Contract No. GS-10F-0176P, BPA DOL-Q-131A-22097, Task Order No. DOL-ETA-14-00032
Support for the Unemployment Insurance Call Center Operations

Unemployment Insurance (UI)
Call Center Study
Final Report
January 27, 2017
Prepared for:
U.S. Department of Labor
Employment and Training Administration
Office of Unemployment Insurance

Prepared by:
Lester Coffey, Project Director
Richard Sullivan, Project Manager
Paul Doherty, Mason Erwin, Lloyd Pete Fleming, Everett Hensley,
Charles McGlew, Rebecca Nichols, Douglas Sanford, Ph.D.,
Mildred Simonzi, Michael Stokes and William F. Sullivan, Jr.

4720 Montgomery Lane, Suite 1050, Bethesda, Maryland 20814

Acknowledgements
Coffey Consulting, LLC thanks Administrator Gay Gilbert and Deputy Administrator Jim Garner of
the U.S. Department of Labor, Employment and Training Administration, Office ofUnemployment Insurance for their leadership and support in ensuring that the Coffey team had
the resources to successfully complete the project. Although there was a team of managers,
supervisors and other staff who made significant contributions during the design of the study,
we offer special thanks to Betty Castillo, Stephanie Garcia, Jeffrey Haluska, Kevin Stapleton and
Dennis Austin for their valuable contributions and availability.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017

Table of Contents
Executive Summary ............................................................................................................. 1
Chapter 1. Introduction and Background ............................................................................... 6
a. Unemployment Insurance (UI) Call Centers Today ............................................................ 6
b. Study Approach .................................................................................................................. 7
i. Literature Search – Call Center Operations, Performance Metrics and Management
Practices ........................................................................................................................ 7
ii. Survey of 53 UI Call Centers .......................................................................................... 8iii. Interviews with Administrators in 53 UI Programs....................................................... 9
Chapter 2. State UI Call Center Operations and Management .............................................. 11
a. Current State of UI Call Center Operations ..................................................................... 11
b. Technologies and Tools Supporting Call Centers ............................................................ 21
c. Management of Call Centers .......................................................................................... 25
d. Performance Management and Metrics ......................................................................... 33
e. Future State of Call Center Operations ........................................................................... 40
Chapter 3. Conclusion ......................................................................................................... 47
a. Best Practices in Call Center Operations .......................................................................... 47
b. Opportunities for Technical Assistance ........................................................................... 48
Appendix
May 2015 – Unemployment Insurance Call Center Survey for States
State Assessment Tool
Literature Review of and Information on Contact Center Operations, Practices and Trends

This project has been funded, either wholly or in part, with Federal funds from the U.S. Department of Labor,
Employment and Training Administration, under Contract Number GS-10F-0176P, BPA DOL-Q-131A-22097, Task
Order DOL-ETA-14-00032. The contents of this publication do not necessarily reflect the views or policies of the U.S.
Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsementof same by the U.S. Government.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page iExecutive Summary
Since the 1990s and into the early years of the 21st century, states moved theirunemployment insurance (UI) operations from an in-person claims filing system for initial andcontinued claims to a system where these processes were performed by call (contact) centersgenerally not co-located with reemployment services. The Employment and Training
Administration (ETA) incentivized states to move to such a system by offering competitive grants
of up to $1 million for states submitting comprehensive plans, which would accomplish theestablishment of call centers on a planned and timely basis, utilizing cutting edge technology.
Since that time, a number of factors have influenced how states use and operate call centers toadminister the UI program such as the Great Recession and its aftermath, more states moving toonline claims filing, and new technologies and tools that support call center operations.
In August 2014, the U.S. Department of Labor contracted Coffey Consulting to undertake astudy to determine the current state of UI call center operations and the role the call center playsin the delivery of timely, customer-focused UI program services. Specific objectives included
determining how state call centers manage both anticipated and unanticipated workloads; howstates recruit and train staff, monitor their performance, and provide technical assistance (TA) tothem to enhance operations; and how states use performance standards common to the industry.
Current configurations of state information technology infrastructure determine whether
call centers can interface with other technologies to facilitate the filing and processing of claims
and/or obtaining information on the status of any claim. An important question explored waswhat changes enabled states to move to Internet claims filing, allowing customers access to theiraccounts online and how these changes
impacted operations. An equally importantfocus of the study was identifying valuable
metrics and performance standards used in
the industry and by state UI agencies that
improve call center performance andcustomer satisfaction. The study also
identified state call center best practices
that can be shared among the states to help
them improve performance, explore futureplans for their UI call centers, and seek state
recommendations on how best to improve the performance of call centers that could become
the basis for the Office of Unemployment Insurance (OUI) to provide TA to states.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 1

