How to Calculate Call Center Occupancy

Are you balancing efficiency and employee satisfaction in your call center? Getting this balance wrong can lead to unhappy agents or wasted resources. Understanding and optimizing call center occupancy can prevent these pitfalls and improve overall service quality. This guide will explain what call center occupancy is, how to calculate it, why it matters, and practical ways to improve it.

Read More: What is Call Center Shrinkage?

What Exactly is Call Center Occupancy?

Call center occupancy is a key metric that measures the activity levels of agents in a call center. It reflects the percentage of time agents spend handling calls or performing after-call work (ACW) compared to the total time they are available to work. This metric is crucial for assessing how effectively your call center resources are being utilized.

Occupancy consists of two main components: call-related activities and idle time. Call-related activities include talk time, which is the duration an agent spends speaking with a customer, and after-call work, which involves tasks like updating customer records or completing notes after a call ends. Idle time, on the other hand, refers to the periods when agents are not engaged in these activities, waiting for the next call or task.

By closely monitoring these components, managers can gain insights into how well their call center is performing and identify opportunities for improvement. High occupancy rates indicate efficient use of agent time, while low rates may suggest underutilization or excessive idle time. Striking the right balance is key to maintaining high levels of customer service without overburdening agents.

How is Call Center Occupancy Calculated?

Calculating call center occupancy is relatively straightforward but requires accurate data and careful consideration of all activities involved. The formula for occupancy is:

To accurately calculate occupancy, you must first define handle time clearly. Handle time includes both talk time and after-call work. Next, determine which activities count as wrap-up, as different centers may have varying definitions. Lastly, ensure proper use of statuses in your call center software to avoid inflated occupancy rates, as inaccurately logged statuses can skew data.

Key Tips for Accurate Calculation:

Define Handle Time Clearly: Ensure that all agents understand what is included in handle time to maintain consistency.
Determine Wrap-Up Activities: Clarify which tasks are considered part of after-call work to avoid discrepancies.
Use Statuses Correctly: Make sure agents use the correct statuses in your call center software to prevent incorrect data.

Why is Occupancy Important?

Understanding call center occupancy is vital for multiple reasons, ranging from staffing efficiency to agent well-being and scheduling optimization. By closely monitoring occupancy, call centers can ensure they are not overstaffed or understaffed, thereby optimizing labor costs and improving service quality.

Staffing Efficiency

Occupancy rates play a crucial role in determining staffing needs. High occupancy rates may indicate that more staff is required to handle the call volume, while low rates could suggest overstaffing. By analyzing these rates, managers can adjust staffing levels to match demand, ensuring efficient use of resources and minimizing costs.

Agent Well-being

Balancing occupancy is also important for maintaining agent well-being. High occupancy rates, while efficient, can lead to agent burnout if not managed carefully. Conversely, low occupancy rates can result in boredom and disengagement. Striking the right balance helps maintain a positive work environment, reducing turnover and improving service quality.

Scheduling Optimization

Occupancy data is invaluable for optimizing schedules. By understanding occupancy patterns, managers can schedule agents more effectively, ensuring adequate coverage during peak times while avoiding overstaffing during quieter periods. This approach not only improves efficiency but also enhances agent satisfaction by aligning shifts with demand.

Call Center Occupancy vs. Utilization

It’s important to distinguish between call center occupancy and utilization, as these terms are often used interchangeably but measure different aspects of agent activity.

Occupancy: Measures the percentage of time agents spend on call-related tasks (talk time and after-call work) compared to their total available time.
Utilization: Measures the overall time agents are logged in and available for work during their shifts, regardless of whether they are actively handling calls.

While occupancy focuses on the time agents are engaged in productive tasks, utilization provides a broader view of how much of their scheduled time is being used. Understanding both metrics is crucial for a comprehensive view of call center performance.

Practical Examples

Imagine a call center where agents are logged in for 8 hours a day. If an agent spends 6 hours on calls and after-call work, the occupancy rate would be 75%. However, if the agent is logged in and available for work but spends 2 hours on breaks or in training, the utilization rate would be lower, reflecting the actual time spent working.

