Sun. Nov 10th, 2024

Occupancy and Utilization formula in bpo

The call center industry relies heavily on manpower and agents. Measuring how productive these employees are is important to run a profitable business. If you don’t track their productivity, it could lead to financial losses and significantly impact the overall efficiency of the call center.

In Call Center, two major performance indicators (KPIs) used to gauge call center reps’ productivity are Occupancy and Utilization.

In this blog today we will discuss in detail both KPIs and will also learn how to calculate both

Occupancy and Utilization formula in BPO
Occupancy and Utilization Formula in BPO

Without further ado let’s start with the topic “Occupancy and Utilization Formula in BPO”

Occupancy and Utilization Formula in BPO

Let’s first understand what is Occupancy in BPO.

What is Occupancy in BPO?

Occupancy as the name refers is a measure of how efficiently an agent is occupied. Occupancy is one of the primary KPIs in the Call Center. High Occupancy means agents are highly efficient, while low occupancy indicates agents are underutilized.

Occupancy plays a significant role in calculating an agent’s actual productivity on the floor

In summary, we can define Occupancy in BPO as  :

“The percentage of time agents spend on calls or related tasks, reflecting how efficiently their work hours are utilized”

High occupancy can increase productivity, but pressuring agents to maintain high occupancy without justification can have serious consequences.

Read the full article on: What is utilization in Call Center?

What is Utilization in BPO?

Now let’s understand Utilization in BPO. While Occupancy and Utilization might seem similar and are sometimes used as if they mean the same thing, they have some important differences. We will talk more about these differences later in the article.

Utilization in the Call Center is the amount of time an agent spends on the system during the entire day handling calls/ chats (including idle sessions). In short :

“Utilization in a BPO refers to how much of an agent’s working time is spent on tasks like handling calls and assisting customers.”

Let’s understand 5  major disadvantages of High occupancy/ utilization  in the Call Center :

  1. Increase agent fatigue and stress.
  2. Poor Call /Chat quality.
  3. High Agent dissatisfaction
  4. High Attrition rate.
  5. Reduce the Overall productivity of the Call Center.

In the next segment, we will understand the difference between Occupancy and Utilization through some key parameters.

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Difference between Occupancy and Utilization in BPO

In Call Center Occupancy and Utilization both the metrics are used to measure the efficiency and productivity of the call center. Now let’s understand the difference between Occupancy and Utilization in 3 parameters:

  1. Definition 
  2. Example 
  3. Scope 

Let’s understand Occupancy First

Occupancy: Definition, Example, Scope

1. Definition:

As mentioned above Occupancy refers to the percentage of time that agents are actively handling calls or other tasks divided by their total logged-in time.

2. Example :

let’s understand it with an example ;

Rakesh ( a Call Center rep) logged in at 9 AM and logged off at 6 PM. Rakesh logged in for 9 hours out of which 1 hour break. Out of the total 8 hours ( 480 mins ) of productive timings, Rakesh spent 6 hours ( 360 minutes ) on handing chats and tagging (AHT). So the occupancy rate of Rakesh is : (360/ 480) *100 = 75%

3. Scope :

The main reason for Occupancy Calculation is to figure out how busy agents are during their working hours.

Also Read: What are call center key performance indicators 

Utilization: Definition, Example, Scope

1. Definition:

Utilization measures the percentage of time that agents are productive (handling calls or tasks) out of their total available working time including breaks, idle or training sessions, etc.

Utilization rate is simply the Occupancy + nonproductive hours ( Break, idle, training, etc.).

2. Example :

Let’s understand Utilization with an example ;

In the above Occupancy example, if Rakesh ( a call center rep ) took 6 hours (360 mins) to handle calls, and if he takes more than 1 hour (60 mins) for break time and 30 mins for a training session then the utilization rate would be :

((360+60+30)/480))*100 =93%

3. Scope :

Utilization helps identify how effectively the workforce is being used overall, including times when agents are not actively handling calls or chats.

Now move to the main topic : Occupancy and Utilization formula in BPO

Occupancy and Utilization Formula in BPO

The formula for Calculation Occupancy is as follows:

( Time Spent on Calls / Total Logged-in Time) *100 

The formula for Calculation Utilization is as follows:

( Time Spent on Calls + Nonproductive Tasks (break, idle, training etc.)/ Total Logged-in Time) *100 

Conclusion:

Although occupancy and utilization may appear similar, each metric has its benefits and areas of focus. Understanding both metrics is crucial for successful and productive manpower planning.

It’s time for some FAQs now :

FAQs:

Q1 . What are occupancy and utilization in BPO?

A1: Occupancy is the total time spent by a call center rep to handle the calls out of the total time he logged in, while Utilization is the overall time spent by the agent out of the total logged-in time including breaks, training, etc.

Q2 .What is the KPI dashboard for the call center?

A2 . The KPI dashboard is a one-view report which summarizes the call center performance via different  Key Performance Indicators

Q3 . What are the KPI and KRA in BPO?

A3. KPIs in BPO are key performance metrics that show the call center performance however KRAs or Key responsibility areas are set of goals to accomplish a specific job

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I hope this article on ” Occupancy and Utilization Formula in BPO?” has cleared all your doubts related to Occupancy and Utilization in BPO

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