Delivering Effective Services Through Contact Centres

This NAO report examines the role and cost effectiveness of contact services for customers from the Department for Work and Pensions. During the 2004-05 period the Department spent £190 million on running contact centres. The centres themselves answered more than 33 million incoming calls, and made 7 million outgoing calls, as well as handling 300,000 e-mails, 30,000 faxes and 4 million incoming letters and application forms. The Department serves a wide range of customers, including 28 million pensioners and benefit recipients, paying out £112 billion a year in benefits and pensions. This report sets out a number of recommendations: that the Department should develop its understanding of customer demand and improve its forecasting processes; that the Department should aim to offer a seamless service, by reducing the number of telephone contact points, as well as sharing good practice techniques across such areas as forecasting and training; that contractual arrangements for staff should match the demand needs of customers, and that contact centre targets should therefore focus on customer need; that the Department should advance initiatives to improve its information on costs.

The Home Office has been effective at raising the profile of domestic violence and alcohol related crime and encouraging local action to address these issues. Such action is likely to have made some contribution to the overall fall in levels of violent crime. It has not yet managed to address successfully barriers which are reducing the effectiveness of crime prevention activities at a local level and which have been raised in previous reports by the National Audit Office and the Committee of Public Accounts. However, the Home Office has made some progress in addressing these barriers. The persistence of these barriers means that good practice has not been extended from small initiatives, and Crime and Disorder Reduction Partnerships have not been able to take a long-term, strategic approach to tackling violent crime. There are a number of NAO recommendations.

The 2002 report Tackling pensioner poverty: encouraging take-up of entitlements (ISBN 0102919577) examined efforts by the Department for Work and Pensions to increase the take-up of benefits by pensioners. It was followed by a report from the Committee of Public Accounts (ISBN 0215009347) that made a number of recommendations. This report looks at the changes the Department have made against those recommendations and the challenges that remain. The overall conclusion is that the Pension Service has made substantial progress in helping pensioners secure their entitlements, using new and thought through approaches. However there is more to be done. This report is accompanied by a technical report that describes the methodology and findings in greater detail.

Government departments have been set a series of targets for implementing efficiency gains of £21.5 billion a year by 2007-08, as part of the Treasury's Efficiency Programme following on from the Gershon Review of public sector efficiency. This NAO report finds that considerable progress has been made by departments towards achieving the efficiency targets, and the Efficiency Programme has ensured a greater focus on value for money issues among senior staff. Progress has also been made in addressing measurement issues, supported by new guidance issued by the Office of Government Commerce, although some reported efficiency gains still carry a significant risk of inaccuracy. The OGC has also initiated a new reporting system to improve the accuracy of reported efficiency gains, but this would benefit from a greater review process to assess whether they meet good practice, either through a stronger internal audit within departments or by the OGC. Departments must improve the transparency of the reporting process, and do more to encourage staff to put forward ideas for efficiency improvements. A companion volume is available separately (HCP 156-II, session 2006-07, ISBN 9780102944372) containing twelve opinion pieces on options to improve efficiency in the public sector, written by commentators from the fields of business, trade unions, academia and management consultancy.

This report follows on from a earlier NAO report (HCP 24, session 2006-07, ISBN 9780102943795). Personal Advisers assess needs of people looking for work and point them towards the right kind of assistance needed to find a job. In 2005-06, Jobcentre Plus had some 9,300 advisers at a salary cost of £238 million, conducting in total 10.8 million jobseeker interviews. They are also the gateway to various New Deal programmes, which has cost £5 billion since 1997. With the Government's aim of increasing the employment rate to 80%, personal advisers will have an important role. The Committee has set out a number of conclusions and recommendations, including: that the Department for Work and Pensions aim of assisting 1 million people on benefit into work, will require Jobcentre Plus to keep a good knowledge of employers' short and medium term skill needs as well as training opportunities; Jobcentre Plus should take care to protect advisers from unnecessary administrative work, interruptions of interviews to a minimum and allow more discretion and flexibility to advisers on individual cases; in 2005-06 customers failed to attend around 1.8 million scheduled interviews, whilst customers turned up late on average for around one in six interviews, Jobcentre Plus could do more to remind customers of their responsibilities, but also take account of local transport needs and use text messages and phone calls to remind customers of appointment times; improving the amount of time personal advisers spend with customers is a key element in helping Jobcentre Plus in achieving its efficiency targets and in helping it to be effective in achieving organisational objectives of helping people find work.

Several South African agencies, institutes, organizations, and professional bodies are promoting and developing contact-center operations in order to satisfy international and national market demands. Accordingly, additional information, knowledge, and experience are needed to improve on how organizations integrate core business processes into these contact-centers. Responding to this need, the industry is now being represented in higher education. Featuring sections on managing contact-center performance, recruiting, training, and motivating staff- and customer-relations management, this comprehensive course guide, cowritten by several experts in the field, is ideal for institutions offering courses for contact-center agents and anyone working in the contact-center industry.

In 2007-08, HMRC received more than a quarter of the 4 million Tax Credit renewals forms in July (the renewal deadline) and it processed half of the 8.2 million Income Tax Self Assessment returns during January to March. At busier times customers experience delays on their correspondence and receive a less responsive service. In the lead up to the Income Tax Self Assessment deadline in January 2008, HMRC answered just two thirds of the 7 million telephone calls made to its contact centres. By encouraging more customers to file tax returns online and removing the need for some returns, HMRC has smoothed peaks in workload and released resources of £7 million a year. The peak in Tax Credit renewal work has, however, increased as the deadline has been brought forward to reduce overpayments. Using different processing targets throughout the year and giving customers more information about how long their information will take to process during peak periods could help spread work out throughout the year. During busy periods, HMRC tends to process simpler Income Tax cases, postponing more complex checks and less urgent work. During peak periods, staff productivity is higher, partly reflecting the simpler cases, but HMRC also experiences increased staff sickness absence. The experience of HMRC and other organisations is that between 15 per cent and 40 per cent of contact with customers is avoidable. Reducing the number of avoidable calls by 15 per cent could release resources of up to £23 million a year or 11 per cent of its annual spending on contact centres.

The second edition of this important text reviews policy developments since 1997. The chapters have been extensively updated and there are new chapters on social security reform, inequalities and social security, and the new 'welfare market'.