playing the new game in 2015page 11 03 what are attrition rates costing your company page 18 04 how...
TRANSCRIPT
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How to attract the right leadership talent
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How to make recruiting easier and more effective
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What are attrition rates costing your company
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How to maximise customer engagement metrics
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Playing the new game in 2015
The Engagement Report by FuturePeople
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C O N T E N T S
about Heartonomics™
employee engagement
customer engagement
0 1 2
I The Heartonomics™ 01 Report introduction
II It’stimeforashakeup 02 CEO: Linda Simonsen
III Key 03 insights
IV Isyourorganisation’s 04 heart in the right place?
V Research 32 Methodology
VI Why do we have 33 the answers?
1 Employee 06 engagement
1.1 Leadership matters 08 but mind the gap!
1.2 Have the right people 10 onthefrontline
1.3 Don’tmissout.Be 12 skilledforthefuture.
1.4 Makeemotional 14 fitnessapriority
1.5 Avoid the brain 18 drain and hold on
1.6 Foster and nurture 20 talent through training
2 Customer 22 Engagement
2.1 Customerisking, 24 but so are employees
2.2 Championing 26 advocacy at the top
2.3 A holistic view 28 ofengagement
2.4 How to play 30 the new game
Heartonomics™ Playing the new game in 2015
The Engagement Report by FuturePeople
contents
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Inthisreportwegettotheheartoftheemergingtrendsinthecontactcentreindustry,pinpointingissuessuchasthelinkbetweenemployeeand
customerengagement.
Disclaimer:Thedatareportedinthispaperisbasedontheresponsesofthecompaniesthatparticipatedinour2015survey.Percentagesarerepresentativeofthesurveysample.Somepercentagesmaynotaddupto100percentduetorounding.AnyreproductionofthismaterialmustcreditFuturePeople.Thisreportmaybecitedas:The Heartonomics™ Report - Playing the game 2015.
©CopyrightFuturePeople2015
introduction
It’s time for a shakeup.
Yesit’strue.Australia’scontactcentreindustryhasbeenrespondingtodisruptionforoveradecadenow.Firstlyitwasoffshoring.Nowitisdigitalisation.Buttheriseofthecustomerintoday’sdigitaleconomypresentsanopportunityforthesectortofinallygetonthefrontfootanddisruptthings in our own right by challenging the old wayof‘playingthegame’.
Todaythebrandvalueofanorganisationisinthehandsofthecustomer.Thishasmadeexceptional and personalised customer service akeycompetitiveadvantage.Andcompanieshavebeen responding by putting customer engagement higherontheagenda.
Customer engagement is essentially about people-notjusttechnology.Andcontactcentresareakeycustomerengagementchannelformanyorganisations.Thisisgreatnews.It’sanopportunityforleaderstoelevatetheroleofthecontactcentreandjustifygreaterinvestmentinthefrontline.It’salsoanopportunityfortalentto become more engaged as the customer experienceprofessioncontinuestogrowandevolvedemandingamorediverseskillset.
Ourannualindustryresearchreport,The Heartonomics™ Report,canvassestheviewsofcontactcentreleadersandprofessionals.Wegettotheheartoftheemergingtrendsinthesector,pinpointingissuessuchasthelinkbetweenemployeeandcustomerengagement.Thisyear’sreporttellsusthatthecontactcentreindustry is struggling with the ongoing changes thatcomefromtechnologicaladvancesandshiftingeconomies.Ithasn’tyetadequatelylinkedemployeeandcustomerengagement,higherperformanceandprofitability.
Asanindustry,weneedtobringattentiontotheimportanceofthefrontlinecustomerexperienceprofessional,andencouragemoreinvestmentintheirrecruitmentandtraining.Ourresearchtellsusthatitishardtoattractandretaintalent.Yetsoundrecruitmentisdifficultwithoutadequateinvestment.Howdoweelevatethevalueofthecontactcentreataseniorexecutivelevel,highlightingitasakeycustomerengagementdriver?Howdowemakecustomer service roles an attractive career option forfutureleaders?Howdowebetterengageemployees in the sector to drive greater customer engagement?Thesearesomeofthequestionsweexploreinthisreport.
Asaprofessionalwithmorethantwodecades’experienceinthissector,Iwanttoseetheindustrydisruptitselfthistime.Thegamehaschangedandweneedtostartplayingbynewrules.Let’scollaborate,innovateandredefinethefrontlinecustomerserviceroleandcontactcentresector.Let’sencourageAustraliancompaniestobringbacktheircontactcentrestoourshores,investmoreactivelyinthefrontline,generatemorejobsandstartfosteringandpromotingavitalyetundervaluedprofession.
Itrustyoufindthereportbothcompellingandinsightful,andIlookforwardtocontinuingthediscussionwithmanyofyouinperson.
Australia’s contact centre industry has been responding to disruption for longer than most sectors.
The game has changed and we need to start playingbynewrules.Let’scollaborate,innovateandredefinethefrontlinecustomer service role and contactcentresector.
LINDA SIMONSENCEO,Founder
A B O U T H E A R T O N O M I C S ™P
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KeyinsightsOver the last 12 months, engagement appears to be getting greater traction from the boardroom to the frontline. It starts with having something to work towards.Anemployeewhodoesn’thaveclearworkgoalswillhavemoredifficultyengaging.Yetwhenthey’reengaged,theygivethat‘plusone’discretionaryeffortthat distinguishes great organisations and drives customeradvocacy.Engagedcustomerscostlesstoservice,spendmore,staywithyoulongerandmostimportantlydothesellingforyou.
Theresultsofour2015industryreportsuggestagap between conversation and reality when it comes toengagement.ResearchconductedbyGallupconfirmsthishavingfoundamere13percentofworkersworldwideengagedintheirjobs.Itappearsengagedemployeesstandoutbecausethey’reararity,andthisistrueinthecontactcentresector.
So what is happening in the sector when it comes to engagement?
