Home » Glossary » Agent Turnover

Agent Turnover

Definition

What is agent turnover?

In a business process outsourcing (BPO) company, agent turnover refers to the number of agents that need to be substituted within a given time. 

Agent turnover can be destructive no matter what industry you’re operating or how the rest of the teams do it. Reducing customer service turnover is something that any company should be worried about.

The call center industry traditionally had an exceptionally high turnover, with certain outbound and telemarketing centers at rates of 100 percent per year. Usually, service and other inbound centers may encounter rates ranging between 30 and 45 percent.

agent turnover
What is agent turnover?

​​How to reduce agent turnover rate

Inbound customer service representative (CSR) roles are some of the highest turnover positions in the industry. Customer service exhaustion and agent turnover are harmful to the result and service efficiency. 

Here’s how to reduce agent turnover rate:

Set clear objectives

To reduce agent turnover rate, companies should promote healthy competition for agents that can drive their efficiency towards their goals. 

Hold consistent training

Each agent undergoes the same training cycle so that they can learn the requisite expertise and skills, become acculturated to the standards of the organization, and establish relationships with coworkers.

Reward and celebrate achievements

Another way to reduce agent turnover rate is to give agents incentives to give them compliments and show that you appreciate their hard work.

Implement a referral program

Increase the performance of the candidates by introducing a referral program. This gives your agents a better sense of being invested in their work.

​​How to reduce agent turnover rate

Outline potential journeys

Another motivation for agents to work harder is to lead them to do better and strive for promotion. Inform them that their career path will help them as a professional and company will support them on this journey.

Ensure good hiring practices

During the hiring process, it is important to hire potential employees. Recruiting them means they can perform tasks that they are familiar with. 

With that, there’s the least chance of agent turnover. Hiring agents for jobs they’re not familiar with, will not be beneficial for the company nor for them. 

Outsourcing FAQ

What is What is business process outsourcing?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.

Global market

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

What is Social Media Virtual Assistant?

What is a social media virtual assistant?

Social media is playing a significant role in any business’ marketing and sales strategy – now more than ever. How you manage your business’ social media pages can help flourish or tarnish your brand’s reputation.

This is where the services of a social media virtual assistant comes in. Social media virtual assistants are social media experts that will solely work for your brand remotely. They offer a wide range of services, including developing a social media strategy and curating your channels.

Responsibilities of a social media virtual assistant

Social media management is not just about posting on your Facebook page and leaving it at that. Social media has become a very efficient marketing tool, and a social media virtual assistant can be tasked with an array of responsibilities to promote your brand and appeal to customers.

Here are some of the responsibilities of a social media virtual assistant:

Set up your social media presence Write copy and blog posts for all your social media channels Reply to and manage comments Interact with your brand’s followers, answer questions, and deal with reviews Create surveys and other promotional strategies Benefits of hiring a social media virtual assistant

Hiring and training can be too expensive and will take too much time that can be spent on other essential tasks. By hiring a social media virtual assistant, you'll get to save up on hiring costs and other expenses like office space, desktops, and internet connection. Social media virtual assistants are also equipped with the right experience and skills for the job, so training will be very minimal.

By delegating your social media management to a qualified virtual assistant, you’ll get to enjoy more time in your hands for more essential tasks leading to your business’ growth and development.

What is Resolution Time?

What is Resolution Time?

Resolution time is the average amount of time it takes for a customer service provider to resolve a customer’s issue, request, or concern. It is the amount of time from when the client creates an incident report or files a ticket, to when the problem or cause of concern is actually solved.

This metric is typically measured through business hours instead of clock hours, due to the company's customer service organization down time. It may vary depending on the company though, as more and more businesses are investing in 24/7 customer service teams.

Resolution time vs. response time

These two terms are typically interchanged, but they have one distinct difference. Like mentioned above, resolution time is the average amount of time it takes for a customer service provider to resolve a customer’s issue, request, or concern.

Response time, on the other hand, refers to the average amount of time it took for a customer service provider (automated bots not counted) to address the client’s incident report and let them know that they’re currently working on it.

What is Shared Services?

What is shared services?

Shared services refer to the delegation of specific tasks to a part of the organization or company. This team might house inside the main office, near it, or offshore. For instance, a company based in California may set up an IT department in another location such as New York to handle the entire IT for their teams.

Shared services is another way to save on costs by taking advantage of the cheap costs and resources offshore. It is also a strategic way to expand their operations and attract a different market aside from the local ones.

Shared services and outsourcing

Shared services and business process outsourcing share a few similarities. For one, they delegate a general task to a team. Second, both of it can be onshore, nearshore, or offshore. Third, they help the business save on costs while increasing their profitability. The only difference is that outsourcing involves a third-party company. After a certain lock-in period, companies can decide whether to absorb their offshore team or keep it co-managed.

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.