W H I T E PA P E R | W H AT I S W F M

What Is Workforce Management?

Basic Information for “Dummies”.
What to Measure and How to Do It.
Introduction bring to contact centers can seem mind-boggling.
If the term “workforce management solution” Boiled down, it amounts to increased customer
conjures up images of temporary agencies satisfaction, enhanced staff satisfaction (translating
outsourcing staff on short notice, then writing a into lower absenteeism, attrition and training costs) as
white paper to explain this concept is justified. For well as improved efficiency and profitability.
the uninitiated or those unfamiliar with the term, at
its simplest, workforce management (WFM) solution The white paper further addresses what an
refers to software solutions for contact centers, back automated WFM solution might do for your contact
offices and stores that help put the right person with center, and some basic questions about WFM
the right skills in the right place at the right time, solutions: e.g. Who is a suitable candidate? Where and
resulting in a quality customer interaction - regardless when can you see your return on investment (ROI)?
of the method of contact. It concludes with some thoughtful tips about what to
consider when contemplating a WFM solution for your
If this definition sounds too simple, establishing sound contact center. It is by no means comprehensive, but
processes and respecting them to achieve this end is rather a thought-provoker to get you started on the
not; try satisfying customers, staff and management road toward WFM optimization.
all at the same time, and you probably know it is a
tricky balancing act that makes the life of a contact- Your contact center – your face to the world
center planner a nightmare. This is particularly The contact center today often represents the
true if scheduling is still done manually, using Excel heartbeat of many organizations. It is where
spreadsheets. customers turn to for advice, complaints, information
or purchasing. It is where you interact with
With multi-channel interactions proliferating today, your customers the most. It is, in a sense, your
requiring multi-skills on the part of agents that may be organization’s face to the world. How well you service
located in a geographically dispersed contact center, your customers – i.e. getting the appropriately-skilled
the headaches are even worse. With organizations agent to answer the customer within a pre-defined
acknowledging that it is in the contact center where service level and address that customer’s needs
vast improvements, savings and profitability can be satisfactorily - very much impact the overall future
made, a sophisticated WFM software solution can success of your organization. Many organizations
definitely play an important role in achieving these recognize today that optimizing their customer service
improvements, which sometimes seems to be a operations is a great opportunity for revenue building.
miracle.
Much more than a selection of processes or just a
Abstract box under a planner´s desk, WFM is an operational
This white paper attempts to provide a basic philosophy that strives for continuous improvement
understanding of the processes that workforce in customer service, employee satisfaction and
management (WFM) encompasses that makes the operational excellence. But managing the workforce is
modern customer service operation possible. Each a tricky balancing act of trying to satisfy the demands
of the six processes – namely forecasting, planning, of customers, staff and management. What are the
scheduling, operating, reporting and performance different expectations?
analysis - is examined closely. The interconnectedness
of the processes is emphasized. • Customers expect staff availability and quality
service;
In light of the prickly challenges many contact • Staff expects work-life balance and work
center managers face today – e.g. runaway costs, satisfaction;
scheduling for multi-skilled agents and multi-channel • Management expects efficient, profitable,
interactions, losses in revenue opportunities or sustainable operations.
savings to name a few – the benefits automated WFM

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Robust, automated WFM solutions, integrated WFM processes – an everlasting,
with your ACD or contact center solution, are able continuous cycle
to balance these demands properly, with positive Most workforce management solutions encompass
outcomes: superior customer service, motivated vital processes that make the modern customer
employees and efficient operations. This is the beauty service operation possible. This white paper describes
of a good WFM solution. each of the six processes that make up the WFM
cycle: forecasting, staffing, scheduling, operations,
performance analysis and reporting.

While organizations and WFM solutions may have

different names for these, the processes are in
essence the same. Of importance is to recognize that
each part is dependent on input from the next. Once

WFM up and running, there is no beginning or end. Instead,

it is a living, breathing and sensitive entity, subject
to constant change. With a sound process in place
and active input from affected organizational units,
negative impacts can be greatly diminished.

Take into account agent

skill sets, preferences,
availability etc.