01
Leadership remains the biggest challenges facing contact centres.Morethanhalfoursurveyrespondentsreporteddifficultyfindingskilledandexperiencedteamleaders.Thiscombinedwithhighlevelsofattritionimpliesthatitisjustgoingtogetharderinthefuturewithtalentpoolsdryingup.Arethinkofteamleaderrecruitmentstrategiesneedstotakeplace.
02
Recruiting frontline staff with the right attitude, skills and mind set is a challenge. Two-thirdsofsurveyrespondentssaiditwasdifficultattractingandfindingtherighttalenttobeginwithandthentherearetheongoingchallengesofkeepingtalenthappy,engagedandmotivated.Ourresearchfurthershowsthattherighttalentpoolsdonot consider contact centres an attractive place – a disconnectthathasseriousconsequencesandmustbeaddressedbythesector.
03
High levels of attrition continue in the sector. Thisinevitablyimpactsfinancialperformanceandcustomersatisfactionwhilesignallingalackofemployeeengagement.Statedattritionisaround20percent,withalmosthalfofourintervieweessayinghighestattritionoccursinthefirstsixmonths.The recruitment process needs to be valued by seniorexecutivesandadequatelyinvestedintoensure the right people are being recruited and thenheldonto.
04
Harnessing emotional intelligence is an opportunity to drive greater engagement.Analarming81percentofrespondentsreportedmentalillnessandunplannedleaveasasignificantchallengeimpactingperformanceandprofitability.Thisnotonlyimpactsteammorale,butalsocustomerexperienceandthebottomline.Emotionalintelligencemustbecomepartofthemanagementvocabulary.
05
The link between employee engagement and higher customer advocacy hasn’t been made yet. Employeesasbrandambassadorsareakeydriverofcustomerengagementyettherecontinuestobelittleinvestedinfrontlineroles.A clear disconnect remains between customer advocacy and motivated employees mainly because organisations have an entrenched silo viewwhenapproachingcustomerengagement.
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A B O U T H E A R T O N O M I C S ™
Is your organisation’s heart in the right place?
Where does your organisation sit in our Heartonomics™ model?Takethisshortquestionnairetofindout.
1. Customer engagement is a top priorityformyorganisationandthe contact centre is viewed as akeycustomerengagementchannel at C-level
YES NO
2. Contact centre leaders in my organisation have input into customer engagement strategy
YES NO
3. Senior management understands that engagement isa‘feeling’thatdrivesvaluable behaviour
YES NO
4. Senior management understandsthelinkbetweenemployee engagement and customer engagement
YES NO
5. My organisation is willing to invest in a best practice recruitment model that attracts the best talent
YES NO
6. Salariesforcontactcentreemployees in my organisation reflectthevaluetheyrepresent
YES NO
7. My organisation has invested in a best practice contact centre recruitment solution which deliversa‘brandexperience’to potential employees
YES NO
8. Our recruitment process uses a valid tool to measure ‘psychologicalfit’andmeasuresemotional intelligence (EQ)
YES NO
9. Weprovidesoftskillstrainingtoourfrontlinewhichequipsthemto have engaging conversations andmanagethe‘emotionallabour’aspectoftheirrole
YES NO
10.We invest in our team leaders asthekeytobothemployeeand customer engagement
YES NO
At FuturePeople, we have developed a unique model that shows the relationship between greater employee engagement and higher customer advocacy.
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Takeaphotoorscanitandemailit to [email protected]
Meet with usCallandmakeatimeforustoseeyouandgothroughtheresults.
Give us a callCall us on 1300 917 193 and we can
discuss results and give you some pointers
Onceyouhavecompletedthis,sendittousandwewillletyouknowhow
yourorganisationistracking.
GET IN TOUCH VIA
A B O U T H E A R T O N O M I C S ™
AboutHeartonomics™‘Heartonomics™’ is the economic value that genuine human connection represents in a business. Engaged employees lead to engaged customers, which in turn leads to profit. It’s revolutionising the way the modern contact centre does business.
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1 | E M P L O Y E E E N G A G E M E N T
How to attract, motivate and engage the right people to frontline customer service roles.
01
EMPLOYEEENGAGEMENT
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E M P L O Y E E E N G A G E M E N T | 1
Weareinterestedinthelinkbetweenhighlyengagedemployees,moreengagedcustomersandhigherbusinessperformanceandprofitability.A contact centre with motivated employees is well onitswaytoachievingallthreegoals.Researchshows that employee advocacy precedes or drivescustomeradvocacy.Sohowdoyouattract,motivate and engage more talented individuals to frontlinecustomerserviceroles?
Inthissectionwelookathowengagedemployeesareincontactcentres,andhowthisimpactsoncustomers.Havecontactcentresreallyrecognisedandaddressedthislink,andaretheywinningorlosing in this new world?
Fromourresearch,wehaveidentifiedfivecoreareasthatarelinkedto,impactanddriveemployeeengagementinacontactcentre’suniqueecosystem.Theseare:
ٴ Leadership.Greatleadershipcreatesafulfilledandproductiveworkforce,yetisoneofthebiggestchallengesfacingtheindustry.
ٴ The right talent. Having the people with the rightmind-set,skillsandattitudeiscrucialtosuccessfulengagementyethardtoachieve.
ٴ Emotional fitness. The contact centre environmentistough,andcanbestressfulandemotionallyandmentallydraining.Frontlinestaffneedtobeemotionallyfittodothejob.
ٴ Soft skills development. The ability to personalise the customer service experience andpreempttheclient’sneedsisaskillthatcanbelearnedandtaught.
ٴ Getting retention right.Goodstaffneedto be supported by community-minded team leadersandtherightculture,toreinforceasenseofpurposeandbeingvalued.
In this year’s The Heartonomics™ Report: Playing the new game in 2015, we follow the engagement mapping journey, starting with your people.
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1 . 1 | E M P L O Y E E E N G A G E M E N T
Leadership matters but mind the gap!
Morethanhalfoursurveyrespondentssaidthatskilledandexperiencedteamleaderswerehardtofind,impactingtheoverallperformanceofthecentreandsometimesdamagingthewayemployeesfeltabouttheirjobs.
