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The Millennial call center

Tapping into the customer service

strengths of Gen Y.

TELUS International delivers customer care, BPO and IT outsourcing solutions to some of the world's largest and most respected brands. Generation Y makes up almost 80% of our workforce. Tapping into their customer service potential is critical.

Learn more: telusinternational.com

Revised 2015

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“As Gen Y applicants become comfortable in an interview, you get the sense that they can accomplish ANYTHING. I find this holds true when they’re on the floor helping customers. They’re more patient and less robotic than other generations. Our Gen Y staff are very collaborative and really care about the customer.”

Country Manager, El Salvador, TELUS International

Summary

Customer support is critical to customer loyalty and financial performance. Yet, many companies have neglected to update business processes to unleash the customer service potential of the new frontline workforce – Generation Y, also called “Millennials.” This cohort of workers between the ages of 22 and 33 years old typically makes up over 80% of customer service organizations.

Gen Y is fundamentally different from previous generations because they grew up immersed in

technology. They’re always “on” and always connecting. Growing up in this environment has resulted in a unique set of character traits, personal beliefs, life expectations and career aspirations.

At TELUS International, we recognized this demographic shift early and geared up to manage a new workforce. Through research, open communication and trial-and-error, we’ve learned that Gen Y is driven by a different set of values. We realized that we needed to adapt our business processes to Gen Y, not expect Gen Y to adapt to existing ways. While a continual work in progress, transforming several key areas of our business has led to higher employee satisfaction, better customer service and happier, satisfied clients.

What have we done? We’ve rebuilt our hiring, training and retention programs from the ground up to take advantage of Gen Y’s natural talents – and it’s paying off. TELUS International has one of the lowest attrition rates in the customer service BPO business – 50% below the industry average in some cases. Our insights on unleashing the potential of Gen Y are:

Communicate in ways that Gen Y will listen, and encourage them to contribute to the dialogue.

Give Gen Y moreflexibility and control over their daily work and long-term careers.

Transform recruitment, training and quality

management to take advantage of Gen Y’s natural abilities.

Revamp retention programs to align to Gen Y’s core values.

Clearly set expectations on career progression,

especially given Gen Y’s desire for quick advancement. We are beginning to see data that supports these preliminary insights. In Central America, the average tenure for a member of Gen Y in a call center agent role was about 13 months. But now, at TELUS International, many Millennials are staying up to seven years because they feel the workplace is designed for them.

The philosophy of investing in a generation is starting to create a win-win-win environment – for TELUS, our team members, and our customers.

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Embrace changing demographics: Gen Y (or Millennials) born 1981 - 2000

At TELUS International, the workforce transition has already happened. Nearly 80% of our team members are Millennials. They fill positions from frontline customer service representatives to

mid-management, with a few in executive positions. Our mid-management to senior leadership team is mostly Gen X, those born from 1961—1980, while only 1% of our workforce consists of Baby Boomers, those

born 1941 – 1960. This is typical in the customer service industry, where a large portion of staff are early in their careers.

Through a series of in-depth executive interviews and secondary research, we discovered that customer service organizations are more successful if they adapt to capitalize on Gen Y’s inherent skills, instead of expecting Gen Y to adapt to business processes designed for older generations.

Although we found little intergenerational tension in our contact centers, we discovered that Gen X executives perceive Gen Y’s strengths, learning styles and communication preferences to be vastly different from their own. The common explanation for the difference is Gen Y’s immersion in, and obsession with, technology.

Gen Y characteristics:

Before explaining how to revamp business processes to accommodate a new workforce, it’s important to understand how our executive team characterized Gen Y’s strengths and weaknesses:

Excellent multi-taskers. Gen Y grew up using computers, cell phones and gaming consoles. They’re confident using technology – even dependent on it. They are masters at flipping between screens to find information quickly. The net impact is strong multi-tasking skills. According to Rajiv Dhand, Head of Operations at TELUS International Philippines, “Multi-tasking skills are no longer a major hiring asset. The skill set is readily available in the market. When I walk the floor, it’s not unusual to see a Gen Y agent working with 10 open windows on their computer, while also on the phone with a customer. Millennials are natural multi-taskers.”

Shorter attention spans. The customer service leaders we interviewed see a number of

advantages in Gen Y's heavy use of digital media, but it does appear to limit their attention spans. The Internet provides heavy stimulation and puts everything at Gen Y’s fingertips. As a result, Gen Y has grown accustomed to rapid shifts in their attention where focus tends to decline after about 15 minutes. “We’ve had to completely rethink our training programs. We can’t design courses where instructors step through PowerPoint slides. We have to be more dynamic and entertaining. Otherwise, knowledge won’t transfer,” said Andrea Ibarguen, VP of Human Resources, TELUS International, Guatemala.

