivity costs, new hire costs, and lost sales costs.
In conclusion, the costs associated with attrition or turnover are significant, and it is crucial for organizations to address turnover effectively to improve retention and reduce costs.
Thank you.
From India, Mumbai
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580I hope the information provided below helps the members here.
Thank you,
Octavious
For various links to my posts, kindly visit the links provided below:
- [Major HR Links](https://www.citehr.com/99968-major-hr-links.html)
While turnover is a fact of life in any organization, turnover rates differ greatly from one organization to the next. For example, some call centers operate with annual rates of less than 5%, while others see rates of well over 50%. According to ICMI research, many call centers are in the 15% to 30% range. An important first step in managing turnover is to calculate your annualized turnover accurately so that you have a consistent basis for comparison and trending.
There are two figures you'll need to calculate annualized turnover - the number of agents exiting during each month, and the average number of staff during those months. The formula ICMI recommends for calculating turnover is as follows:
Turnover = (number of agents exiting the job average number of agents during the period) x (12 number of months in the period)
For example, let's say your data is as follows in the chart provided. Using the formula, your annualized turnover rate comes out to just under 29%.
While knowing your overall turnover rate is valuable, breaking it down further into internal/external and voluntary/involuntary categories can provide more insights. Internal turnover refers to employees that leave the call center but stay within the organization, while external turnover refers to employees that leave the organization entirely. Voluntary turnover is when employees decide to leave, while involuntary separation occurs when management makes the decision to end employment (e.g., through layoffs or firing).
Turnover can bring both costs and benefits to the call center. Costs are often broadly categorized as recruiting and hiring costs, training and orientation costs, and costs associated with poor customer service leading to lost sales and reduced loyalty.
Retention strategies are essential for agent retention, including improving hiring and job fit, providing competitive pay and benefits, offering timely coaching and feedback, and opportunities for ongoing skill and career development.
Finding the right balance between turnover and retention is crucial for organizations. It is essential to understand the full cost of turnover and compare it to the costs associated with staff retention programs to achieve an optimal balance.
Calculating attrition in monetary terms includes costs due to a person leaving, recruitment costs, training costs, lost productivity costs, new hire costs, and lost sales costs.
In conclusion, the costs associated with attrition or turnover are significant, and it is crucial for organizations to address turnover effectively to improve retention and reduce costs.
Thank you.
From India, Mumbai
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Hi,
This is a very useful post. But I have a doubt here. I didn't get whether you multiply or divide the first part of the turnover equation.
Turnover = (number of agents exiting the job [is it multiplied or divided??] average number of agents during the period) x (12 number of months in the period)
I am not sure if I have to assume that the first part of the equation is part of the monthly attrition calculation. I may sound dumb. I am unable to figure that out and hence asking. :)
Regards
From India, Bangalore
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This is a very useful post. But I have a doubt here. I didn't get whether you multiply or divide the first part of the turnover equation.
Turnover = (number of agents exiting the job [is it multiplied or divided??] average number of agents during the period) x (12 number of months in the period)
I am not sure if I have to assume that the first part of the equation is part of the monthly attrition calculation. I may sound dumb. I am unable to figure that out and hence asking. :)
Regards
From India, Bangalore
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This indeed is very helpful information. However, if I need to calculate the attrition percentage, how do I do that? What I currently use is:
(number of attrition) / ((Opening HC of the month) + (Closing HC of the month)) / 2
*** HC = Productive Headcount.
*** Promotion or extended leaves will not be included in this calculation.
Can someone tell me if this is the correct formula to use, or does it require modification?
Thanks :)
From India, Pune
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(number of attrition) / ((Opening HC of the month) + (Closing HC of the month)) / 2
*** HC = Productive Headcount.
*** Promotion or extended leaves will not be included in this calculation.
Can someone tell me if this is the correct formula to use, or does it require modification?
Thanks :)
From India, Pune
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I was searching the net and came across the below-mentioned formula, but I'm not sure if this one is correct. Can someone please help me with this?
Opening count: 100 New joiners: 50 Attrition: 20 Closing headcount: 100 + 50 - 20 = 130
Attrition percentage = 20 x 100 / 130 = 15.38%
From India, New Delhi
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Opening count: 100 New joiners: 50 Attrition: 20 Closing headcount: 100 + 50 - 20 = 130
Attrition percentage = 20 x 100 / 130 = 15.38%
From India, New Delhi
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Attrition Control and Retention Strategies for Changing times.ppt
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