• Login
  • Status
  • Support
  • Partners
  • Pricing
  • Careers
  • ENLanguages
    • English
    • Deutsch
    • Français
    • 日本
    • 简体中文
    • العربية
    • 한국
    • Español
Customer Experience (CX) AI Platform
  • Customer Experience (CX) AI Platform×
  • Platform

      CXone Mpower Platform

      • Platform Overview

        Complete AI platform for customer service automation

      • Enlighten AI

        Powering smarter CX with AI-driven insights and automation.

      • Cloud Architecture

        Innovative cloud-native foundation to rapidly scale extraordinary CX

      • Voice as a Service (VaaS)

        Crystal-clear, scalable voice interactions for effortless interactions

      • Dashboards & Reporting

        Gain a full operational picture of your contact center, with enhanced visualization of real-time and historical insights

      • Integrations

        Seamlessly connect your business systems with our platform

      • Trust & Compliance

        Securing your trust with every interaction

      Discover the full value of AI in customer service

      Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

      Calculate your savings

    • Products
      • Explore all Products

      • Capabilities

      • Workflow Orchestration

        Workflow Orchestration

        Evolve from interaction management to workflow orchestration across the entire organization.

        Learn more

        • Omnichannel Routing

          Reduce wait times and boost conversions with smart customer-agent matching.

        • Proactive Engagement

          Generate more revenue, minimize hang-ups, and proactively connect to reduce friction.

        • AI Orchestrator

          Unify and optimize every customer service workflow from intent to fulfillment.

        • Agent Desktop Workspace

          Connect front and back office teams with data, conversations, and workflows together in one place.

      • Workforce Augmentation

        Workforce Augmentation

        Move beyond tools to empower employees with real-time, actionable intelligence that elevates performance.

        Learn more

        • Specialized AI Copilots

          Elevate human performance with specialized AI copilots for every role.

        • Workforce Engagement Management

          Elevate employees, adapt to flexible work, and meet expectations - without compromise.

        • Automated Notetaking

          Instantly summarize interactions to accelerate resolution times and efficiency.

        • Voice of the Customer

          Unlock customer insights to enhance experiences, drive loyalty, and boost business growth.

        • Interaction Analytics

          Gain AI-powered insights from 100% of interactions to drive continuous improvement.

      • Service Automation

        Service Automation

        Go beyond answering questions to fully automate customer intent through fulfillment.

        View Products

        • Intelligent Virtual Agent

          Boost self-service satisfaction and conversion with conversational AI agents.

        • Experience Optimization (XO)

          Synthesize real customer conversations to identify your top automation opportunities.

        • AI Agents

          Instantly create no-code AI agents powered by your data—build once, deploy everywhere.

        • Proactive AI Agent

          Keep customers engaged in conversation from onboarding to installation, service, and retention.

        • Knowledge Management

          Activate AI-powered enterprise knowledge to increase self-resolution rates and loyalty.


      • Solutions

      • By Industry

        By Industry

        • BPO

          Business Process Outsourcers

        • Financial Services

          Customer experiences that count

        • Government

          Elevate citizen trust

        • Healthcare

          Healthy patient experiences

        • Insurance

          Secure policyholder experiences

        • Retail

          Delight customers where they shop

        • Telecom

          CX for Telecommunications

        • Travel & Hospitality

          Boost traveler and guest loyalty

        Discover the full value of AI in customer service

        Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

        Calculate your savings

      • By Business Initiative

        By Business Initiative

        • Grow Revenue

          Boost conversions and win rates to accelerate growth

        • Engage & Empower Employees

          Create a workplace of truly engaged employees

        • Boost Customer Loyalty

          Improve customer loyalty on interactions across the journey

        • Drive Digital Transformation

          Integrate digital technology at the center of CX

        • Small and Medium Business

          Drive growth and boost revenue with smarter, cost-effective customer service built for SMBs.

        • Call Center Software

          Empower agents to provide better experiences

        • Increase Operational Efficiency

          Leverage AI and automation to increase agent retention

        • Move to the Cloud

          Elevate experiences by moving operations to the cloud

        • Improve Compliance

          Protect your consumers with pre-built compliance solutions

        • Proactive Customer Engagement

          Elevate customer satisfaction with proactive conversational AI

      • Integrations & Custom Solutions

        Integrations & Custom Solutions

        • CXexchange Marketplace

          Discover partner solutions to extend capabilities on our platform

        • Pre-Built Integrations

          Seamlessly connect your business systems with our platform

        • Developer Tools & APIs

          Endless customization options with RESTful APIs and robust SDKs

        • Partner Ecosystem

          Embark on a journey of shared success and collaboration

        91% of customers recommend NiCE as a preferred CCaaS vendor

        Gartner® named NiCE the only Customers’ Choice CCaaS vendor in its 2024 Peer Insights™ “Voice of the Customer for Contact Center as a Service” report.