More collaborative and patient.When it comes to decision-making, Gen X is individualistic; they make their own decisions. Gen Y makes decisions based on consensus – usually by checking social media. Collective decisions slow down the decision-making process, but once

79% 20%

1%

TELUS International

workforce

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decisions are made – Millennials are determined. At the group level, Gen Y works very well in teams. They’re strong connectors (due to social media) and enjoy teaming up to solve complex customer service cases. This collaborative quality often enables them be more patient with customers and to deliver a positive customer experience.

Insights to unleashing the potential of Gen Y in customer service

With such a young workforce, we’ve found that focusing on the unique attributes of our Gen Y team members – and consciously treating them differently than their predecessors – pays off in helping them deliver great customer service.

Here are five key insights for unleashing the potential of Gen Y:

1. Communicate in ways that Gen Y will listen

Communication has evolved with the changing demographics. Members of Gen X traditionally managed business by email. However, Gen Y prefers communicating through texts and social media. Often Millennials won’t read long, text-heavy emails, especially if the content does not pertain specifically to them. At the same time, companies need to be careful about what they communicate to Millennials, who are often quick to share via social media

and discuss with friends.

To make corporate messages stick, and to ensure security, TELUS International is building an internal social network called T.Life that is becoming the backbone for corporate communications and many important agent activities.

The idea of building an internal social network came from agent focus groups. When the management team reached out to find new and better ways to

communicate, team members suggested social media. Since its launch in our

Central America operations, (and as it continues to roll out across the company), T.Life is becoming the go-to source for company information. Not only is it the place to “work socially,” but T.Life allows agents to see open positions, make referrals, monitor their performance, chat with management and supervisors, take surveys, provide feedback, post comments and pictures, arrange car pools — and even order coffee to their desk! Take an inside look here: http://youtu.be/OEtgkWV1oSM

2. Give Gen Y more flexibility & control

Millennials want more control and flexibility in their careers than previous generations, who were more accepting of traditional career paths. Gen Ys prefer to do things in their own timeframe. That’s why it’s important to provide more flexibility and control in the workplace. People as young as 25 years old are doing consulting and freelance work so they can have a flexible lifestyle. TELUS International has responded to this need for work to be symbiotic with lifestyle in three ways.

First, Millennials want to be included in decision-making, so it’s important to create a process to take their point-of-view into consideration. Like most companies, TELUS International had previously centralized

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critical decision-making within the leadership team. Today, the company opens decision-making

processes to frontline personnel for additional input. T.Life has become a key tool for soliciting feedback and checking the pulse of the organization.

Second, TELUS International gives agents control over their own schedules, which they manage within T.Life. In the call center world, scheduling is often a big driver of agent attrition. With Schedule Swap, agents can easily swap shifts by forwarding a request in T.Life – without approval from a supervisor. Third, TELUS International re-examined how it set performance targets for agents on an account. Setting rigid targets worked well for top performers, but the majority of agents didn’t feel like the targets were achievable. So they checked out. In a show of flexibility, supervisors and management agreed to change the process and let agents set their own six-month commitments with supervisor approval for select programs. As a result, agents are motivated because they believe they can hit the targets they set for themselves. Where possible, individual performance targets are loaded in T.Life and tracked real-time. This change has made widespread improvement in account performance. For one account, it improved Net Promoter Scores by 5% over a six-month period.

3. Transform recruitment, interviews, training & quality management processes

TELUS International is applying what it has learned about Gen Y to the full process of recruitment, interviewing, training and quality management:

Recruitment

Traditional recruiting methods like visiting University job fairs, posting in newspapers, and using HR consultants do not perform as well as the Internet. When TELUS International attends job fairs, HR managers use iPads to take applications. Millennials typically view paper-based applications as

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Best Practice: “Identify the connectors during the interview process by asking how many followers/friends they have on their social media sites. These people, or “connectors,” are generating and influencing opinion. They are able to quickly share knowledge with a broad audience. Most likely, they are also naturals at effectively communicating training information.”

Andrea Ibarguen, VP of Human Resources, Guatemala, TELUS International

antiquated, which can impact first impressions for the applicant.

Companies need to leverage Facebook, Twitter, Pinterest and other social channels as recruiting methods. TELUS International allows candidates to apply through Facebook. It’s easier than other methods and has increased applications dramatically, with our Central American operations seeing 3,000 – 5,000 resumes/month. Each online submission gets a reply typically within a business day.

