The Flexibility Tool-kit

Transcription

1 The Flexibility Tool-kit Best Practice Guide 2011 Now in our second decade, this annual is recognised as the most-thumbed best practice reference guide in the industry. Expanding Horizons explores the critical factors that help you succeed as part of a team, in planning for high performance. Success does not happen by accident and this book will help you identify practical insight to adapt and apply in your own organisation. Not just a book, this is an invitation to become part of our growing community of best practice. Discover 20 innovative case studies, our brand-new flexibility tool-kit, a new maturity model for the back office and handy hot topic pages that offer a framework for discussion and benchmarking. This book contains so many stories that inspire. Take the ideas, apply them and make a difference! Paul Smedley Executive Director This PDF contains the Felxibility tool-kit Section of the 2011 Best Practice Guide. Other section are available on our website, where you can also order hard copies of the Guide: Planning for performance page 3 New directions for planning, MI and analytics The flexibility tool-kit page 15 Helping you plan your flexibility strategy Hot topics page 31 Information for discussion and benchmarking Contact Centre Innovation Awards page 53 How our winners achieved success The Suppliers Guide 2011 page 97 Meet suppliers who can make it happen The Planning Forum Directory page 111 Join us to build professionalism and promote best practice Planning is where numbers meet people in the contact centre Paul Smedley At the launch of the Professional Planning Forum. March 22nd

2 The flexibility toolkit Over the last 10 years the Planning Forum has encouraged members to challenge legacy employee contracts and existing scheduling processes to drive improvement for the business and the employee. Clear evidence has been seen through the innovation award finalists each year that shows how creating a work-life balance and a greater degree of flexibility can drive improvements in absence, attrition, employee morale, schedule fit and overall performance. In preparation for the next 10 years we have pulled together 18 different flexibility options into a flexibility toolkit. This reference material provides the pro s and con s of each potential flexibility option, along with some top tips, provided by forum members on how to successfully implement each approach. Flexibility is a strategic decision, with a number of questions that should be asked at a senior level. n How much flexibility does a business need? n How are employee needs balanced with those of the business? n What scheduling strategy is needed to match strategic goals? n Do changes to employee contracts need to be made to achieve this? n What is the cost of getting this wrong? These are questions that need to be answered, not by the scheduler themselves but by the management team. They need support from the top down and they require engagement from the bottom up. The scheduler will do the best with the tools they have available, but restrictive contracts and lack of scheduling options often mean failed delivery against strategic goals or unnecessary cost. How you can become involved in this key research area The flexibility tool kit forms part of ongoing research into this key area. Over the next 12 months we would like to enhance this research further. Understanding which organisations use which approach, the challenges they face in implementation and whether certain approaches are better suited to certain type of organisation. Is this by size, industry sector, contact type, etc. The forum will then use this information to help members as they look at the flexibility challenge. Whether simply providing advice based on member experiences or by arranging site visits to those who are using the techniques being explored. In order to obtain this valuable information we will be running a series of discussions and surveys and would welcome your input in taking this work forward. If you have a particular interest or are looking for support in this area then contact Steve Woosey on or steve@planningforum.co.uk Thanks go to the following organisations for assisting with this work: n Arise Virtual Solutions n British Gas n Capita n Eurostar n FGH n Mobitel n P&O Ferries n PokerStars n Shop Direct Group n Yell Discussions can be found on our LinkedIn group, on our key topics pages or for our Professional Accreditation members on the Professional Development portal, 14 Best Practice Guide 2011 Professional Planning Forum Ltd

3 Expanding Horizons Planning to be the best Resource planning has been the core focus for the Professional Planning Forum since Today s resource planner has more options available to them than ever before. In this section we look at some of the options available to the planning team on scheduling and driving flexibility, along side the fundamental skills of calculating shrinkage and measuring schedule effectiveness. Inside this section The flexibility toolkit... Latest research highlights 18 flexibility options being used in contact centres today. Understand the pro s and con s of each, plus top tips on successful implementation. Calculating shrinkage... A fundamental part of effective resource planning, take a look at what should be measured and some examples of how operational strategy can impact the required levels of shrinkage. Measuring scheduling fit and effectiveness... The performance of the schedules and the schedulers themselves are particularly difficult to measure. See how you can measure schedule fit and understand how effective your schedules are. Questions for discussion and benchmarking... Take the chance to answer the key questions in these topic areas and benchmark your centre against others across the industry The 18 components of our flexibility toolkit 1. Homeworking 2. Student working 3. Term time 4. Part time 5. Job share 6. Second job 7. Fixed shifts 8. Rotational patterns 9. Trade off shifts 10. Annualised hours 11. Flexi-time 12. Time banking 13. Unpaid leave 14. Overtime 15. Contractual overtime 16. Zero-hours contracts 17. On call 18. Relief/short-notice shifts Our mind acts like a magnifying glass what we focus on gets bigger. John Niland, Businessman 15

