Top Reasons for Agent Attrition and How to Reduce Call Center Turnover

Recent statistics indicate the average agent attrition rate is between 35 and 45%*.

Every time a call center agent resigns, it causes a domino effect that skyrockets operational costs. 

Attrition has an impact that echoes throughout your entire company, often leading to staff shortages, process delays, and, eventually, a lower CSAT score. In fact, 63% of contact center leaders* face staffing shortages and are getting more creative and proactive when it comes to finding, hiring, and retaining agents. 

But what if you could skip the step where you lose agents in the first place—saving you time, capital, and energy on recruiting and onboarding skilled agents? 

In this article, we explore the top reasons for call center turnover and share actionable tips to help you retain your agents and save on costly replacements.

Key Takeaways:

• High turnover in call centers is often caused by stress, low salaries, and a lack of growth opportunities. Poor training can also harm employee satisfaction and efficiency.
• High turnover has consequences, including increased costs, reduced productivity, a poorer customer experience, and lower team morale. 
• Businesses can reduce turnover by offering better training, positive work culture, flexibility, and growth opportunities. Acknowledging achievements and using technology like CloudTalk can further improve retention and performance.

Understanding Call Center Turnover: Average Rates and Key Causes

One of the key indicators of your company’s health is a low attrition rate. Generally speaking, a healthy turnover rate for most industries is 10% or lower. With this rate, you can consider your company stable. There are no risks of potential disruptions or shortages. 

This level of attrition often suggests employees are engaged and satisfied with their work and not likely to leave. 

But of course, there’s always an exception to the rule. Call centers are notorious for extremely stressful work environments so it’s no surprise that the call center turnover rate is between 30% and 45%, significantly higher than other industries. 

These are the main causes of high call center turnover rates:

• Stressful work environment: Call center agents handle high call volumes, deal with difficult customers, and work under pressure to meet demanding metrics, contributing to emotional exhaustion.
• Low compensation: The average salary for call center agents in the U.S. is approximately $16 per hour, prompting them to seek better-paying opportunities.
• Lack of empowerment: This issue in call centers often stems from rigid processes, limited autonomy, and inadequate access to resources that enable agents to resolve customer issues effectively. Encouraging autonomy can boost productivity and job satisfaction.
• Lack of collaboration opportunities: Working in a call center environment can feel isolating because agents are primarily handling individual interactions with customers while missing opportunities to connect with their peers and share knowledge.
• Limited career development opportunities: Agents who feel they have no future in the company eventually feel stuck and look for career growth in other organizations.
• Poor work-life balance: Many call centers operate 24/7, requiring night shifts, weekends, and holidays. When combined with policies that don’t allow flexible schedules, remote work, or long hours, balancing personal and professional life becomes challenging. Answering calls after business hours is something that can be automated easily.
• Monotonous work: Agents often answer similar questions, resolve recurring issues, and follow predefined scripts for each interaction. Over time, this routine can push them to seek more exciting and innovative opportunities.
• Insufficient training: Agents who don’t receive enough training may feel insecure when handling complex calls or solving problems. This leads to stress and frustration, making them more likely to quit their jobs.

Start the retention process when the person is still open to staying and not after they’ve already told you they’re leaving.

–  Jeff Weiner, LinkedIn, Executive Chairman

What Are the Business Risks of High Agent Attrition? 

High turnover in call centers is like constantly replacing parts of an engine while it’s running: not only is it costly and exhausting, but it also slows down the entire system and puts its functionality at risk. Its consequences extend beyond call center operations, affecting the business’s overall performance.

• Increase in operational costs: Hiring a new agent costs $10,000 to $20,000. Replacing just 4-5 agents a month can drain over $100,000—a significant hit to your budget every single month.
• Lower productivity: When an agent leaves, workflow is disrupted, and their knowledge and experience are lost. Time and resources go to hiring and training replacements, slowing efficiency. Meanwhile, remaining team members may feel overworked, further hurting performance.
• The decline in customer satisfaction: During the average 90-day adaptation period, new agents are more likely to make mistakes, give inaccurate responses, and show a lack of confidence, affecting how customers view service quality. Customers also value consistent and familiar interactions, which are hard to provide with a constantly changing team.
• Drop in team morale: A high attrition rate directly affects the overall team’s morale and it can easily lead to burnout. It is estimated that  67% of sales professionals are close to burnout, and a high turnover rate doesn’t help at all. Creating an environment of instability and uncertainty is not a solid foundation for further growth. Remaining agents often have to take on the responsibilities of those who leave, increasing their stress and exhaustion.
• Difficulty attracting new talent: High turnover often points to problems like a poor work environment or limited growth opportunities. This can deter new applicants, making hiring even harder and creating a vicious cycle.

How To Calculate Agent Attrition and Turnover Rate

Turnover rate is an essential metric, as it helps you evaluate call center employee retention and identify potential issues in the workplace environment.

To calculate it, use the following formula:

Let’s assume you’re analyzing turnover in your call center over a quarter:

Period data:

• At the beginning of the quarter: 200 agents
• At the end of the quarter: 200 agents (no staff increase)
• Agents who left during the quarter: 60 agents
• Agents who join during the quarter: 60 agents

Step 1: Calculate the average number of employees:
Average = (200 + 200) / 2 = 200

Step 2: Apply the formula:
Turnover Rate = (60 / 200) × 100 = 30%

When calculating the call center turnover rate, consider these key aspects:

Industry standards: As mentioned, average turnover rates for call centers typically range from 30% to 45%, depending on the location and industry.

