Call center agents are our companies' "virtual servants." Faceless, in most part to our customers and to senior management, we depend on them to provide information and service, fix products and take orders. We ask them to sell goods and services, prospect and qualify leads and collect bad debts.

We expect virtual servants to be quick, knowledgeable, helpful and pleasant - and to be there at customers' beck and call. We demand that they show grace under pressure, that they come in on time at the hours we need and be prepared to stay longer if needed.

To attract and retain these valuable employees that all of us depend on, and too often take for granted, experts such as Linda Lauritzen, director, global call center services marketing for Manpower (Milwaukee, WI), say call centers are investing in assessment and training tools and in career development to improve agent skills. A good, satisfied staff is key to keeping customers (see the sidebar on turnover).

"Companies are beginning to realize that if they want to retain customers, they must attract and retain quality staff," says Lauritzen. "They also want employees who will be a right fit in their corporate cultures and in their call center teams to improve their performance."

Call centers need to take these steps. Despite the economic downturn, which led to many call center closures and higher unemployment, many call centers have trouble attracting and keeping agents and, increasingly, supervisors. (Read more about supervisors and management in the December 2002 Management Services feature.)

According to the 2001 Call Center Compensation Survey conducted by human resources consultants William M. Mercer (New York, NY), blended inbound/outbound customer service and sales agent turnover jumped to 94% from 61% in the 2000 survey.

Inbound order-entry agent turnover climbed to 87% from 41% a year earlier. Turnover escalated even further in outbound sales, to 187% in 2001 from 114% in 2000.

Kim Witt, Mercer's call center compensation expert, says that amid the soft economy and call center layoffs, there is still strong demand for agents and supervisors. Call centers, she notes, remain a cost-effective means of doing business compared to face-to-face.

"More call centers are being opened but the talent pool is becoming limited," she says. "Call center employees have more choices in where they can work. If another call center offers them more pay and better conditions, they will quit and work for that company."

More tellingly, turnover problems are spreading to team leaders and supervisors. Team and group manager positions turned over 78% in 2001, from just 19% in 2000. The old rule stipulating that turnover is inversely related to job level no longer holds true (i.e., the lower the rung, the higher turnover).

"There are many reasons why this is happening," says Witt. "Supervisors may not be getting the training they need. They may have more agents to supervise - ten to 12 agents from four to five agents a few years ago - and more responsibilities, like measuring agent productivity. There may also be few advancement opportunities out of the call center."

Also, pay is not increasing as much as in previous years. According to the Mercer report, pay increase budgets have been set between 4.1% and 4.2% in 2002, a slight decline from 4.4% in 2001.

Entry-level pay rose in 2001 for collections, customer service, inbound order-entry, inbound and outbound sales and account management agents. It declined for blended inbound/outbound agents and technical support reps.

The downturn shrank demand for call center temporary staff, especially seasonal, and from small and medium-size firms. But Manpower's Lauritzen reports that large companies have increased their contracts with her firm because temporary staffing, or "flexstaffing" as she calls it, gives clients more flexibility than hiring employees to cope with changing demands.

FurstPerson (Chicago, IL) saw demand for call center temp staff during Christmas 2001 drop by 50% over Christmas 2000.

"The slowing economy and layoffs did benefit call centers seeking low-skilled staff," says president Jeff Furst. "But we're finding that call centers seeking higher-skilled people are still having trouble recruiting them."

Are There Enough Good Agents?

This question, the crux of the staffing issue, is one that call centers are asking with growing urgency. That's partly because call centers are demanding more of agents, including low-paid offshore and outsourced reps. Agents must increasingly handle multichannel contacts through the phone, IVR, e-mail and Web self-service. They have to be smooth, intelligent and resourceful. And, say observers, they must be empowered to address customer needs and problems - more like concierges and less like bellhops.

But as the standard of performance rises, fewer people can pass. Some staffing experts say the quality of many American high school and college graduates is too low.

"Many applicants do not have basic customer service, problem-solving and literacy skills for modern call centers," says Furst. "Many don't even have job holding skills, like knowing that they should come to work on time or how to behave. They can't leave when they feel like it."

Expected to compound call centers' staffing woes is a rebounding economy. Experts fear the same labor shortages that hobbled American call centers during the late 1990s boom may reoccur. But Howard Fullerton, a senior demographic statistician with the US Bureau of Labor Statistics (www.bls.gov), suggests that children of the baby boom generation (1946-1964), who are now entering the labor force, may fulfill companies' manpower needs.

"The labor force may be in better shape for companies that hire young workers [ages 16-24] because their numbers will grow at 1.4% compared with just .1% in the 1990s," he says.

While the baby boom "echo" will help call centers where it is the loudest, Furst says the basic labor quality challenges will still exist. These offspring are a product of an educational system where accountability, the "three Rs," and discipline have been "dumbed down."

"While we certainly see great call center employees emerging from this group, a significant percentage don't have the basic motivational fit for the job," he points out. "But details drive success. If your call center is in an area where the baby boom echo is significant, targeted recruiting campaigns might pay dividends for hiring over the next few years."

Screening Right

To best tap and keep qualified workers, you'll need to determine the right skills and personal attributes for your call center. Then you must thoroughly recruit and screen applicants based on those criteria. How are businesses addressing this challenge?