4 Flexibility toolkit (1) Homeworking Employees work from home some or all of the time. The 5 different models that we see implemented have there own pros and cons. Self employed, hybrid and outsourced home workers have become more common. Lifestyle benefit and improved retention. Attract widest range of agent demographics not limited by proximity to contact centre. Can support short, high utilisation, bursts as no commute time. Lots of flexibility and loyalty from this option split shifts, on call etc. No attendance issues due to snow/ weather/ travel problems. Team Management, Development, 1 to 1 and training. Data security fears. No team environment/ buzz. Impart company culture, feeling of isolation. Doesn't suit all personalities must be able to work alone, be self motivated, disciplined and driven. Student working A contract is normally in place for part time work during college or university term time and full time working during the holiday periods. This can also be achieved on a more informal basis where a part time contract exists and any increase in hours is made available through single time overtime. Work unpopular/unsociable shifts. Lifestyle option (good retention for the duration of course). Full time at the end of the course. Opposite of Term-Time Working. Give flexibility for weekend/evening work. Another variation on static part time shifts. Lack of flexibility (contract for a reason). Needs to be a strong work ethic as studying and part-time work can be unsustainable. Lack of commitment and attachment to the business. Term time working A term-time working contract will specify the amount of holidays around 9 or 10 weeks and may stipulate that paid holiday leave should also be taken during the school holiday period. Together these should add up to at least the normal 13 weeks of school holiday. Employees normally work longer hours when in work to offset the additional leave. Can be direct opposite Student working. Great solution for working parents, perhaps this will gain some loyalty from employees as termtime working is not widely available. This can be something that sets your business apart from others & helps reduce attrition. Long periods of time off may require re-training. Skill retention and limited contact time with Team Manager. Shifts require specific planning with different schools having different holidays to consider; potentially high admin burden. Inflexibility from staff. 16 Best Practice Guide 2011 Professional Planning Forum Ltd

5 Top tips Expanding Horizons Advice from a selection of organisations on how to successfully implement each of the alternative options. Homeworking n Have robust systems to track service delivery of home workers n Over communicate with staff n Know what you want before you start Full details of the various home working options, including the pros and cons of each solution are available in our Home-working best practice guide. Student working n Contact Centre work is a favourable alternative to some part time work and schedules can be worked around student timetables n Choose the right campaign or work type for this with minimal training required n Train staff to handle high-volume, low value calls and minimise induction training Term time working n Ensure both parties know exactly what is expected from day 1 n Gives parents who otherwise cannot find a job with hours that suit them a workable solution, without the worry of child care during school holidays Contracts for people who otherwise wouldn t work for you Home-working attracts a certain type of person and fits particular lifestyles well. Home-working can attract new people to your workforce; it can also retain experienced and motivated colleagues who would otherwise need to leave. Suitable space at home is a key requirement and saving the costs of commuting can be a key attraction. Student and Term-Time contracts are similar but particularly attract people who want to fit work around other commitments, such as study or children. These types of contract should be part of a wider resourcing strategy, rather than used in isolation, to avoid creating resourcing excess or shortfalls are certain points in the year. If dove-tailed together they can provide a consistent level of resource all year round with the added benefit of a very loyal workforce who are unlikely to find similar suitable working hours easily elsewhere. A tailored recruitment strategy is needed reaching new demographic segments and matching the contracted hours to their needs. Because it requires no travel, a business benefit unique to homeworking is the ability to schedule work in small chunks of time and a flexible workforce who are happy to take additional hours at very short notice. Help shape best practice in the industry and have your say, by letting us know how you use the flexibility options, the challenges you have faced and any tips you would like to share. Look up the latest information at join our LinkedIn discussion or steve.woosey@planningforum.co.uk Organisations successfully using or piloting a homeworking solution include: n Autoglass n Boots n BT n British Gas n Canterbury City Council n Carnival UK n DSGi n Licolnshire County Council n Liverpool Direct n QVC n Shop Direct Group n The AA n Thomas Cook n Wokingham Council A full 36 page guide to homeworking including a range of different models, six case studies and the respective pro s and con s of each model can be found on our website at 17

