This document provides information on reducing absenteeism in contact centers. It discusses the costs of absenteeism and common reasons employees take unplanned leave. Research shows the most important factors for employee retention are relationships with supervisors and work-life balance. The document outlines drivers of absenteeism related to motivational fit, rewards, cooperation, work environment, and personal life. It suggests contact centers identify the specific causes of absenteeism through staff surveys and implement strategies to improve communication, development, rewards, and work conditions in order to increase employee engagement and reduce turnover.

1. Masterclass B: How to Decrease
the Prevalence of Absenteeism
in Your Contact Centre
Presented to IQPC Government Contact Centre Conference
Canberra
29 th August 2008
Presented by Steve Mitchinson
Partner, TeamRed Solutions
National Chairman, Australian Teleservices Association

2. Background
A study by the University of Western Australia estimated that
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absenteeism costs a whopping $5 billion in the public sector
every year.
The study also found that contact centre employees use more sick
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leave than those working in other industries
Estimates vary, but the cost of replacing an employee ranges from 29
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to 46 percent of the person’s annual salary
The 2008 ACCS suggested the average fulltime employee in contact
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centres took 9.5 days of unplanned leave in 2007
In the 2008 ACCS, 45% of centres suggested it was improving, 24%
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suggest no changes, 17% suggest a decrease and an alarming 14% do
not know

3. Background
• Absenteeism is a sign of a much bigger
malaise – it is a leading indicator of employee
disengagement and potential turnover
• Research by Towers Perrin Research (2004)
found that organisations that achieved
employee engagement showed a 17%
improvement on operating profit

4. Exercise
• Describe a program or change your organization has
made that has had the greatest impact on reducing
absenteeism (and by default aided retention – how
did you measure success)
_____________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________

5. Identifying the drivers of
absenteeism
What makes your staff decide not to come to work?
Absenteeism is typically the early warning sign of dissatisfaction and,
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suggests the staff member has reserved a seat in the departure lounge
Addressing absenteeism must be a fundamental plank of a much wider
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strategy – engaging and retaining talent
Typically staff leave their managers, not the organisation, and yet less
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than 50% of organisations participating in a recent global survey claim
to have a retention strategy!
So what are the key drivers of employee absenteeism and what can we
•
do to identify and overcome them?

6. Exercise
Why do we think staff leave
contact centres
Reasons Contact Centres think people leave their contact centres
1= Very Important , 5=Not Important 1 2 3 4 5
1
2
3
4
5
6
7
8
9
10

7. Why do staff leave contact
centres
Reasons Contact Centres think people Leave their contact centres
2007 –Source -ACCS 2008 from Vivaz
1= Very Important , 5=Not Important 1 2 3 4 5
Poor attendance 13% 11% 24% 33% 19%
Job did not meet expectations 11% 22% 33% 21% 14%
Poor performance 22% 14% 24% 23% 18%
Promoted to another role 34% 20% 28% 13% 5%
Role to complex 1% 14% 33% 36% 14%
Changes in personal life 35% 20% 24% 6% 15%
Lack of training & development 15% 4% 19% 35% 26%
Found better paid role elsewhere 15% 31% 22% 19% 13%
Poor cultural fit 10% 15% 20% 37% 18%
Head hunted 6% 3% 17% 55% 19%
Promoted within centre 26% 32% 19% 13% 9%

8. The key questions
Would staff say the same things?
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Do you know the level for your centre?
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Do you know what that is costing you?
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What analysis have you done as to the
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causes?
• What steps could you take to overcome
or reduce absenteeism?

9. The Drivers
Motivational Fit: challenge, meaning, autonomy, organizational fit, manager
relationship, job clarity
Factors associated with motivational fit are the driving force behind employees
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wanting to stay at their job.
Motivational fit exists when employees feel there is a good match between their
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needs and what the organization and job requires them to do.
Research has demonstrated the importance of matching employees’ motivational
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needs with job requirements.
Managers play a critical role in determining employee responsibilities and span of
•
control – meaning, the working relationships you and your leadership team
develop with employee drives motivational fit and as a consequence levels of
absenteeism.

10. The Drivers
External Rewards: recognition, growth/advancement, compensation, pay vs.
contributions, organisation responsiveness
Aside from the subjective benefits derived from good motivational fit, employees
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need the objective outcomes associated with external rewards.
Factors such as pay, advancement, and recognition are some of the practical
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drivers determining employees’ willingness to stay or leave.
Cooperation and Trust: cooperation with co-workers, level of trust in workplace
Typically, employees rely on co-workers to succeed in their jobs. The relationship
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with these co-workers can affect their desire to stay with their organization. Few
people are willing to work with overly competitive or distrustful and deceptive co-
workers.
On the other hand, highly rewarding relationships with co-workers can overcome
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other problems that might lead to employee separation. Studies have shown that
factors such as trust and communication often play a large part in employee job
satisfaction.

