Copyright 2001 The Call Center School - Nashville, TN

No part of this workbook may be used or reproduced without the prior written permission of The Call Center School

Revision - 1
Date - 7-May-01

Client Information Consultant Information

Company Name ABC Call Center Company Name The Call Center School
Address 1 Suite 123 Address 1 790 Harding Place
Address 2 1234 Main St. Address 2
City Nashville City Nashville
State TN Zip Code 37204 State TN Zip Code 37204
Telephone No. (615) 555-1234 Telephone No. (615)-812-8400
FAX No. (615) 555-5678 FAX No. (615) 834-8602

©2001 The Call Center School

 ABC Call Center

Agent Retention
Agent Transfers
Agent Terminations

8%

85% 8%

Turnover

Operating Costs
Call revenue lost during hiring
$84,000 Call revenue lost during training
$84,000 Call revenue lost during ramp-up

$10,500

$84,000 Cost of Replacing a Single Agent

Poor selection decisions cost a lot when they add to turnover. Personnel experts have estimated
the cost of unwanted turnover to be on average, about one-third of a person's salary. This does not
include any lost revenue associated with calls that cannot be answered due to an unfilled vacancy.

The following table is based on U.S. Department of Labor information. It estimates the breakdown
of costs associated with replacing a single agent based on an annual salary of $30,000 and lost
revenue based on $150 per call. It assumes the calls ordinarily taken by the agent will be lost for
80 hours during recruiting and hiring, another 80 hours during training, and 50% efficiency during
the first 160 hours the new agent is on the job.

Inefficiency/customer costs prior to person leaving the job $3,000

Operating

$3,000
Costs

Inefficiency/customer costs while a replacement learns the job

Cost of new hire (recruiting, interviews, travel, job fairs, etc.) $1,500
Indirect costs (low morale, abuse of equipment, frustration, etc.) $3,000
Lost revenue from calls during the period of the unfilled vacancy $252,000
Total $262,500

Prepared for ABC Call Center

by The Call Center School
© 2001 The Call Center School