        Get report


      • View All Products
    • Services
      • Explore all Services

      Professional Services

      • Professional Services

        Industry-leading expertise, tools and know-how

      • Implementation Partners

        NICE-certified implementation partners

      • Business Consulting

        Your partner for successful transformation

      Training

      • Contact Center Training

        Tailored education delivered by CX experts

      Support & Assistance

      • Customer Support

        Global support you can depend on

      Make the smartest buying decision with the latest Gartner analysis

      NiCE has been named a Gartner® Magic Quadrant™ Leader for Contact Center as a Service for the 10th consecutive year and is positioned furthest on Completeness of Vision.

      Get report

    • Resources

        Knowledge Base

        • All Resources

          Whitepapers, datasheets, demos and more

        • Analyst Perspectives

          Contact center reports from third party analysis

        • Terms Glossary

          Detailed descriptions of industry-related terms

        • FAQs

          Contact center focused frequently asked questions

        • Guides

          Expert insights for superior CX

        Learning & Insights

        • On-Demand Webinars

          Browse our extensive webinar catalog

        • Interactive Product Tours

          Explore the complete platform with our self-guided demos

        • Blog

          CX industry guidance by contact center experts

        • Why NiCE? Video Series

          Step Inside The Room Where It Happened to see CX AI in action

        • NiCE & Simple: Video Demo Series

          Brilliant, bite-sized videos from our top product pros

        Community

        • Events

          Upcoming events and webinars

        • Customer Stories

          Our customer's success is paramount. Read case studies about real CX transformation

        • NiCE Clubs

          Collaborate, learn, and share best practices for customer service excellence

        Discover the full value of AI in customer service

        Understand the benefits and cost savings you can achieve by embracing AI, from automation to augmentation.

        Calculate your savings

      • Company

          Company

          • About Us

            Powering seamless cloud experiences

          • Investors

            Investors relations, reports and filings

          • Global Offices

            Interactive map of locations worldwide

          • Careers

            View job openings and learn about our culture

          • NiCE Leadership

            Meet our global leadership and executive team

          News & Media

          • Events

            Upcoming events and webinars

          • Press Releases

            Find the latest updates from NiCE

          • Media Center

            Media contacts and resources

          Corporate Governance

          • NiCE Trust Center

            Securing your trust with every interaction

          • Market Leadership

            Discover why NiCE is the market leader

          • Corporate Responsibility

            In a world where you can be anything, be NiCE

          Make the smartest buying decision with the latest Gartner analysis

          NiCE has been named a Gartner® Magic Quadrant™ Leader for Contact Center as a Service for the 10th consecutive year and is positioned furthest on Completeness of Vision.

          Get report

          • ENLanguages
            • English
            • Deutsch
            • Français
            • 日本
            • 简体中文
            • العربية
            • 한국
            • Español
          • Get Started
            • Login
            • Status
            • Support
            • Partners
            • Pricing
            • Careers

          Company

          • About Us
          • Careers
          • Global Leadership
          • Media Center
          • Investors
          • Awards
          • Global Office Locations
          • Contact Us
          • CCaaS
          • Customer Experience
          • NiCE Public Safety
          • NiCE Actimize
          • NiCE RPA

          Partners

          • NiCE Partners Overview
          • Developer Partners (DEVone)
          • CXone Mpower Partner Portal
          • NiCE Help Partner Portal
          • NiCE User Group

          Customer Support

          • Customer Support Overview
          • CXone Mpower Support Login
          • NiCE Customer Support
          © 2025 NiCE
          • Terms of Use
          • Site Map
          • Privacy Policy
          • Legal
          • Cookies Settings
          • Accessibility

          Stay Connected

          © 2025 NiCE
          The ROI of Adding Contact Center Performance Management to Your Agent Retention Strategy

          The ROI of Adding Contact Center Performance Management to your Agent Retention Strategy

          by Ashlee Hinds
          February 11, 2021
          Share

          Do you ever feel like you’re running a cost center rather than a contact center? Without performance management you may be experiencing high attrition rates and training costs, or low productivity and engagement rates, which can make the contact center feel like a necessary evil – rather than the true value-added function it is.