OUR EXPERT INSIGHTThefrontlinestaffwhodriveemployeeengagementandbusinessoutcomesrequiremorethangoodselection,trainingandrewarding.Theymustalsobeguidedtowardsauthenticity,altruismandemotionalintelligenceiftheyaretorepresentandreinforcetheirworkplaceculture,inspiringotherstafftofollowtheirlead.
Teamleadersareavitalasset.Theirabilitytoreach out to others has a measurable impact oncustomersatisfaction,andinevitablythebottomandtopline.Leadershippresentsbothachallengeandanopportunityforthecontactcentreindustryoverthenextfiveyears.
Inthepast,teamleadershavebeenresponsibleformanagingKPIsandhandlingescalations.More recently their role has developed a stronger onusonnurturingstafftogaincustomerloyalty.Thisisacomplexchallenge.Itrequiresintuition,understanding and harnessing drivers that are differentforeachperson.Exceptionalteamleadersturncultureintoaction,connectingorganisationalvisionandindividualpurpose.Theyknowhowtoinvolve and motivate every team member to deliver anexceptionalcustomerexperience.Whenthisfails,customersatisfaction,earningsandprofitsuffers.
Research shows that organisations that invest in attractingandnurturingtherightleadertalentbenefitcommercially.Moreengagedstaffmeansgreaterearningsgrowthandhigherprofits.Unfortunately,thehighattritionrateoffrontlinestaffiscausingthetalentpooloffutureleaderstodryup.
Thismeansthreethings.Firstly,weneedtoworkhardtoretainexistingtalent.Secondly,weneedtoidentifyanddevelopemergingleadersearly.Finally,weneedtoconsiderthedifferentskillsrequiredinleaderrolesandcastthenetwidertoattracttalent.
Leadership greatly influences employee engagement. Yet it remains among the biggest challenges facing contact centres.
Exceptional team leaders turn culture intoaction,connectingorganisational vision andindividualpurpose.
Figure 1.1
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E M P L O Y E E E N G A G E M E N T | 1 . 1
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Communicate growth opportunities effectivelytoattractleaderswhoquicklyadd value and also have much potential forfurthergrowthanddevelopment.
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Selectleadersfortheiremotionalintelligence(EQ) and then ensure ongoing training and developmentaroundthesecompetencies.
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Identifyleadershiptalentearlyandinvestin developing these individuals to move morequicklyintoteamleadershiproles.
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Develop leader development programs relevanttotheindividualcontextofacontactcentreenvironment.
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Recogniseeffectiveteamleadersfortheircontribution to employee and customer engagementbyrealigningtheirKPIsandremuneratingthemaccordingly.
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Continuesupportingfrontlinestaffbyensuringtheyfeelvalued,connectedtotheorganisation’spurpose,andnurturedtofurthergrowthandprogress.
How to attract and nurture the right team leadership talent
Develop leader development programs relevant to the individual contextofacontactcentreenvironment.
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Have the right people on the frontline
Closetotwo-thirdsofsurveyrespondentsfinditdifficulttoattractandfindtherighttalent.Onlyfourpercentofoursurveyrespondentsfindrecruitingeasyandstraightforward.
OUR EXPERT INSIGHTThecontactcentrerequiresaspecialistapproachwhenitcomestofinding,managingandretainingtalent.Ourdatasuggeststhatcompaniesarenotinvestingenoughingettingthispriorityright.
Havingtherightpeopleonthefrontlineensuresan exceptional customer experience – something noorganisationcanaffordtogetwrong.
Whenthereisastrongerfocusonrecruitmentataseniorexecutivelevel,andtheadequateinvestmentismade,companiestendtohavehigherretentionrates.Thisflowsthroughtoimprovedcustomerexperiences.
Theindustrymustworktogethertomakethesectoramoreattractivecareeroption,andenticedifferentandmorediversetalent.Drawingonour13year-plusexpertise,webelievethesectorisripeforreinvigorationandforcommunicatingaprogressiveimagetofuturetalentpools.
Having top frontline people is hard when you can’t find them. Our research shows that the right talent pools do not consider contact centres an attractive place – a disconnect that has serious consequences.
1 . 2 | E M P L O Y E E E N G A G E M E N T
The industry must worktogethertomakethe sector a more attractivecareeroption.
Figure 1.2
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E M P L O Y E E E N G A G E M E N T | 1 . 2
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Understandyourcompany’scultureandvalues,andrecruitindividualswhosevaluesalignwiththese.Valuesdrivebehaviour.
02
Personalityalsodrivesbehaviour.DevelopaTopPerformerpersonalityprofileandrecruittoit.It’sauniquepersonalitythatexcelsinthecontactcentreenvironment.
03
Recruitforemotionalintelligenceratherthantechnicalcompetency.Thefrontlinecustomer engagement role is emotionally demanding,whichrequiresemotionalfitnessforsustainedperformance.
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Usetheassessmentprocesstofocusmoreonthe‘will’thanthe‘can’.Understandacandidate’spassion and purpose to discover how they will fitintoyourorganisationnowandinthefuture.
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Maintainapositive,supportivestanceintheearlystagesofemploymenttoensurelong-termretention.
How to make recruiting easier and more effective
A120-seatcontactcentrewith40percentannualattrition
costs the organisation at least $1milliondollarsannually.
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Don’t miss out. Be skilled for the future.
Morethanhalfofoursurveyrespondentsidentifiedpsychologicalfactorssuchaspersonality,mindsetandattitude,alongwithalackofvarioussoftskillsasthemostpressingchallengeswhenrecruiting.
Organisationsmustaccuratelyfocusontheseattributesduringtherecruitmentprocess,whileensuringapersonalityfitwithintheuniqueenvironmentofthecontactcentre.However,two-thirdsofcompanieswespoketodonotcurrentlyhaveanyspecificassessmenttooltoassistwiththis.