Interviewing

It’s important to make Gen Y applicants feel comfortable during interviews, because they’re assessing the company as much as the company is assessing them. At TELUS International, we’ve uncovered more talented applicants by making the interview process less formal. We tend to ask more situational questions rather than traditional interview questions. One innovation we implemented was to turn “interviews” into “auditions.” Several of our interview rooms now look like theaters. This approach puts candidates at ease and helps us assess fit.

Like most customer service BPOs, TELUS International hires a lot of people. We’ve optimized our recruiting processes to cast a wide net and to make quick employment decisions. In our Central America operations, for example, applicants will know within three days of their interview if they are hired. They will also receive feedback on why or why not. This aligns to Gen Y’s strong preferences for quick and honest feedback.

Training

The new wave of agents learns and retains information differently, and they’re constantly assessing their fit with an organization. Many start by looking at who’s in the classroom – and at the culture that the trainer conveys. If they don’t feel there’s a fit, they’ll leave during a bathroom break or lunch. They simply walk out. At TELUS International, we had to adapt our culture and training program to keep Millennials in the room. We undertook a significant initiative to rebuild training from the ground up. Our most impactful changes include:

Use virtual training, technology and avatars. Interactive training keeps agents engaged and allows for a higher retention of information. Plus this training is fun – almost like a game. Millennials like flashy, fun, cool, creative, on-point training. Ideally training is like YouTube and

Facebook all wrapped into one. Our trainers incorporate video games and rich media, and encourage trainees to share knowledge. For example, training activities can include avatars that act as customers. All of these techniques have increased knowledge retention by 30-40%.

Shorten training programs. We revised training programs to focus on the 80% of what agents use, so they’re armed with needed information and are not in the classroom for weeks. We no longer flood information via PowerPoint over a 10-day class with long lectures and training sessions because agents will only retain 10%. Our trainers begin with the client supplied PowerPoint

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Best Practice: “On Induction Day, we noticed new hires were falling asleep during the tactical review. We implemented an “Amazing Race,” where new hires race around the facility to learn the location of important areas (cafeteria, security station, etc.). At each station, new hires listen to info to find clues to the next location. This program gets new hires out of their seats and working as a group.”

Oscar Gonzalez, Director of Training, Guatemala, TELUS International

presentations and PDF’s and then suggest additional means for knowledge transfer and retention.

Revise the trainer’s role. Trainers now play a different role – the trainer is a facilitator fostering peer-to-peer collaboration. In-classroom “experts” are encouraged to share what they know. Instructors guide the conversation. Trainers strive to keep sessions engaging and emphasize group vs. individual awards. Additionally, trainers demonstrate how to do something and then immediately let the class try it.

Assess comprehension throughout training. Assessments (quizzes) are short and are administered throughout training vs. a long assessment at the end of the course. Assessment results are used to true up the curriculum.

Get agents on the phone ASAP. Agents are on the phone even before training is over.

Sometimes managers get new agents on the phone with a buddy within three to four weeks. New agents only focus on certain parts of the call. This builds confidence, breaks up training, and allows trainees to retain and immediately use what they have learned.

Enhance the knowledgebase.We make information accessible to agents and use a social model to allow agents to have a say on what answers work best for a specific situation. This then determines what information goes into the knowledgebase. Every time an agent searches for an answer, he or she can rate it. The agent can make the best answer appear first the next time the question is asked. This innovation prevents the customer service team from going through multiple responses, and shifts focus to the responses that other team members felt resolved issues best.

Change the setting where training takes place. Training takes place in areas where team members enjoy spending time – in an environment that simulates where they will be taking calls. Wherever possible, we’ve revamped how the walls look to the seating to the desktops/tablets. Classes are now smaller to encourage interaction — 15 to 18 people in a training class, down from 25.

In our Central American centers, these innovations have reduced learning curves by 9-13% and reduced new hire attrition by 12%. They put agents in the right mindset to succeed on the floor.

Quality Management

In addition to ongoing training and access to knowledgebases at their fingertips, Gen Yers also want instantaneous feedback as part of their quality management assessment. It’s not unusual for a Millennial to want to know their NPS score immediately after closing a call.

At TELUS International, we’ve found that Millennials tend to take calls more casually. As a result, we revamped our coaching to emphasize the flow of the experience, not adherence to a strictly defined call

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“I was particularly amused and impressed when I overheard a Gen Y agent trying to explain to a Gen X manager why it’s worthwhile to buy virtual goods in an online world for one of our gaming clients. It makes perfect sense to Millennials to spend real money on virtual stuff, but I don’t know if it ever hit home with her manager. Who do you think will provide better service to that customer?!”