6 Flexibility toolkit (2) Part time A part time contract is put in place with an employee normally working a pre agreed number of hours per week. Often these are hours are at fixed times or on fixed days. Work unpopular/unsociable shifts. Short block of time, good scheduling efficiency. Minimises over-staffing in core hours, very attractive creating a work-life balance. If negotiated properly this can satisfy both the agent and the planning team. In many cases it allows the retention of good staff who might otherwise have left, e.g. due to maternity leave. Lack of flexibility (part time for a reason). High percentage of part time FTE unproductive with offline activities, e.g. 1 to 1 time, training. Difficult for team based scheduling. Rigid no flex up or down to react to fluctuating demand. Job share A particular structured form of part-time working, where a job is shared between 2 people. Models for this vary. A 50:50 split is common, but other variations are possible. Some employers find it best that both workers have at least one day in common, so that the baton can be passed on more effectively, with the jobsharers able to pass on necessary information and brief each other on current tasks and issues. Suitable for account management/team Manager/Support role. Employee benefit and work-life balance, Agent satisfaction and retention of skills. Can give the business a level of contingency on a specialist role. Can allow fractional FTEs where you would otherwise have struggled to find 2 part time staff. Possible ideal fit for employee lifestyle so they are less likely to leave. Attrition, finding a suitable replacement. Lack of flexibility (job share for a reason) Double the development/1 to 1 time. Absence/ holiday planning can cause gaps. Success depends on the relationship between the 2 job sharers effort, attendance etc would need to be equal. Second job Second Jobbers are simply people who already work for your organisation but perhaps in a non contact centre role who have taken on a part time contract within the contact centre to earn extra money either on a temporary or permanent basis. Already know the business and therefore can be trained easily and quickly providing a cost effective part time resource which is right on your doorstep. No recruitment costs. Reduced development time. Only use staff during busier time, good schedule fit, allowing for short blocks of hours to be contracted. Reduced fully-loaded employment costs; peak demand coverage. Knowledge retention, only have basic knowledge. You may cause issues with their prime role. As this is not the main job you would have to make sure they are managed in the same way as any other advisor. Potentially additional training cost to regularly maintain their skills. 18 Best Practice Guide 2011 Professional Planning Forum Ltd

7 Top tips Expanding Horizons Advice from a selection of organisations on how to successfully implement each of the alternative options. Part time n Use virtual techniques to roll out skill updates, ensure regular activity to avoid loss of skills/fluency n Typically allowing part time staff to only work on unsociable shifts (e.g. weekends) can offset the pain of losing hours n Restrict the minimum hours unless you have a good home working model Job share n Can suit lifestyles of 2 people who can work in partnership n Clear schedules and expectations at interview n Encourage communication between job sharers and their full-time colleagues Second job n Only offer to those who will keep up to date on required skills and knowledge n Try to understand demands and priorities of prime role and keep them separate Understand why people work & what else they need to do Part time workers are often used to cover peak periods in the working day (eg mornings) or to cover unpopular periods in the day/week (eg evenings or weekends). This in itself provides a difficulty during the recruitment and induction process. Most people are part time for a reason and therefore struggle with full time hours, meaning induction training must be tailored to the hours part time employees can work. This requires discussion and agreement from other support areas such as HR and Training and perhaps a more innovative approach to the whole induction and skilling process. Students, term-time workers and home-workers are all usually part-time contacts but with the particular requirements covered on the previous page. Job-shares are unique among these options in that they require direct negotiation between employees a key benefit of the other options for employees is that this is done by the employer. Second-job employees require employers to consider additional factors it can however open up entirely new recruitment markets for unpopular or short-notice shifts. It should be recognised that money is often a key motivator. Help shape best practice in the industry and have your say, by letting us know how you use the flexibility options, the challenges you have faced and any tips you would like to share. Look up the latest information at join our LinkedIn discussion or steve.woosey@planningforum.co.uk With technological advances, the choices available will increase year on year. The challenge will be how these choices are planned, managed and delivered understanding each available option and implementing the most appropriate mix for each individual. Grant Holden, British Gas Planning has matured well over the last 10 years. There is a much greater appreciation around the impact of work-life balance, flexibility for staff and the measurement of lost time and attrition. Steve Borg, The AA 19

