Call center occupancy

Call center occupancy is a critical metric that measures how effectively agents utilize their working hours by balancing active customer interactions with idle time. Maintaining an optimal occupancy rate helps contact centers improve efficiency, reduce costs, and enhance both employee satisfaction and customer experience. By tracking and optimizing occupancy, businesses can ensure they are making the best use of their resources while avoiding the pitfalls of over- or underutilization.

Definition Occupancy measures the percentage of an agent’s logged-in time spent actively handling customer interactions (e.g., calls, chats) and completing after-call work, compared to their total available time, including idle periods.

Formula

To calculate occupancy, take the total time an agent spends actively working. This includes the time spent talking to customers (talk time) and the time spent wrapping up tasks after each interaction (after-call work time). 

Then, divide that active time by the agent’s total available time, which is the sum of talk time, after-call work time, and the time they spend waiting for the next interaction (idle time). 

Finally, multiply the result by 100 to express it as a percentage.

Occupancy (%) = [	Talk Time + After-Call Work Time	] * 100
	Talk Time + After-Call Work Time + Idle Time

Example calculation

Scenario:

• Agent’s Talk Time: 4 hours (240 minutes)
• Agent’s After-Call Work Time: 1 hour (60 minutes)
• Agent’s Idle Time: 1 hour (60 minutes)

Occupancy (%) = [	240 + 60	] * 100
	240 + 60 + 60

The agent’s occupancy rate is 83.33%, meaning the agent spent 83.33% of their time actively working and 16.67% idle.

The importance of measuring call center occupancy

1. Resource optimization

Occupancy helps managers understand how effectively agents are using their time. By measuring this metric, they can ensure that staffing levels are appropriately aligned with call volumes, reducing both overstaffing (wasting resources) and understaffing (leading to poor service).

2. Cost efficiency

Labor costs are among the largest expenses in a contact center. Tracking occupancy ensures that agents’ time is being used productively, maximizing the return on investment for staffing while avoiding unnecessary labor costs.

3. Service quality maintenance

High occupancy rates can indicate efficient use of resources, but excessively high rates (e.g., above 85-90%) might signal overwork, leading to agent fatigue, burnout, and errors. Measuring occupancy allows managers to strike a balance that keeps agents productive without compromising service quality.

4. Workforce management

Occupancy is a key input for workforce management tools and processes. It helps forecast call volumes, schedule shifts, and plan for peak and off-peak times, ensuring smoother operations and better customer experience.

5. Employee satisfaction and retention

Monitoring occupancy helps avoid overburdening agents by ensuring they have adequate breaks and manageable workloads. Balanced occupancy rates contribute to job satisfaction, reducing turnover and improving overall morale.

6. Customer experience

Understaffed contact centers with low occupancy rates may lead to longer customer wait times, while overstaffed ones waste resources. Measuring occupancy allows centers to balance agent workloads and ensure consistent service levels, enhancing the customer experience.

Occupancy benchmarks

Industry benchmarks for occupancy in contact centers can vary depending on the type of contact center, its size, and the services provided. However, there are general guidelines that can help managers assess whether their occupancy rates are within an optimal range:

Typical Range: 75% – 85%

Ideal benchmark: Most contact centers aim for an occupancy rate between 75% and 85%. This range indicates that agents are spending a majority of their time actively handling customer interactions (calls, chats, emails, etc.) without being overworked.

Why it’s ideal: An occupancy rate in this range balances efficiency with agent well-being, providing enough time for breaks, training, and downtime without leading to burnout or service delays.

High Occupancy (Above 85%)

Warning zone: An occupancy rate above 85% is often considered high and may indicate that agents are being overburdened. Although the center is utilizing its agents effectively, high occupancy can lead to agent fatigue, lower quality service, and higher turnover rates.

Risks: When occupancy rates are too high, agents may lack sufficient downtime, affecting both productivity and job satisfaction. It can also increase the chances of errors or customer dissatisfaction.