Michelle Braden, Director, Global Learning & Development, TELUS International

model. Quality processes are still the same (listening, assessments, calibration and coaching), but focus is on the quality of service, rather than metrics like average handle time (AHT). It’s a less structured approach, but better correlates with quality scores and NPS.

We also redesigned our coaching and feedback rooms to create a casual environment where Millennials are more receptive to positive and constructive feedback.

Urban themed meeting room Playground themed room Beach themed room

Revamp retention programs

Customer service organizations will only tap into the true potential of Gen Y if they provide a sense of freedom, belonging and purpose that reaches beyond metrics and compensation. This often means more flexible schedules, and managers who are respectful and considerate of work/life balance.

Sense of freedom

Given that Gen Y desires more flexibility and control in their work environment, it’s not unusual for an agent to switch from full-time to part-time. In our Central American operations, 60% - 65% of agents are studying for a degree. Of those students, 15% are enrolled in TELUS International University programs, which provide team members the chance to attend university classes onsite at subsidized costs.

Sense of belonging

Millennials crave an environment that is family-like. Millennials say family is very important in their lives, with the majority reporting that they get along great with their parents. In fact, TELUS International team members told us they wanted extended medical, life and health insurance, not just for themselves and their children, but also for their extended families. In several countries, taking care of parents is extremely important. We introduced this added coverage in most regions in 2011.

TELUS International has also designed its facilities to foster a family-like culture. Many sites have soccer fields and basketball courts. Sites continually run events that bring people together, like live music and tournaments.

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Gen Y is focused on career path, but they also want to know the purpose of their work. It’s in their nature – their willingness to help is unlike other generations. We see this in our Corporate Social Responsibility (CSR) programs where almost 100% of our team members in certain regions take part in giving back to the community. At some TELUS International sites, up to 80% of the workforce donate their time on a monthly basis. Gen Y wants to be a part of a greater cause.

New types of incentives

Motivation remains one key difference between generations. Gen X is more individualistic, while Gen Y is more collaborative and team-based. Millennials believe everyone should win, as compared to previous generations where there was always a winner and loser. For example, TELUS International set up VIP work stations for the top 10% performing agents on key accounts, but we quickly learned that agents didn’t want to be separated from their peers. We took the feedback and moved to a team reward model. Millennials also want instant recognition and feedback – good and bad. They need constant affirmation. Our Pulsecheck employee satisfaction survey revealed that Gen Y craves public recognition, so we rethought how to reward talented teams. One innovation was to build Recognition Walls, which we position in high-traffic areas to display team recognitions and highlights. Another is a program called Battle of the Sites, where agents working on the same account at different sites compete against each other. The winning team gets a BBQ or live music — a collaborative and social reward that Gen Y enjoys.

5. Set clear expectations on career path: the quandary of promoting Millennials

BPOs often unwittingly foster the misconception that Millennials will progress to leadership positions quickly. They promote agents to team-lead positions in 6 to 12 months, due to attrition and growth. Sometimes these agents/team leads are not professionally mature enough for these roles. When they don’t get promoted again quickly, these Millennials become irritated and “check out.”

In other industries, Millennials have to work years to become a team leader. The quick progression at junior levels in customer service often sets the wrong expectation and drives a sense of entitlement. The key here is to set clear expectations upfront on career paths for Millennials. A clear career path will allow them to learn and develop while focusing on the other aspects of employment that keep them engaged and motivated to stay with the company.

Conclusion

Creating a corporate culture that embraces Millennials is critical. Customer service organizations that follow these best practices have the potential to unleash the power of a generation that is naturally capable of providing high-quality customer service. During new hire training, Millennials are looking around, listening to the instructor and deciding how long they’ll stay with you. It’s not surprising if a new hire walks out of the building during a training break. The connection wasn’t made for that individual, but if you get the culture right – then the sky’s the limit!

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About TELUS International

With locations throughout North America, Central America, Asia and Europe, TELUS International delivers integrated contact center outsourcing, BPO and ITO solutions to some of the world’s top brands. Our team members are passionate about sustaining our thriving culture founded upon our value

proposition to enable customer experience innovation through spirited teamwork, agile thinking, and a caring culture that puts customers first. Visit telusinternational.com for more information.

COPYRIGHT NOTICE © 2015 TELUS International. Other company and brand, product and service names are for identification purposes only and may be trademarks or registered trademarks of their respective holders. Reproduction without permission is forbidden.

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