Meanwhile,oneinfourreportedthatthesalaryexpectationsofpotentialrecruitsaretoohigh.Ontheonehand,leadersaresayingthattheyexpectalotmorefromthepeopletheyrecruit,butitappearsthatthisdoesn’ttranslatetorecognisingtheeconomicvalueinthis.
OUR EXPERT INSIGHTThese insights tell us that contact centres mustinvestmoreintherecruitmentprocess,and senior executives should show more interest.However,wearenotseeingthisyet.
Recruitment needs to be a well thought-out and strategic process executed with pinpoint accuracybyidentifyingtherightskills,mind-setandattitudeforthejob.Ourproprietyrecruitingtechnique-FutureFit™-aimstoachievethis by customising the recruitment process toanorganisation’sgoalsandculture.
We know that contact centres struggle to recruit the right people. It is only going to get harder as the customer service role gets more demanding and complex.
Recruitment needs to be a well thought-out and strategic process executed with pinpoint accuracy by identifyingtherightskills,mind-setandattitudeforthejob.
1 . 3 | E M P L O Y E E E N G A G E M E N T
Figure 1.3
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Craftacompellingemployee value proposition to attract thebesttalent.Alignyourofferingwiththepotentialemployee’sneeds,fromremunerationto development and flexibilityoptions.
E M P L O Y E E E N G A G E M E N T | 1 . 3
01
Takecandidatesonabrandexperienceduringtherecruitmentprocess,andemulatetheexperienceyouexpectthemtoprovidecustomers.
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Craftacompellingemployeevaluepropositiontoattractthebesttalent.Alignyourofferingwiththepotentialemployee’sneeds,fromremunerationtodevelopmentandflexibilityoptions.
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Measure emotional intelligence (EQ) in the recruitmentprocessasthekeytoemotionalfitnessforthejobandasamethodforidentifyingfutureleadershiptalentatthesametime.
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Recruitforpsychologicalfitness–forthecontactcentreenvironmentandacustomer-facingrole.
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Focusonacandidate’spropensitytobeengaged,andalignorganisationalculturewithindividualdrivers.
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Invest in a sophisticated recruitment process forthecontactcentrewhichreflectsthevaluetheroleofferstotheorganisation.
How to successfully recruit the right talent for the future
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Make emotional fitness a priorityAnalarming81percentofsurveyrespondents reported mental illness and unplanned leave as the greatest challenges impactingperformanceandprofitability.Thisimpactsteammorale,customerexperienceandthebottomline.Isemotionalfitnessadequatelyrecognised during the recruitment process?
OUR EXPERT INSIGHT Frontlinestaffarecoretoacustomer’sbrandexperience.Manyworkatthecoalfaceofcustomercomplaints,andevenwhenmanagedcarefully,therolecanbehighlystressfulforthoseonthereceivingend.
Emotional intelligence is an emerging area forleaderstoconsiderwhenrecruitinginthecontactcentreindustry.Thisinvolvesincorporating emotional resilience and wellbeing into mandatory emotional intelligence training programmes.Theseshouldbetailoredforseniormanagersthroughtofrontlinestaff.
We need to recruit people who have the emotional resiliencetocopewiththesesituations.Theyneedtrainingtomanagethemeffectivelywiththecustomer,andfromapersonalwellbeingperspective.Recruitinganddevelopingemotionalintelligenceonthefrontlineiskey.
There’s no denying it: the contact centre industry is tough.
Figure 1.4
1 . 4 | E M P L O Y E E E N G A G E M E N T
Oncethreatsweremade,Iendedthecall.Ihadtearsflowingdownmyface.Ilearntthatsomecustomers you simply can’tassistnomatterhowmuchyoutry.- Call centre employee
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E M P L O Y E E E N G A G E M E N T | 1 . 4
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UnderstandwhattheEmotionalQuotient(EQ)isofyourhighperformersandsetthisasthebenchmarkforrecruitingnewhires.
02
TrainyournewrecruitsinEQ-relatedskills:howtohandledifficultconversationsandregulatetheirownemotionsatwork.
03
Investinteachingyourfrontlinebehaviouralagilitytechniques,suchashowtorespondtoarangeofcustomersituationsandresetbetweencalls.
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Ensure your team leaders have the right level ofEQtonavigatethecomplexemotionalminefieldsofmanagingafrontlineteam.
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Focus on wellbeing initiatives that are less about physicalhealthandmoreaboutmentalhealth.
Figure 1.5
How to foster higher emotional intelligence in your team
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1 . 4 | E M P L O Y E E E N G A G E M E N T
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E M P L O Y E E E N G A G E M E N T | 1 . 4
The customer started crying. I was not expecting this and it completely threw me off-topic. The call became a counselling session rather than a sales call. Worst call ever.- Call centre employee
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Avoid the brain drain and hold onThe real rate could be higher as many saidtheydidn’tknowtheexactattritionrate,duetoinconsistentmetricsarounditsdefinitionandmeasurement.
Closeto70percentsaidtheydon’tmeasureregrettableattrition(staffleavingwhoaren’tvaluedbytheorganisation).Thisispossiblythemostcostlyformofattrition.Regrettableattritionsuggestswe’vegottenitwrongintherecruitmentprocess.Italsosignifiesalostopportunitycost–forexample,lostcustomersandsalesopportunities.
Further,themajorityofcontactcentressurveyeddon’tunderstandtherealcostofattrition.Therealcostofattritionstartsat$20,000perperson,buttherealityismorelikelydoubleorthreetimesthatamount.Takeintoaccountlostsalesandcustomers,andthefigurestartstoskyrocket.A120-seatcontactcentrewith40percentannualattritioncoststheorganisationatleast$1millionannually.It’sastrongcaseforinvestingmoreinrecruitmentandtrainingofthefrontline.
