Money Cash Flow Inc.: HR Analytics Applied To Employee Retention and Well-Being Issues
Money Cash Flow Inc.: HR Analytics Applied To Employee Retention and Well-Being Issues
Attending: George Douglas, CEO, and Tony Martel, Head of Operations for the Call Centres
Division – Client Contact Centre – of Money Cash Flow (CCC-MCF)
Tony: Pretty crazy these days, but I’m coping. And you?
Mr. Douglas: Yes, same here. In fact, I need your help with something fairly important.
Mr. Douglas: You know as well as I do that the way our company is managed has a direct
impact on our reputation. To meet the objectives of our strategic plan, we need to take some steps
to retain our standing as one of the best employers in the country. We have a problem, though. I
just got a report there is a problem with HR department, especially in the Call Centres Division. It
is a time to just blow up the HR.
1 Translationfrom the French by Terry Knowles of case #9 30 2017 001A “Le cas Money Cash Flow Inc. : L’analytique RH
appliquée aux enjeux de rétention et de bien-être au travail – Partie A.”
2 Fictional
case inspired by real situations. Some aspects have been modified to preserve the anonymity and confidentiality of the
organizations on which the case is based.
3 Michel Cossette is an associate professor in the Department of Human Resources Management at HEC Montréal.
4 Gabrielle Reyburn is an MSc student in Management at HEC Montréal.
© HEC Montréal 2017
All rights reserved for all countries. Any translation or alteration in any form whatsoever is prohibited.
The International Journal of Case Studies in Management is published on-line (http://www.hec.ca/en/case_centre/ijcsm/), ISSN 1911-2599.
This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the
administrative situation presented. Deposited under number 9 30 2017 001AT with the HEC Montréal Case Centre, 3000 chemin
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Mr. Douglas: Solving this problem has to be a priority. It’s costing us a fortune in terms of
recruitment, training, intake, etc. We need to come up with a plan to make HR a strategic partner
in business.
Tony: It’s certainly a huge challenge, but I’m ready to work with you and do everything I can to
share my knowledge here. I think we need to start by consulting the Human Resources
Department to find out whether they have more details on HR functions. Perhaps we should be
looking more closely at data.
Mr. Douglas: Makes sense. I’ll leave that with you. Could you give me a quick progress report at
our next meeting?
HR Management Committee
Date: December 10, 2019
Tony: Not bad, but we have a lot on our plate. We need to work on this problem, and come up
with solutions.
© HEC Montréal 2
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Marianne: We definitely need to find solutions! Money Cash Flow Inc. invests nearly $9 million
a year in training. And the data shows that attrition rate is all time high. Yet the company had
invested in bringing all those people on board – I imagine management is mainly concerned
about the enormous cost this represents in terms of replacing them, customer service and so on,
but there are certainly other issues that need to be examined more closely.
Marianne: Good. First of all, we have to find out why employees are leaving. In fact, I have a
report listing the different reasons employees gave over the past year.
Tony: Hmm... OK. But Mr. Douglas is expecting us to put together a dashboard with indicators
illustrating the problem, and wants us to link them to performance indicators.
© HEC Montréal 3
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Company description
Money Cash Flow Inc. (MCF) is a leading Canadian financial services company offering a wide
range of services and products in the fields of life, health, home and retirement savings insurance
in Montreal, Toronto, Ottawa, Calgary, Vancouver and other major Canadian cities. The
company offers individuals, groups and companies access to its services and products through its
sales offices located across the country.
MCF has been operating in Canada since the early 1900s. Its corporate culture is built on service
quality. The company, which has a broad distribution network, has forged solid relationships with
some of the largest employers and associations in Canada. It is a market leader, with millions of
clients across the country.
MCF’s top priority is maintaining customer service quality and ensuring lasting relationships
with its clients. The company is committed to offering the best customer experience through all
its points of communication, in every market where it operates. MCF wants its clients to enjoy
peace of mind with the knowledge that their financial security is protected throughout their lives.
Exceptional customer service is crucial to the company’s objectives.
After all these years, the company’s long-term commitment to its clients remains unshakeable.
Indeed, its ability to maintain lasting relationships with clients has made the company a leader in
the Canadian financial services market, and explains why it now serves millions of Canadians.