ScopeThe study covered all 53 state agencies that operate UI programs. During the GreatRecession (December 2007 – June 2009),1 state UI agencies were overwhelmed with the volume
of claims filed and the increasing number of unemployed workers relying on UI benefits forextended periods of time. States experienced sudden surges in workload as well as
unprecedented backlogs of nonmonetary and monetary determinations, requests for appeals,
and customer inquiries about their benefits and/or regarding the different program(s). States’ UIcall centers were the front lines in their interactions with people trying to understand and gain
access to the UI program.
In most states, call centers process initial claims and respond to customers on every typeof question related to UI or to their particular claim. Most centers combine claims taking staff
and customer service staff with adjudication experts, who investigate and make decisions
regarding eligibility issues that trigger or prevent payments from taking place. Management ofappeals and the administration of hearings on individual cases are done elsewhere in the UI
agency; accordingly, those functions were not a focus of the study.
This study also assessed whether states are aware of, and taking advantage of, the latest
call center technology, forecasting software and management tools, and whether equipment
upgrades and other investments had been completed recently. The inquiry also looked atmanagement practices related to effective recruitment, training, deployment and retention oflimited human resources as well as the performance metrics used by states to assess theeffectiveness of daily operations in call centers and the resulting impact on customers and staff
productivity. The study also explored lessons learned during the Great Recession and its
aftermath and collected information from states regarding the effect that self-service, web-based
technology had on the volume of work and the customer interfaces given that 75-80 percent ofinitial claims are now filed on the web in most states.
Six states do not operate call centers for the processing of intrastate UI claims: Arkansas,
Delaware, Hawaii, New Hampshire, the U.S. Virgin Islands, and West Virginia. Coffey conductedinterviews with the UI Directors in those programs to determine why they did not manage callcenters. In some cases, the states had an unsatisfactory experience with interactive voice
response (IVR) applications in the past. In others, state managers either prefer to take initialclaims in person using experienced UI claims takers, or they thought that the needs of their

1

Business Cycle Dating Committee, National Bureau of Economic Research. Sept. 20, 2010.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 2customers required in-person assistance. Generally, these states are not interested in moving tocall centers in the future.

Methodology
The study included the following activities:
1. Researching publicly available data regarding the operation of call (contact) centersused currently by private sector organizations to meet the needs of their customers.
2. Determining what information was required in order to achieve the objectives of thestudy. A collaborative effort between OUI staff and the Coffey team produced a seriesof questions designed to capture both foundational data about the current state of UI
call center operations and the technology, staffing, and management practices thatdrive performance, as well as future plans that states have for their UI call centers. A
two-phase data collection design was agreed upon in which OUI took the lead on
conducting a quick turnaround survey of all 53 state UI agencies, and Coffey took thelead in scheduling and managing the interviews with states. Coffey developed an
Assessment Guide to structure interviews with the states and to enable them tofacilitate preparation for their interviews. Survey recipients and the subjects of theinterviews included all 50 states, the District of Columbia, Puerto Rico, and the U.S.
Virgin Islands.
3. Obtaining approval from the Office of Management and Budget (OMB) for the survey
to be sent to the states. The survey was sent to all 53 state UI agencies in May 2015
and was completed and returned to ETA by all 53 organizations by June 2015.
4. Conducting a pilot test of the Assessment Guide during interviews with UI Directors
and call center managers in Connecticut and Minnesota in August 2015.
5. Obtaining approval from OMB for extensive interviews by phone to be conducted with
53 UI agencies. Interviews began on July 21, 2016 and were completed with all 53 UI
programs on October 25, 2016.
6. Developing a database of the information collected from the survey of the 53 state UI
agencies and interviews with UI leadership in the 53 states. Information from thisdatabase was utilized in preparing the Final Report.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 3

Findings
Based on information collected during the interviews with 53 UI Directors and the
responses to the survey conducted by ETA, the findings are as follows:
Despite the widespread practice of enabling the filing of UI claims by state web sites, 110
UI call centers in 47 states remain a very strong and frequent point of contact for customers of
the UI program. Call center staff are involved in virtually
all functions related to establishing claims for benefits
and maintaining eligibility. Almost 90 percent of thestates report that their call centers are sufficiently open
and adequately staffed in non-peak times to allow all
customers to file claims and resolve problems with their
UI benefits.
States have made many investments in recent years to upgrade call center infrastructure
and modernize phone systems and other technical components that drive performance. Although
they make less use of multiple contact channels (i.e., twitter, mobile web chat, etc.) than the private
sector, almost all states with more than one call center operate statewide virtual call centers where
unexpected or rising workloads can be transferred easily to staff prepared to respond.

States are not utilizing industry software and other workforce management tools to theextent used by private call centers to forecast workloads and schedule work teams as efficiently
as possible. Many states report having no formal process for projecting workloads and planning
deployment of staff. This may be due, in part, to the uniqueness of the UI program.
Because of the complexity of UI laws and multiple benefit programs, it generally takes aminimum of six to eight months or more for a new employee to become proficient in call center
duties and for them to be able to respond effectively to customer service inquiries. States have welldefined onboarding systems for training, mentoring and supporting new employees, and there is a
widespread belief that cross-training of all staff is the key to effective call center management.
Call center staff turnover in most states is very high (e.g., 35-50 percent) compared toother positions in the UI agencies, and some of the turnover results from promotions andtransfers. States report that the biggest reasons for leaving are low salaries and the nature of thework. Recruitment and hiring of new employees is a lengthy process in most, if not all, states.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 4