OUR EXPERT INSIGHTTheimpactofconstantrecruitingandtrainingimpactsboththetopandbottomline.Earlystage attrition means that businesses do notevenmakeareturnoninitialrecruitmentandtrainingcosts.Ironically,oneoutcomeofpoorrecruitmentpracticeisthatitcanbecomeentrenched,whenorganisationsbecome unwilling to invest in better recruitment processesacceptingitasthe‘statusquo’
Nearlyhalfofthepeoplewesurveyedcouldnotdistinguish between voluntary and involuntary attrition.Involuntaryattritionstemsfromrecruitmentpractice,whilevoluntaryattritionisaboutengagement.Distinguishingbetweenthesefactorsisimportant,orthereasonsforstaffleavingwillremainunclearmakingithardtotargetcombativestrategies.
Wewouldliketoseeuniversalmeasuresofattritiondevelopedandusedinthefuturesowecanmoreaccuratelydetermineitscausesandimpact.Whyis attrition a problem? Where is it going wrong? We must understand the root cause and then put theunderlyingreasonsonthecorporateagenda.
More than half of our survey respondents are experiencing high attrition rates on the frontline.
Involuntary attrition stems fromrecruitmentpractice,while voluntary attrition isaboutengagement.Distinguishing between thesefactorsisimportant,orthereasonsforstaffleaving will remain unclear forvariousreasonsfromthetopdown.
1 . 5 | E M P L O Y E E E N G A G E M E N T
Figure 1.6 Figure 1.7
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Introducestandardbenchmarkingmeasurestodetermine with pinpoint accuracy what needs to bedonetostemtheorganisation’sbraindrain.
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Valuetherecruitmentprocess.Investinaprocessthatfocusesonpsychologicalfitaswellasskillfit.Thenensureyouremployeeshavethesoftskillsneededtodeliveranexceptionalexperiencetocustomers.
03
Spendtimeconnectingwithyourpeople,listentothemandknowtheirpassionsandgoals.Takeonboardtheirideas–moreoftenthannot,theywillprovidethegemsthatimproveyourcustomerexperience.
04
Implement stay interviews rather than exitinterviews.Understandwhatyourtopperformersneedtostaywiththeorganisation,andstrivetodeliverthis.
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Engenderaculturethatcelebratessuccess,andensureyouacknowledgemilestonesthatarekeyfortheorganisationandtheindividual.
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Providegrowthopportunities.Demonstrate that there is a growth path forthemalignedtotheirunderlyingpassion,andpersonalandprofessionalgoals.
E M P L O Y E E E N G A G E M E N T | 1 . 5
How to retain your people and avoid the brain drain
Figure 1.8
64percentofattritionoccurswithinthefirst12months.
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Foster and nurture talent through training
Todayon-boardingcanincludeuptosixweeksoftraining.Ourresearchsuggeststhatthisfailstofocusonthesoftskillsrequiredtoengagecustomers.Theabilitytohavegoodconversations,personalise the service experience and sell solutionsarethekeytocustomerengagement.
Ofthepeopleweinterviewed,40percenthavenotanalysed their training and development needs in thepasttwoyears.Almostonequarterhaveneverevenconductedatraininganalysis.Nearlytwo-thirdsoftheorganisationswespoketoofferfewerthanfivedaysoftraininginsoftskillsperyear,andonein10hadlessthanonedayofsuchtraining.
Whatdoesthetalentneedtolooklikeinthenextfiveyears?Andwhereshouldorganisationsbegin harnessing and developing the right skillsforthefuturecontactcentre?
OUR EXPERT INSIGHTInthelastcoupleofyearsthatwehaveproducedthisreport,thereisstilllittleevidenceofadequatemoneyortimeinvestedindevelopingfrontlinestaffandteamleadersincontactcentres.
Wefindthispuzzling,particularlygiventhegrowingimportanceofcustomerengagementandtherolethatfrontlinestaffplayinthis.
There is a great disparity between the investment madeperpersonversusthevalueofcustomerengagement,andinparticularthelifetimevalueofacustomer.Afrontlinecontactcentrepersonmanagesonaverage60callsperday.That’s15,000annually.Evenifweestimatethelifetimevalueofacustomeraslowas$1,000,thevalueofcustomer interactions managed by one person on thefrontlineis$15,000,000.Yetwepayourpeoplesomewherebetween$45,000–$60,000peryear,wellbelowthemedianAustraliansalaryof$77,000.
Unfortunatelyorganisationsarefocusedonhowlongacalltakesratherthanthequalityanditspotentialoutcomes.Ourresearchalsoshowsthat50percentoforganisationsmeasuretheNetPromoterScore(NPS)atacustomerlevel;only29percentatanindividualagentlevel.Thereisanopportunitytoreward,remunerateandrecognisefrontlinetalentbasedonindividualNPSandthelifetimecustomervalue.
In the last 15 years, training in the contact centre industry has come a long way. Initially reasons for attrition related to poor on-boarding and job readiness training.
Inthelastcoupleofyearsthat we have produced thisreport,thereisstilllittleevidenceofadequatemoney or time invested indevelopingfrontlinestaffandteamleadersincontactcentres.
1 . 6 | E M P L O Y E E E N G A G E M E N T
Figure 1.9 Figure 1.10
Figure 1.11
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Prioritiseemotionalfitnessinyourdevelopmentagenda.Ensureyourpeopleareintherightemotional state to engage customers by recruiting forandtrainingEmotionalIntelligence(EI)
02
Developsoftskillsbytrainingyourfrontlineintheartofconversation,solutions-basedsalesand personalising the customer experience andself-management.Researchshowsthatblendedlearning,andmanagerscoachingtheirownfrontlinestaff,issignificantlymoreeffectivethanformallearningalone.
03
Adopt a more accurate and holistic measurement ofyourstaff’sperformance.Makethelinkbetween customer experience and business outcomes.Averagehandlingtimetomeasuretheperformanceofthefrontlineisstillwidelyused.IndividualNPSenablesyoutomeasuretherealimpactincludingofanytraining.
04
Elevatetheconversation.RaiseawarenessatC-levelofobstaclestotrainingthefrontline,giventheyhaveadirectroletoplayincustomerengagement.
E M P L O Y E E E N G A G E M E N T | 1 . 6
How to equip your team so they are set up for success
Figure 1.12
Onein10employeeshavehadlessthanonedayofsoft
skillstrainingperyear.
