What is the Cost of One Second of AHT?

Answers

• Melissa McFadden Posted at 8:37AM on Sep 6, 2012

  I would generally start with FTE requirements... Given your personal volume, shrink, occupancy etc -- calculate the difference in FTE requirements based solely on AHT (1 sec may be minimal depending on your volumes - may need to use 5 sec or 10 sec increments) You can then layer in additional costs if applicable to your analysis once you have FTE difference (real-estate, team leader/management support etc)

• Jeff Palzkill Posted at 9:34AM on Oct 8, 2012

  In pure labor costs 1 second of AHT given the following parameters would be $631.87. But you have to define your paramters - In the example above I used 100,000 calls at 360 seconds AHT. That works out to about 10,000 hours of work (100,000*360)/3600 but then when you add 15% idle time for service level attainment you arrive at 11,764 hours of labor cost, and then PAID shrinkage at 25% you would need a labor cost of 15,686 hours. If the total cost of labor (SS contribution, base wage, benefits, etc.) is $14.5 per hour you arrive at a cost of $227,451. The additional second of AHT increase all of these numbers (27 direct hours, and 3 hours of idle, and 13 hours of shrinkage) which turns into the above mentioned $631. That all being said - a 1 second increase in AHT that is customer facing (i.e. talk) may not cost anything if that 1 second is used to completely answer the customer's question and insure that they don't call back. That second could conceivably reduce your overall volume.