Workforce Management: Cutting Costs Ahead of National Living Wage

/ Workforce Management

Contact Centres Costs to Rise £2.9m/Year – But Workforce Management Can Help

It was this time last year that Chancellor George Osbourne announced the introduction of the National Living Wage, as he lifted aloft the infamous red briefcase outside Downing Street. It’s in less than two weeks’ time that the proposal will be introduced – on 1st April 2016. But what’s the best way for business owners to keep costs down, whilst keeping within the latest law?

Currently, ‘Contact centre wastage’ is the hot topic on every telemarketer’s lips. Figures from leading contact centre analysts Contact Babel, indicate a potentially huge hike in staffing costs for contact centres, when the new National Living Wage comes into place. The scheme has seen the government end the minimum wage in favour of a higher sum; and it’ll now cost each company £7.20 an hour per employee, steadily rising to £9 in 2020.

In 2015 Contact Babel released some alarming figures. Research showed the mean starting salary for a new agent in a “high attrition” (40% annual turnover of staff) UK-based contact centre was £13,854. Based on this, the immediate increase in staffing costs for a typical large contact centre (with 1,000 Full Time Equivalent (FTE) employees) would amount to £186,000 per year. Factor in an average inflation rate of 1% per year, and by 2020 the average large contact centre will be paying an extra £2.9 million a year in salaries.

Keep staffing costs down with workforce management

Contact Babel’s advice? End ‘contact centre wastage’ and streamline, by employing more skilled workers and supporting those workers in as many ways as possible.

Daviker’s advice? We agree with Contact Babel and recommend the use of Workforce Management as soon as you can.

Workforce Management will optimise your contact centre, so that you have the right staff, with the right skills, working at the right time to meet your customers’ needs – and your goals. Through a process of statistical analysis, Workforce Management software examines the interactions of your contact centre, instructing you on where you can be flexible with both shifts and staff. It’s been proven to reduce staffing costs by more than 30% – and on top of that, can greatly reduce administrative workload.

By having Workforce Management in place, a business will have a much better understanding of all the channels it must serve. By being more aware of staff availability and skills, companies that use Workforce Management have a much better chance of delivering excellence customer service and employing a more satisfied workforce. They’re also be more likely to avoid that rise of almost £3 million in staffing costs.


Raising an important issue

It’s worth noting that these figures do only apply to the largest contact centres (the average size of a contact centre in the UK is around 250 seats, and not all of these staff will be FTE) – but it’s valuable that the issue of streamlining and reducing staffing costs has been raised. With our growing economy still taking tentative steps, any service that encourages business to boom whilst keeping costs down is a winner in our eyes.

For more information on how Workforce Management can keep your business costs down, call the Daviker team today on 0843 634 5825.