Low Occupancy (Below 70%)

Low Efficiency: Occupancy rates lower than 70% could signal inefficiencies in the contact center, such as overstaffing or low interaction volume. It may mean that agents are spending a lot of time idle, which could lead to wasted labor costs and underutilized resources.

Reasons for Low Occupancy: Overstaffing during quiet periods, ineffective scheduling, or lack of cross-training (agents being unable to handle other types of interactions) could contribute to low occupancy.

Improve occupancy rates in your contact center

Here’s a list to help improve occupancy in your contact center:

1. Analyze Current Occupancy Data

• Track agent occupancy regularly to identify trends and peak times.
• Segment by agent role (e.g., customer support, sales) to pinpoint areas where occupancy is too high or low.
• Review historical data to understand how staffing correlates with call volume or other interaction metrics.

2. Optimize Scheduling

• Match staffing levels with call volume forecasts to avoid over- or understaffing.
• Implement dynamic scheduling based on real-time data to adjust agent availability as needed.
• Offer flexible shift patterns to ensure optimal agent coverage during peak and off-peak times.
• Adjust breaks and lunches to minimize idle times during low-demand periods.

3. Implement Workforce Management Tools

• Use forecasting software to predict call volumes and plan staffing accordingly.
• Leverage scheduling software to manage agent schedules based on predicted demand and available agent resources.
• Monitor real-time occupancy to make instant adjustments (e.g., move agents between channels, reroute calls).

4. Cross-Train Agents

• Train agents on multiple channels (e.g., voice, email, chat, social media) to increase flexibility and reduce idle time.
• Encourage multi-tasking for agents to handle follow-up tasks or administrative work during low-volume periods.
• Develop skill-based routing to assign the most qualified agents to different types of interactions, maximizing efficiency.

5. Manage Idle Time Effectively

• Monitor idle time closely to ensure agents are not sitting idle for too long during their shifts.
• Assign productive tasks during idle times, such as training, admin work, or system maintenance.
• Incorporate performance reviews during idle periods to help agents improve skills and stay engaged.

6. Set Realistic Occupancy Targets

• Establish target occupancy rates based on industry benchmarks (e.g., 75%-85%) while avoiding overburdening agents.
• Use occupancy as a key performance indicator (KPI) to evaluate the effectiveness of your contact center operations.
• Involve agents in discussions about occupancy targets to ensure that the goals are both realistic and supportive of their work-life balance.

7. Improve First-Call Resolution (FCR)

• Focus on improving FCR rates to reduce repeat calls and keep agents engaged with new customers rather than resolving the same issues multiple times.
• Provide agents with tools and training to solve customer issues more efficiently, reducing the time they spend on follow-ups.

8. Address Overstaffing and Understaffing

• Regularly assess call volume patterns to avoid periods of overstaffing when fewer agents are needed.
• Use historical data to predict off-peak times and adjust staffing accordingly.
• Cross-train employees to handle different tasks during low-demand periods (e.g., training, process improvements).

9. Enhance Agent Engagement

• Encourage breaks and manage workload to prevent burnout during long shifts.
• Promote a healthy work environment by balancing occupancy rates and ensuring agents don’t become overwhelmed.
• Provide incentives or recognition for agents who achieve high performance with balanced occupancy.

10. Continuously Review and Adjust

• Regularly evaluate the impact of changes on occupancy and operational efficiency, ensuring continuous improvement.
• Monitor occupancy regularly and make adjustments based on changes in call volume, agent performance, and customer feedback.
• Conduct performance reviews with agents to gather feedback on workload and offer solutions for improvement.

Call center occupancy matters

Improving occupancy in your contact center is not just about maximizing agent time—it’s about finding the right balance between efficiency, cost-effectiveness, and employee well-being. 

By understanding your current occupancy rates, optimizing staffing, and leveraging the right tools, you can significantly enhance both operational productivity and the customer experience. 

Implementing the strategies and best practices outlined above will help ensure your team remains engaged, your resources are optimized, and your service levels continue to exceed expectations.