Royal Caribbean Cuts Turnover and Increases Productivity

Royal Caribbean Cuts Turnover and Increases Productivity

Royal Caribbean Cuts Turnover and Increases Productivity

© 2012 BY THE DEGARMO GROUP, INC.

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Case Study   3
CASE STUDY

The Company

Royal Caribbean Cruises Ltd. (RCCL) is a global cruise vacation company that operates Royal
Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France.
The company has a combined total of 40 ships and offers unique land‐tour vacations in Alaska, Asia,
Australia, New Zealand, Canada, Europe and South America.

The Challenge

RCCL was experiencing greater than acceptable rates of voluntary employee turnover. In an effort to
help retain more agents, RCCL offered a number of attractive incentives including catered lunches, a
fitness center with full‐time fitness instructors, and a free cruise after a year on the job. However,
agents were still quitting at a rate of approximately 63% per year. With a center housing 525 agents,
that equates to more than 300 people annually.

Additionally, turnover was expensive. Every agent hired participates in a four week training course,
and does not start taking calls from customers until the last week. Considering direct and indirect
costs, turnover was conservatively estimated at $5,000 per person, or more than $1,500,000
annually.

Assessment Strategy

RCCL implemented the Customer Service Fit Index (CSFI) assessment to identify and screen out
turnover‐prone job applicants, and Call Center Simulation (CCS) to identify top‐tier performers.

The Customer Service Fit Index (CSFI) is a web‐delivered assessment designed specifically to identify a
candidate’s ability to tolerate various job demands related to customer service work. People who are
frustrated, aggravated or otherwise bothered by customer service job demands are significantly more
likely to turnover.

Call Center Simulation is a web‐delivered multi‐media assessment that simulates various work
situations related to customer service, including having candidates respond to mock customer calls,
and navigate the system to analyze and solve problems.

The strategy was to implement a multiple‐hurdle selection approach to systematically identify, and
eliminate candidates who did not align well with the demands of the Customer Service position.

Candidates who were rated as “Lower Turnover Risk” or “Marginal Turnover Risk” on the CSFI were
directed to complete Call Center Simulation, while those who were rated as “Higher Turnover Risk”
were excused from the remainder of the assessment process. Candidates who failed Call Center
Simulation also were excused from further consideration.

                              © 2012 by The DeGarmo Group, Inc. All rights reserved.

Case Study   4
Assessment Impact

The results demonstrated a significant impact for the assessment solution. Overall turnover was
reduced by 57% (63% compared to 25%).
At the same time agents are now fielding
more calls than ever, from between 80‐
90 per eight hour day. That represents an
additional 1,100 calls per day or roughly
an extra 300,000 calls per year.
                                                                                       57%
Additionally, RCCL previously held 6 to 8                                              Reduction
training classes a year with 35 new hires
each. Following implementation of the
assessment process, there were only four
training classes held, with no plans to
hire additional staff for the rest of the
year.

Return on Investment (ROI)

To estimate the gross return for RCCL based on the implementation of the assessment solutions, we
determined the reduction in new hires as well as the associated cost per person.

With a 57% reduction in employee turnover for Customer Service positions, RCCL hired 188 fewer
people. It was conservatively estimated that the organization lost approximately $5,000 with each
employee who quit as a result of
their investment in recruitment,
selection, training and onboarding.

Based on the impact of the
assessment solution for reducing
turnover, it is estimated that RCCL
saved more nearly one million
dollars during the first year of use.

Summary

RCCL took a number of steps to
address the problem of employee
turnover that was plaguing its Wichita, KS contact center. Based on the effectiveness of the
assessment solutions implemented, in addition to changes to its training policies and procedures,
RCCL was able to significantly cut employee turnover, dramatically boost agent productivity, and net
a considerable return on investment at the same time.

                              © 2012 by The DeGarmo Group, Inc. All rights reserved.

Case Study   5
Contact Information

Contact DeGarmo Group for more information on this case study or for information on the Fit Index
or Fit Interview Systems using the information provided below.

The DeGarmo Group, Inc.
101 N. Main Street
Bloomington, IL 61701

(866) 433‐4276
sales@degarmogroup.com
www.degamogroup.com

                            © 2012 by The DeGarmo Group, Inc. All rights reserved.