8 Flexibility toolkit (3) Fixed shifts Contractually agreed working patterns including hours of work, days in and off work. Suitable for team based scheduling. Covers base staffing requirement and provides structure to agents. Easy to plan with high staff buy-in. Advisors know where they are week in week out. Shifts can t change to match changing demand. Very rigid and provides no flexibility - needs supplementing with a flexible solution. Rotational patterns Working patterns released within a pre-agreed time frame where all employees rotate through the same cycle of shifts over an agreed period. Everyone works the same, so fair shift allocation. The shifts are transparent for all. Same coverage of staff week on week and suitable for team based scheduling. Staff know their shifts in advance. More effective coverage of operating window; can appeal to some staff s lifestyles. Staff can end up working longer risking burn-out, sickness or absence. No additional staff just staff work longer which can be less productive. Can become an administrative burden and difficult to manage from a payroll perspective, especially if advisors leave mid-year. Trade off shifts shifts are created that have something that is deemed to be good offset by something that is deemed to be bad. These shift types are often labelled as lifestyle option and include shifts such as late with no weekends. This is the essence of compromise; the employee gets the most important thing to them & the business gets something in return. Can achieve resource for some of the harder-torecruit for shifts. Happy staff, good coverage of hours, helps motivation and performance. Attrition needs to be replaced like for like or left with the legacy. Conflicts could arise between staff due to fairness (perception of working easier shifts than others). Reliance on one group of people to fill the void/difficult shifts. Annualised hours There is a variety of versions within this scheme, typically the annual hours are based on a 35 to 40 hour week multiplied up to an annual total, less annual leave and public holidays. Scheduling work takes a variety of forms: there may be an average monthly total to be worked, or it may take the form of periods of intense working followed by periods of rest. Allows flex of staffing around demand change without additional costs, e.g. overtime. Can work around certain lifestyles better than standard shifts. If your business has particular peaks & troughs this can be the ideal way so fill them without relying on overtime or temps. Staff can end up working longer risking burn-out, sickness or absence. No additional staff just staff work longer which can be less productive. Can become an administrative burden and difficult to manage from a payroll perspective, especially if advisors leave mid-year. 20 Best Practice Guide 2011 Professional Planning Forum Ltd

9 Top tips Expanding Horizons Advice from a selection of organisations on how to successfully implement each of the alternative options. Fixed shifts n Full knowledge of demand profile; plan shifts carefully as it will be tough to move staff once they re on it. Review regularly, e.g. monthly or quarterly n Semi-fix shifts the ability to have fixed but with notice to "tweak" the start and end times Rotational patterns n ultation with staff on best mix in each rotation n Clear communication of shift patterns, allow agents to swap shifts as required, this builds flexibility and empowers the agents to manage their own shifts n Build flexibility into the rotation whether it s start & finish times or the ability to change the shift with a sufficient notice period Trade off shifts n Allow agents to self schedule but a portion of less popular time must be selected n Clearly set out expectations during negotiations and regular reviews; don t rely on this as a long-term strategy unless you have strong managers and a low-attrition centre Annualised hours n Reconcile hours after 3 months n Let the employees fully understand the contract and consequences n Involve staff as early as possible in the planning process and publish schedules as far in advance as possible Scheduling is the first key to unlocking flexibility Contracts are not enough in themselves. The approach used in scheduling shifts is extremely important in delivering the benefits of flexibility for both business and people. This applies to full and parttime employees, It is unlikely that simply using one of the scheduling approaches in isolation will work in the long term. Scheduling is like a jigsaw puzzle and requires the use of a number of scheduling options to get the best possible match with customer and employee demand. Help shape best practice in the industry and have your say, by letting us know how you use the flexibility options, the challenges you have faced and any tips you would like to share. Look up the latest information at join our LinkedIn discussion or steve.woosey@planningforum.co.uk Primetime minimises stress levels because people work the hours we actually need them to work, so there are fewer spikes in call volumes. Lynne Brookes, Team Leader, Thames Valley Police I came back to work recently from maternity leave, and was really pleased to find I could organise my shifts around my child-minder s hours. It s made a real difference to me. Eve, Contact Centre Associate, HeroTSC It s helped bring in a diverse range of people which has greatly added to the dynamic of the team. Ray Green, Team Leader, Orange UK 21