MCF wants to help create a world where people enjoy excellent physical and mental health, live
in happy communities, and look forward to a guaranteed future. To make this vision a reality, the
company strongly believes that it has the responsibility to act in such a way as to make a
constructive contribution to society. This philosophy is the driving force behind the products and
services it chooses to offer.
The company’s mission is to protect its clients’ financial security, at every stage in their lives. In
concrete terms, this means improving people’s lives. Its day-to-day operations are founded on
certain values, which are fostered by its managers and executives:
1. Ethical conduct: set high standards for ethical behaviour and governance.
2. Engagement: appreciate employees’ diversity and talent, encourage, support and reward
them and help them reach their full potential.
3. Client focus: offer clients suitably tailored financial solutions and always work in the
client’s interest.
4. Excellence: excel in everything it does, through motivated employees and quality
products and services.
5. Value creation: create value for clients and shareholders, and for communities.
The company has grown in recent years. Its experience, financial stability and knowledge of
Canada are a winning combination in all its markets. And this in turn allows it to offer its clients
the products they need.
© HEC Montréal 4
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Its business
MCF counts on an extensive network of seasoned employees, with 4,075 professional advisors
across Canada and 7,065 representatives and brokers. In recent years, the company has been
growing nationwide.
MCF is highly respected in the financial service sector. It has diversified its products and
markets, and is seeking to balance its short-, medium- and long-term performance. The company
wants to be a lasting presence in its clients’ lives.
It also receives excellent grades from rating agencies. This is reassuring for its clients when they
are making business and risk management decisions.
Achievements
The company is very proud of its achievements and its employees across the country. Ranked
among the top 20 employers in Canada, since 2000, MCF has been recognized as one of the
country’s leading companies in terms of human resources management and financial
management. This recognition is a tribute to its constant commitment to its employees and its
social responsibility. In 2013, MCF was also chosen by consumers as the best life insurance
company, in a survey conducted by a consumer protection organization.
Business strategy
The company’s business strategy emphasizes activities that generate growth and higher returns
for the company, while ensuring financial stability. Its growth strategy has the following
objectives:
Be the most efficient and effective life insurer in Canada;
Grow its business in the United States so that it contributes more to the company’s bottom
line.
Some positions are assigned to taking client calls (inbound), while others are devoted to
promoting the company’s programs and packages to clients (outbound). The call centres operated
by MCF are divided into these two service types: one specializing in customer service, and the
other in marketing sales.
1 Translationof the definition in Martin LaFerrière-Simard, Les enjeux et les pratiques de la gestion de ressources humaines dans
quinze centre d’appels performants, MSc thesis, HEC Montréal, 2000.
© HEC Montréal 5
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
About 70% of MCF employees work at these centres. This means that the centres are important
business units and play a major role in the company’s operations. This approach to work
organization is strategic, allowing the company to establish relationships with current or potential
clients. MCF call centres serve to build bridges between the company and its clients.
One major characteristic of its call centres is their use of sophisticated technological tools: an
automatic call distribution system, a pre-routing or pre-processing system for calls, voice
messaging for providing information, a synchronized transfer system for calls and screens, an
automatic dialing system, etc. In other words, its call centres operate in a highly technological
environment.
Staffing
Call centre agents are recruited by three main means: newspaper ads, posts on the company
website, and internal referrals (see exhibit for the skill set required for call centre agents).
Employees are then selected through a structured interview and an integrity test.
New recruits are integrated fairly quickly. On the first day, they visit their workplace and meet
colleagues and their immediate supervisor. The supervisor then explains job expectations, and
familiarizes them with the tools at their disposal. Lastly, they attend a presentation on the
company’s policies and procedures. On the second day, they start their training. Initial training
comprises a number of modules (described below) and is supposed to last three weeks. However,
because of a lack of time and co-operation on the part of operational managers, it is not always
easy for agents to fit in all this training. They are, therefore, quickly put to the test in their new
functions. Three hundred and ten agents currently work at the Montreal call centre: almost as
many men as women, with students looking to get a foot in the door and move to a different
position within the company and people interested in stable employment.
MCF encourages job creation for young people and organizes attractive internships. Agents can
work different shifts, but they may have to do some overtime during busy periods.
