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Tom Milligan
VP of Sales, Western Region
How do you convince anyone to do anything?
1. Find out what they want
2. Give it to them
1. Lower costs
2. Increased productivity
3. Improved customer loyalty
What do All CEOs Want?
Lowering Costs
Total cost of employee absence average 36% of base payroll
• Includes both direct costs, like employee pay, and indirect costs, like replacement expenses and net lost productivity
• Not included are the administrative costs related to managing employee absence
Source: Success Performance Solutions
(http://www.super-solutions.com/CostofAbsenteeism.asp)
Reduce Absenteeism Costs by 63%
100 Seat Center Brick & Mortar At-Home
Average Annual Salary $35,000 $35,000
Total Salary $3,500,000 $3,500,000
Absenteeism % of Payroll 18% 7%
Total Cost of Absenteeism $630,000 $245,000
Annual Savings $385,000
Source: TelCoa (www.telCoa.org)
Reduce Attrition by 26%
100 Seat Center Brick & Mortar At-Home
Cost of New Hire $4,000 $4,000
Annual Attrition Rate 53% 39%
New Hires per Year 53 39
Total Cost of Attrition $212,000 $156,880
Annual Savings $55,120
* Source: TelCoa (www.telCoa.org)
Real Estate Savings
100 Seat Center Brick & Mortar At-Home
Annual Cost per Workspace $5,000 $0
Real Estate Costs $500,000 $0
Annual Savings $500,000
Boost Productivity by 22%*
100 Seat Center Brick & Mortar At-Home
Average Annual Salary $35,000 $35,000
Average Productivity 67% 82%
Seats Needed 100 82
Labor Costs $3,500,000 $2,870,000
Annual Savings $630,000
* Source: TelCoa (www.telCoa.org)
Increased Customer LoyaltyAverage satisfaction increased by 12%*
• Difficult to quantify hard-dollar savings• Large online retailer: 1% = $1MM
* Source: TelCoa (www.telCoa.org)
Summary
100 Seat Center Brick & Mortar At-Home
Total Cost of Absenteeism $630,000 $245,000
Total Cost of Attrition $212,000 $156,880
Real Estate Costs $500,000 $0
Labor Costs $3,500,000 $2,870,000
Totals $1,342,000 $401,880
Annual At-Home Savings/Productivity Gains (Per 100 Seats) $940,120
Does Your CEO Need More?
• Humanitarian
• Tree Hugger
• Profiler
• Copy Cat
• Hypochondriac
• Legacy Seeker
Offshoring Trends
* Estimated
Source: IBM Daksh Business Process Services
Offshore Quality of Life
Offshore Length of Life
*Estimated
100 Seat Center Brick & Mortar At-Home
Average Commute 22 Miles (one-way) 0
Average MPG 21 NA
Total Gallons Per Day 210 0
Total Gallons Per Year 54,600 0
Greenhouse Gas 450 Tons 0
Traditional Brick & Mortar Agent Profile
• Average Age: 17-21
• Facial Piercings: 5
• Visible Tattoos: Several
• College: LOL
• Relevant Experience: Fast Food
• Management Experience: Babysitting Source: Tom’s Imagination
Home Agent Profile
Average age: 35+
80% have attended college
85% have experience in sales and customer service
40% have management experience
30% are bilingualSource: Frost & Sullivan
Copy Cat: It’s Not a New Thing
First Telecommuter on Record:• Bank President• Somerville, MA• 1877
Pioneer of Modern Telecommuting:• Jack Nilles• Los Angeles, CA• 1973
First Corporate Initiative:• Blue Cross/Blue Shield of South Carolina• “Cottage Keyer” Project• 1978
How Not to Prevent Swine Flu (H1N1)
How Not to Prevent Swine Flu (H1N1)
How to Prevent Swine Flu (H1N1)
How to Prevent Swine Flu (H1N1)
The Ultimate CEO Legacy
Added Shareholder Value
Source: Watson Wyatt Human Capital Study = Additional 3.5%
WFH, How to Convince the Most Skeptical CEO
Paul Vaillancourt, VP Customer Care
The support.com Story
27
• About support.com
• Making the WFH decision
• The Early Days
• Growth and Development
• Reaching Maturity
• What I Might Have Done Differently
• From the Top
• Do You Believe?
