Why Do You Need to Outsource Customer Service Solutions to a BPO with Low Attrition Rate?

Why Do You Need to Outsource Customer Service Solutions to a BPO with Low Attrition Rate?

A blog banner by Magellan Solutions titled Why Do You Need to Outsource Customer Service Solutions to a BPO with Low Attrition Rate?

A blog banner by Magellan Solutions titled Why Do You Need to Outsource Customer Service Solutions to a BPO with Low Attrition Rate?

In searching for outsource customer service solutions, you must consider how long an agent stays in the company.

Outsource customer service solutions offer a wide range of benefits to any SMEs. It is popular for businesses that want to reduce their funds in manpower.


However, how can you fully maximize the affordability of outsourcing? Is it about the least expensive service? Or the number of services they can offer?

What is the Attrition Rate for the Past Years?


While pricing and services are important factors, you should also consider the attrition or turnover rate of the BPO company. This will give you an idea how long an agent can work for your business.


Here’s the average attrition rate of the BPO industry in the past decade:



Average Attrition Rate for the BPO Industry




























Based on the data above, 2008 had a 42% attrition since not everyone considered the BPO industry as a permanent career before. 


Younger employees aged 20-24 years old tend to stay as an agent for only an average of 1.1 years. They will leave as soon as they get the experience they need for their target career.


The rate slowly went down until in 2014 when most BPO companies lay off most of their employees due to automation. AIs are slowly replacing live operators in the call center operations.


The current turnover rate is a call for action since having unlimited manpower is useless if agents can only stay for a couple of years.


Having said that, here are some reasons why you must work with a BPO company with lower attrition rate:

Tenured Agents Become Brand Ambassadors

Agents working for you the most know your product better than the newcomers. 


Thus, they can represent it better to your customers. A well-versed agent gives better solutions to your customers’ problems.


Besides that, it is also worth noting that the more an agent gets promoted, the more likely that they’ll stay longer with the company. 


Here’s the attrition rate of an employee according to their job position:


  • Entry-level – 27%
  • Intermediate agents – 20%
  • Senior agents – 12%
  • Team leads – 11%
  • Supervisors – 7%
  • Managers – 6%


With this knowledge and expertise in your company, customer service employees will become brand ambassadors for your company. 


Hence, they can provide a better service quality for your consumers. It is important as consumers are willing to spend 17% more if the company has an excellent service.

More Efficient and Productive Agents

A call center company with a high attrition rate will experience an inevitable disruption of their productivity. 


Some employees may find themselves working on several workloads while waiting for a replacement. As a result, it may affect the efficiency of your business..


Meanwhile, retaining experienced people will give a positive impact on your customer satisfaction rate. They will help a lot in improving all the metrics you need.


One KPI that they can greatly influence is your first call resolution (FCR). The ideal FCR for a call center company is 74%. Imagine how many calls they can solve during the first call with all the experience they have from years of working.


One reason why new agents have lower FCR rate is because they tend to hasten the conversation with your customers. 


But, this shouldn’t be the case as 95% of customers prefer slower phone conversations if it means the quality of service is higher.

Have a Better Relationship with Customers

Employees committed to their job provide a positive and more upbeat customer service experience. 


As a result, it provides a better relationship between your business and consumers. A more engaged customer has a higher chance to buy from your company. 


Moreover, 48% of customers expect specialized treatment for being good customers. It is great for a tenured employee who knows how to treat different customers in various situations. 


Unlike newly hired agents that are still finding their technique in interacting with prospect buyers. They may sound awkward while talking with them. Thus, customers will abandon the phone call and look for another company.


More importantly, a positive customer service experience produces a lot of loyal customers. It is important as loyal customers spend 67% more than new customers. 


Some loyal customers also have a tendency to look for the person they’ve talked to before purchasing again. They feel comfortable giving their information to an agent they trust. 


So, it is not possible if you are regularly changing your employees.

Better Retention in Customer Service Solutions

Speaking of customer retention, consumers can easily remember you if they have a very convenient conversation with your agents. 


A business with more than 50% committed employees has an 80% chance to retain all their customers. 


Meaning you no longer need to launch any marketing campaign to introduce your product to new customers. All you need to do is to provide great customer service for your existing clients.


This is because  83% of consumers are willing to refer your company to their friends after a positive experience. With this in mind, people are 4 times more likely to buy from a company referred to them.


On top of that, increasing your customer retention rate by only 5% can increase your profit from 25% to 95%. Imagine how much you can gain if you retain more than half of your clients.


