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Iqpc Masterclass 2008 Overcoming Absenteeism
 

Iqpc Masterclass 2008 Overcoming Absenteeism

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Our views on successfully reducing absenteeism in contact centres

Our views on successfully reducing absenteeism in contact centres

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    Iqpc Masterclass 2008 Overcoming Absenteeism Iqpc Masterclass 2008 Overcoming Absenteeism Presentation Transcript

    • Masterclass B: How to Decrease the Prevalence of Absenteeism in Your Contact Centre Presented to IQPC Government Contact Centre Conference Canberra 29 th August 2008 Presented by Steve Mitchinson Partner, TeamRed Solutions National Chairman, Australian Teleservices Association
    • Background A study by the University of Western Australia estimated that • absenteeism costs a whopping $5 billion in the public sector every year. The study also found that contact centre employees use more sick • leave than those working in other industries Estimates vary, but the cost of replacing an employee ranges from 29 • to 46 percent of the person’s annual salary The 2008 ACCS suggested the average fulltime employee in contact • centres took 9.5 days of unplanned leave in 2007 In the 2008 ACCS, 45% of centres suggested it was improving, 24% • suggest no changes, 17% suggest a decrease and an alarming 14% do not know
    • Background • Absenteeism is a sign of a much bigger malaise – it is a leading indicator of employee disengagement and potential turnover • Research by Towers Perrin Research (2004) found that organisations that achieved employee engagement showed a 17% improvement on operating profit
    • Exercise • Describe a program or change your organization has made that has had the greatest impact on reducing absenteeism (and by default aided retention – how did you measure success) _____________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________
    • Identifying the drivers of absenteeism What makes your staff decide not to come to work? Absenteeism is typically the early warning sign of dissatisfaction and, • suggests the staff member has reserved a seat in the departure lounge Addressing absenteeism must be a fundamental plank of a much wider • strategy – engaging and retaining talent Typically staff leave their managers, not the organisation, and yet less • than 50% of organisations participating in a recent global survey claim to have a retention strategy! So what are the key drivers of employee absenteeism and what can we • do to identify and overcome them?
    • Exercise Why do we think staff leave contact centres Reasons Contact Centres think people leave their contact centres 1= Very Important , 5=Not Important 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10
    • Why do staff leave contact centres Reasons Contact Centres think people Leave their contact centres 2007 –Source -ACCS 2008 from Vivaz 1= Very Important , 5=Not Important 1 2 3 4 5 Poor attendance 13% 11% 24% 33% 19% Job did not meet expectations 11% 22% 33% 21% 14% Poor performance 22% 14% 24% 23% 18% Promoted to another role 34% 20% 28% 13% 5% Role to complex 1% 14% 33% 36% 14% Changes in personal life 35% 20% 24% 6% 15% Lack of training & development 15% 4% 19% 35% 26% Found better paid role elsewhere 15% 31% 22% 19% 13% Poor cultural fit 10% 15% 20% 37% 18% Head hunted 6% 3% 17% 55% 19% Promoted within centre 26% 32% 19% 13% 9%
    • The key questions Would staff say the same things? • Do you know the level for your centre? • Do you know what that is costing you? • What analysis have you done as to the • causes? • What steps could you take to overcome or reduce absenteeism?
    • The Drivers Motivational Fit: challenge, meaning, autonomy, organizational fit, manager relationship, job clarity Factors associated with motivational fit are the driving force behind employees • wanting to stay at their job. Motivational fit exists when employees feel there is a good match between their • needs and what the organization and job requires them to do. Research has demonstrated the importance of matching employees’ motivational • needs with job requirements. Managers play a critical role in determining employee responsibilities and span of • control – meaning, the working relationships you and your leadership team develop with employee drives motivational fit and as a consequence levels of absenteeism.
    • The Drivers External Rewards: recognition, growth/advancement, compensation, pay vs. contributions, organisation responsiveness Aside from the subjective benefits derived from good motivational fit, employees • need the objective outcomes associated with external rewards. Factors such as pay, advancement, and recognition are some of the practical • drivers determining employees’ willingness to stay or leave. Cooperation and Trust: cooperation with co-workers, level of trust in workplace Typically, employees rely on co-workers to succeed in their jobs. The relationship • with these co-workers can affect their desire to stay with their organization. Few people are willing to work with overly competitive or distrustful and deceptive co- workers. On the other hand, highly rewarding relationships with co-workers can overcome • other problems that might lead to employee separation. Studies have shown that factors such as trust and communication often play a large part in employee job satisfaction.