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2 | C U S T O M E R E N G A G E M E N T
02
CUSTOMERENGAGEMENTHow to create meaningful interactions between engaged employees and engaged customers.
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C U S T O M E R E N G A G E M E N T | 2
It is understandable that companies would considerthecustomerasking,andstriverelentlessly to deliver an exceptional customer experience.Data-informedcustomerrelationsmanagement (CRM) systems and customer engagement strategies are delivering this to a certainextent.However,manyorganisationsareforgettingtomakethelinkbetweenhighercustomeradvocacyandemployeeengagement.Outstandingcustomerengagementoftenstemsfromhappyandmotivatedemployees,whotypicallydeliverbetterservice.
From analysing employee engagement in contact centres,we’vealreadyestablishedthescopethereexiststoinnovateandchallengethestatusquowhenitcomestoleadership,recruitment,targeteddevelopmentandretention.
Inthissection,weexaminecustomerengagementanditslinktoemployeeengagement.Havecontactcentresadequatelyaddressedthislink?Aretheywinning or losing in this new world? How can they adopt a more holistic approach to building lasting relationships with their customers?
In an era where customer engagement is more visible on the corporate agenda, shouldn’t employee engagement be equally visible?
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Customer is king, but so are employees! Astaggering95percentofoursurveyrespondentsview customer engagement as critical to the overall successoftheirbusiness.Itratedhigherthaninnovation(49percent),salesgrowth(62percent)orcostcontrol(75percent)inimportance.
Amajorityofoursurveyrespondents(81percent)also reported employees as the most important factorunderpinninghigherlevelsofcustomerengagement.Compellingproductsrankedinsecondplace,whiletechnologyandpriceplacedsurprisinglylow.Clearly,peopleandrelationshipsarecriticaltothecustomerexperiencejourney.
OUR EXPERT INSIGHTWithpeoplebeingatthecoreofourday-to-dayfunctions,weknowfirst-handthepowerofemployeesasabrand’smostsignificantassetandambassador.Sowhyarecompaniesfailingtoinvestmoreinfrontlineroles?
We believe the problem is that many organisations have an entrenched silo view when approaching customerengagement.Yes,itisgreatthatthecustomer journey is almost unanimously viewed asthekeysuccessfactorforabusiness.Yeteachofthefactorsthatcontributetocustomerengagement–truthfulmarketingmessages,servicedeliveryacrossthesalescycle,andsoon–areultimatelydeliveredbyanorganisation’speople.Thefrontlineexperiencesofcontactcentrestaffarevitalininformingeachoftheseareas.
Weareseeingmoreorganisationstacklegreater customer engagement by mapping out each customer touchpoint along the end-to-end customerjourney.Suchmappingexercises
areastepintherightdirection.Theyenablebrandstowalkinthecustomers’shoeswithafirst-personviewofeveryinteraction,fromfirstcontactthroughtofinalresolution.Businessescantracetheemotionalmomentsoftruththatcontributemosttosuccessorfailurefromthecustomer’sperspective.
However,notmanyorganisationshavetakenthismappingjourneytothenextlevel,overlayingit with an employee engagement journey and havingatrueholisticviewpoint.Whilemappingthe customer journey helps employees to see customersasrealpeoplewithrealemotions,whatabouttheemotionsandfeelingsofemployees during the same touchpoint?
We know that the customer is king and that satisfied customers are the heartbeat of any organisation.
2 . 1 | C U S T O M E R E N G A G E M E N T
We are seeing more organisationstacklegreater customer engagement by mapping out each customer touchpoint along the end to-end customerjourney.
Figure 2.1
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01
Create a culture where employee and customerrelationshipsintersect.Meaningfulinteractions between employees and customers have been shown to yield insights that push performanceandprofitabilityhigher.
02
Align your customer and employee engagement map,ifyouhaveone,soyoucanoverlaythebehaviourofbothandrevealhowbothcustomersandemployeesfeelateverymomentofengagement.Thiswillhelpyouengagetheheartsandmindsofyourcustomersandyouremployees.
04
Ifyoudon’thaveanemployeejourneymap,create one! The map will help you build an employeerelationshipinstages,throughspecificprogramsandtouchpoints.Referto various indicators to actively measure employeeengagementinrealtime,andcreate an engagement plan tailored to employee needs-butwithcustomerengagementinmind.
03
Create a common language to unite employees acrosstheenterprise,andworktowardsdeliveringan exceptional customer experience shaped byaclearvisionofhowtoachievethis.
C U S T O M E R E N G A G E M E N T | 2 . 1
Meaningfulinteractionsbetween employees and customers have been shown to yield insights thatpushperformanceandprofitabilityhigher.
How to intersect employee and customer engagement
Figure 2.2
Veryimportant
Somewhat important
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Championing advocacy at the top
Yes,customeradvocacyisgettingmoreattentionatthetop,withtwo-thirdsofoursurveyrespondents reporting that they now have ChiefCustomerOfficer(CCOs)roles.Thisisencouraging,aslongasweremembertheremust be an integrated approach to customer and employeeengagement,anditstartsattheverytop.
OUR EXPERT INSIGHTCompaniesneedtostopthinkingaboutcustomers,employeesandperformanceasseparateissuesthathavenodirectimpactoneachother.
A report published in the Harvard Business Review inMay2015confirmsthatthetopcompaniesabroadareincreasinglyawareofthiscorrelation.Firmswithhighlyengagedpeopleoutperform
What’s more important – customers or employees? Actually, both are equally important, because both are critical to success.
2 . 2 | C U S T O M E R E N G A G E M E N T
It’saboutbuildingasustainable organisation afterall,andtoooftenwelosesightofthis.
Figure 2.3
thosewithdisengagedpeopleby54percentinemployeeretention,by89percentincustomersatisfactionandbyfourfoldinrevenuegrowth.
It’saboutbuildingasustainableorganisationafterall,andtoooftenwelosesightofthis.