11. The Drivers
Organisational Direction: clear vision and strategy, appropriate selection
practices
When a organisation has (and shares) a clear vision and strategy, employees are
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more likely to understand the rationale behind decisions, and they can link their
work to long-term outcomes.
Selecting the right people to promote the vision and strategy plays a significant
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role in an organization’s success.
High retention is more likely when employees believe a organisation knows what
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it is doing and has the right people to carry out its plans.
Work/Life Balance
Some jobs are very demanding in terms of travel, work schedules, and location.
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If employees are expected to give up important aspects of their personal lives to
do their jobs, they will be more likely to leave the organization.
Therefore, a good match between employees’ lifestyle preferences and needs and
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work demands is crucial to high retention.

12. The Drivers
Workplace Harmony: internal politics, stress, workplace volatility
Organizations can differ dramatically in their level of workplace harmony or
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discord. In some organizations it’s hard to accomplish anything without the right
connections and an understanding of hidden agendas. Steve Simpson refers to
them as “UGR’s – the unwritten ground rules”
Other organisations are stress laden and are characterized by unexpected
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changes that sometimes completely redefine employees’ work.
While these kinds of work environments might be appealing for some, typically
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employees can be overwhelmed by the level of effort it takes to get through the
workday.
For these employees the likelihood of leaving an organization is increased.
•

13. Identifying the drivers of
absenteeism – staff view
Employee Rank of Retention Factors – The Top Ten
1 Quality of relationship with supervisor or manager (Motivational Fit)
2 Ability to balance work and home life (Home Life)
3 Amount of meaningful work—the feeling of making a difference
(Motivational Fit)
4 Level of cooperation with co-workers (Cooperation and Trust)
5 Level of trust in the workplace (Cooperation and Trust)
6 Quality of compensation package (External Rewards)
7 Opportunities for growth and advancement (External Rewards)
8 Clear understanding of work objectives (Motivational Fit)
9 Link between pay and individual contributions (External Rewards)
10 Other (Undefined)

14. Identifying the drivers of
absenteeism – staff view
Other factors
11 organisation responsiveness to needs/requests (External Rewards)
12 Level of challenge in work (Motivational Fit)
13 Autonomy—freedom to direct work (Motivational Fit)
14 Amount of recognition for work (External Rewards)
15 Quality of vision and strategy from senior management
(Organisational Direction)
16 Ability of the organization’s selection practices to choose the right
employees (Organisational Direction)
17 How well individual goals and style match the organization’s
(Motivational Fit)
18 Amount of job stress (Workplace Discord)
19 Desirability of the organisation’s geographic location (Home Life)
20 Volatility of work environment, such as downsizing, mergers, etc.
(Workplace Discord)
21 Amount of internal politics/bureaucracy (Workplace Discord)

15. The Challenge for you and HR
As stated earlier, an employee’s relationship with his or her
supervisor or manager and work-life balance are the most
important determinants for staying with an organization.
Avolio and Bass in their ‘Transformational Leadership’ model and by Alimo-
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Metcalfe in her model of what is needed for true ‘Employee Engagement’
provided concepts that have the same purpose - to develop leaders that will
motivate and inspire employees to give their discretionary effort.
Research by Towers Perrin Research (2004) found that organisations that
•
achieved employee engagement showed a 17% improvement on operating profit
Motivational fit and cooperation and trust play a large role in
determining employee retention.
Employees want to work in a supportive environment that gives
them an opportunity to make meaningful contributions.
Do you understand employee needs
Do HR understand employee needs?

16. The Top Five Factors
The top five factors for employees The top five factors for HR
The percentage of employees is shown The percentage of HR professionals is
along with the classification of the shown along with the classification of
factor. the factor.
1. Quality of relationship with supervisor 1. Opportunities for growth and
or manager (78%, Motivational Fit) advancement (70%, External
Rewards)
2. Quality of compensation package
2. Ability to balance work and home life
(57%, External Rewards)
(78%, Home Life)
3. Amount of job stress (45%,
3. Amount of meaningful work—the
Workplace Discord)
feeling of making a difference (76%,
Motivational Fit)
4. Level of cooperation with co-workers 4. Quality of relationship with supervisor
(74%, Cooperation and Trust) or manager (39%, Motivational Fit)
5. Level of trust in the workplace (71%, 5. Ability to balance work and home life
Cooperation and Trust) (33%, Home Life)

17. Is it your leadership style?
• Put yourself in your staffs shoes
• Think back to the best best boss you have
had.
• What was it about them that made them so
great?
• How well would you stack up ?