Time period: Choose a consistent time frame for analysis (e.g., monthly, quarterly, or annually).

Voluntary vs. involuntary turnover: Break down the turnover rate to spot trends (e.g., resignations vs. dismissals).

10 Tips To Reduce High Call Center Turnover

High turnover rates in call centers severely impact a company’s financial performance. Every time an employee leaves, costs like recruitment, training, productivity losses, and customer dissatisfaction impact ROI.

Let’s look at a real-life example to make its impact clearer.

Want to achieve these impressive savings? Start reducing your turnover rate with the following tips.

#1 Optimize Your Recruiting and Hiring Process

Optimizing your agent attrition rate should be done at the very beginning, by screening your candidates. A strong company culture can lower employee turnover by up to 50%. Utilizing pre-hiring skill assessments helps identify candidates who align the best with the company’s values and beliefs, ensuring the best possible cultural fit. This fosters higher employee satisfaction and engagement, reducing the likelihood of turnover.

Utilizing screening this early in the process minimizes the risk of employees leaving due to mismatched expectations, performance issues, or behavior concerns that proper screening could have identified. As a result, it supports a more stable workforce and boosts employee retention.

Finding and retaining top talent doesn’t happen overnight. It requires intentional planning and continuous effort, but the payoff is more than worth the investment.

– Matt Herman, Enhance Health, CEO

#2 Improve Training and Onboarding Programs 

Only 52% of employees believe their employer is providing them with a proper training program. On the other hand, companies that provide employee training generate more than twice the income per employee and achieve a 24% higher overall profit margin.

Better training helps agents grow professionally, improve their skills, and feel more prepared for their tasks.

#3 Reward and Recognize Good Work

Recognition goes a long way. Employees who receive monthly recognition are 36% more likely to be productive and engaged, and 22% more likely to demonstrate high commitment to their roles.

A simple pat on the back can make agents feel valued and give them a boost to keep performing at their best.

Recognizing hard work and celebrating achievements is a strategic approach that can greatly impact employee retention.

– Thomas Smale, FE International, CEO

#4 Foster a Positive Work Culture 

Company culture isn’t just a trending buzzword on LinkedIn.. In fact, a strong company culture can lead to a 65% lower turnover rate than those with a weaker culture. When the workplace is positive, with strong communication and a culture of respect, employees feel more satisfied, engaged, and motivated to stay.

#5 Leverage Technology

Using technology like call center software reduces turnover by streamlining daily tasks and enhancing the agent experience. It automates repetitive processes like call routing and data entry, ensuring agents spend more time on meaningful interactions rather than tedious tasks. 

#6 Provide Professional Development Opportunities

One key factor often overlooked is a sense of purpose. When employees’ goals align with the company’s, it’s easier to get everyone working toward a common goal. Coupled with growth opportunities and strong leadership support, it naturally leads to motivated and engaged employees.

So, it’s no surprise that employees with access to professional development opportunities have a 34% higher retention rate than those without them.. If agents feel their employer is committed to helping them grow professionally,  they will stick around longer instead of searching for better opportunities while giving the bare minimum at work.

When employees are given opportunities to learn, grow, and pursue their goals, they feel valued and engaged. Moreover, organizations that prioritize employee development tend to attract and retain top talent more effectively, as individuals are drawn to companies invested in their personal and professional growth.

– Dr. Charles Tawk, Merc Training & Consulting, Partner

#7 Offer Flexible Schedules  

Companies offering remote work flexibility experience a 25% lower employee turnover rate compared to those that don’t. Remote work flexibility significantly impacts turnover by allowing agents to balance their work and personal lives, reducing stress and increasing job satisfaction.

#8 Establish Transparent Communication Channels

Around 86% of employees and executives identify poor collaboration and communication as the primary reasons for workplace failures.

When employees feel informed about company goals, expectations, and changes, they’re more likely to feel connected to their work and valued by leadership. This  helps employees  feel more included and engage more deeply with their work and colleagues

#9 Communicate Your Vision

Companies with leaders regularly communicating their vision and goals have 50% higher employee engagement levels. No matter their role, everyone in your company deserves to understand the organization’s vision and future goals. Clear communication of this vision helps them see how their efforts contribute to overall success.

#10 Conduct Exit Interviews

80% of companies using exit interviews find they help identify why employees leave, improving retention and workplace culture. These interviews reveal key issues, allowing organizations to fix problems and reduce turnover.

59% of Call Center Employees Face Burnout Risks, With 28% Nearing Acute Burnout Syndrome  

In fact, 76% of employees already report experiencing symptoms of burnout. Even if your agents aren’t showing signs yet, it’s crucial to act now to prevent burnout from taking hold—saving your team’s well-being, retaining skilled agents, and protecting valuable resources.

Reducing call center turnover starts with effectively understanding and addressing the root causes. Investing in top-quality call center software can help you spot underlying issues before they happen. It simplifies workflows, eliminates repetitive tasks, and equips your agents with the tools they need to be more efficient and satisfied. This single decision will save you time, money, and unnecessary stress.

Looking for the technology to make it happen? CloudTalk is designed to tackle high turnover with features like AI-powered analytics, Automated Workflows, Power Dialer, and seamless CRM integrations. This means more engaged agents, easier reporting, reduced costs, and a team that stays with you longer.

Source

• YesAssistant. What is agent attrition? 2023
• Forbes. Recent Research Suggests That Something Has To Change In The Contact Center Space. 2023.