Thebestapproachgoingforwardistoinspireyouremployeestoengagewithyourcustomers.Companies need to be more strategic and integrated attheverytop.Theymustunderstandthedriversforemployeeandcustomerengagement,andlinkthisto business objectives such as reduced employee turnover,increasedcustomerspendandimprovedbusinessgrowth.
Companies must prioritise increased communicationbetweencontactcentreleaders,andbetweenthecontactcentreandthechiefcustomerofficersorotherseniorexecutives.They must adopt more transparency and regularityinlinkingthecentre’sperformancewiththecompany’soveralldirection.
66percentoforganisationssurveyedhaveaChiefCustomerOfficer(CCO)role.
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01
Embrace a holistic approach to building an engaging organisation by raising awarenessattheseniorlevelofthevalueofyouremployeesasbrandambassadors.Synchronise in these areas and stop thinkingofcustomerexperience,employeeengagementandperformanceasseparate.
02
Ensureteamleadersofcontactcentreshaveaseatatthetable.Contactcentreleadersshould be meeting with CCOs and other senior executives regularly to ensure alignment between the company and its most important customer engagementchannel–thecontactcentre.
03
Close the loop through introducing a Heartonomics™model.Happyandengagedpeoplearebetterconnectedwiththeorganisation,leadingtoamazingserviceandexperiences,moreloyalclientsandsignificantlyhigherbusinessperformanceandprofitability.Highercustomersatisfactionfeedsbackintoemployeeengagement.
C U S T O M E R E N G A G E M E N T | 2 . 2
Engaged people are better connected with theorganisation,leadingtoamazingserviceandexperiences,moreloyalclients.
How to link employee and customer engagement
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A holistic view of engagement
Thisisoneoftheonlyuniversalcustomerservicebenchmarksavailable.Meanwhile,78percentmonitorcustomerfeedbackasanindicatorofcustomerengagement,and70percentusecustomersatisfactionsurveys.Evidently,mostcompaniesarestillinthepracticeofmeasuringcustomersatisfactionratherthancustomerengagement.Theyareclearlynotlinkingthistoemployeeengagementeither,nortootherfinancialperformanceindicators.
OUR EXPERT INSIGHTThequestionremainsonhowtoobtainatruemeasurementofcustomerengagement,andhow this relates to employee engagement andbroaderfinancialperformance.
We believe the answer lies in the NPS,butnotasweknowit.
Don’tgetuswrong:NPSisagreatnumbertotrack,andwewouldliketoseemorebusinessesuseit.Butitneedstobeusedinamuchmoreholisticwaythanatpresent.Firstofall,rememberthat customers will recommend or not based on what happened during their experience as acustomer.SobyallmeansidentifytheseareasandhowtheyimpactontheNPSscores.Remembertoothatacustomerwon’tchangetheirbehaviourinreallife.Soeveniftheyareinfluencedintonudgingtheirscoreintopromoterterritory,theywon’tactandtalklikeapromoterunlesstheyhavehadanamazingexperience.
Next,werecommendimprovingtheeffectivenessoftheNPSintwoimportantways.OneistolinktheNPSwithrewardstructuresandremunerationforemployees,giventheirinfluenceonthecustomerexperience.Thisstrategyensurestheirvaluetotheorganisationisacknowledged,andthatfrontlinesalariesarebetteralignedwithcustomerrelationshipmanagement.AllbonusscorecardscouldincludetheNPSalso,enhancingconsistencythroughoutthecompany.
The second opportunity is to introduce more formallyanEmployeeNPS.Thismeasuresemployees’likelihoodtorecommendtheiremployerasaplacetowork,andtorecommendtheiremployer’sproductsorservicestotheirwidernetworks.Thereare also opportunities to tie the employee experience to the customer by embedding customerexperienceprinciplesintotheirhiring,onboardingandongoingtrainingpractices.
Despite the increasing emphasis on customer engagement and its impact on the bottom line, only half of our survey respondents measure customer advocacy using a Net Promoter Score (NPS).
2 . 3 | C U S T O M E R E N G A G E M E N T
Evidently,mostcompaniesare still in the practice ofmeasuringcustomersatisfactionratherthancustomerengagement.
Figure 2.4
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C U S T O M E R E N G A G E M E N T | 2 . 3
How to link satisfaction, engagement and performance?
01
Recognise the role that employees play in ensuringcustomersatisfaction,andmakesureyoucantrackthatsatisfactionbacktoeachemployee.Thiswillallowyoutoidentifyandreward employees that are committed to the organisation,itsgoalsanditscustomers.
05
Makeitpersonal.Usecustomerexperiencedatatohelpyourteammembersmaketheconnectionwithyourcustomersandunderstandtheirownrole.
02
Linkyourcustomerengagementprogrammeswith your employee engagement ones and customerprofiledata.Thiswayyoucanstreamlineyourproductsandprocesses,anddifferentiateyourcustomersbasedontheirneeds.
03
Mapitout.Usecustomerandemployee journey mapping as a tool forengagementandcommunication.
04
Bringcustomerengagementtotheforefrontofhiringcandidates,ensuringthatprospectiveemployeeshavegotwhatittakestobeinacustomer-centricorganisation.Includecustomer-focusquestionsininterviewsandfollowthesewithcustomer-focusedonboarding.
Linkyourcustomerandemployee engagement programmes.Thiswayyou can streamline your productsandprocesses,anddifferentiateyourcustomers based on theirneeds.
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How to play the new game Wehavecompiledasummarychecklistforyou to use as a guide when examining how to improveyourcontactcentre’sperformanceinthenext12monthstomaximiseopportunities,drivegreateremployeeengagement,andachieve higher customer advocacy and stronger performance.Ifyouanswer‘No’tomorethanhalfofthequestionsineachcategory,youreallyneedtolookataroadmapthataddresseseachpointandgetyouontracktoplayingthenewgame.Wearehappytolookattheresultsforyouandprovidesomeguidance.
Questions to ask on the organisation ¯ Doesyourstrategicframeworkalignthe
organisation’svision,values,anddesiredbehaviours with results?
