The leader’s guide to engagement and retention in contact centres

Engagement. Retention. Results.

These three words define the future of every successful contact centre. Engagement is the spark that inspires employees to stay, contribute, and grow. Retention is the stabilising force that reduces turnover and preserves team culture. Results are the measurable proof that these strategies work—not just for your employees, but for your customers and your bottom line.

Turnover costs more than just dollars—it costs trust, stability, and performance. According to Qualtrics, disengagement stems from factors like lack of recognition and unclear development pathways. This guide will help you connect these priorities and create faster, smarter pathways to reduce turnover and transform challenges like disengagement into opportunities for long-term success.

Part 1: The psychology of engagement and retention

Engagement is rooted in three psychological principles:

1. Autonomy: Employees thrive when trusted to take ownership of their work.

2. Mastery: Progressing in skills and capabilities keeps motivation high.

3. Purpose: Connecting daily tasks to a bigger goal builds commitment.

Why it matters: Engaged employees feel valued and invested in, leading to greater loyalty and higher performance. According to Qualtrics, organisations that prioritise engagement see a 59% reduction in turnover and an 18–23% boost in productivity. Disengaged employees, on the other hand, are more likely to underperform and eventually leave, creating a costly cycle of attrition.

Key reflection for leaders:

• Are your team members clear about how their work contributes to the organisation’s success? Provide a score out of 10.

• Do they feel empowered to make decisions within their roles? Provide a score out of 10.

Building autonomy, mastery, and purpose into daily operations creates faster, smarter pathways to retention and results.

Part 2: Leadership behaviours that build engagement

Great leaders aren’t born—they’re developed. As Edgar Schein reminds us, leadership behaviours shape organisational culture. According to Gallup, managers account for 70% of the variance in employee engagement, underscoring the critical role leadership plays in creating high-performing teams.

Key leadership actions to drive engagement:

1. Regular coaching rhythms: Hold frequent, focused conversations that provide actionable feedback. Qualtrics highlights that consistent leader-employee interactions strengthen trust and alignment, which are key to retaining top talent.

2. Recognition and celebration: Acknowledge individual and team successes, reinforcing positive behaviours. For example, celebrating improvements in First Call Resolution (FCR) rates or call efficiency keeps employees motivated and engaged.

3. Psychological safety: Create an environment where employees feel safe to voice ideas or admit mistakes. Leaders who foster psychological safety encourage collaboration, innovation, and stronger team cohesion.

Example in action: A team leader schedules short, weekly check-ins with each team member. These conversations are used to celebrate progress, set clear goals, and address challenges. Over time, the team’s FCR improves, employees report feeling more supported, and morale increases as trust deepens between leaders and team members.

Part 3: Building a coaching culture

Coaching is the most effective way to turn leadership behaviours into everyday practices. A coaching culture ensures that engagement isn’t a one-off initiative but a sustained effort. According to Qualtrics, employees who receive regular, constructive feedback are 3.5x more likely to feel engaged, highlighting the critical role coaching plays in retention.

Three pillars of effective coaching:

1. Focus: Identify one actionable improvement per session (e.g., "This week, let’s focus on setting expectations early in the call to cut unnecessary back-and-forth, aiming for a 15-second reduction in AHT per interaction."). Qualtrics notes that specificity in coaching builds confidence and drives measurable progress.

2. Frequency: Hold short, regular sessions instead of infrequent, lengthy meetings. Leaders who engage with employees weekly build trust and alignment, reducing disengagement and turnover risks.

3. Quality: Ensure conversations are structured, supportive, and tied to specific goals (e.g., "Using the ACDC framework—Agenda, Current State, Desired State, and Commitment—focus on clarifying behaviours and outcomes to drive measurable improvements."). High-quality coaching leaves employees feeling valued, motivated, and equipped for success.

For AI-enhanced coaching: AI tools, like those used by YakTrak, simplify goal-setting and progress tracking. These tools provide actionable insights and suggestions, ensuring goals are clear, aligned with metrics like AHT, and achievable within defined timeframes.

Part 4: Measuring engagement and retention

What gets measured gets done. To drive engagement and retention effectively, leaders need to measure not only what employees achieve but also how they feel about their work and workplace.

Key metrics to track:

• Retention rates: Are your turnover rates improving? A consistent improvement signals that engagement strategies are addressing key pain points.

• Employee sentiment: Use surveys or pulse checks to gauge engagement and trust. According to Qualtrics, employees who feel valued and heard are 87% less likely to leave their roles.

