Canadian Customer Contact Centre Landscape An Industry in Transition

1
Canadian Customer Contact Centre LandscapeAn
Industry in Transition

• Human Resources Study Overview
• And
• Next Steps
• September 2002

2
Presentation Outline

• Background and Structure of Study
• Study Objectives
• Sector Profile and Evolution
• Technology and Channel Trends
• Human Resources Profile, Education and Training
• Issues and Recommendations
• The Sector Council Model
• Group Discussion and Follow Up

3
Background

• CCCs represent one of the key emerging trends in
  the 21st century
• CCCs are effectively an industry with its own
• Language
• Technology
• Culture
• Despite growing impact and role in business
  today, little research on
• Size
• Demographics
• Trends
• Human resource challenges

4
Background(continued)

• However, there is an explosion in
• Number of contact centres
• Size of the centres
• Functionality and technology
• Value to their organization
• Value to Canadian economy

5
Background(continued)

• Estimated to be in excess of 14,000 contact
  centres
• Offering direct employment to over 1/2 million
  staff (FT/PT) (3.4 of employed population)
• 36 Billion annually in salaries (with an average
  yearly salary of 32,130 for CSRs)
• 37.6 Billion / 4.01 of Total Canadian Gross
  Domestic Product
• Relative to 1st position Manufacturing 169
  Billion / 18

6
Background(continued)

• CCCs clearly have 3 strengths relative to
  competition in general, but specifically to the
  United States
• 1. Workforce Quality and Availability
• high education levels
• a comparatively lower attrition rate
• a comparatively higher employment rate
• multiculturalism and language capabilities

7
Background (contd)

• 2. Infrastructure and Location Consideration
• proximity to U.S.
• technology infrastructure
• short lead time for startup
• 3. Financial Perspective
• exchange rate
• CCCs are in a strategic position to evolve and
  contribute even more substantially to the
  National / Global economy

8
Structure of Study

• Research Data Gathering
• Industry experts interviews
• CC and educational institution interviews
• Survey of establishment in Aug Sept 2001 (500)

HRDC Analysis and Need Assessment

• Terms of Reference Development
• Consultant Hire

Steering Committee Formation
Human Resources Environment Profile

• 5 Review Meetings
• Steering Committee
• HRDC
• PWC

Market Environment Profile
Education Training Environment Profile
Study Recommendations
Industry Environment Profile
Technology Environment Profile
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Study Objectives

• Provide a clear picture of the sector through
  quantitative information
• Identify key emerging market drivers
• Identify specific public policy, legislative and
  regulatory issues affecting the contact centre
  sector
• Provide a human resource profile
• Explore human resource issues of importance
  across the sector
• Provide an analysis of the flow of potential
  recruits and employees through the education and
  training system
• Forecast the likely direction for the sector in
  the future and
• Identify barriers and recommend actions to be
  taken to meet identified human resource
  challenges.

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Definition of Contact Centre(for purposes of
this Study)

• An internal or out-sourced operation largely
  based on telecommunication and data supports
  whose primary role is to provide one or many
  relationship channels for customers, clients,
  employees or suppliers. This may include inbound
  and/or outbound, person-to-person and
  self-service contact capabilities that include
  service, sales, marketing, fulfillment or data
  collection.

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CCC by Regions

• Over 50 of Canadas CCC operations are located
  in Ontario followed by Quebec at 18
• Western Canada comprises nearly 25 of all CCC
  operations compared with 7 in Atlantic Canada

Source PWC Consulting
12
Distribution by Industry Sector
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Sector Size and Composition

• CCC Overall Sector Size

Source NBI/Michael Sone Associates Inc.,
Canadian ACD/CCC Market Report, 1996 2000 /
PricewaterhouseCoopers  
14
Size of CCCs

• Agents Percentage
• 1-6 17
• 7-12 30
• 13-24 30
• 25-50 12
• 51-74 5
• 75-100 2
• 101-200 2
• 201 2
• 77 of all centres have less than 25 agents,
  still more-and-more
• companies are recognizing that one aspect of
  their operations
• is the contact centre.