Training
The company recognizes that its human capital – a strategic advantage in the industry – is the
main source of its value added. Exceptional customer service is at the heart of its business
objectives. To reach this strategic objective, the company supports its agents in their professional
development. For instance, all new employees must undergo 20 hours of training on client
relations. They must assimilate and apply the strictest standards in terms of professional ethics
and integrity in all their duties and all their dealings with clients. They also receive training
specific to their positions. The goal is to have all agents acquire specialized skills and thorough
expertise allowing them to perfectly meet clients’ needs.
© HEC Montréal 6
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
From Montreal to Vancouver, call centre agents are the heart of MCF and its chief asset. The
company wants its advisors to have the knowledge, skills and abilities they need to help clients
prepare financial plans. In working to establish lasting relationships with clients based on trust,
the advisors must acquire an in-depth understanding of their clients’ goals and personal lives.
MCF also offers a comfortable, ergonomic work environment. In fact, the company has invested
close to $2 million in furniture and equipment. The workplace design is intended to optimize the
work ambience, since research has shown the physical health risks for workers who remain
seated all day. The call centres are light-filled, open-plan spaces, with break rooms where agents
can relax or decompress, in particular after especially difficult calls. The company also offers
great flexibility in work schedules to help agents balance their home and work lives. Agents can
choose different shifts during the day.
Compensation
MCF is committed to rewarding employees fairly for their contribution to their team and to the
company. For instance, the company offers pension and savings plans, an annual bonus plan and
flexible work schedules for many positions. Its compensation is market competitive.
According to the company, the agents, advisors and professionals who make up the overall
Canadian team share their concern for clients and their commitment to providing exceptional
service quality, and have access to cutting-edge solutions. Everything seems to be in place to
attract and retain top talent in the financial services industry. Now let’s look more closely at the
context for call centre positions.
The problem
The company has been through some difficult times in the past two years. In terms of human
resources management, some managers report seeing changes in employee attitudes and
behaviour. They say that new recruits are not interested in their jobs or in clients, but only in
getting promoted quickly. This has a considerable impact on agents and the company. For
example, at the Montreal call centre, over 50% of agents quit in the past year because they were
dissatisfied. In addition, a recent investigation by the Human Resources Department found that
36% of agents are dealing with stress-related issues. The managers disagree with the study,
however, claiming that agents exaggerated their symptoms and that the HR people chose
individuals susceptible to stress.
© HEC Montréal 7
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Along with these observations and the HR data, the number of customer complaints, saying that
agents are impatient and often irritable on the telephone, have skyrocketed over the past year. As
a result, the customer satisfaction rate seems to have declined in the past few months. At the same
time, agents are less inclined to answer clients quickly and provide correct information, and this
lack of motivation appears to be interfering with the company’s efficiency and effectiveness.
In the past year, the HR professionals have found it more and more difficult to attract and retain
workers at most of the company’s call centres, especially the Montreal centre. The desired
employee profile may be part of the problem (see exhibit), since overall it is fairly general.
The goal, then, is to reduce employee turnover and improve employee satisfaction and well-being,
thus maximizing organizational performance. Labour costs account for 55% of the company budget.
Given the costs related to absenteeism and turnover, this issue has become critical not only for the
Human Resources Department, but also for senior management at MCF. To rectify the problem,
Tony Martel, Head of Operations for the Call Centres Division, has asked for reliable indicators to
be able to monitor the situation and develop appropriate action plans.
2017-05-30
© HEC Montréal 8
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860
Money Cash Flow Inc.: HR Analytics Applied to Employee Retention and Well-Being Issues – Part A
Exhibit
Requirements and Skills for Call Centre Positions
At least two years’ experience in a customer service position with varied duties, i.e.,
experience in front-line customer service and with investment funds and other investments.
Post-secondary diploma in a field related to business and courses in a field related to securities
or financial services.
Familiarity with computers, in particular email and MS Word and Excel.
Excellent aptitudes in the areas of interpersonal relations and customer service.
Good aptitudes for research and decision-making.
Proven fluency in written and spoken French and English.
© HEC Montréal 9
This document is authorized for educator review use only by AKASHDEEP JOSHI, Lovely Professional University until Jan 2021. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860