          I’m here to tell you that it does not have to be that way! Contact centers can play a powerful role in improving customer experience, as well as increasing brand loyalty and revenue. And frontline agents can feed invaluable insights to other areas of your organization. However, your contact center may continue to drain your finances if you do not understand the causes of your agent turnover and allocate the money necessary to improve it.

          So, let’s start with breaking down typical contact center expenses

          In the contact center, expenses usually fall under three categories: technology, admin, and labor.

          Technology is usually about 15 to 20 percent of annual contact center expenses. It consists of things like:

          • Automatic Contact Distributor (ACD)
          • Interactive Voice Response (IVR)
          • Quality Management (QM) software
          • Performance Management software
          • Human Resources (HR) software
          • Accounting systems
          • Customer Relationship Management (CRM) software
          • Workforce Management (WFM) software
          • Network considerations
          • And any other technology you use!

           Admin is usually about 15 to 20 percent of a contact center’s annual expenses. It consists of items like:

          • Rent/Utilities
          • Depreciation of equipment
          • Insurance
          • Office supplies
          • Corporate wages
          • Etc.

          Labor is usually about 60 to 70 percent of a contact center’s annual cost, and consists of:

          • Agent wages
          • Supervisor wages
          • Training
          • Attrition
          • Rewards and recognition

          Now that we’ve broken costs down, it’s obvious that the majority of your money is spent in the “Labor” category. So ask yourself this: Are you allocating 60 to 70 percent of your time and energy to get the most out of this labor investment?

          If the answer is “no” then labor and attrition costs could be sabotaging your contact center culturally and financially. And you aren’t the only one — according to Daily Pay, the average yearly attrition rate for agents in US contact centers range between 30 to 45% which is more than double the average for all occupations in the US!

          Business Person Walking Out with Exit Sign on Wall

          So, what contributes to high attrition?

          • Low agent engagement
          • Low job satisfaction
          • Non-challenging work
          • Low compensation
          • Limited or no recognition
          • Inflexible work environment
          • Lack of opportunity for growth

          What are the consequences of high attrition?

          High Costs

          According to McKinsey & Company 2020 research, “attrition costs organizations as much as $10,000 to $20,000 per contact center agent depending on an organization’s geography, employee tenure, and the level of training required for the position.” Costs associated with attrition are recruitment, hiring, training time and materials, trainer/supervisor costs, period of poor service levels, missed business and more.

          Lack of Frontline Experience & Knowledge

          High attrition means less tenured employees, which can be problematic considering that consumers rank lack of agent knowledge as a top frustration when dealing with contact centers. So it’s in your best interest to be deliberate about reducing agent churn to ensure you have more knowledgeable agents available for customers. But how do you do that? By improving agent satisfaction. According to ICMI, having happier and more tenured agents reduces customer churn, improves net promoter scores, strengthens company brand and helps company growth.

          Unhappy Customers

          If your contact center claims to be “customer-centric,” you should make sure it is “employee centric” first. Organizations that keep service agents on the job longer not only reduce operating costs but also improve customer satisfaction (McKinsey & Company 2020). It’s necessary to give your employees proper training, coaching, knowledge, recognition and access to performance data. If not, it will be nearly impossible to retain your agents and give your customers the high quality interactions they expect.

          Poor Company Culture

          Agent turnover has a domino effect. When employees are constantly cycling in and out, it is detrimental to a company’s culture, which leads to low productivity and engagement rates – and ultimately contributes to even more turnover. A positive company culture is linked to improved employee engagement, increased productivity, and higher profit margins (Built In, 2019).

          What retention strategies should you consider?

          Invest in a performance Management software

          Performance management software keeps agents engaged, challenged and competent. Software like CXone Performance Management aggregates and visualizes data on role-based dashboards to keep everyone accountable, invested in contact center performance, and in-line with performance goals.  

          The dashboards highlight KPIs important to each person in the company hierarchy. By giving agents their own dashboards, they can receive personalized performance tracking and feedback. Gamification motivates agents to improve behavior – while having fun – and provides recognition through incentivized rewards that align with the KPIs most important to their organization.