    • The Drivers Organisational Direction: clear vision and strategy, appropriate selection practices When a organisation has (and shares) a clear vision and strategy, employees are • more likely to understand the rationale behind decisions, and they can link their work to long-term outcomes. Selecting the right people to promote the vision and strategy plays a significant • role in an organization’s success. High retention is more likely when employees believe a organisation knows what • it is doing and has the right people to carry out its plans. Work/Life Balance Some jobs are very demanding in terms of travel, work schedules, and location. • If employees are expected to give up important aspects of their personal lives to do their jobs, they will be more likely to leave the organization. Therefore, a good match between employees’ lifestyle preferences and needs and • work demands is crucial to high retention.
    • The Drivers Workplace Harmony: internal politics, stress, workplace volatility Organizations can differ dramatically in their level of workplace harmony or • discord. In some organizations it’s hard to accomplish anything without the right connections and an understanding of hidden agendas. Steve Simpson refers to them as “UGR’s – the unwritten ground rules” Other organisations are stress laden and are characterized by unexpected • changes that sometimes completely redefine employees’ work. While these kinds of work environments might be appealing for some, typically • employees can be overwhelmed by the level of effort it takes to get through the workday. For these employees the likelihood of leaving an organization is increased. •
    • Identifying the drivers of absenteeism – staff view Employee Rank of Retention Factors – The Top Ten 1 Quality of relationship with supervisor or manager (Motivational Fit) 2 Ability to balance work and home life (Home Life) 3 Amount of meaningful work—the feeling of making a difference (Motivational Fit) 4 Level of cooperation with co-workers (Cooperation and Trust) 5 Level of trust in the workplace (Cooperation and Trust) 6 Quality of compensation package (External Rewards) 7 Opportunities for growth and advancement (External Rewards) 8 Clear understanding of work objectives (Motivational Fit) 9 Link between pay and individual contributions (External Rewards) 10 Other (Undefined)
    • Identifying the drivers of absenteeism – staff view Other factors 11 organisation responsiveness to needs/requests (External Rewards) 12 Level of challenge in work (Motivational Fit) 13 Autonomy—freedom to direct work (Motivational Fit) 14 Amount of recognition for work (External Rewards) 15 Quality of vision and strategy from senior management (Organisational Direction) 16 Ability of the organization’s selection practices to choose the right employees (Organisational Direction) 17 How well individual goals and style match the organization’s (Motivational Fit) 18 Amount of job stress (Workplace Discord) 19 Desirability of the organisation’s geographic location (Home Life) 20 Volatility of work environment, such as downsizing, mergers, etc. (Workplace Discord) 21 Amount of internal politics/bureaucracy (Workplace Discord)
    • The Challenge for you and HR As stated earlier, an employee’s relationship with his or her supervisor or manager and work-life balance are the most important determinants for staying with an organization. Avolio and Bass in their ‘Transformational Leadership’ model and by Alimo- • Metcalfe in her model of what is needed for true ‘Employee Engagement’ provided concepts that have the same purpose - to develop leaders that will motivate and inspire employees to give their discretionary effort. Research by Towers Perrin Research (2004) found that organisations that • achieved employee engagement showed a 17% improvement on operating profit Motivational fit and cooperation and trust play a large role in determining employee retention. Employees want to work in a supportive environment that gives them an opportunity to make meaningful contributions. Do you understand employee needs Do HR understand employee needs?
    • The Top Five Factors The top five factors for employees The top five factors for HR The percentage of employees is shown The percentage of HR professionals is along with the classification of the shown along with the classification of factor. the factor. 1. Quality of relationship with supervisor 1. Opportunities for growth and or manager (78%, Motivational Fit) advancement (70%, External Rewards) 2. Quality of compensation package 2. Ability to balance work and home life (57%, External Rewards) (78%, Home Life) 3. Amount of job stress (45%, 3. Amount of meaningful work—the Workplace Discord) feeling of making a difference (76%, Motivational Fit) 4. Level of cooperation with co-workers 4. Quality of relationship with supervisor (74%, Cooperation and Trust) or manager (39%, Motivational Fit) 5. Level of trust in the workplace (71%, 5. Ability to balance work and home life Cooperation and Trust) (33%, Home Life)
    • Is it your leadership style? • Put yourself in your staffs shoes • Think back to the best best boss you have had. • What was it about them that made them so great? • How well would you stack up ?
    • Our Top Ten Leadership Qualities 1 • 2 • 3 • 4 • 5 • 6 • 7 • 8 • 9 • 10 •