Forecast demand
Decide business
service levels across
each channel

Build in
one-off events

Alter forecasts and

scheduling if necessary

Schedule agents

Report on
actual activity
Monitor events
and adherence

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Forecasting – flexibility & accuracy Remember; your
absolute musts
Specifically, WFM tools help forecast demand
output is only as
intervals accurately. This means predicting the peaks good as your input: effective
and valleys of calls coming into a contact center teamwork between the
throughout the day, week, month or season or even
affected organizational units
minute interval and then matching up the staffing
requirements to effectively meet the demand. A
and the WFM team commonly
long-term focus is typically four to eighteen months in results in higher forecasting
advance. accuracy.
Forecasting is the foundation of the WFM cycle and
needs input: historical contact volumes, handling can, without being prompted, regularly feed relevant
time, arrival patterns, shrinkage, efficiency and the information to the WFM team - both historical and
like. But since a good portion of the volume is activity- future - about anticipated call drivers. In the sales-
driven, past experiences and future knowledge must focused example, all experiences from previous
be provided by those organizational units that make campaigns should be used as input so that forecasting
use of the contact center in the form of targets, future contact volumes becomes successively more
results, trends, changes, etc. accurate. Once this input is coordinated by the WFM
team, forecasters can do their job - with much greater
WFM is frequently viewed as uniquely the affair of the precision.
contact center. This is a big mistake, especially since
call volume is primarily driven by factors steered by Bear in mind that forecasts must be updated
other organizational functions - e.g. invoicing, sales, IT, continually with changes up until the moment of truth
HR, marketing and production. Invoicing, for instance, when the schedule goes live: the closer in time to this
is frequently done from a logistical perspective or moment, the higher the need for accuracy. Without
for optimizing cash flow. This cycle often sparks the input from the other organizational units, the role of
highest peaks in a contact center but often without the contact center is little more than a goalkeeper - or
taking into account the limitations in available staff or worse, a fire fighter.
seats.
Sometimes adverse situations escalate rapidly. Here,
Let’s take an example of a sales- focused contact flexibility in forecasting is crucial. Forecasts are
center: Suppose you’ve just launched a new product worthless if you’re unable to alter schedules in real
on TV, which encourages customers to call your time. Most WFM forecasting functionalities today
contact center. This will create volume spikes in the factor in exceptions - a sudden flood, campaign
workload. Campaign success is inter-related, even periods, holidays, training and the like - and
contingent on the readiness and expertise of the calculating how that impacts the customer service
contact center to answer incoming calls. The opposite operation. Optimal times for meetings, training or
is equally true: without readiness to handle spikes, coaching can easily be determined as well.
potential sales opportunities from eager and ready-to-
purchase customers could turn into a loss of goodwill. Advanced WFM solutions offer a “what-if” scenario
After all, who is in the mood to buy after listening to tool to help gauge changes in the workload (described
queue messages over and over again? further on). Remember; your output is only as good as
your input: effective teamwork between the affected
A well-functioning input process is vital so that organizational units and the WFM team commonly
organizational units making use of the contact center results in higher forecasting accuracy.

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“What-if” scenarios – for rapid, proactive measure- areas, then close and continual collaboration with
taking the contact center management is essential to WFM
Exceptionally useful for contact center managers success.
is the “what-if” scenario tool that excellent WFM
solutions can offer. It allows seeing what would When you consider that staff costs account for the
happen, for example, to service levels prior to an majority of overall expenditure in most contact
event even taking place. Contact center managers centers - much more than the total cost of telephony,
can experiment with these scenarios without risking technology, office premises, fittings, rent and utilities
operations in the contact center. These scenarios give put together - estimated at between 60 and 75 per
answers to, for example, how the workload would be cent, the more pertinent issue at stake is: Can you
impacted if: afford to not optimize your workforce?

