In a call center or contact center, one of the most critical aspects of efficiency is accurately determining the required number of agents. An understaffed team can lead to agent overload and burnout, increased customer Average Wait Time, and potential customer loss. On the other hand, overstaffing results in inefficient use of human resources and unnecessary expenses.
In this article, we’ll explore key concepts such as Headcount, FTE (Full-Time Equivalent), and Man-hours. You’ll learn the difference between them and how to apply these metrics correctly to calculate the optimal number of agents in a contact center. Additionally, we’ll discuss Global Bilgi’s expertise in forecasting and calculating the necessary staffing levels.
After reading this article, you will be able to:
- understand the differences between key staffing metrics in a contact center
- calculate the required number of agents independently
- optimize personnel costs
- improve the customer experience.
Ready to learn more? Let’s dive in!
What is Headcount in the Context of Call Centers and Contact Centers?
Headcount, in the context of call centers and contact centers, refers to the total number of employees currently working in the company, whether they are full-time, part-time, remote, or in-office. It’s a straightforward but essential KPI that reflects the staffing size and serves as a key element in workforce management.
Example of Calculating Headcount
If a contact center has 500 agents, 10 project managers, and 30 team leads, the Headcount for this contact center equals 540.
Why is Headcount Important for a Contact Center?
Headcount, or the total number of employees, is a fundamental indicator for effective contact center management. It directly impacts financial planning, as it determines salary expenses and other personnel-related costs. Additionally, analyzing headcount allows you to assess the productivity of each employee and the entire contact center, as well as to plan necessary staffing adjustments according to shifts in workload.
Headcount also plays a key role in ensuring high-quality customer service. Insufficient staffing can lead to agent overload, increased customer Average Wait Time, and decreased customer satisfaction. On the other hand, overstaffing can result in inefficient resource use and excess costs. Maintaining an optimal balance between the number of employees and workload is therefore essential.
What is Full-Time Equivalent (FTE) in a Contact Center?
FTE (Full-Time Equivalent) is a measure of workforce capacity that represents the equivalent of full-time employment hours over a specific period (e.g., a year) for a full-time position. FTE indicates how many full-time employees are needed to complete a specific workload.
Example of FTE in a Contact Center
Suppose you have two contact center agents:
- Agent A: Total Worked Time 20 hours per week
- Agent B: Total Worked Time also 20 hours per week.
If the Full-Time workweek in your company is 40 hours, then:
- Agent A works at 0.5 FTE (20 hours / 40 hours = 0.5);
- Agent B also works at 0.5 FTE.
Together, these two agents represent 1 FTE, meaning they complete the workload of one full-time employee.
Why is FTE Important for Contact Center?
FTE, or full-time equivalent, is a critical contact center KPI that directly impacts agent efficiency in a call center. It enables precise determination of how many full-time employees are needed to handle the entire volume of calls and inquiries.
Accurately calculating FTE helps establish optimal working conditions for agents. Additionally, FTE allows for effective scheduling, accommodating peak and low-load periods to avoid downtime and ensure uninterrupted operations in the contact center. With precise FTE calculations, more flexible work schedules can be designed, meeting individual agent needs and enhancing job satisfaction.
What are Man-Hours and Working Norm for Contact Center Agents?
A man-hour is a unit of time accounting that represents one hour of work by one person.
In the context of contact centers, whether in-house or outsourced, man-hours (or Total Worked Hours) represent the total number of hours that an individual or all agents have worked over a specific period (day, week, month). This is one of the most precise indicators of employee workload, as every hour an agent spends at their workstation is factored into this metric.
The working norm (or full-time hours) in a contact center is the established duration of the workweek for agents. This may vary based on national legislation, internal company policies, and the specific nature of contact center operations.
FTE vs. Headcount: Which is More Important?
For contact center agents, FTE (Full-Time Equivalent) is more significant than headcount because it reflects the actual volume of hours worked, not just the number of employees. Even if you have many agents (headcount), it’s essential to know how many work full-time or part-time. FTE provides a clearer picture of how effectively workforce resources are being used and how many actual resources the company has to manage customer inquiries.