About support.com
28
• Leading provider of remote technology services• Provides remote technology support services directly
to consumers • Powers premium technology support offerings for third
parties, like Office Depot, Staples and AVG
About support.com
• 300+ SE Solutions Center- 100% North American (US and Canada) based- Average age = 34 (range 18-61)- All full time- 15:1 SE to Supervisor ratio- Diverse backgrounds
• 100% services delivered online and remote- Incident Services
- System Tune-up, PC & Device Setup, Configure and Troubleshoot- Diagnose and Repair: Incident Based for Software Issues
- Support Plans- Monthly / Annual / Family / Student / SOHO
• Integrated service delivery management system• We eat our own dog food
29
Making the Work From Home Decision
Options Evaluated• Brick and mortar
• Outsourced, domestic and off-shore• Hub and spoke WFH
• Fully distributed WFH
Factors in Play• Customer experience
• Start-up cost• Operating cost
• Management control• Speed of starting up• Systems integration
30
The Early Days
Launched domestic outsource model January 2007• Risk of new, unproven business model• Intended to grow this model• Modified plan October 2007 to design and build WFH• Hired first WFH employees February 2008• Transition to 100% WFH July 1, 2008
Our design• Full time employees, not contractors• Employee provides workstation & ISP, we provide telephony (VOIP)• All technology is virtual• Start with regional hiring, traditional format• Evolve to 100% virtual hiring and on boarding• 100% virtual training
31
Growth and Development
Kickoff• Due diligence on starting location• Selected greater Austin,TX area• Easily and quickly mired in old comfort zones
Transition to Virtual• Complete change to recruiting• Red states vs. green states• Thousands of applicants• Virtual screening, hiring, training, etc• “Pulling ‘em through the knothole”
Scale• Unique, multi-level online screening• Simplify and streamline telephony setup• Systems integration
32
Growth and Development
Some unique problems• Can no longer “walk the floor”• Coaching & feedback• Building culture is tough x2• The invisible SE• Where’s Waldo?• Getting equipment back
Some unique benefits• Easiest site I never built• Never too few or too many seats• Amazingly diverse talent pool• Too easy to work too much
33
Reaching Maturity
34
Where the rubber meets the road• Average annual salary - $28,080
• Average absenteeism – 4% of total payroll hours
• Annualized voluntary attrition – 11% (less than 20% all in)
• Productivity – 88% (based on schedule less breaks/lunch)
• CSAT – 93% top 2 box, “Would you recommend?”
Reaching Maturity - Summary
35
100 Seat Center Brick & Mortar At-Home support.com
Total Cost of Absenteeism $630,000 $245,000 $112,320
Total Cost of Attrition $212,000 $156,880 $80,000($44,000 voluntary)
Real Estate Costs $500,000 $0 $0
Labor Costs $3,500,000 $2,870,000 $2,246,400
Totals $1,342,000 $401,880 $192,320
Annual At-Home Savings/Productivity Gains
(Per 100 Seats)$940,120 $1,149,680
What I Might Have Done Differently
• Get hired sooner• Build support staff• Make WFH commitment at the start• Eliminate regional hiring step• Automate screening• Integrate training into WFH• More attention and thoughtful development of culture• Process improvement (Six Sigma) from day one• Integrate technology sooner• More detail and attention to report design
36
From the Top
37
“We conducted a thorough study of the best-in-class labor models and it was clear that at-home deployment had its challenges, but properly implemented would lead to a lower cost organization with happier employees. I expected less attrition, less recruiting costs, and a higher caliber workforce using a distributed model… and that is exactly what we have built!”
-Anthony Rodio, COO support.com
“The ability to recruit nationally and the incredibly low turnover are the two best things about a 100% work from home model. This allows us to find the very best people and to keep them longer than anyone else!”
-Josh Pickus, CEO support.com
Do You Believe Yet?
38
If you don’t STOP HERE!But you’d better VERY SOON!What does it take to change?
C=(AxBxD)>XC = ChangeA = Vision of ideal future stateB = Dissatisfaction with status quoD = Knowledge of practical first stepsX = Perceived cost of change
Key Takeaways
One Two ThreeConvince yourself that it’s the right move BEFORE you try to convince anyone else.
Arm yourself with knowledge: 1. Get to know your CEO and what makes him/her tick. 2. Find the data that will help them understand why it’s the right move.
Don’t dip your toes in the water. Either jump in with both feet or don’t do it at all.
