The first in a series on the importance of Workforce Optimization in the contact center.

1. WORKFORCE OPTIMIZATION
PART 1 – UNDERSTANDING UTILIZATION & LABOR SPEND
CHARLES A. WATSON
CEO, INNOVATIVE WORKFORCE SOLUTIONS
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.

2. • THE ACTUAL FTE REQUIRED FOR WORK IS A FRACTION OF YOUR TOTAL COSTS
• OTHER FACTORS, SUCH AS IDLE TIME, SHRINKAGE AND LOST TIME DRIVE COSTS
• UNDERSTANDING THESE FACTORS ARE CRITICAL TO MANAGING COSTS
WHERE DO YOUR LABOR DOLLARS GO?
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
Total FTE Paid
Lost Time
Shrinkage
Idle Time
Actual FTE
required for
work

3. LEAKAGE IN THE CONTACT CENTER
A HOUSE WITH 3 FAUCETS LEAKING ONE DROP PER MINUTE, LOSES 104 GALLONS OF
WATER A YEAR.*
YOUR CONTACT CENTER HAS “DRIPS” AS WELL - MANY AREN’T MEASURED WELL,
MUCH LESS ACTIVELY MANAGED
HOW MANY GALLONS OF MONEY ARE YOU LEAKING PER YEAR?
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
*Source: US Geological Survey

4. WHERE ARE YOUR “DRIPS”?
Paid Time
Logged In
Available for
work
Actual
Work
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
Employees are paid
for a full day, usually
8 hours in the US…
…but are generally available
for actual production for 5.3 of
those 8 hours…
…and ultimately, you
get about 3.7 hours of
actual production…
What causes this?
How do we improve it?
…so you’re asking…

5. FIRST THING’S FIRST –
ARE YOUR TIME TRACKING SYSTEMS CALIBRATED?
• EMPLOYEES ARE USUALLY PAID BASED ON A LOGGING SYSTEM
• IF THAT LOGGING SYSTEM ISN’T TIED TO YOUR PHONE SYSTEM, YOU LOSE TIME
• ARE EMPLOYEES WORKING THEIR SCHEDULES?
• WORKING UNSCHEDULED HOURS DRIVES OT COSTS
• WORKING TOO FEW HOURS AND YOU MAY STILL BE PAYING FOR IT
• ARE EMPLOYEES ACTIVE ON THE PHONE SYSTEM?
• ADHERENCE ONLY TELLS PART OF THE STORY
• DID AN EMPLOYEE WORK THE CORRECT SCHEDULE 90% OF THE TIME OR…
• DID THEY ONLY WORK 90% OF THEIR SCHEDULE?
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.

6. • SHRINKAGE (PAID TIME NOT IN PRODUCTION) COMES IN 3 FORMS:
1. NON-DISCRETIONARY – E.G. PAID TIME OFF
2. DISCRETIONARY – E.G. TRAINING, COACHING
3. VALUE DRAINING – E.G. SYSTEMS OUTAGE
SHRINKAGE –
WHERE ARE YOU PAYING YOUR EMPLOYEES TO BE?
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
Are you actively managing this spend or letting it happen to you?

7. OCCUPANCY –
THEY’RE ON THE PHONES, NOW WHAT?
• LOW OCCUPANCY IS DRIVEN BY SEVERAL FACTORS
• HIGH IDLE TIME IS NOT PRODUCTIVE AND CAN HURT EMPLOYEE MORALE
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
Do you measure these metrics against the industry?

8. WHERE DOES THAT LEAVE US?
• MOST CONTACT CENTERS GET <50% OF PAID TIME IN ACTUAL PRODUCTION (UTILIZATION)
• MANY OF THESE FACTORS ARE MANAGEABLE
• AS BUSINESS GROWS, THIS INEFFICIENCY BECOMES A LARGER DRAIN ON EXPENSES
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.
8
3.7
.3
2.4
1.6
0
2
4
6
8
Paid Time Time Tracking Loss Shrinkage Loss Idle Loss Actual Production
TYPICAL CONTACT CENTER
HoursPerDay

9. TAKE ACTION – STOP THE LEAKS!
• TIE TOGETHER YOUR TIME TRACKING SYSTEMS
• ENSURE YOU ARE ACTIVELY SETTING BUSINESS TARGETS FOR SHRINKAGE AND SERVICE LEVELS
• HAVE WFM QUANTIFY THE IMPACT OF INFLEXIBLE WORKFORCE AND SCHEDULING CONSTRAINTS
• MOST IMPORTANTLY, ACTIVELY MANAGE THESE DRIVERS – DON’T LET IT JUST HAPPEN TO YOU!
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.

10. NEED MORE INFORMATION OR SUPPORT?
INNOVATIVE WORKFORCE SOLUTIONS HAS EXPERTISE IN OPTIMIZING
CONTACT CENTERS
CONTACT US FOR MORE INFORMATION
CHARLES A. WATSON
CEO, INNOVATIVE WORKFORCE SOLUTIONS
CHARLES.A.WATSON@OUTLOOK.COM
HTTP://INNOVATIVEWORKFORCE.SOLUTIONS
Innovative Workforce Solutions, LLC © ALL RIGHTS RESERVED.