10 Flexibility toolkit (4) Flexi-time A flexible hours scheme, or flexi-time, usually involve working a set of "core hours" perhaps 10 until 3 or 4, with the ability to vary the hours either side of this. Work life balance opportunities, matching start and end times of shifts around lifestyle. Good for work/life balance; popular benefit ; can save on overtime; allows flex to demand. Better flex than standard shifts. Inconsistent staff coverage, especially at start and end times. Can be very difficult to plan. Potential Staff free-for- all. Difficult for team based scheduling. Difficult to have a true system in phone areas where demand is decided by the customer. Time banking An account is created between the employer and employee where time that is worked over and above the contractual requirements can be banked and taken back at a later date. This approach can be activated by the employer or the employee. Allows shifting hours from a low demand time to a high demand time (win win for both business and employee). Not paying overtime; scheduling fit benefit. Increases flexibility and demonstrates willingness to offer a work-life balance. Agreement must be made at that time. Restrictions to when the time is made back/taken. Potential conflict when agents want to take their banked time if the business can t release them. Can be difficult to manage if your WFM does not allow for bankable time. Unpaid leave The ability for an employee to request time off unpaid, whether a few hours or a longer period. This approach can also be used by employers to offer unpaid leave during times of low demand. Schedule fit improvement. Lifestyle benefit. Manages down availability during quiet periods and reduces boredom. Allows staff flexibility for particular events at a reduced cost to the business; can minimise overstaffing. Administrative burden on payroll (robust system required). Must be used tactically. Agents may be reluctant to take unpaid leave and you are still left with the challenge of using the time effectively. Overtime Ad-hoc request for additional work normally paid at a premium rate of pay. Plugs gaps, staff for busy times. Offer small blocks of time, e.g. 30 minutes, or full day. Meet urgent client demands for additional flexibility (Quick Fix). Provides opportunity for agents to earn if they are available and usually well received. No recruitment or training costs and fully productive staff immediately. Administrative burden on payroll. Issues/impacts on bonus scheme. Productivity issues, staff burn out. Over reliance of overtime, not effective. Can mask a problem that should be addressed via getting more headcount. 22 Best Practice Guide 2011 Professional Planning Forum Ltd

11 Top tips Expanding Horizons Advice from a selection of organisations on how to successfully implement each of the alternative options. Flexi-time n Controlled through requests & central point rather than truly flexible control by the staff n Ensure Resource and Operations have complete control of process and when flexi is required, as well as when the time can be taken back n Ensure staff do not accumulate too much flex time and want to take all in one go. Time banking n Agents can be sold on the idea that they can bank time and take it later to save their holidays or potentially save the time when they need time off for a long weekend, sick children, medical appointment, etc n Accurate, transparent reporting n Have a clear policy of what can and cannot be accrued Unpaid leave n Communication between agent, HR and planning n Robust payroll processes in place to avoid issues Overtime n Easy notification of availability, e.g. automated text/ alerts n Do not overuse otherwise incentive pay rate diluted as agents wait for urgent service n Thank staff for working extra hours in a busy period! n Offer less desirable but most wanted slots before more desirable slots Managing small pockets of time is equally vital With time bank, it s been a change for the better, having flexibility to have extra time off work when you need it. Paul Hodgson, Customer Manager, RSA Knowing our audience has been key to getting them on board. We used a lot of the things people liked about flexi-time and built that in to the new system. Richard Abdy, Forecasting, Planning and MI Manager, NHS Business Services Authority The ability to create small pockets of time is essential when trying to improve schedule fit; it is also hugely important in meeting the individual needs of each person. Initial schedules do not typically match demand closely and scheduling offline activities will only go so far in bringing any periods of over or under-staffing back in-line. The sustainability of these schemes is vital and often depends on extremely detailed considerations and a great deal of consultation. Careful management is required to ensure fairness and consistency, particularly in relation to payroll and time-off. Help shape best practice in the industry and have your say, by letting us know how you use the flexibility options, the challenges you have faced and any tips you would like to share. Look up the latest information at join our LinkedIn discussion or steve.woosey@planningforum.co.uk 23