Call center agents are our companies' "virtual servants." Faceless, in most part to our customers and to senior management, we depend on them to provide information and service, fix products and take orders. We ask them to sell goods and services, prospect and qualify leads and collect bad debts.

We expect virtual servants to be quick, knowledgeable, helpful and pleasant - and to be there at customers' beck and call. We demand that they show grace under pressure, that they come in on time at the hours we need and be prepared to stay longer if needed.

To attract and retain these valuable employees that all of us depend on, and too often take for granted, experts such as Linda Lauritzen, director, global call center services marketing for Manpower (Milwaukee, WI), say call centers are investing in assessment and training tools and in career development to improve agent skills. A good, satisfied staff is key to keeping customers (see the sidebar on turnover).

"Companies are beginning to realize that if they want to retain customers, they must attract and retain quality staff," says Lauritzen. "They also want employees who will be a right fit in their corporate cultures and in their call center teams to improve their performance."

Call centers need to take these steps. Despite the economic downturn, which led to many call center closures and higher unemployment, many call centers have trouble attracting and keeping agents and, increasingly, supervisors. (Read more about supervisors and management in the December 2002 Management Services feature.)

According to the 2001 Call Center Compensation Survey conducted by human resources consultants William M. Mercer (New York, NY), blended inbound/outbound customer service and sales agent turnover jumped to 94% from 61% in the 2000 survey.

Inbound order-entry agent turnover climbed to 87% from 41% a year earlier. Turnover escalated even further in outbound sales, to 187% in 2001 from 114% in 2000.

Kim Witt, Mercer's call center compensation expert, says that amid the soft economy and call center layoffs, there is still strong demand for agents and supervisors. Call centers, she notes, remain a cost-effective means of doing business compared to face-to-face.

"More call centers are being opened but the talent pool is becoming limited," she says. "Call center employees have more choices in where they can work. If another call center offers them more pay and better conditions, they will quit and work for that company."

More tellingly, turnover problems are spreading to team leaders and supervisors. Team and group manager positions turned over 78% in 2001, from just 19% in 2000. The old rule stipulating that turnover is inversely related to job level no longer holds true (i.e., the lower the rung, the higher turnover).

"There are many reasons why this is happening," says Witt. "Supervisors may not be getting the training they need. They may have more agents to supervise - ten to 12 agents from four to five agents a few years ago - and more responsibilities, like measuring agent productivity. There may also be few advancement opportunities out of the call center."

Also, pay is not increasing as much as in previous years. According to the Mercer report, pay increase budgets have been set between 4.1% and 4.2% in 2002, a slight decline from 4.4% in 2001.

Entry-level pay rose in 2001 for collections, customer service, inbound order-entry, inbound and outbound sales and account management agents. It declined for blended inbound/outbound agents and technical support reps.

The downturn shrank demand for call center temporary staff, especially seasonal, and from small and medium-size firms. But Manpower's Lauritzen reports that large companies have increased their contracts with her firm because temporary staffing, or "flexstaffing" as she calls it, gives clients more flexibility than hiring employees to cope with changing demands.

FurstPerson (Chicago, IL) saw demand for call center temp staff during Christmas 2001 drop by 50% over Christmas 2000.

"The slowing economy and layoffs did benefit call centers seeking low-skilled staff," says president Jeff Furst. "But we're finding that call centers seeking higher-skilled people are still having trouble recruiting them."

Are There Enough Good Agents?

This question, the crux of the staffing issue, is one that call centers are asking with growing urgency. That's partly because call centers are demanding more of agents, including low-paid offshore and outsourced reps. Agents must increasingly handle multichannel contacts through the phone, IVR, e-mail and Web self-service. They have to be smooth, intelligent and resourceful. And, say observers, they must be empowered to address customer needs and problems - more like concierges and less like bellhops.

But as the standard of performance rises, fewer people can pass. Some staffing experts say the quality of many American high school and college graduates is too low.

"Many applicants do not have basic customer service, problem-solving and literacy skills for modern call centers," says Furst. "Many don't even have job holding skills, like knowing that they should come to work on time or how to behave. They can't leave when they feel like it."

Expected to compound call centers' staffing woes is a rebounding economy. Experts fear the same labor shortages that hobbled American call centers during the late 1990s boom may reoccur. But Howard Fullerton, a senior demographic statistician with the US Bureau of Labor Statistics (www.bls.gov), suggests that children of the baby boom generation (1946-1964), who are now entering the labor force, may fulfill companies' manpower needs.

"The labor force may be in better shape for companies that hire young workers ages 16-24 because their numbers will grow at 1.4% compared with just .1% in the 1990s," he says.

While the baby boom "echo" will help call centers where it is the loudest, Furst says the basic labor quality challenges will still exist. These offspring are a product of an educational system where accountability, the "three Rs," and discipline have been "dumbed down."

"While we certainly see great call center employees emerging from this group, a significant percentage don't have the basic motivational fit for the job," he points out. "But details drive success. If your call center is in an area where the baby boom echo is significant, targeted recruiting campaigns might pay dividends for hiring over the next few years."

Screening Right

To best tap and keep qualified workers, you'll need to determine the right skills and personal attributes for your call center. Then you must thoroughly recruit and screen applicants based on those criteria. How are businesses addressing this challenge?