The document provides a model for business units to reduce employee turnover. It outlines key elements of a turnover reduction plan, including selecting a turnover champion, determining goals, collecting data on reasons for turnover, establishing project teams, identifying key drivers, developing programs, tracking metrics, communicating results, and rewarding success. Turnover is costly, so even small reductions can result in significant savings. The document details specific drivers of turnover at the company and strategies business units have used successfully to reduce rates, such as improved training and support for new employees.

1. Business Units
TURNOVER
REDUCTION MODEL
FOR BUSINESS UNITS

2. Turnover Reduction Model For Business Units
By
Kelly Wadsworth
Regional HR Director
12/11/2014 21:56:00
Turnover continues to be a major business issue for all CMG groups and
divisions. The purpose of this document is to provide a structured approach
for business units to use to help them identify the reasons for turnover and
develop a plan to aggressively reduce attrition.
The costs associated with our current turnover trends are enormous. On
average, across CMG, we turn our employee base over 1.8 times per year.
Given the average cost of a single termination, about $2000, the impact of
reducing the current turnover rate can have significant impact. For
example, at the end of 1998, CMG wide annualized turnover was 180%.
Based upon a year- end average of 22,000 employees, this turnover rate
indicates approximately 39,600 terminations. Using a $2000 per
termination figure, total costs of turnover for 1998 equates to
approximately $79,200,000. A one percentage point reduction in turnover
results in a savings of $440,000.
Reduction # Few er Terms $$ Saving s
1% Pt. 220 $440,000
3% Pt. 660 $1,320,000
5% Pt. 1100 $2,200,000
MISSION/VISION
A stable workforce can have a major impact on our short and long- term
financial performance. Therefore, the need to have a more structured
approach to turnover reduction is threefold:
1. Increase the employment “lifecycle” of our employees
2. Share “best practices” across all of Convergys
3. Enhance our understanding of which retention strategies have
the greatest impact and why
Turnover reduction is a Convergys wide responsibility. Human Resources
supports and consults Operations in program design and plan execution,
with Operations being ultimately responsible for turnover being reduced.

3. TURNOVER REDUCTION PLAN DEVELOPMENT
There are nine key elements that contribute to the success of business units
effectively reducing turnover. They include:
♦ Selecting a turnover champion
♦ Determining a turnover goal
♦ Data collection
♦ Establishing project teams
♦ Identifying reasons for turnover
♦ Developing specific programs to reduce turnover
♦ Establishing measureme nt and tracking systems
♦ Communicating results
♦ Rewarding success.
The flowchart below describes the turnover reduction plan process.
Following the flowchart, is a detailed description of each major element of
the plan. It should be noted that the turnover reduction process and related
plans are dynamic in that they are constantly being updated as results are
achieved and new information is collected.
T.O. Reduction
Plan Development Overview
Operations & HR Partnership
Select Operations Turnover Champion
Establish Goals
Data Collection
Establish Turnover Teams
Identify Key Drivers
Develop Turnover Reduction Programs
Communication of Information
Reward/Recognize Reduction Efforts
Exit Interview
Employee Opinion
Survey
Focus Groups
System T.O.
Reports
Establish Key Measurements & Reporting Mechanism

