In the quest to build a high-performing, cost-efficient, and employee-friendly contact center, Performance Management is often overshadowed by more established technologies like Workforce Management (WFM). Yet, beneath the surface, Performance Management is quietly driving transformative outcomes in some of the world’s most successful contact centers.
Backed by fresh data from Calabrio’s The Total Economic Impact of the Contact Centre report featuring Metrigy data, it’s time to shine a spotlight on the power of performance management and the essential role it plays in modern Workforce Engagement Management strategies.
At Calabrio, Performance Management isn’t an add-on, it’s included for all cloud customers as part of our Calabrio ONE suite. If your vendor doesn’t offer Performance Management as standard, it may be time to ask if you’re with the right provider.
The Cost-Cutting Duo: WFM and Performance Management
When asked which tools contributed most to reducing operational costs, 41% of contact centers named Workforce Management (WFM) as the top contributor. Not far behind? Performance Management, cited by 25.6% of respondents.
This alignment reveals a powerful synergy: while WFM ensures the right people are in the right place at the right time, Performance Management closes the loop by ensuring those people are continuously developing, motivated, and aligned to strategic goals.
The benefits of Performance Management really shine when combined with WFM and Conversation Intelligence. Together, these tools ensure that contact centers not only schedule and staff efficiently but also track real outcomes through KPIs and customer sentiment. This paints the full picture of performance, engagement, and customer experience.
Driving Efficiency and Employee Engagement
Contact centers are under pressure to do more with less; fewer resources, tighter budgets, and higher customer expectations. In this landscape, employee efficiency is paramount. In fact,
- 39.6% of contact centers say WFM made the biggest contribution to improving employee efficiency.
- Performance Management is second, driving results for 21.6% of organizations.
That means nearly two-thirds of contact centers credit either WFM or Performance Management as the top drivers of agent productivity. This is especially crucial when trying to reduce agent turnover – one of the costliest issues in the contact center industry.
What the Top Performers Are Doing Differently
So, what sets the best apart? Enter the “success group” – organizations identified in the report as seeing the strongest measurable business benefits from WEM. These companies reported:
- Revenue growth >10.8%
- CSAT improvements >17.1%
- Operating expense reductions >0.5%
And what tool was most used among this elite group? Performance Management, used by a staggering 80.8% of success group organizations.
Even more telling, when asked to rank core WEM applications by importance:
- WFM was ranked #1
- Performance Management was #2
This underscores that high-performing contact centers aren’t treating performance management as an afterthought, it’s central to their strategy.
Why Performance Management Deserves the Spotlight
While WFM sets the operational foundation, Performance Management fuels continuous improvement. It brings clarity to agent performance, aligns behaviors to business outcomes, and empowers team leaders to coach with precision.
Benefits include:
- Identifying top and underperformers with actionable data
- Aligning KPIs with evolving business priorities
- Delivering timely, personalized coaching
- Creating a culture of accountability and growth
In a fast-paced environment where every second matters, performance management ensures that your most important resource—your people—are working at their full potential.
Contact centers are evolving, and the organizations that will thrive in this new era are those that look beyond just “scheduling smart.” They understand that efficiency without engagement is a missed opportunity.
The data makes it clear: Performance Management isn’t just nice to have – it’s a competitive advantage.
If your contact center is investing in WFM but not giving equal weight to Performance Management, it might be time to reconsider. The most successful companies already have. And with Calabrio, you don’t have to choose – Performance Management comes built into your cloud WEM suite.
Ready to see how Performance Management can transform your contact center?
View a Calabrio virtual demo or book a session with one of our product experts today!