15
Technology Trends
Supporting Technology Planned Implementations
2001 PriceWaterhouse Coopers
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Technology Trends
Multi-Channels are driving the need to integrate
handling scheduling of multiple media contacts

• Increased use of self-help applications creating
  complexity of inquiries in live channel
• Increased opportunities for global market suppor
• Increased opportunities for operations through
  Internet and e-mail.
• Need for each channel to have channel-specific
  performance metrics.

17
Changing Trends in Channel Management
18
Human Resource Planning

• CSRs in CRM/IMC Centres will require skills in
• Effective communication
• Technological skills
• Sales Skills
• Speak more than one language

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Recruitment Challenges

• Strategy an important element of CCCs business
  plan and must be consistent with culture, value
  and performance criteria of the organization.
• High staff turnover in sector exacerbated in
  strong economy with relatively low unemployment
• Greater pressure to find right people quickly so
  they dont get hired by other CCCs
• Costs Between 1000-2000 to recruit and select
  a CSR
• Add training and this cost can increase to
  7500-12,000 depending on position and
  responsibilities (CSR Technical Support)

20
Recruitment Process, Attracting Candidates
Differentiation

• According to Survey of Establishments
• Education Levels of CSRs hired in the last two
  years
• 43 of CSRs have post-secondary diploma or
  degree
• Inbound centres CSRs typically have higher level
  of education than outbound centres
• 43 of inbound centres report that their CSRs
  have post-secondary diploma or degree
• 28 of outbound centres report that their CSRs
  have post-secondary diploma or degree

21
Education and Training

• PARTNERSHIPS
• Many Contact Centres Partner with Colleges and
  other educational systems to provide training
• GAP ANALYSIS
• Training for CSRs is well covered off (in-house /
  institutional)
• Only a few formal management programs
• Internal management training generally not
  offered
• Few training opportunities for supervisors/coaches
  
• Technical support in several educational
  institutions but not all provinces

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Summary of Issues and Challenges Identified

• Profile / Image of Canadian Customer Contact
  Centre Industry
• despite some perceptions
• salaries and benefits are competitive . . . .
• working environment is ergonomically sound . . .
  . .
• responsibilities can be challenging and rewarding
  . . . . .
• leading edge technology is a reality . . . . .
• Rapidly changing business and customer demands
• customer expectations have increased
• technology growth and diversity is creating need
  for strategic change
• Training to meet future needs
• skills, knowledge and capabilities required of
  staff is increasing as well as shifting

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Recommendations

• 1. Establish a National CCC Sector Human
  Resources Council
• Develop a leadership role in implementing study
  recommendations
• Develop a political capacity to look after CCC
  sectors HR/training interests

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Recommendations (contd)

• 2. Develop a CCC image / marketing campaign
• Market the sector to the general public as a
  place for a career
• Market the sector internally to the CCCs

25
Recommendations (contd)

• 3. Develop a recruitment and retention strategy
• Attract people with appropriate skills knowledge
  and capability for the contact centres of the
  future
• Develop generic HR tools
• Develop a CCC career path
• Develop job descriptions

26
Recommendations (contd)

• 4. Develop a strategic partnership with
  educational institutions and other training
  providers
• Identify generic vs specialized training needs
• Develop/promote transferable skills and
  certification/diplomas
• Explore expansion of relevant training
  programs/including training for managers

27
Recommendations (contd)

• 5. Develop a strategy to produce/share
  information
• Make benchmarking and other HR related
  information available to the sector
• Identify standards for continuous improvements

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End of Part I
Questions on the Presentation or
Recommendations?
29
From a Sector Partnership to a Sector Council
Key driver in Skills Learning Agenda

• A world class workforce needs new skills to meet
  changing economic, technological and demographic
  demands
• Sector Councils have a proven track record in
  addressing the continual needs of workers
• Councils are a catalyst for collective industry
  action

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The Sector Council Model

• Definition
• An organization that provides a neutral
• decision-making forum for management and
• labour to determine human resource issues
• within a sector and to develop and implement
• a sectoral human resource strategy.