4. Select a “Turnover Champion”. Each business unit should have
someone that consistently focuses in on turnover reduction progress. This
person should truly own the turnover plan design and reporting processes.
This individual should also drive the formulation of teams and information
sharing across the division or group. In most cases, this person should be a
senior operations person who sets the level of commitment and drives the
turnover reduction strategy and plan.
Determin e a Turnover Reduction Goal. Part of the motivation that
drives turnover teams to be successful is working towards a specific goal or
objective. In order to measure progress, divisional, center, group, and team
expectations need to be established. Goals should be aggressive in order to
realize the greatest cost savings. On average in 1998, CMG had a 180%
annualized turnover rate. During 1999, CMG may establish an overall goal
of a 20% reduction in turnover. In turn each group or division, will also need
to contribute to this goal by reducing their turnover by at least 20% as well.
Given our current turnover rates, a 20% turnover reduction in 1999 would
result in 7,900 fewer terminations, equating to approximately $15,000,000
of savings to the company. Progress towards goals needs to be
communicated frequently in order to keep awareness alive.
Data Collection. Information needs to be gathered to determine root
causes of turnover. Some of the ways to collect this information include exit
interviewing, employee opinion survey results, focus groups, employee
surveys at 30,60 and 90 days, and analyzing system turnover reports.
(See attachment A—Sample Retention Survey)
Establish Turnover Project Teams. Teams set up within every business
unit can vary depending upon the need and urgency. Turnover teams can
include senior manage me nt, supervisors, and phone agents. The senior
manage m e nt team (which would include the turnover champion), typically
will oversee all turnover related reduction initiatives that the location may
have started. They track progress and make recommendations for program
changes or adjustments. They are also responsible for maintaining
consistent awareness of the key drivers that result in turnover. The
supervisor and agent teams are primarily responsible for ensuring the
turnover plan is being followed and programs are being implemented as
planned. They are also responsible for communicating upward any
information that may be relevant to the success of the program.
Identify Key Drivers of Turnover. In general, there is not a single cause
of turnover. Hence, there is also no single solution or “silver bullet” for
decreasing turnover. Most successful companies regardless of industry
type, that have had success in lowering their turnover rate, did so by
promoting 8-10 turnover initiatives at the same time.
At Convergys, those locations that have had success in lowering their
turnover rate did so by running multiple turnover reduction initiatives

5. concurrently. For example, our Logan facility last year at this time was
experiencing a turnover rate of 202%. At the beginning of 1999, they
implemented an aggressive turnover reduction plan that focused in on four
specific areas, these included realistic job previewing, increased “on the job
recognition”, on- site personal computers, and supervisor development.
Following the implementation of these programs, Logan’s turnover rate has
deceased to 150% through April of this year. Given specific cost factors that
are unique to Logan, estimated costs per termination is approximately
$3000.00. Based upon this cost figure, Logan’s reduction program has
saved them approximately $234,000.
Logan’s approach to turnover reduction may or may not work in every
location, given the diversity and needs of our business. All locations have
the ability to determine what their key drivers are for their environment or
situation. Some methods to determine key drivers would include: exit
interviews, employee opinion surveys, focus groups, turnover reports
analyzing trends, and employee one on ones.
The following is a description of what is considered key drivers of turnover
within CMG. If these drivers are not fully reviewed within each group or
division, the success of any reduction program may be limited.
Agent Selection. Selecting a candidate that fits a predetermined
profile is imperative when trying to reduce turnover within the first 90
days. Having a validated set of competencies by which to hire and
select by reduces the likelihood of “bad hires”. Once these
competencies have been established it is important to not change or
lower them based upon need to fill seats faster.
“Job previewing” has also been proven as a key factor in reducing
initial turnover. The more we can tell or preview to our applicants of
what to expect, the less likely they will be surprised when live calling
begins.
As part of the Vision 2000 project, recruiting and selection has been
identified as one of the critical workstreams. Based upon the
feedback from our business units, validated screening and testing
processes will be introduced to increase our effectiveness and
efficiency in hiring and selecting the best applicants.
Professionalism in interviewing, orienting and training is also critical to
hiring and retaining talented well-qualified employees.
Agent Prepared n e s s . Much of what we are told through exit
interviewing has to do with how prepared our employees are for a
“live” calling experience. Orientation, training, and a successful
transition period are important for ensuring questions are answered