• Service hours were shifted, shortened or As for skills training, all agents need to have good
extended; listening skill, basic IT skills and a basic knowledge
• A national TV campaign was held; of the business. But agents today do not want to
• The service level was raised or lowered by a be bored; they want more qualified work. True,
certain percentage; particular skills are not required for simple work: e.g.
• A large number of untrained staff were to begin directory inquiries, brochure fulfilment or utilities
work simultaneously; meter reading. But much of this type of work is
• Yet another new media channel, such as chat, now automated by Web or voice self-service, IVR
was introduced; (Interactive Voice Response) and speech recognition.
• A major product with a rebate was offered.
The modern service operation requires more diverse,
Still today, most operational headaches are brought specific skills and a higher level of skills to satisfy
on by improperly resourcing tasks. Beyond the WFM customers; skills, such as foreign language proficiency,
solution providing crucial improvements in tactical, specific product, customer or technical knowledge
intraday management, these scenarios are invaluable and the ability to deal with multi-channel interactions.
for long-term strategic planning. This is where many With the contact center industry expanding rapidly
advanced WFM solutions are putting their focus worldwide, recruiting and retaining top staff is a
today: helping contact center managers plan their central issue and a priority for leading contact centers.
long-term strategies in areas such as budgeting and
recruiting. Rather than suffer from the limitations Demand for greater flexibility in work rules
of only being able to react to external forces, these Since it is in the nature of contact centers to offer
scenarios equip contact center manager to anticipate extended service hours, demands for flexible work
the workload and resource the operation effectively rules are usually higher than those for a regularly
before events actually occur. scheduled nine-to-five day job. Requiring that
agents are flexible to the point of interfering in their
Staffing – getting the right people for each personal lives serve no-one. This means needing to
type of interaction get the level of flexibility just right so as to minimize
Staffing involves supplying the right headcount, unwanted, costly absences and staff attrition.
ensuring that your staff possesses the right skills,
providing skills training if necessary and establishing Planning staff according to call patterns and skills
the right work rules. This is done with a view to sets results in a boost in service levels, improved
making sure you are adequately covered for the first-call resolution and makes the contact center a
next three to six months. If HR is involved in these more enjoyable place to work: important for staff

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retention. The bottom line? Accurately matching staff
to call flow is essential in achieving workforce and cost In light of the
efficiencies.
ever-growing
Scheduling – optimization critical complexity of multi-
The WFM team is solely entrusted with creating an channel interactions and
effective work schedule, often covering the next four
to twelve weeks. The schedule is based on the WFM multi-skill requirements,
team’s own contact center input. even customer service
Manually forecasting the work load and matching
centres with fewer
it up with the right staff ratio is a complex, arduous than 100 seats may
and labour-intensive task. In many contact centers
today, these processes are still slow, inaccurate and
benefit greatly from
inflexible. What do you envisage happening to the an automated WFM
level of accuracy when you add the following variables solution.
to the equation?

• Continual absences, holidays, vacation times;

• Multi-channel interactions causing a change in under-work – are the two primary reasons given for
flow patterns; agents abandoning ship. With absenteeism running
• Skills levels - i.e. foreign language proficiency, rampant at around nine per cent (Source: Merchants’
product or customer knowledge, superior written International Benchmarking Study, 2000) across
skills for e-mailing and chatting - ranging typically industries and increasing, and attrition reaching
from eight to nine and up to fifty in large, alarming rates, organizations are hit hard, paying a
geographically dispersed contact centers; fortune to recruit and train replacements – not to
• Scheduling time for the associated skills training; mention covering the losses before agents are fully
• Staff work-time preferences; competent.
• Scheduling for a multi-site contact center.
This is where a WFM solution so effectively comes
Accuracy, as you might expect, drops like a stone. into play, creating automated, optimized schedules
This understandably leads to inevitable under- or that cover queues consistently and smoothly.
over-staffing – detrimental to customers and staff, and Smoothness means that staff is evenly scheduled
draining your organization financially. throughout the interval, with the resource graph
matching the volume curve. Optimal levels of
In light of the ever-growing complexity of multi- smoothness also give individual agents a better work
channel interactions and multi-skill requirements, situation since a smooth workload – even if high – is
even customer service centers with fewer than 100 less stressful than long, idle periods interspersed with
seats may benefit greatly from an automated WFM periods of intense work, long queues and irritated
solution. customers.