YES NO
¯ Doyouhaveaclearvisionofwhatanengagedculturelookslikeforyourorgansitaionthatisalsoflexibleandacknowledgesarangeofengagementdrivers?
YES NO
¯ Doyouhaveaholisticviewofbuildingasustainable and engaged organisation whereyouthinkaboutandtreatcustomers,employeesandperformanceasrelatedandinterlinked?
YES NO
¯ Haveyoualignedyourrecruitment,traininganddevelopmentstrategywithyourcustomer’sneeds?
YES NO
¯ Do your customer engagement programmes interlinkandcrossoverwithyouremployeeengagement programmes? Are they currently talkingtoeachother?
YES NO
¯ Have you mapped out your customer and employee engagement journey together?
YES NO
¯ Is customer and employee engagement supported at the very top and on the agenda?
YES NO
¯ DoyouhavebothacustomerNPSmeasurementaswellasanemployeeNPS?
YES NO
Questions to ask on leadership ¯ Doyouinvestadequatelyintargeted
recruitmentoftheright-fitleaders? YES NO
¯ DoyourleadersandotherkeypeopleinthemanagementofyourcentresmeetregularlywiththeCCOandotherkeyseniorexecutives?
YES NO
¯ Are your team leaders reviewed on their performancewhenitcomestoengagement?
YES NO
¯ Do your team leader scorecards include an employee engagement measure?
YES NO ¯ Do you support and nurture your team
leaders through regular and relevant development programmes?
¯¯ YES NO
¯ Doyourecruitforemotionalcompetenciesrather than technical competencies?
YES NO
¯ DoyoumeasuretheEQlevelsofexistingteam leaders?
YES NO
Questions to ask on the frontline
¯ Do you place enough value on recruiting thebestfitpeopleforthefrontline?
YES NO
¯ Doyouspendenoughtimewithyourfrontlineunderstanding their passions and drivers?
YES NO
¯ Isemotionalfitnessinyourdevelopment agenda?
YES NO
¯ Doyouprovideyourfrontlinewithsoftskillstrainingintheartofconversation,solutions-based sales and personalising the customer experience?
YES NO
¯ DoyoumeasureEQlevelsoftheexistingfrontline?
YES NO
We have covered a fair bit of ground in this report!
2 . 4 | C U S T O M E R E N G A G E M E N T
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Meet with usCallandmakeatime
forustoseeyouandgothroughtheresults.
Give us a callCall us on 1300 917 193 and we can discuss results and
give you some pointers
Once you have completed this,sendittousandwewillletyouknowhowyourorganisationistracking.
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C U S T O M E R E N G A G E M E N T | 2 . 4
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V I | R E S E A R C H M E T H O D O L O G Y
Research MethodologyFuturePeople’s‘The Heartonomics™ Report;Playing the new game in 2015’drawsuponinsights gathered via an online survey canvassing thethoughtsandviewsofcloseto100contactcentreleadersfromaroundAustralia.
The latest survey was conducted between FebruaryandMarch2015,andincludedquestions
ontheroleofcustomerengagementinacontactcentre,leadershipandemployeeengagement,recruitmentandretention,attritionratesandassociatedcosts,traininganddevelopmentandthefutureoutlookofthesector.
Survey participants can be brokendownaccordingly:
We bring the latest data from a cross-section of corporate Australia with responses from 12 different industry sectors.
Only2percentofrespondents use onlinechatforcustomer engagement
Figure 2.5 Figure 2.6
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A B O U T H E A R T O N O M I C S ™ | V I I
Why do we have the answers?Weproviderecruitment,trainingandconsulting solutions grounded in emotional intelligence.Weenableorganisationstoengagecustomersmoreeffectivelybyengagingtheirmostvaluableresource:people.
WhenshefoundedFuturePeopleoveradecadeago,ourCEOLindaSimonsenhada vision that the contact centre would be an increasinglyimportantchannelforengagingcustomersanddrivingbusinesssuccess.Shealso understood that having the right people on thefrontlineliesrightattheheartofthematter.TodayFuturePeopleareestablishedexpertsincontactcentrerecruitment,trainingandemployeeengagementtoachievecustomerengagement.
Wehaveworkedextensivelywithtoporganisations providing outstanding solutions toattracting,developingandretainingright-fitemployeesincontactcentres.Ourworkspansarangeofsectorsincludingbankingandfinancialservices,insurance,healthandlifeservices,telecommunicationsandprofessionalservices.
Wearerecognisedgloballyforourinnovativeapproach in providing people solutions that result in improvedemployeeengagement,highercustomer
advocacyandstrongerbusinessperformance.WehavebeenwidelyacknowledgedforserviceexcellenceincludingreceivingGoldinlastyear’sContact Centre World Awards in the category ofWorlds’BestRecruitmentCampaign.
We are dedicated to helping companies shifttheirrecruitmentfocusfromtechnicaltoemotionalcompetencies.Wesourcenewtalentthatfitswiththechangingroleofthefrontlinecontactcentreagentasamulti-channelcustomer engagement expert with emotional intelligence.Weprovidesoftskillstrainingforthefrontlineandtheirmanagerswhichenhancebothcustomerandemployeeengagement.
Wealsoadvisecompaniesonhowtotakea holistic approach to employee engagement whichdrivescustomersatisfactionandadvocacy,andbusinessperformance.Companiesneedtostartmakingtheconnection.
Ifyouwouldlikemoreinformationonhowwecanhelpyouintheareasofemployeeengagement,highercustomeradvocacy,higherretentionratesandmuchmore,pleaseemailourCEO directly at [email protected]
Our purpose at FuturePeople is to help organisations achieve customer engagement through their people.
We are dedicated to helping companies shifttheirrecruitmentfocusfromtechnicaltoemotionalcompetencies.
www.heartonomics.com.au
FuturePeopleLevel4,228PittStSydneyNSW2000P 0290242900F 0292520634
Level7,85QueenStMelbourneVIC3000P 0392912700F 0392912706
Follow us on social media and stay updated:
@FuturePeopleAU
Foranyinquiries,pleasesend us an email on:[email protected]