What is the Ideal Call Center Occupancy?

Determining the ideal call center occupancy rate is not a one-size-fits-all process. However, there are recommended benchmarks that can serve as a general guideline.

Recommended Benchmarks

Typically, an occupancy rate between 80% and 90% is considered ideal. This range allows for efficient use of agent time while providing enough flexibility to accommodate breaks, training, and unexpected fluctuations in call volume. Occupancy rates above 90% may indicate excessive workloads, increasing the risk of burnout.

Factors Affecting Ideal Occupancy

The ideal occupancy rate can vary based on several factors, including the nature of the call center, the type of calls handled, and the overall business goals. For instance, a call center handling emergency services might aim for higher occupancy rates to ensure prompt responses, while a customer service center focusing on quality interactions might target lower rates to provide agents with more time for each call.

Ways to Improve Call Center Occupancy

Improving call center occupancy involves a combination of strategies aimed at optimizing agent time and reducing idle periods. Here are some effective methods:

Track Hourly Variations: Monitor call volume at small intervals to identify and adjust for busy or quiet periods. By analyzing hourly variations, managers can better understand when call volumes peak and dip, allowing for more precise scheduling and resource allocation.
Reduce After-Call Work: Streamline post-call tasks through automation and process improvements to decrease handle time. Automating routine tasks such as data entry or follow-up emails can significantly reduce after-call work, freeing up agents to handle more calls.
Use Outsourced Agents (BPOs): Consider third-party call centers for handling spikes in call volume without expanding the in-house team. Outsourcing can provide additional flexibility, allowing call centers to manage high-demand periods without overburdening their core staff.
Improve Routing: Optimize call routing to reduce transfer times and improve customer satisfaction. Efficient call routing ensures that customers are connected to the right agents quickly, minimizing hold times and enhancing the overall customer experience.
Enhance Self-Service Options: Implement robust self-service solutions to decrease call volume and manage occupancy rates effectively. By providing customers with self-service options such as IVR systems or online FAQs, call centers can reduce the number of incoming calls, helping to maintain optimal occupancy levels.
Hire Remote Agents: Expand your workforce flexibility by hiring remote agents to handle seasonal or unpredictable demand. Remote agents can provide additional coverage during peak times without the need for additional office space or resources.
Offer Omnichannel Support: Balance occupancy by utilizing agents across multiple support channels during low call volume periods. By training agents to handle various channels such as email, chat, and social media, call centers can make better use of their workforce during quieter periods.

Tools and Software for Monitoring Call Center Occupancy

Workforce Management (WFM) Software

Optimized Scheduling

Data-Driven Forecasting:

Example Tool: NICE Workforce Management
NICE Workforce Management uses advanced analytics and historical data to predict call volumes accurately. This software helps schedule agents effectively, ensuring that occupancy rates are optimized without overworking staff. By analyzing past call trends, NICE WFM provides managers with precise forecasts for better staffing decisions.

Flexible Rostering:

Example Tool: Verint Workforce Management
Verint Workforce Management offers flexible rostering options, allowing managers to adjust shifts based on real-time data and occupancy needs. This adaptability ensures that shifts can be modified quickly to handle unexpected changes in call volume, helping maintain balanced occupancy rates.

Automated Adjustments:

Example Tool: Aspect Workforce Management
Aspect Workforce Management features automated adjustments that respond to real-time changes in call volume. This tool can automatically reassign shifts and redistribute workload, ensuring that occupancy levels remain stable and that the call center operates efficiently, even during unexpected demand spikes.

Performance Tracking

Real-Time Data Insights:

Example Tool: Genesys Cloud WFM
Genesys Cloud Workforce Management provides real-time data insights into agent performance, including occupancy rates and adherence. These insights allow managers to make informed decisions about staffing and training, optimizing the call center’s overall performance.

Detailed Reporting:

Example Tool: Kronos Workforce Management
Kronos Workforce Management generates detailed reports on various performance metrics such as occupancy, utilization, and schedule adherence. These reports give a comprehensive view of call center performance, helping managers identify trends and make data-driven decisions.