6. and learning is occurring. As much as 65% of all turnover within CMG,
occurs within the first 90 days of employment.
Agent on the Job Support. Once a production employee has
graduated from training, support from both the supervisor and
training department needs to continue. Spending the time during an
employee’s first few days on the phone is critical for their long- term
success. Skill enhance ment training needs to also continue
throughout the employee’s time with the company.
Supervisors Ability to Effectively Manag e People. Much of what
a supervisor does on a daily basis should include coaching, feedback,
and relationship building. Since building a relationship or rapport with
our agents has been identified as a critical element in keeping our
agents satisfied with their jobs (thus, also reducing turnover),
supervisor ratios that do not allow time for this should be evaluated.
Supervisor training and development on an on- going basis is also
critical in providing the skills necessary to be a good manager.
Training in frontline leadership, effective use of mentoring programs,
as well as Convergys University classes designed specifically for
supervisor development is a must.
Competitiv e Wage s and Benefits Within the Local Market. If
our centers are not providing a competitive wage structure, all efforts
to control high turnover will be less effective. Wage analysis for local
markets is critical for ensuring we are offering an attractive starting
wage. In addition, competitive benefits for call center environments
also need to be economical or affordable for the employee. The types
of benefits that we offer need to appeal to a wide range of employee
needs. This also includes qualifying for benefits after a reasonable
amount of time on the job.
The vision 2000 worksteam that focuses on classifying agents based
upon position, into market driven salary ranges, will provide a
framework by which wages can be evaluated on an on- going basis.
Provide a Fun, Safe Working Environm e n t. All employees
deserve the right to feel safe within their working environment.
Creating an environment that promotes fun and open discussion is
also critical to our retention success. Employees should be able to
voice their opinions without fear of potential repercussions.
Supervisor to Agent Ratios. The proper alignment of supervisors to
agents, can impact the effectiveness of building relationships with
agents

7. Nature of Calling Program . Within CMG, programs can vary
depending upon our clients. Programs that allow for higher wages and
benefits, lower supervisor ratios, and longer training usually
experience lower turnover rates. Outbound programs typically
experience higher turnover than inbound programs.
Merit Increas e Cycle. Merit increases for agents that are too small
and inappropriately timed to reward desired behavior, could have an
impact on turnover especially within the first 180 days of employment.
Program Stability. Programs that offer agents more job stability
usually experience lower turnover. Employees at the agent level
cannot afford to lose hours based upon program volume fluctuations.
Phone agents are extremely “schedule sensitive” to any change in
hours or days.
Call Center Growth Curve. Once a center gets into a heavy ramp-
up mode in hiring, quality standards in selection, training and
development sometimes are cut in order to fill seats. Within CMG,
heavy growth oftentimes equates to higher turnover.
Difficulty of Program . Programs that are complex in nature may
contribute in positive or negative way to turnover. For example, most
programs that are more difficult that others usually are paid at a
higher rate to attract qualified applicants. These programs may also
offer additional performance incentives. Many employees prefer more
complex programs because of the challenge it gives them. On the
other hand, difficult programs can also lead to increased employee
frustration and turnover.
Length of Agent Training. The more training employees receive,
the more they are prepared to be successful in what they do. Agent
training should not stop once the company orientation and formal
product knowledge and skills training is delivered.
Much of turnover within the first 30 days can be attributed to lack of
complete and relevant training.
Upward Mobility. Understanding how a person could advance within
CMG (from the agent level) is critical for employee longevity.
Providing a “roadmap” for employees to see potential advancement
opportunities is imperative to encouraging career planning and long
term commitment to Convergys.
Local Unemploy m e n t Rate. Unemployment rates within a local
market can have an impact on turnover if unemployment rates are
low and competitors are offering more attractive wages and or
benefits.