How to Calculate FTE for Contact Center Agents
1. Determine the Working Norm or Full-Time Hours
Before calculating FTE for any contact center project, it’s essential to define the standard full-time working hours. Many countries regulate the workweek by law, establishing minimum daily rest periods, annual holidays, and a maximum number of weekly working hours. In the U.S., Ukraine, and most European countries, this standard is 40 hours per week.
2. Calculate FTE for an Individual Agent
FTE is calculated using the formula:
FTE = Man-hours / Working norm (Full-Time Hours)
Example of FTE Calculation:
If an agent works 30 hours per week and a full-time workweek is defined as 40 hours, then:
FTE = 30 ÷ 40 = 0,75
So, the full-time equivalent for this agent is 0.75 FTE.
3. Calculate FTE for All Agents
Suppose your contact center has three agents. Using the FTE formula above:
- agent A works 40 hours per week, equating to 1.0 FTE
- agent B works 20 hours per week, equating to 0.5 FTE
- agent C works 10 hours per week, equating to 0.25 FTE.
The total FTE for all agents is: 1.0 + 0.5 + 0.25 = 1.75 FTE.
How to Calculate the Required Number of Agents Using the Erlang Calculator?
Optimizing a contact center’s performance requires precise calculations to determine the right number of agents. The Erlang Calculator, a forecasting tool used in contact centers, helps identify the optimal number of agents needed to handle a specific call volume and achieve the desired customer service level.
What is the Erlang Calculator?
The Erlang Calculator is a mathematical tool originally developed in the early 20th century to optimize telephone systems. Today, it is widely used in contact centers to calculate the required number of agents (FTE). Based on queueing theory, the Erlang Calculator helps strike a balance between call volume and staffing levels, ensuring high-quality customer service.
Contact Center KPIs Considered by the Erlang Calculator:
- Call Volume: Average number of calls per time unit.
- Average Call Handling Time (ACHT): Time required to handle a single call.
- Service Level: Percentage of calls answered within a specific time.
- Average Wait Time: Time a customer spends in queue before reaching an agent.
Using these metrics, the Erlang Calculator determines the optimal number of FTEs needed for the contact center.
Example Calculation
If a contact center expects approximately 200 inbound calls per hour, with an average call handling time of 5 minutes, and aims for an 80/20 service level (80% of calls answered within 20 seconds), the Erlang Calculator would recommend 21 FTEs (full-time equivalent agents). This setup would likely achieve a service level of about 86.2%.
Global Bilgi’s Workforce Planning for the Contact Centre
Global Bilgi is a market leader in contact center outsourcing in Ukraine, and our competitive advantage stems from our personalized approach to every client. For each new project, we methodically collect all relevant information to anticipate workload, calculate the number of agents needed, and create a personalized strategy. This method enables us to provide high-quality customer support while also increasing the effectiveness of the contact center.
One of Global Bilgi’s significant benefits is the availability of a dedicated PRM (Planning, Reporting, and Monitoring) department. This unit is in charge of accurately anticipating workload levels for various customer segments, types of questions, and communication methods. Forecasting is a pivotal step, and our key performance indicator is to maintain a deviation from the forecast of no more than +/- 10%. This enables us to sustain a high level of operational and financial efficiency.
To accomplish these results, the PRM department employs cutting-edge models and methods for computing FTE (Full-Time Equivalent), allowing for optimal agent work planning. We also employ current WFM (Workforce Management) software to monitor agent productivity and assure service quality. This enables us to create appropriate work schedules based on the predicted dynamics of queries.
Global Bilgi has extensive expertise outsourcing contact centers for firms in a variety of industries, including telecommunications, banking, e-commerce, tourism, and automotive. Modern methods and solutions enable our clients to maintain a consistent level of customer care while also achieving their corporate objectives. If you wish to understand about the components of the pricing for Global Bilgi’s outsourcing contact center services, or get an FTE estimate for your project, please fill out the feedback form, and our specialists will contact you at your convenience.