Trend Analysis:

Example Tool: Calabrio ONE
Calabrio ONE includes trend analysis capabilities that allow managers to identify patterns in call volumes and occupancy rates over time. By understanding these trends, managers can make more informed decisions about scheduling and resource allocation, ensuring optimal occupancy.

Real-Time Analytics Dashboards

Immediate Visibility

Live Occupancy Monitoring:

Example Tool: Five9 Analytics
Five9 Analytics provides real-time dashboards with live occupancy monitoring, enabling managers to see agent activity and occupancy rates as they happen. This immediate visibility helps managers quickly address any inefficiencies or imbalances in staffing.

Customizable Alerts:

Example Tool: Talkdesk Live
Talkdesk Live allows managers to set up customizable alerts for specific occupancy thresholds. When occupancy rates fall outside the desired range, managers receive immediate notifications, enabling them to take swift corrective actions to optimize performance.

Instant Performance Feedback:

Example Tool: Zendesk Explore
Zendesk Explore offers real-time analytics that provide instant feedback on agent performance. This tool allows both agents and managers to adjust on the fly, optimizing occupancy rates and overall call center efficiency.

Comprehensive Data Integration

Unified View of Metrics:

Example Tool: Domo
Domo integrates data from various sources to provide a unified view of all relevant metrics, including occupancy, utilization, and customer satisfaction. This comprehensive data integration helps managers make well-rounded decisions based on a complete picture of call center performance.

User-Friendly Interface:

Example Tool: Power BI
Microsoft Power BI offers a user-friendly interface that simplifies data interpretation. With its easy-to-use dashboards, managers can quickly understand occupancy data and take action to improve performance.

Scalable Solutions:

Example Tool: Tableau
Tableau provides scalable real-time analytics solutions that can be adapted to the needs of any call center. Whether for small teams or large organizations, Tableau’s flexibility makes it a versatile tool for monitoring and optimizing occupancy rates.

Performance Management Systems

Key Performance Indicator (KPI) Tracking

Occupancy as a KPI:

Example Tool: BambooHR
BambooHR tracks occupancy as a key performance indicator, helping managers set benchmarks for agent productivity. This tool provides clear visibility into occupancy rates, enabling data-driven decisions for improving call center operations.

Balanced Scorecards:

Example Tool: SAP SuccessFactors
SAP SuccessFactors uses balanced scorecards that combine occupancy with other KPIs like quality scores and customer satisfaction. This holistic view of performance helps managers ensure that all critical metrics are aligned with organizational goals.

Goal Setting and Feedback:

Example Tool: Workday Performance Management
Workday Performance Management allows managers to set specific occupancy goals and provide regular feedback to agents. This feature fosters a culture of continuous improvement, helping agents stay engaged and productive.

Agent Development Tools

Coaching and Training Support:

Example Tool: Cornerstone OnDemand
Cornerstone On Demand includes robust coaching and training tools that help agents improve their skills and maintain optimal occupancy levels. This system supports ongoing development, ensuring agents are well-prepared to handle calls efficiently.

Progress Tracking:

Example Tool: Oracle HCM Cloud
Oracle HCM Cloud tracks agent progress over time, identifying areas where additional training or support may be needed. By monitoring performance closely, managers can make targeted improvements to boost occupancy and overall call center performance.

Recognition and Rewards:

Example Tool: 15Five
15Five incorporates recognition and rewards features, encouraging agents to meet or exceed occupancy targets through positive reinforcement. This tool helps create a motivating environment that promotes high performance and engagement.

Call Recording and Monitoring Software

Enhanced Call Analysis

Identifying Bottlenecks:

Example Tool: CallMiner Eureka
CallMiner Eureka analyzes call data to identify bottlenecks in processes that may affect occupancy, such as long after-call work or frequent call transfers. This tool helps managers streamline operations and improve efficiency.

Improving First-Call Resolution:

Example Tool: NICE inContact
NICE inContact provides tools for analyzing recorded calls to identify areas where first-call resolution can be improved. By addressing these issues, call centers can reduce the need for follow-up calls and optimize occupancy rates.