• Performance metrics: Monitor how engagement impacts operational outcomes like First Call Resolution (FCR), Average Handle Time (AHT), and Net Promoter Scores (NPS).

Actionable steps:

1. Anonymous engagement surveys: Use anonymous pulse checks to uncover disengagement trends and ensure employees feel safe sharing honest feedback.

2. Combine sentiment and performance data: Blend feedback with operational metrics to identify patterns. For instance, do lower FCR rates correlate with reduced engagement in certain teams?

3. Track progress over time: Use engagement and retention dashboards to assess the effectiveness of your strategies. Regular tracking allows leaders to adapt quickly to emerging challenges.

For data-driven leaders: Tools like YakTrak’s analytics provide a clear link between coaching efforts and engagement improvements, enabling leaders to demonstrate ROI. By combining sentiment data with performance insights, YakTrak helps leaders pinpoint exactly where to focus their efforts for maximum impact.

Part 5: Practical tools for leaders

1. Coaching conversation checklist (using the ACDC approach):

• Agenda: Start with recognition and set a clear focus for the conversation.
  Example: “You did a great job resolving that last customer issue. Today, let’s focus on improving average handle time by setting expectations early in the call.”

• Current State: Explore current behaviours and outcomes.
  Example: “I’ve noticed that calls sometimes take longer when issues aren’t clarified upfront. How do you think this impacts your call flow?”

• Desired State: Identify the behaviours and outcomes to achieve.
  Example: “By summarising the main concern upfront, we can streamline the conversation and save about 15 seconds per call.”

• Commitment: Lock in specific actions and accountability.
  Example: “For the next week, summarise issues upfront on every call. Let’s review your progress together in our next session.”

2. Reflection prompts for leaders:

• How often do I provide recognition to my team?

• Are my coaching conversations focused and actionable?

• Are my team members clear on how their work contributes to broader goals?

3. Sample engagement roadmap:

• Week 1: Use an anonymous survey to gauge team engagement and sentiment.

• Week 2: Hold one-on-one coaching sessions, focusing on actionable, measurable goals.

• Week 3: Recognise progress in team meetings and adjust strategies based on feedback.

• Week 4: Review engagement survey results alongside operational metrics (e.g., FCR, AHT) to assess the impact of coaching efforts and refine your approach.

For AI-enabled coaching: Consider using tools like YakTrak’s analytics to track engagement efforts in real time. AI insights help leaders refine goals and measure their impact on key metrics, ensuring that coaching remains focused and results-driven.

Part 6: Sustaining engagement and retention

Engagement isn’t a one-time initiative—it’s a continuous process that evolves with your team’s needs and organisational goals. According to Qualtrics, organisations that treat engagement as an ongoing process see greater long-term retention and measurable improvements in both employee and customer satisfaction.

Long-term strategies:

• Embed coaching into daily operations: Make coaching a non-negotiable part of leadership rhythms. Regular coaching touchpoints build trust, provide ongoing development, and ensure alignment with organisational goals. Leaders who embed coaching into their daily routines create a culture of continuous improvement.

• Adapt based on feedback: Use engagement surveys, pulse checks, and team discussions to refine your strategies. Qualtrics research highlights the importance of listening to your team’s feedback, as those who feel heard are more likely to stay engaged and loyal.

• Celebrate wins often: Reinforce engagement by recognising team progress regularly. Publicly acknowledging small wins, whether it’s a reduction in AHT or a team member going above and beyond to resolve customer concerns, drives motivation and strengthens team culture.

For AI-powered leaders: Use tools like YakTrak’s analytics to track team engagement in real-time. This helps refine coaching strategies and ensures that every coaching touchpoint is aligned with engagement goals.

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Engagement is more than just a strategy—it’s the foundation of retention, results, and lasting organisational success. Leaders hold the key to creating workplaces where employees thrive, customers are satisfied, and performance soars. By prioritising engagement, leaders not only reduce turnover but also cultivate a culture where employees feel valued and committed.

What’s one action you can take today to build engagement in your team? Whether it’s starting a weekly check-in, recognising a team member’s progress, or addressing feedback to foster psychological safety, every small step contributes to a larger transformation.

The opportunity to connect retention and results through engagement starts with you—and it starts now. By embedding these practices into your leadership rhythms, you create faster, smarter pathways to a thriving, high-performing contact centre.