Getting the balance right The line charts on the next page illustrate the
Agents are not at their most useful when waiting difference between fixed rotations (top) and a
idly by the phone. Neither are they at their most customer-service-driven schedule (bottom). Rotating
productive when stressed or over-worked. Stress rosters create unwanted over- and under-staffing
and boredom – the consequences of over-work and and inconsistent customer service levels (since these

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and abandon rates vary during the day). Scheduling Once the scheduling is completed, this is by no means
agents with individual shifts enables handling peaks a done deal. As part of a cycle, scheduling affects the
and valleys during the day, week or month, and with other processes so continuous re-scheduling must
greater service-level consistency and optimized level be done by operations as situations changes; for
of staffing. example, agents fall ill, meetings must be attended
or new impacting events are reported by other
units. Intraday management tools help team leaders
Figure 2: Line charts take control of their day, allowing making minute
adjustments at any interval.
Automated WFM solutions precisely, conveniently and
rapidly match up agent skills sets to customer needs Accurately calculating the long- term headcount
taking as well work-time preferences into account. It and effectively scheduling the appropriate skill
is not uncommon for agents to expect and be granted level to the right agent at the right time cuts down
80 per cent of their work-time preferences. tremendously on under- and over-staffing. Being
able to honour the majority of staff work-time
preferences and giving ample schedule notice makes
for heightened staff morale, diminished attrition rates
and overall improvements in the quantity and quality
of successful interactions. With a sound WFM solution
in place, contact center managers can optimize their
most valuable and most expensive resource: its staff.

But perhaps the happiest person in all this will be

the scheduler, whose time previous was consumed
by a slow, laborious, manual process, ultimately not
optimizing the valuable time of a skilled employee.

Shortcomings of spreadsheets & Erlang C tables

Contact center managers of single, voice-only
operations can still rely on experience, a spreadsheet
and a set of Erlang C tables to plan staff schedules.
Invented by a Dane in 1917, Erlang C tables are
calculations based on the number of agents needed in
a contact center with a given number of calls per hour,
a given average length of a call and an acceptable
level of delay in answering the call.

This sounds reasonable enough, yet these calculations

have major shortcomings for the modern service
operation: they can only assume a steady call rate and
a zero abandonment rate; they frequently result in
over-staffing; they only take single-skilled “standard”
agents into account; they cannot consider priority-call
schemes nor all-segmentation strategies, nor can they

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be applied when scheduling for multi-channel (e.g. must be targeted and measured, with coaching
e-mail, text and chat) interactions or where universal responsibility of achieving targets carried out by team
queuing is utilized – all typical characteristics of the leaders.
modern service operation.
Level of adherence is one of the most telling key
Operating – or intraday management performance indicators (KPIs) by which agents and
This area has many responsibilities, with WFM team leaders are measured. Operations typically
representing just one. Operations managers and conduct the follow-up here. It would be unrealistic
team leaders are vital to the WFM process as they and unfair to expect an adherence of 100 per cent
ensure that the staff follows the plan: i.e. doing the since scheduling involves human beings that are
right things at the right time in the right way. Their subject to unexpected changes.
time perspective is the here and now up to two
weeks ahead. Measures and control points must be Other examples of KPIs:
established; equally important is that they indeed • Absenteeism
enable the operation to focus on the right things. • Adherence
• Answered calls per scheduled phone/ready hour
Operations must focus on achieving the targets set for • Average after call work
adherence and average handling time (AHT), both of • Average handling time
which are discussed shortly – and report back if the • Average talk time
targets are unrealistic. From this perspective, agents • Readiness
and their managers have two main targets that are
looked at for measuring individual performance. Average handling time is the other key KPI that must
be monitored two-dimensionally by operations. AHT
Automated, intraday management tools help includes After Call Work (ACW), which is the time the
operations managers tremendously by showing in agent do not spend interacting with the customer in
clear visual format the situation at hand, which, when real time, but on related administrative tasks, such as
necessary, can be changed at the flick of a finger. e-mailing or scanning docs.
Some solutions offer stunning clarity and contrast
in their graphics, making the life of the operations Real-time adherence allows you to see exactly what is
manager that much easier. happening, alerts you to deviations from the expected
activity and enables you to make changes before
Performance analysis – adherence and problems occur. Put simply, the more you use it, the
average handling time more accurate your forecasts and schedules become.
As such, an organization can fine-tune its contact
Adherence, a critical concept in WFM, basically means center operations.
measuring the extent to which agents stick to the
schedule. In our previous definition, this translates to Organizations should look for a solution that is simple
doing the right things at the right time. Determining to understand so staff will feel at ease using it, yet
appropriate adherence levels is a key operational make sure it retains the power and functionality to
responsibility of WFM. It varies among industries and help their contact center manager understand what
organizations and depends on the mix of tasks. Once has happened or not happened, with the ability to
realistic levels have been established, adherence make changes quickly – if so required.