12 Flexibility toolkit (5) Contractual overtime A pre-agreed amount of work over and above the normal working week, which can be requested by the employer within the contractually agreed time scales. Pro s Similar to On-Call contracts. Pre-agreed bank of staff. Can cover workload with fewer employees FTE, popular with staff. Con s May not be required, difficult to change/reduce. Staff fairness, negative lifestyle, uncertainty of shifts. Need rules to support both parties to ensure fairness to all agents, e.g. number times asked and number of unsociable hours asked to work. Zero hours contracts The employer is not obliged to find work, and the employee is not obliged to accept what is offered. Some employers may have a pool of temporary workers employed on this basis. The relationship can include retainers to cover periods without allocation of work, and can incorporate benefits. Single time overtime. Suitable for short-term contracts; bank of staff to call upon. Allows the business to meet event-driven peaks, by retaining skilled people who may leaving for another role, but could go to zero hours instead. Potential silver bullet solution for the business You only use the people you need exactly when you need them. Difficult to train/develop and retain, especially if long period between shifts. Not suitable for some businesses. Difficult to Performance Manage. Agents can refuse hours as there is no commitment from either party. Potentially undedicated staff making it difficult to instil the corporate ethos or vision. On call A formal or informal agreement to be on-call and work hours either in addition to the normal contracted week (overtime) or in lieu of the normal scheduled hours (time banking). Pre-agreed overtime. Total flexibility, only staff when required. Give agents the choice to work and opportunity to earn extra money. Low demand periods can be managed with minimal cost; can ensure 24/7 operational cover. Premium charged either for hours worked or just for being on call. May not get great take up as its usually planned last minute. Administrative burden for planning and potential payroll implications. Relief / short notice Shifts which are published in the roster without specific times, because they will be allocated at shorter notice for example a week out or a day or two out. Reduces the need for flexi or overtime to cover the gaps. Creates more scope for meeting time-off requests. Provides a structure for spreading the pain fairly among employees. Ideal for the business if you have a lot of change in demand forecasts at short-notice. Sometimes end up as simply late shifts Sometimes just an excuse for not planning timeoff properly. Can be hard for people with outside commitments or interests. Requires you to be able to forecast demand accurately by the time of the short-notice trigger. 24 Best Practice Guide 2011 Professional Planning Forum Ltd

13 Top tips Expanding Horizons Contractual overtime n The boundaries need to be clear for both parties n Pre-agreed notice periods must be adhered to n Focus groups should be used to understand reasonable amounts and notice periods required Zero hours contracts n Make sure the schedulers are clear on the contract and they have a process to call upon zero hour people as and when required n Good selling point is that agents can have this contract as a second job and always have the option to decline shifts without consequence if they are unable to work nice second income! On call n Ensure the contract is right, as changing this will require consultation n Ensure HR are fully onboard with approach being used n Pilot on a small group without a contract change before rolling out fully Relief/short notice shifts n Build these types of shifts into particular contracts; they aren t for everyone n Monitor how they are used are they just another name for lates or other unpopular shifts? n Great if your workforce management system can use them can massively improve schedule fit n Take account of the working hours directive and beware of any long-term negative effects for people Contracts need to take small pockets of time into account While time-banking and overtime can usually be negotiated within existing contracts, some options require looking again at employee contracts. Different people will be attracted by options such as these and part-time workers who have specific other commitments need these taken account of. Typically, the more extreme the flexibility you seek from any particular individual the fewer people will want to opt into it. For these reasons it is usually inadvisable to negotiate these working practices across your entire workforce and monetary incentives are often required. In some cases people will sign up to these kinds of contracts, because they cannot find alternative employment, but in the longer term this usually has consequences for their loyalty, attendance and performance. Help shape best practice in the industry and have your say, by letting us know how you use the flexibility options, the challenges you have faced and any tips you would like to share. Look up the latest information at join our LinkedIn discussion or steve.woosey@planningforum.co.uk The evolution of self service platforms to allow advisors to own their own work-life balance has brought a new level of understanding of the planning function in the industry. Aaron Gourlay, Eurostar You need to combine different flexibility options to provide a fit for the business and the employee. Advanced contact centres will also use these options as a way of attracting and retaining the best employees. Steve Woosey Professional Planning Forum 25

14 Four Shrinkage Examples Example 1: Industry compliant with high training Example 2: Sales focus with manual booking process, high after call wrap time 6% 4% 6% 13% 5% 11% 4% 17% 46% Customer Contact After Call Work Wait Time Sickness Holiday Training Communication Other Breaks 13% 6% 2% 5% 5% 6% 17% 22% 33% Customer Contact After Call Work Wait Time Sickness Holiday Training Communication Other Breaks Example 3: Extreme example with minimum offline activities/absence Example 4: Training and Communication Focus 1% 1% 13% 5% 6% 6% 6% 66% Customer Contact After Call Work Wait Time Sickness Holiday Training Communication Other 2% 2% 6% 13% 5% 8% 6% 53% Customer Contact After Call Work Wait Time Sickness Holiday Training Communication Other Breaks 11% Example 1 Example 2 Example 3 Example 4 Sickness days per month Holiday days per year (inc BHs) Training hours per month Communication hours per month Other mins per month Breaks mins per month Customer Contact hours per day After Call Work mins per day Wait time mins per day Contracted hours per day Best Practice Guide 2011 Professional Planning Forum Ltd