18. Our Top Ten Leadership
Qualities
1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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19. Top 10 Leadership Qualities
The Top Ten Qualities of a Great Leader :
1. They showed genuine interest in me as a person.
2. They were always approachable.
3. They made time to really listen to me.
4. They asked for my ideas, opinions and input.
5. They were firm but fair with everyone.
6. They did not have an ego problem, power or control issues - they put the
organisation and the team before themselves.
7. They were open and honest; if the answer to a request or idea was no they
explained why.
8. They showed respect, both for themselves and everyone else. They treated
everyone equally – regardless of ‘status’ or role.
9. They coached me through questioning, not ‘telling’.
10.They were sociable but always ultimately professional.
How do your rate?
Source: www.callcentrehelper.com

20. Exercise
What is your biggest challenge to reduce
absenteeism – what are you going to do
about it – how will you measure success
_________________________________
________________________________
________________________________
________________________________
________________________________

21. Staff Retention Strategies
Develop a Plan & Strategy to Deploy it – and remember to communicate it
loudly
Gathering Information —The first step in improving absenteeism and retention is
to understand the causes.
Communication - Organizations need to talk to employees and measure their
opinions to see why turnover is happening. In addition, talking to other
organizations and benchmarking their practices can provide direction for creating
a strategy.
Employee Development —In response to employees’ desire for growth and
advancement opportunities, organizations can introduce enhanced training and
development programs, succession management systems, and other approaches
for investing in their employees.
Recruitment – an often overlooked aspect is the actual recruitment process. What
research has been undertaken to link staff absenteeism and turnover with
recruitment strategies and profiles?

22. Staff Retention Strategies
Work Environment/ Nature of Work
Several aspects of the work environment are directly linked to employees’
satisfaction. These would include:
• Empowerment
• Enhancing open lines of communication between managers and employees
improve the overall quality of working relationships.
• Interventions designed to make the workplace more hospitable will lead to
improved retention. These could include:
– Introduction of relaxed dress codes
– Telecommuting options
– Flexible work schedules
Systems
• The ease with which IT systems can be used to assist an employee in their job
are a major driver of satisfaction
• The level of access to external sites is becoming a key point for debate

23. Staff Retention Strategies
Training & Development
• Individual Career Progression Plans
• Individual Training & Development Plans
• Set & Known Criteria for Career Progression
• Formal Performance Appraisals
• 360 Degree Feedback Mechanisms
Rewards and Recognition
• Organizations could consider improving the quality of compensation, benefits,
and special perks as a means for improving retention. Employees want
recognition for a job well done. Whilst understanding public sector limitations
may apply in some instances, these can come in several forms:
• Special bonuses or rewards can help employees feel proud of their work and let
them know that their efforts are acknowledged.
• Pay and recognition linked in some way to performance because employees
know there are consequences for their actions.
• Staff Discounts or discount schemes where applicable – a hidden benefit?

24. Staff Retention Strategies
Absenteeism -control programmes
• Correct KPI’s
• Ensure induction of new employees includes advice on interventions that address
their needs
• Return To Work (RTW) interviews
• Linkage to team bonuses
• A process to measure staff morale/engagement
• Exit interviews
– Who does them (58% always, 38% sometimes, 7% never)
– Review the data from exit interviews and take action! Ask new starters what
their expectations are and have quality inductions.
Categorising the nature of absenteeism in your contact centre
• Day of week, 4 day weekend
• Duration
• Who else?
• By leader, by Business Unit, by demographic
• Certificate versus Non Certificate

25. HOW DO WE GET GEN Y TO STAY?
Fulfilment of TRUST Commitment Intention
employee’s
•Job
to
expectation
Know the •Affective
Workplace
Stay
employee’s •Team
Mgt
Expectations Delivery Top Mgt
‘DEAL’ of the
Deal
JOB
FAIRNESS
SATISFACTION
START BUILD RETAIN

26. Action Plan
Detail three actions you will take next
week to begin your strategy for lower
absenteeism:
• 1_______________________________
________________________________
• 2_______________________________
________________________________
• 3_______________________________
________________________________

27. Case Study – Creating a
Healthy Workplace
Automation of more basic tasks which have made frontline roles more
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challenging, varied and interesting;
Increasing the profile of the contact centres and what it was achieving for the
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enterprise
Improved physical environment
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Value placed on customer service as a contributor to the strategic plan;
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Emphasis on developing more effective leaders
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Better recruitment and training and development programs to hire and develop
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the right staff. Employee involvement in hiring (shown to have a positive impact
on the retention of 74% of agents in 2007 ICMI survey)
Non traditional KPI’s – linked to organisational strategy
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Increased focus on quality and quantity rather than just the numbers
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A stronger emphasis on workforce planning and flexible working arrangements
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Improved visibility and commitment to defined career paths
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Creating a feeling of loyalty & pride - cultural development
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Rewarding contribution – staff involvement in R&R decisions
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Being different e.g. massages, in house benefits, CEAD FM, Staff functions, RTO
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28. Questions