    • Top 10 Leadership Qualities The Top Ten Qualities of a Great Leader : 1. They showed genuine interest in me as a person. 2. They were always approachable. 3. They made time to really listen to me. 4. They asked for my ideas, opinions and input. 5. They were firm but fair with everyone. 6. They did not have an ego problem, power or control issues - they put the organisation and the team before themselves. 7. They were open and honest; if the answer to a request or idea was no they explained why. 8. They showed respect, both for themselves and everyone else. They treated everyone equally – regardless of ‘status’ or role. 9. They coached me through questioning, not ‘telling’. 10.They were sociable but always ultimately professional. How do your rate? Source: www.callcentrehelper.com
    • Exercise What is your biggest challenge to reduce absenteeism – what are you going to do about it – how will you measure success _________________________________ ________________________________ ________________________________ ________________________________ ________________________________
    • Staff Retention Strategies Develop a Plan & Strategy to Deploy it – and remember to communicate it loudly Gathering Information —The first step in improving absenteeism and retention is to understand the causes. Communication - Organizations need to talk to employees and measure their opinions to see why turnover is happening. In addition, talking to other organizations and benchmarking their practices can provide direction for creating a strategy. Employee Development —In response to employees’ desire for growth and advancement opportunities, organizations can introduce enhanced training and development programs, succession management systems, and other approaches for investing in their employees. Recruitment – an often overlooked aspect is the actual recruitment process. What research has been undertaken to link staff absenteeism and turnover with recruitment strategies and profiles?
    • Staff Retention Strategies Work Environment/ Nature of Work Several aspects of the work environment are directly linked to employees’ satisfaction. These would include: • Empowerment • Enhancing open lines of communication between managers and employees improve the overall quality of working relationships. • Interventions designed to make the workplace more hospitable will lead to improved retention. These could include: – Introduction of relaxed dress codes – Telecommuting options – Flexible work schedules Systems • The ease with which IT systems can be used to assist an employee in their job are a major driver of satisfaction • The level of access to external sites is becoming a key point for debate
    • Staff Retention Strategies Training & Development • Individual Career Progression Plans • Individual Training & Development Plans • Set & Known Criteria for Career Progression • Formal Performance Appraisals • 360 Degree Feedback Mechanisms Rewards and Recognition • Organizations could consider improving the quality of compensation, benefits, and special perks as a means for improving retention. Employees want recognition for a job well done. Whilst understanding public sector limitations may apply in some instances, these can come in several forms: • Special bonuses or rewards can help employees feel proud of their work and let them know that their efforts are acknowledged. • Pay and recognition linked in some way to performance because employees know there are consequences for their actions. • Staff Discounts or discount schemes where applicable – a hidden benefit?
    • Staff Retention Strategies Absenteeism -control programmes • Correct KPI’s • Ensure induction of new employees includes advice on interventions that address their needs • Return To Work (RTW) interviews • Linkage to team bonuses • A process to measure staff morale/engagement • Exit interviews – Who does them (58% always, 38% sometimes, 7% never) – Review the data from exit interviews and take action! Ask new starters what their expectations are and have quality inductions. Categorising the nature of absenteeism in your contact centre • Day of week, 4 day weekend • Duration • Who else? • By leader, by Business Unit, by demographic • Certificate versus Non Certificate
    • HOW DO WE GET GEN Y TO STAY? Fulfilment of TRUST Commitment Intention employee’s •Job to expectation Know the •Affective Workplace Stay employee’s •Team Mgt Expectations Delivery Top Mgt ‘DEAL’ of the Deal JOB FAIRNESS SATISFACTION START BUILD RETAIN
    • Action Plan Detail three actions you will take next week to begin your strategy for lower absenteeism: • 1_______________________________ ________________________________ • 2_______________________________ ________________________________ • 3_______________________________ ________________________________
    • Case Study – Creating a Healthy Workplace Automation of more basic tasks which have made frontline roles more • challenging, varied and interesting; Increasing the profile of the contact centres and what it was achieving for the • enterprise Improved physical environment • Value placed on customer service as a contributor to the strategic plan; • Emphasis on developing more effective leaders • Better recruitment and training and development programs to hire and develop • the right staff. Employee involvement in hiring (shown to have a positive impact on the retention of 74% of agents in 2007 ICMI survey) Non traditional KPI’s – linked to organisational strategy • Increased focus on quality and quantity rather than just the numbers • A stronger emphasis on workforce planning and flexible working arrangements • Improved visibility and commitment to defined career paths • Creating a feeling of loyalty & pride - cultural development • Rewarding contribution – staff involvement in R&R decisions • Being different e.g. massages, in house benefits, CEAD FM, Staff functions, RTO •
    • Questions