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Reporting – measurable view of success In view of the
and improvement needs
The WFM team has a key responsibility toward the
growing complexity
other managers involved in the previous steps; namely experienced in contact centers
to give feedback, based on all input given and indicate – impacted, for example, by
the anticipated service level.
multi-channel interactions and
Reporting is a vital stage in the workforce
multi-skill requirements – even
management process which provides the contact customer-service operations
center with a measurable view of its success with fewer than 100 seats may
in achieving targets. Key standard reports for
benefit greatly from a WFM
determining contact center efficiency include
calculations on the speed of answer, average talk time,
solution.
e-mail handling time, per cent of calls abandoned and
number of interactions waiting.

The benefit of a standard reporting process is that using WFM solutions for years. However, in the face
it allows you to glean relevant information so that of similar challenges, small and medium-sized contact
performance can be tracked and improved on all centers are jumping on the bandwagon and joining
levels – from agents and team leaders to resource them in growing numbers. What challenges or goals
planners. Furthermore, armed with statistics and are inciting them to turn to a WFM solution for help?
proof, customer satisfaction can be improved and
measured, as well as optimal standard service • Heightened skill complexity due to multi-channel
level targets set. Finally, through transparency of contact, causing scheduling headaches;
performance and fairness, staff satisfaction can be • Need to decrease employee attrition and raise
improved significantly. contact center standards;
• Need for competitiveness with enhanced
Impressive success – results from walking customer service as a competitive differentiator;
the talk • Higher service levels and the highest quality
Organizations using WFM solutions have reported service offered to best customers to impact
an average reduction in agent scheduling time by a customer loyalty and increase revenue-making
whopping 45 to 90 per cent, an increase in service opportunities, such as cross- and up-selling.
levels by 10 to 13 per cent, a decrease in payroll costs
by 10 to 13 per cent, lowered call abandon rates to 3 Nowadays, smaller contact centers have the luxury
per cent (overall call abandonment rates consistently of being able to select among easier-to-use, cost-
average seven per cent), and a reduction of overtime efficient, Cloud-based solutions that require less
hours by over 50 per cent. (Source: Gartner, “Contact training but still offer the main functionalities that
Center WFM Tools Improve Performance,” M-19-1788, help raise the bar on efficiency and effectiveness in
26 February 2003) the contact center.

WFM solutions – who are they best suited In view of the growing complexity experienced in
for? contact centers, impacted, for example, by multi-
Large customer service operations in outsourcing, channel interactions and multi-skill requirements,
financial services, travel, transport, hospitality, even customer-service operations with fewer than
telecom, utilities and retailing have been actively 100 seats may benefit greatly from a WFM solution.

