How to Calculate & Optimize Call Center Occupancy Rate?

The call center occupancy rate is a key performance indicator that measures the time agents spend on call-related tasks (such as talking to customers, holding calls, or performing after-call work) compared to their total working time. It identifies how occupied agents are during their shifts, which is a key indicator of agent utilization and operational efficiency.

A high rate indicates that agents are actively involved; however, an excessively high occupancy rate might indicate burnout. Conversely, a low occupancy rate can indicate underutilization or overstaffing.

The occupancy rate is a vital call center KPI, as it helps managers understand agent productivity, optimize staffing levels, allocate resources, identify training needs, and maintain a healthy workload balance for their agents.

• Cost Optimization: The occupancy rate helps balance agent workload, avoiding overstaffing (wasting resources) or understaffing (leading to overtime costs), thereby optimizing overall expenses.
• Staff Optimization: It ensures the correct number of agents are scheduled to meet demand, preventing both idle time and agent exhaustion.
• Resource Allocation: Monitoring occupancy enables managers to adjust staffing levels and resources in response to call volume, ensuring the efficient use of agents.
• Measuring Agent Productivity and Efficiency: A well-balanced occupancy rate reflects how efficiently agents are handling calls, indicating whether they are productive or idle.
• Identifying Training Needs: Low or high occupancy rates can highlight gaps in agent performance or skills, signaling when additional training is needed.

To calculate the call center occupancy rate, divide the total time your agents spend on call-related activities by their total logged-in time, then multiply by 100.

Here’s a step-by-step guide to calculate the call center occupancy rate:

• Add total talk time, hold time, and after-call work for all agents.
• Divide by total logged-in time for all agents.
• Multiply by 100 for the percentage.

Mathematically,

Where,

• Call-related activities include talking to customers, holding calls, and after-call work (ACW).
• Total logged-in time indicates the time spent by agents from check-in to check-out.

Example:

Calculation:

Total Handling Time = 630 minutes (sum of the talk, hold, and ACW time for all advisors).

Total Logged Time = 1035 minutes (sum of the total logged-in time for all advisors).

Using the formula:

Occupancy Rate = (630 minutes ÷ 1035 minutes) × 100 = 60.57% 

This means that the agents were occupied with call-related activities for 60.57% of their logged-in time.

An ideal call center occupancy rate typically falls between 80% and 90%. This range ensures agents remain productive without becoming overworked.

• Below 70%: Indicates ineffective phone handling, low usage, or potential overstaffing.
• 80%–90%: Agents remain actively engaged while still having enough time to recover between calls.
• Above 90%: May indicate understaffing or an excessive workload, which increases turnover rates and leads to call center burnout.

A call center's occupancy rate is influenced by agent workload, fluctuating call volumes, agents' skills, average handle time (AHT), and the technology used within the organization. These elements collectively determine how efficiently agents utilize their time.

Occupancy is directly affected by the agents' overwhelming workload. Overworked agents tend to make more mistakes and feel more stressed, which can lower the quality of the service.

Peak hours and seasonal variations can significantly impact how busy agents are. When call volume increases, agents spend more time handling calls, which increases the occupancy rate of the call center.

Efficient call routing, automation, and CRM integration streamline the call handling processes and optimize occupancy. Conversely, outdated or unreliable systems can lead to inefficiencies and lower occupancy rates.

Well-trained agents can handle calls more efficiently and resolve customer issues more quickly, which minimizes the idle time and maintains an optimal occupancy rate.

If agents spend more time on each call, they will naturally be occupied for a larger portion of their logged-in time, which increases the overall occupancy rate. Conversely, a lower average handling time (AHT) can result in a lower occupancy rate.

Strategic call center scheduling, comprehensive agent training, and the use of call center software for real-time monitoring significantly increase your call center occupancy rate. These practices ensure optimal agent utilization and enhance overall operational effectiveness.

Monitor call volume at various times of the day to identify peak and quiet hours, and adjust agent schedules accordingly. This reduces idle time and avoids overstaffing by ensuring you have the right number of agents at the right times.

Upgrading employee skills in problem-solving, CRM usage, and phone handling enables them to process more calls in less time. As a result, it boosts the occupancy rate without overwhelming staff.

Install call center software that tracks agent performance and occupancy rates in real time. The tools quickly help you identify issues such as agent idle time, high after-call work durations, or overworked agents facing burnout.

It also reveals patterns such as peak call hours, slow periods, or common types of calls. By analyzing these data, you can make data-driven decisions to maximize your call center’s efficiency.

Implement IVR systems or chatbot support so customers can resolve common issues independently. This reduces the volume of basic queries reaching agents, allowing them to focus on more complex tasks and improving occupancy and efficiency.

Upgrade legacy systems to integrated platforms that streamline workflows, such as cloud-based phone systems, CRM integrations, and omnichannel support. These tools reduce downtime, automate routine steps, and support smoother agent operations, ultimately leading to a high occupancy rate.

AI can intelligently route calls, analyze sentiment, and provide agents with real-time suggestions, while automation can handle repetitive tasks, such as data entry or follow-ups. Together, they reduce manual workload and help agents focus on high-value interactions.

Call Center Occupancy represents the percentage of time agents are busy with calls while logged in, whereas utilization is a broader metric that considers all the work agents perform within their shift, including time spent on non-call-related activities.

While both call center occupancy and utilization measure agent productivity, they focus on different aspects of performance.

Particularly, occupancy focuses on the amount of time agents spend actively managing calls and associated activities, like talk time and after-call work (ACW). Compared to their available time (time logged in minus auxiliary time, such as breaks), it calculates the proportion of time agents are "occupied" with direct call-related tasks.

On the other hand, utilization calculates the proportion of time agents spend logged in and involved in work-related activities, such as meetings, training, and breaks, in addition to answering calls. It displays the agents' total productivity while they were logged in.

The occupancy rate is a vital Key Performance Indicator (KPI) for any call center striving for operational efficiency. By precisely calculating and closely monitoring this metric, call center managers can efficiently balance agent productivity and workload.
 

An ideal occupancy rate for a call center typically falls between 80% and 90%. This range ensures that agents are productive and engaged while still having sufficient time for breaks and recovery between calls.

To reduce a high call center occupancy rate:

• Hire additional staff
• Hire additional staff
• Improve call routing
• Provide adequate breaks
• Simplify post-call processes

No, a high occupancy rate does not always mean better performance. While it indicates that agents are busy, an excessively high rate can lead to agent burnout, increased stress, and a decline in service quality.