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The Sector Council Model (continued)

• Key elements of a Sector Council are
• board of directors representative of those
  involved within the sector
• board members with authority to make decisions on
  behalf of their constituency
• a specific organizational focus on human
  resources
• a commitment to continuity of engagement in
  planning and action

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The Sector Council Model (continued)
Organizational Chart
Industry Academic Labour Associations
BOARD
Executive Director
Admin. Assistant
Committees
A
B
C
E
F
G
Note Salaries of Director and Assistant funded
by HRDC
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Benefits of the Sectoral Model

• A proven track record - national network of 26
  sector councils represented by firms and workers
  in their industry
• A solid diagnostic capacity and understanding of
  industry skills issues
• A consensus approach around human resource issues
  and action
• The development of innovative approaches that
  improve workplace learning
• Improve the responsiveness of educational
  institutions to industry skills needs, and
• Promote a culture of continuous learning in our
  industry

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Relationship Between Sector Counciland
Associations
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The Sector Council Model (continued)

• A sectoral initiative supported by Human
  Resources Development Canada
• There are three phases in developing a council
• Consensus Building Activities
• Developmental Activities
• Operational Activities

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The Sector Council Model (continued)

• Phase 1 - Consensus Building Activities (today)
• communicate results of study to industry
• seek industry feedback on study findings
• seek industry input regarding follow-up
  activities
• gain support and commitment from key stakeholders
  for a sector council
• workshop structure of Council and information on
  best practices (end 2002)

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The Sector Council Model(continued)

• Phase 2 - Developmental Activities
• staff board of directors and administrative
  assistant
• develop mission and mandate statement
• develop 5 year plan
• gain industry support for organizational
  structure and business plan
• incorporate council as a legal, non-profit entity

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The Sector Council Model(continued)

• Phase 3 - Operational Activities
• implement business plan activities
• develop and implement a communication plan to
  promote awareness of the Council
• revise the business/strategic plan on an annual
  basis
• Update board / administrative structure as
  required

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Optimizing and Sustaining Performance

• Exemplary councils would require four core
  attributes for optimal performance
• Responsive (industry driven, address industry
  skills needs)
• Representative (driven by the collective interest
  of industry partners on a national basis)
• Connected (linkages that involve and influence
  the learning system, e.g. colleges)
• Results-based (sectoral activities demonstrate
  positive impact on industry skills development)

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Optimizing and Sustaining Performance

• New funding model to sustain council stability
  and performance results-based business plan
• Sustained support contingent on exemplary status
  (results assessed against business plan
  objectives)

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Examples / Initiatives Projects

• Canadian Council for Human Resources in the
  Environment Industry
• Environment Recruitment, Retention and Learning
• Canadian Automotive Repair and Service Council
  (CARS)
• Interactive Distance Learning
• Workplace Mentor/Coach Program
• Software Human Resources Council
• Mapping of the IT Labour Market

42
The Purpose of Todays Group Discussion

• To review Study recommendations
• To understand your perspective and interest in
  the creation of the CCCC Sector Council

• Follow-Up
• Summary of Meeting Results emailed to participants

43
Table Discussion

• The questions to be discussed and answered refer
  to one specific recommendation assigned to your
  table
•  Likes and dislikes on a recommendation
•  Elements to include or exclude from a
  recommendation

44
Individual Questionnaire

• To be answered by each participant and returned
  to the facilitator
• A commitment to pursue further involvement in a
  future meeting regarding sector council activities

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End of part II

• Any Questions before Group Discussion Begins?