8. Number of Indirect or Direct Competitors. Competition for
employees within local markets can effect turnover if our ability to
retain employees with our current wages, benefits and flexibility are
not effective.
Relation s hip Betw e e n Line and Manag e m e n t . The relationship
between a supervisor and a phone agent is imperative in order for the
agent to feel appreciated and valued by the company. Coaching and
counseling employees to be successful should be a frontline
supervisor’s prime responsibility. Clerical duties or “paperwork
overload” can reduce the amount of time spent in coaching and
feedback opportunities
Develop Specific Turnover Reduction Program s . Once a division or
location has determined their top 3-5 drivers of turnover, the turnover
“champion” for that particular location should determine how reduction
initiatives should be implemented. For example, if a location has
determined that a key driver of turnover is agent preparedness, efforts
should be focused in on issues related to agent orientation, training and
transition to the calling floor. The supervisor turnover team (consisting
also of the training manager as well as trainers) should meet and
determine how to approach the issue of preparing agents better in order to
reduce turnover within the first 60 to 90 days. An objective should be
proposed as well as determining ways to measure and reward potential
successes.
Establish Key Measure m e n t s . No turnover reduction program can be
deemed successful without measuring and tracking results. More detailed
tracking will increase the likelihood the key drivers or root causes of
turnover can be determined.
Corporate Human Resources currently produces a monthly report that
tracks and analyzes turnover rates and trends, by location, division, and by
employee groups. This report should be used as a your basic reporting
tool for measuring progress towards established goals.
(See Attachment B---- CMG U.S. Operations Turnover Analysis)
Communication of Information, Ideas and Results. The turnover
champion within the business unit is primarily responsible for bringing the
project teams as well as senior manage m e nt together for updates. These
updates should also be shared with frontline supervisors not involved in
team discussions. Posting success stories, employee opinion survey
results or statistics in common areas is usually well received. It clearly
sends the message that the business unit is committed to its turnover
reduction initiatives.

9. As mentioned above, pushing turnover information down to the grass root
levels of the organization is imperative. Also, providing a process for
upward feedback or “bottom up” communication from our supervisors and
agents is important in creating an environment of caring (exit interviews,
employee suggestions, focus groups), as well as providing valuable
information to the turnover reduction teams.
In addition, other staff departments within CMG can also contribute to
helping reduce turnover in how they perform their jobs. For example,
within Account Management, account managers can ensure that program
set- ups and scripts written for agents are clearly understood and easy to
follow.
Reward/Reco g niz e Reduction Efforts . Providing incentives for reduced
turnover may be one of the most critical elements for success in any
turnover program. Incentives need not be costly, but they should be
frequent enough to stimulate awareness and excitement in those that
have the ability to make a difference in controlling turnover. Rewarding
success in visible ways sends a positive message to our employees. All
levels of business unit manage me nt should send this visible message, from
Division Presidents to supervisors. For example, several business units
within CMG have tied portions of manage m e nt’s incentive plans to a
turnover reduction targets.
ROLES AND RESPONSIBILITIES
Operations and Human Resources partner together in order to facilitate
turnover reduction. The divisional or group operations leaders are
responsible for selecting a turnover champion for their business unit and
establishing turnover reduction teams. These teams create and
implement turnover reduction plans and strategies based upon results
from data collection. Human Resources is responsible for tracking and
report generation, promoting, facilitating, and coaching in turnover plan
development and execution.

10. As mentioned above, pushing turnover information down to the grass root
levels of the organization is imperative. Also, providing a process for
upward feedback or “bottom up” communication from our supervisors and
agents is important in creating an environment of caring (exit interviews,
employee suggestions, focus groups), as well as providing valuable
information to the turnover reduction teams.
In addition, other staff departments within CMG can also contribute to
helping reduce turnover in how they perform their jobs. For example,
within Account Management, account managers can ensure that program
set- ups and scripts written for agents are clearly understood and easy to
follow.
Reward/Reco g niz e Reduction Efforts . Providing incentives for reduced
turnover may be one of the most critical elements for success in any
turnover program. Incentives need not be costly, but they should be
frequent enough to stimulate awareness and excitement in those that
have the ability to make a difference in controlling turnover. Rewarding
success in visible ways sends a positive message to our employees. All
levels of business unit manage me nt should send this visible message, from
Division Presidents to supervisors. For example, several business units
within CMG have tied portions of manage m e nt’s incentive plans to a
turnover reduction targets.
ROLES AND RESPONSIBILITIES
Operations and Human Resources partner together in order to facilitate
turnover reduction. The divisional or group operations leaders are
responsible for selecting a turnover champion for their business unit and
establishing turnover reduction teams. These teams create and
implement turnover reduction plans and strategies based upon results
from data collection. Human Resources is responsible for tracking and
report generation, promoting, facilitating, and coaching in turnover plan
development and execution.