15 Calculating shrinkage Expanding Horizons Shrinkage is one of the big questions raised each year by students: how do our paid or scheduled hours shrink away when you take account of all the factors that cause people not to be on the phones? What are shrinkages, how much shrinkage should we plan for, what should the shrinkage target be and what shrinkages does everyone plan for? The aim of these pages is to help you plan shrinkages effectively and realistically and to ask you to participate in creating new benchmark data that can be used as part of the new flexibility tool-kit. Shrinkages are best summarised on the Planning Wheel, which measures the % time spent in different ways in the contact centre. To gain the business benefits of flexibility you have to track and manage these factors more tightly. For example, flexible scheduling of training sessions can mean quiet times are used more effectively. This allows more training without increasing your manpower budget; this increases the training time but reduces wait times as the overall utilisation is higher. In a different way, if the amount of scheduled off-line time is increased, then other may go down, making it easier to predict where you will be under or over resourced and therefore manage this more effectively. Similarly if people have the flexibility to take time off when they want it, then often absence is lower reducing budget costs, because people are using their holiday allowance or paying back the time in periods when you need extra support. Previous best practice guides have published benchmark data on shrinkages, but the aim this year is to establish a benchmark of definitions that will allow more meaningful comparisons and help focus the wider management team on implementing an effective and holistic resourcing strategy. The (fictional) examples on these pages deliberately contrast the impact of different assumptions. Combined with the definitions on the next page, they should give you a good guide on how to establish appropriate shrinkage parameters for your own contact centre operation. If you understand what each percentage point means and what you are actually achieving, next year s budget is already a little bit easier! Then, share your results with us and we can help you compare your performance against appropriate industry benchmarks. If you have a particular interest or are looking for support in this area then contact Phil Anderson on or phil.anderson@planningforum.co.uk Shrinkage Categories Understand how you measure and track the following: n Absence n Holiday/Time off n Training/Coaching n Communication n Breaks n Other Planning Wheel Benchmark research % 8% 6% 10% 3% 3% 5% 5% Customer Contact Total After Call Work Wait Time Sickness Holiday Training Communication Other Breaks 50% 27

16 Shrinkage definitions and how to apply them Most organisations track time against these categories through a combination of manual tracking, codes on the telephony system or use of other systems. Accurate tracking is the first step towards effective planning. n Absence: Short-term and long-term sick, both paid and unpaid; also include any instances of AWOL (absence without leave), paternity leave, jury service and emergency leave. An average of 1 day sick per person per month is around 5% a year. The aim is to operate with as little sick as possible; however you need to build realistic figures into the budget. Remember it s not your fault if sickness is high, but it s your job to plan for it. n Holiday/Time off: Annual leave entitlement, including bank holidays (if your centre is open on these days), flexi-time accrued leave and any annual leave carry over. Most of this will be contractual so take time to work this out accurately. If you restrict holidays in some months, make a higher allowance in others. Track take-up and use this to forecast seasonality. n Training/Coaching: Quite simply any training, e.g. systems, new product, compliance, coaching etc However do not include induction training as this should be planned as part of the induction process and is usually accounted for separately in the budget. 2 hours per month per FTE is around 1%, whereas 1 day per month is around 5%. Again, it s not your fault if training time is high, but if it isn t in the plan, your plan won t work. n Communication: Any communication session including 1 to 1s, team meetings, buzz sessions, annual company overview, etc. Needs vary greatly between sectors, but don t factor in 1% if you need 5%. A 60 min 1:1 plus a 30 min team meeting each week is around 2%. Include annual or quarterly business communications in the appropriate month. n Breaks: These are scheduled breaks, which occur in paid time. Any other breaks, such as comfort breaks and cigarette breaks, are included in other. Breaks which are unpaid are not included in shrinkage. n Other: The potentially ambiguous other ; essentially anything else that does not obviously fall under another category, e.g. unpaid comfort breaks, cigarette breaks, general busy/agent not available time. It is essential to measure what actually happens. Remember ALL paid time needs to be accounted for in the planning wheel. New categories Organisations create new categories for specific activities, which are important to track or manage, for example:- n In centres where a lot of after call work can be deferred, a separate follow-up work category is often used. n Where there is a lot of weather-related absence as in recent winters it may help to set up a new category for reporting and forecasting. A word of caution: allowing time in the budget for unwanted activity can create an acceptance we ve planned for it, so let s use it. Also, if you have too many categories, they are less likely to be recorded accurately. Overall we encourage the use of standardised metrics to enable relevant comparisons, benchmarking and ultimately best practice. Customer Facing Time These 3 categories represent direct or indirect work that can be tracked in your telephony system. It is essential to use actual historical information and to identify any seasonality or patterns. n Customer Contact: Total time spent talking to customers, inbound or outbound (include hold and dial time). In a blended environment, include back office/ functions within this time you may have to manually add it in if people log out to do it n After Call Work (Wrap): Work that needs to be completed before moving to the next call. Project work to improve processes can often reduce this time/percentage. n Wait Time: Time spent in between calls where the agent is sat available without a call. Track how this changes over time changes are a direct result of your resourcing strategies, operational scale and service level goals. Help shape best practice in the industry and have your say, by letting us know how you plan your shrinkage and at what level, the challenges you have faced gaining buy-in for the required shrinkage levels. Join our LinkedIn discussion or phil.anderson@planningforum.co.uk 28 Best Practice Guide 2011 Professional Planning Forum Ltd