Now, a tenured employee can definitely make it happen for your business. They have the proper skill set to persuade your customers to refer you to others. 


Employees who worked longer with the company could provide tips about your product which is valuable for first time customers.

Less Expenses for Hiring and Training New Agents for Your Outsource Customer Service Solutions

Hiring and training process takes time for newly hired agents. You need to make sure that they’re ready during live calls.


However, you need to invest a lot of money in order to replace your agents. You normally have to spend 30% of the annual salary of the agent for their training.


So, while having trouble managing tons of workload, you still have to spend a couple of thousands of dollars for an agent that has no guarantee if they will stay longer.


Furthermore, the return of investment is not instant as well. After an estimated 45 days in the hiring process, you need to spend another 45 – 60 days for onboarding and training of the agent.

Then, it might take another 3 months before they become proficient and begin to have a value for your company.


So if your agent has a salary of $7,000, then you’re already spending almost $21,000 for 3 months before getting what you paid for.


As you can see, it is not really convenient for a start-up business to partner up with BPO that has a high attrition rate. It will only hinder your company from progressing.


Attributes of Customer Service Outsourcing Companies That Will Keep Their Employees Longer

When looking for a BPO partner, you should consider to look at this characteristics to ensure employees will work for your business longer:



  • Strong Company Culture. – The BPO company should’ve had a great work-life balance for their employees. It lessens the stress for agents and they will enjoy more what they’re doing.


  • Performance Based Rewards. – It allows agents to work hard. As a result, it increases their productivity knowing that all their efforts are well documented.
  • Uncompromising Recruitment Process. – Some employees leave because they feel that they’re not a right fit for the organization. You can avoid this circumstance by having a BPO partner that has strict regulations when hiring agents.
  • Better Career Growth. – Agents will leave your company if they feel stuck with their position. Your third-party outsourcing provider should provide a fast promotion to agents that provide a great performance for your company.
  • Proper Tools for Operation. – You need to assess if the call center organization provides the best tools and software or if agents compromise quality due to subpar devices. Employees might feel uncomfortable working with outdated devices and slower computers.



How to Know Which Outsourcing Customer Support Services Provider You Should Trust?

Looking for a BPO company that you can trust is not an easy task. Especially if you’re considering to partner up for a long period of time.


You need to consider several things before deciding which provider works perfectly for you.


The first thing you need to know is what kind of service you want, is it an inbound or outbound call center? There are some BPO organizations that specialize in just one aspect of call center.


So, if you need to have multiple BPO services then you must look for a company that offers flexible outsourcing assistance. This will save you time looking for another company for your other BPO needs.


Another thing to consider is the place where you want to outsource. Of course India and Philippines are your usual destination when outsourcing.


However, outsourcing to India has its risks. There are multiple reports now of data leakage because of inferior data security. 


Despite the fact that they have advanced software in the information technology sector.


Meanwhile, the Philippines is one of the fastest growing BPO destinations. 


In fact, they are the “Call Center Capital of the World” because of the sheer number of companies outsourcing.


One of the best features of the Philippines call center is their agents. They have one of the most skilled employees in terms of customer service.


They are also one of the best English speaking people in Asia.


And finally, there are some companies that like to outsource onshore. These are the BPO service providers that operate inside the USA. Although these services are much more expensive compared to offshore outsourcing.


But, there are some offshore BPO companies that have their offices in USA. This allows businesses to connect with an American administrator while operating outside the country.

Customer Service Outsource in USA that Provides Assistance for SMEs

Magellan Solutions is the best customer service outsourcing provider for SMEs. We have more than 17 years of experience assisting small businesses from different industries.


Besides that, we also ensure tenured agents work for your company. If not, we will provide you with newly hired agents that undergo a strict hiring process. We have one of the best attrition rates in the BPO industry at 18.5%.


Although Magellan Solutions main headquarters is in the Philippines, we also have facilities in the USA. You can visit our offices in Brisbane, California or Melbourne, Florida. Just call or email us to arrange your visit. 


We are an ISO certified BPO company that strictly follows a high standard of service from recruitment to on-boarding process. 


Besides that, we guarantee a fortified protection for your data. Our tech support team has different security protocols to prevent online breaching.


Our Business Developers can help you in setting up your key performance indicators (KPI). KPIs will guide you and monitor the progress of your business with us.


We also offer guaranteed flexible pricing options based on several factors like service and number of agents you need. Magellan Solutions understands that start-up businesses have limited funds in outsourcing services.


Contact us today and get a free 60-minute business consultation. Please fill out the contact form below.


Contact us today for more information.