Effects of employee turnover on service quality and customer satisfaction in contact centers

Abstract

Objectives of the study Employee turnover is a topic of interest in the Human Resource management field. The reasons for turnover have typically received more attention than the consequences it has. There is only some research regarding the effects that turnover has on service quality. The objective of this study is to explore the effects of employee turnover on service quality and customer satisfaction, especially in the contact center setting. To achieve this objective a definition of service quality for contact centers is explored and a model developed. From this model a framework of the effects of employee turnover on service quality in contact centers is formed.

Methodology A mixed-method case study was chosen as the research method of this thesis due to the complexity of employee turnover as a phenomenon and of the concept of service quality. The results of a customer satisfaction survey in the case company were compared to the seniority of the customer advisor to determine whether seniority positively affects the results s/he receives from the survey. To explore the effects turnover has beyond the results from the survey, interviews with five contact center professionals were conducted.

Key findings and conclusions A service quality model for contact centers was developed on the basis of existing literature and then extended based on the empirical findings from the study. It is suggested that service quality in contact centers consists of three dimensions - availability, substance and courtesy and communication skills. A framework of the effects of employee turnover on these quality dimensions is also developed. The effects of turnover on availability and substance are mainly negative whereas mixed effects were found on courtesy and communication skills.

It was concluded that employee turnover creates costs for contact centers and negative effects on service quality, but that there also are positive consequences from turnover. Companies in high turnover industries need to find a balance between efforts to lower employee turnover and efforts to alleviate its negative effects. Positive effects of turnover should not be overlooked, but utilized where possible.