17 Measuring scheduling fit and effectiveness Expanding Horizons The standard measurements used by resource planning teams to measure their success are usually based around service level performance or abandon call rate. This page will look at how we can manage the success and fit of our schedules. Because schedule fit is based on granular timeof-day information, it pinpoints where problems arise. 4 measures are used only the last two of which are recommended 1. Net deviation. Using the table below, this derives a schedule inefficiency of 2.4% (2.5/103.2*100). 2. Variance is similar, but ensures that the under and over-resourcing does not balance each other out. This derives a schedule in-efficiency of 6.5% (6.7/103.2*100). 3. Intervals Achieved calculates the proportion of intervals in which scheduled resources within 10% of required. This derives a schedule efficiency of 83% (5 out of 6 intervals) from the same table. 4. The Schedule Profile is a visual tool shown in the graph below. While this means it cannot be used as a target or for benchmarking, its graphical nature means that it is easy to understand where the problems are in the day. It is calculated by indexing both required and scheduled staffing (comparing them to the average for the day) and graphing these so that the differences can be compared. Calculating schedule fit variances Interval Required Scheduled Net Variance % Achieved 09: % 1 09: % 1 10: % 1 10: % 0 11:00 25: % 1 11: % Note: Interval achieved is based on schedule being within 10% of required. Schedule Profile Measurement Measuring the performance of your scheduler Match resource to customer needs whilst maintaining or improving work life balance options. To produce schedules that match the call profile at the most effiecent way. Finding the optimal shift patterns and working practices and taking into account as much flexible working /agent preferences as the department manager wishes to include. Required Actual Produce the best service level that is as consistent as possible by day and interval for the week. 09:00 09:30 10:00 10:30 11:00 11:30 29

18 Questions for discussion and benchmarking Planning your flexibility strategy n How will the measurement of schedule fit help you decide which flexibility options would work best? n Which set of flexibility options are best suited to deliver your strategic business goals? n How will you engage with staff, unions, HR and operations to deliver a flexibility solution suitable for the needs of the business and the employee? n Which of the flexibility options would work for you in providing a true work-life balance for employees? n How will the flexibility options used be incorporated into your recruitment strategy? Creating lifestyle schedules and a true work-life balance n What method are you using to understand the preferences of your employees? n How will your current or future scheduling approaches meet these preferences? n What are your main challenges when creating lifestyle schedules? n What are your scheduling top tips for creating lifestyle schedules? n How will your WFM system support the creation and management of lifestyle schedules? n How will you make the business case for true work-life balance focussed schedules? n What impact do you expect lifestyle schedules to have on performance, employee morale, absence and attrition? Calculating shrinkage n What is included in your shrinkage measures, is anything missing? n How will you track the actual level of shrinkage used? n What techniques will you use to manage actual shrinkage to the levels in plan? n What challenges do you face when gaining buy-in for the correct shrinkage levels to be put in plan? n What are your top tips for planning and managing shrinkage? Measuring scheduling fit and effectiveness n Which schedule fit measurement do you use and what are you hoping to understand from this measurement? n What challenges do you face when trying to measure schedule fit? n What is a realistic schedule fit target for your organisation and why? n Once the schedules are measured what action have you taken to improve the overall schedule fit? n How does your WFM system support the measurement of schedule fit? 30 Best Practice Guide 2011 Professional Planning Forum Ltd