          Performance Management can boost company moral and decrease turnover. 

          Offer flexible or remote work options

          Benefits like remote work or flex-time can lead to increased retention rates. A 2019 Stanford University study among 500 people who worked remotely and in a conventional workplace found that there was a 50% decrease in attrition compared to those who worked remote (.  However, you cannot send agents home with a computer and hope they stay with your company forever. They need technology that allows them to communicate with leadership and co-workers, monitor performance in real-time, and be recognized and rewarded.

          Implement a rewards and recognition program with automated gamification

          According to a 2019 ICMI study, the number one factor that contributes to agent satisfaction is a rewards and recognition program. Recognition can come in the form of an extra break, shout-out on social media, thank you note, virtual currency, or a name on a Wallboard. Keep in mind, it is important to have a clearly defined recognition program so that employees can know what to expect and get excited! We’d recommend a solution like - like CXone Performance Management - that automates games, payouts and everything in between.

          Rewards and Recognition are Key for Agent Engagement

          Find out WebHelp uses CXone Performance Management and Gamification to improve productivity here.

          Coaching/Mentoring Strategy

          Employees need to feel like someone cares about their success and growth. Giving them a mentor or coach is critical to developing long-lasting employees. According to McKinsey & Company, “real impact comes from supervisors who take the time to provide meaningful coaching, give recognition, and consistently act as a role model.”

          Return on Investment (ROI) of Performance Management as part of a comprehensive agent retention strategy

          Too many organizations look at the above retention strategies as expenses, but they are minor investments compared to the high cost of attrition. After all, an investment is a purchase that is made to pursue future wealth!

          CXone Performance Management will enable you to implement all the above retention strategies and still save you nearly five times more than what it costs!

          How? Well, think of it this way. Let’s say…

          • You have 100 Agents
          • Paid at $13.00 an Hour
          • A 75% Productivity Rate
          • A 30% Attrition Rate

          And CXone Performance Management helps you increase your productivity rate to 80% (a very common improvement), and drop your attrition rate to 25% (also a very common improvement) you would see:

          • About $141,960 increase in annual productivity savings with 10,920 more productive hours
          • About $141,523 increase in annual attrition savings
          • And a net ROI of about $229,483

          Plus, happier agents, better reporting, less stressed supervisors, and more time to spend strategizing to drive the needle!

          If it seems too good to be true, you can learn more about how Vera Bradley experienced a 10% reduction in agent attrition and 15% increase in agent engagement with CXone Performance Management and gamification here.

          The benefits of a solution like CXone Performance Management far outweigh the cost. See how  you can improve productivity and attrition rates with CXone Performance Management and gamification.

          About the Author

          Ashlee Hinds

          See All Blogs

          Follow Us

          Follow us to get the latest news from your preferred Social Network

          linkedinlinkedinlinkedinlinkedin

          Popular Posts

          NiCE TV’s Top 10: Bold conversations reimagining the future of service

          July 29, 2025

          NiCE TV’s Top 10: Bold conversations reimagining the future of service

          Read

          July 21, 2025

          25 moments that made Interactions 2025 a NiCEr world

          Read

          July 18, 2025

          A supervisor’s story: Where trust meets oversight to create a high-performance world

          Read
          Asian call center agent

          July 8, 2025

          Service reimagined: AI creating dynamic end-to-end possibilities for a thriving contact center

          Read
          5 reasons why AI without memory is just guesswork

          July 2, 2025

          AI that forgets isn’t worth paying for: 5 reasons memory is key to AI-powered experiences

          Read

          More from the blog

          NiCE TV’s Top 10: Bold conversations reimagining the future of service
          AI

          NiCE TV’s Top 10: Bold conversations reimagining the future of service

          From strategy to scale, hear what the world’s CX leaders have to say about amplifying human connection with AI and automation.

          July 29, 2025

          AI

          25 moments that made Interactions 2025 a NiCEr world

          From the electric energy of Las Vegas to an iconic rugby stadium in the heart of London’s tech hub, NiCE Interactions 2025 brought together thousands of CX leaders across continents.

          July 21, 2025

          Call Center Best Practices

          A supervisor’s story: Where trust meets oversight to create a high-performance world

          In a seamless contact center, your supervisors are the key to everything. Supervisors show up there every day to support their teams – to manage, coach, guide, motivate, and when necessary, steer through chaos.

          July 18, 2025