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 work, the empowering aspects of, for example,
Return on investment (ROI): requesting specific shifts and holidays, and
Where and when? sensible traffic handling during peak periods.
While many organizations utilizing WFM solutions may
“feel” they’ve become more efficient, the majority • Successful implementation requires that
are unable to “prove” it. From the outset, before functional groups, such as IT, telephony and HR
implementing a WFM system, sit down with the WFM talk with each other to understand one another’s
solution provider to determine clear, measurable ROI targets.
objectives, such as:
• Decreased costs though a reduction in over- • Successfully implementing a WFM solution means
staffing; organizations need to have a clear view of how
• Revenue-building through a reduction of under- their processes work; where and when they need
staffing; to be changed. Sometimes implementing a WFM
• Enhanced agent productivity by more accurately solution reveal limitations or gaps in existing
matching agent skills to the task at hand; processes. The WFM tool is an application; not
• Reduced management costs due to rapid, the full answer to one’s problems. It can’t do the
automated scheduling; planning on its own; the initial work still needs
• Lower administrative costs by automating to be done: the better the input, the better the
processes - e.g. time-off requests; output. This, in turn, will successively reduce the
• Improved productivity with time over to identify amount of necessary fine-tuning.
skills shortages/arranging for suitable training;
• Enhanced staff morale, diminished attrition and • Getting a WFM solution up and running in no
the associated recruitment & training costs; time is easy; optimizing the business processes
• Reduced costs and increased revenue by with the tool is not. WFM isn’t just about buying
effectively handling new multi-channel in software; it is an operational philosophy about
advance; change and optimization. This is where the real
• Handling unanticipated situations rapidly and value can be found. The road to success is rarely a
effectively as “what-if” scenarios have created straight line. Be realistic about the time required
best practices; before reaping the full benefits and rewards of
• Better service levels, with a decrease in call fine-tuning.
queuing and abandonment as proof;
• More satisfied customers, stronger loyalty and • In the early stages of implementing multi-channel
greater receptiveness to cross- and up-selling. interaction or multi-skill training, factor in extra
time so that agents have time to adapt. Time
What is the average estimated time until break-even per transaction and training session successively
on initial expenditure for a WFM solution? decreases as familiarity and know-how increases.
Answer: Six to twelve months in most cases, with
some organizations reporting two to three months. • A proper amount of continuous training is
essential, as is reinforcement and testing of
the training outcome at intervals. Workforce
Tips: Circumventing common pitfalls management systems are usually very feature-
• Get buy-in from those that the solution will rich; it would be a shame if only a small
affect the most: agents. They may fear big percentage of what has been paid for is used -
brother is keeping closer tabs on them. Point out simply because training was broken off too early.
the benefits to be gained: fairer distribution of

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Summary
The importance of getting the right agent to Do not be put off by the sheer magnitude of what
respond satisfactory to a customer query cannot be these advanced solutions offer. For small and
underestimated. Seemingly simple at first glance, medium-sized organizations, there are smaller-scale,
we’ve learned successfully initiating and going through world-class, powerful solutions that are easy to
the processes involved to achieve that target is far learn and are easy to use. Whether on premise or
from easy and requires input from those who use the cloud-based, a WFM solution scalable to your needs
contact center. constitutes a considerable competitive advantage.

We’ve looked more closely at each of the six vital An ounce of prevention is worth more than a pound of
processes that make up the WFM cycle - forecasting, cure. Anything worthwhile takes time and effort. Do
staffing, scheduling, operations, performance your homework: put in the time and effort to research
analysis and reporting - and we’ve seen that going and introduce a WFM solution for your contact center
through those processes correctly, where everyone today; you’ll be reaping the benefits many times over
involved is pulling their weight and sharing input, the tomorrow and for years to come.
chances for WFM success are more than promising.
With invaluable data provided as input in the
cyclical process, WFM solutions offer an enormous
opportunity to learn from past successes and failures,
and continually improving in customer and staff
satisfaction, as well as efficiency and profitability.

Teleopti, a top, global provider of workforce management software, offers a world-class WFM solution that is sophisticated, localized
and easy to use. As the largest “best-of-breed” vendor, Teleopti focuses on helping contact centers, back offices and retail stores
improve customer service, employee satisfaction and profitability – through optimized, automated forecasting and scheduling.

Founded in 1992, Swedish-established Teleopti has customers in over 75 countries, numerous offices around the world – from Beijing
to São Paolo – and a comprehensive global network of partners. With a record of continuous net profitability for over 20 years and
with high customer satisfaction ratings, Teleopti serves as a reliable partner. Find out more: www.teleopti.com

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