Quality Assurance:

Example Tool: Verint Speech Analytics
Verint Speech Analytics offers quality assurance features that ensure agents handle calls efficiently and adhere to best practices. This software helps maintain high service standards while managing occupancy effectively.

Compliance and Training

Ensuring Compliance:

Example Tool: Zoom Call Recording
Zoom Call Recording helps ensure agents comply with company policies and industry regulations by securely storing call data. This feature is crucial for maintaining high standards and avoiding costly compliance issues.

Training and Development:

Example Tool: Gong.io
Gong.io offers valuable training resources by recording calls and providing insights into real interactions. These recordings can be used to train new agents and help experienced agents refine their skills.

Performance Reviews:

Example Tool: Talkdesk Quality Management
Talkdesk Quality Management uses call recordings for performance reviews, providing concrete examples of strengths and areas for improvement. This tool supports agents in meeting occupancy and other performance targets through targeted feedback and development.

How to Balance Occupancy with Other Call Center Metrics

Quality Assurance (QA) Metrics

Call Quality and Occupancy

Maintaining Call Standards: Balancing occupancy with call quality ensures that agents are not rushing through calls to meet occupancy targets, preserving the standard of customer service.
Consistent Monitoring: Regularly monitoring call quality alongside occupancy helps maintain high standards of service and prevents the deterioration of customer interactions due to high occupancy rates.
Feedback and Improvement: Providing agents with feedback based on both occupancy and quality metrics encourages them to maintain efficiency without compromising on service quality.

Customer Satisfaction Scores

Balancing Metrics: A focus on occupancy should not come at the expense of customer satisfaction. Ensuring agents have the time needed to resolve issues fully can lead to higher satisfaction scores.
Survey Integration: Including customer satisfaction surveys as part of the performance metrics provides a direct measure of service quality that can be balanced against occupancy rates.
Improvement Initiatives: Use customer feedback to identify areas for improvement that can be addressed through training or process changes, ensuring that high occupancy rates do not lead to poor customer experiences.

Agent Engagement and Satisfaction

Work-Life Balance

Preventing Burnout: Maintaining balanced occupancy rates helps prevent agent burnout, promoting a healthier work-life balance and reducing turnover.
Job Satisfaction: When agents feel that their workload is manageable and that their well-being is valued, job satisfaction improves, leading to better performance and customer interactions.
Employee Retention: High levels of engagement and satisfaction are closely linked to employee retention, reducing the costs associated with hiring and training new agents.

Motivation and Productivity

Incentive Programs: Implementing incentive programs based on a combination of occupancy and performance metrics can motivate agents to maintain high standards while staying engaged.
Career Development Opportunities: Offering opportunities for career development, such as training or advancement, can keep agents motivated and invested in maintaining balanced occupancy rates.
Open Communication: Encouraging open communication between management and agents can help identify any issues affecting engagement or satisfaction, allowing for proactive solutions.

Service Level Agreements (SLAs)

Aligning Occupancy with SLAs

Meeting Customer Expectations: Aligning occupancy rates with SLAs ensures that call centers meet customer expectations for response times and service quality, enhancing customer loyalty and satisfaction.
Maintaining Consistency: Consistent adherence to SLAs helps build trust with customers, as they can rely on the call center to provide timely and effective support.
Performance Benchmarks: SLAs provide clear performance benchmarks that can be used to assess occupancy rates and ensure they are aligned with overall service objectives.

Balancing SLAs and Efficiency

Efficient Resource Allocation: Properly balancing SLAs with occupancy ensures that resources are allocated efficiently, maximizing productivity without overburdening agents.
Continuous Improvement: Regularly reviewing SLA performance alongside occupancy rates can help identify areas for continuous improvement, ensuring that both metrics are aligned with business goals.
Customer-Centric Approach: A customer-centric approach to managing occupancy and SLAs ensures that call centers maintain a balance between efficiency and service quality, enhancing the overall customer experience.

Conclusion

Monitoring and improving call center occupancy is crucial for maintaining efficiency and service quality. By applying the strategies discussed in this guide, call centers can optimize their operations, enhance agent well-being, and deliver better customer experiences.