Ready for Healthcare: BPO Positions Itself for Growth with Estimated Net Savings of $4.5M Per Year
When a business process outsourcing (BPO) company wanted to break into the healthcare market, executives called on EPIC Connections to carry out their transformation. Implementing best practices in recruiting/training, performance governance, and organizational effectiveness, the BPO gained $4.5M in annual savings and a partner to help secure their first healthcare client.
Situation: Expand into Healthcare to Reduce Risk
A business process outsourcing (BPO) company and contact center provider was looking for ways to break into the healthcare market. The company was well established in the travel and hospitality industry providing sales services to major hotel chains, but the nature of the work was very cyclical. To manage recurring business risks and take advantage of local healthcare market opportunities, executives had a vision to diversify into member care and widen their client portfolio. But first, they needed to prepare the company for the strategic shift. So, they went searching for a transformation partner to help them define the needed change, manage the transition, and position the company for growth.
EPIC Connections had helped three other BPO clients branch into new industries, empowering its contact center veterans to come to the table with success stories as well as a proven expansion proposal. Ultimately, EPIC was hired not just to evaluate the current state of readiness and design a plan, but also to partner with the company, carrying out a transformation that would make them ready for healthcare.
Solution: Optimized Talent & Management Systems
Using EPIC’s RapidCheck Assessment service, the team completed a situation evaluation in less than 2.5 weeks, interviewing 45 employees across eight departments, identifying 35 potential process gaps, refining 15 different hypotheses, and outlining 25 recommendations to enable immediate progress and future growth. EPIC implemented the solution:
|Root Cause Challenge||Implemented Solution & Benefit|
|350% Attrition Rates Increased Costs by $9K per Person: Inconsistent hiring processes and insufficient training practices resulted in high agent attrition. Recruiters needed to be more selective and better align business needs to applications. Trainers needed training and tools to increase effectiveness.||
Hiring and Training Excellence
|Lack of Quality & Performance Governance: Outside of compliance monitoring, there was little focus on quality and performance management. Data existed but there was no clear process to turn it into insight. HIPAA compliance was a future concern.||
Effective Performance Management
|Top-Heavy with Supervisors: With effective training and coaching, the ratio of supervisors to agents was too high. The need to reallocate resources was evident.||Organizational Effectiveness An assessment of all existing employee skillsets enabled a workforce optimization plan. A new organizational chart instilled best practices, identified those fit for member services, and put talent in the right roles for improved service.|
Result: Transforming for Growth with $4.5M Savings
With highly qualified new agents undergoing effective training programs and a leaner leadership team making data-driven decisions around service quality and performance management, the BPO recognized recruiting agility and operational excellence that enhanced the employee experience and drove higher retention.
Based on information provided during the assessment, EPIC estimates the client results as follows:
- Annual Net Savings: $4.5M in payroll expense savings, attrition reduction savings, training efficiencies, and a $2.4M revenue boost from sales
- Attrition Reduction: 65%, decreasing from 350% to 120%
- Hiring Needs Reduction: 868 people—previously had to hire 1,300 people to fill the contact center, but now need only 432 people
- Training Time-to-Performance Gains: 6 weeks—previously agents needed 18 weeks to achieve proficiency, but now need only 12
The contact center management style transitioned from reactive to intelligently proactive with new technology. KPI data and coaching insight now guides supervisors in knowing which skills are needed and how to teach those skillsets. The result: Managers spend approximately 80% of their time coaching agents and driving bottom-line results.
“The BPO was shocked when we showed them how much they were leaving on the table in terms of revenue and efficiencies,” said Steve Weston, Senior Consultant, EPIC Connections. “With reinvented operations, the company can leverage savings to expand into new markets. In the past, EPIC has helped another BPOs enter healthcare, helping to bring in their first three accounts. So, we’re confident that this client’s big breakthrough is just around the corner.”
Estimated reduction in agent attrition: 65%
Estimated annual revenue increase: $2.4M
“EPIC is a great asset and their expertise has proven itself time and time again.”
Ian McGuire, Senior Vice President
Gold Mountain Communications, LLC
© 2020 EPIC Connections, Inc.