States use similar strategies for responding to surges in claims workloads, with relianceon overtime and redeployment of staff from other UI departments, along with use of temporary
help, as the main management actions. Few states rely on expanded hours for remote staff (e.g.,working at home) when claims rise, or rely on nearby states to help staff UI functions when, forexample, natural disasters cause shutdowns or limit employment for extended periods.
States use many of the performance metrics common to daily call center management
outside government, but produce fewer automated performance reports because of theirreliance on old software or software that is incompatible with the agency mainframe. However,less than half of the states (44 percent) use service levels, e.g., 80 percent of calls answered
within 20 seconds, as a Key Performance Indicator (KPI). This is in direct contrast with the private
call center industry, where service levels are the most commonly used KPI. The use of the KPIs
focusing on attrition and agent absenteeism is also low compared to the private sector.
Almost all call center personnel are trained to deal with customer service issues as well
as claims processing requests. Thus, staff are empowered to resolve issues affecting the claim.
But the discretion granted to front line staff varies among the states. Some states require referralof certain issues to subject matter experts or supervisors. Many issues must be referred toadjudicators who may be located in a separate unit. Less than half of the states track customer
service calls to determine the reason for the calls and the ultimate resolutions. Some states haveused a manual tracking system to create Frequently Asked Questions (FAQs) resources for staff
and customers.
Some states are taking the lead in two areas that are very important to enhancing
customer service: a strong focus on achieving first call resolution of incoming issues and a casemanagement enhancement that enables the call center agent to see everything that has takenplace with the claim or issue and to have a knowledgeable discussion with the affected customer.
These are capabilities valued and rewarded in the private sector.
States continue to deploy the latest technologies, including expanded IVR software andInternet claims filing. Future plans appear to emphasize emerging technologies, including
expanded mobile access, over traditional call center operations. However, most states intend toretain some form of call center operations, both for claims intake and for customer service.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 5

Chapter 1. Introduction and Backgrounda. Unemployment Insurance (UI) Call Centers Today
Today, 110 UI call centers in 47 states operate
throughout the country to ensure timely and efficient
processing of claims for unemployment benefits.
Primarily staffed by personnel who are trained to provide
prompt and responsive services to the public throughautomated communication systems, UI call centers use
modern technology and management tools that are
similar to those found in private sector call centers.
Despite a dramatic shift in recent years to filing claims for benefits over the Internet, customersof the UI system continue to rely on call centers to provide a timely voice and solid expertise in
explaining and applying state UI laws and the benefit application process and/or tax liability
issues for employers.
The organizational structures and management practices in today’s UI call centers reflectlessons learned during the Great Recession when the UI program provided millions of eligible
unemployed workers with temporary income to support their families. The need to be able torespond immediately to both seasonal and cyclical downturns, as well as sudden declines in
employment in certain industries important to each state, continues. Recruitment and training ofcustomer service staff in an industry that struggles with retention and tenure issues require
creative and cost-effective strategies. Performance management practices mirror those utilized in
private industry call centers and require real-time feedback to call center managers on the state’s
ability to meet pre-set targets for both customer service and thoughtful deployment of personnel.
This study was undertaken in 2014 to determine trends in call center operations across thecountry, identify management and customer service challenges states face in today’s economy,
document effective practices in the utilization of technical and human resources, and explore how
states are planning to operate call centers in the ever-changing claims management and customer
service environments of the future. The key focus was on benefit payment operations.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 6

b. Study Approachi. Literature Search – Call Center Operations, Performance Metrics andManagement Practices
The primary focus of the literature review was to gain a better understanding of thepractices, technologies and approaches that have been widely adopted, deployed and currently
utilized in call (contact) centers in the private sector, as documented or reported in formal andinformal publications and electronic media. See Literature Review of and Information on Contact
Center Operations, Practices and Trends in the Appendix. This project document combines areview of practices and technology to provide a full, connected view of how practices integrated
with technology enable the best possible customer interaction environment.
The Literature Review team researched 12 topics identified for investigation in Phase Oneof the study:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Contact Channels
Interactive Voice Response (IVR) Systems and Self-service
Outbound Applications and Services
Service Level Agreements (SLAs)
Contact Center Organization
Contact Center Segmentation
Hours of Operation
Workforce Management
Human Resources and Training
Work at Home and Remote Agents
Quality Management
Reporting and Analytics

Several findings from the Literature Review informed the information-gathering phasesof this study:Contact (not call) is used to describe the centers today. This is because the contacts
are multi-media. This important shift in the way customers interact provides asignificant opportunity to reduce investment in labor by leveraging interaction
approaches that use chat from a web site, two-way email, SMS (short message service
or text messaging), and mobile communication.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 7

With this shift comes a more demanding requirement to manage integrated channel
environment. Management must be adept in fine-tuning, not only how these media
are used, but also how they support center operations while they are in production.

Management of limited resources requires trained leadership and innovative contact
center supervisors. Forecasting volumes and scheduling resources become as criticalto the contact center as they are to the manufacturing or production line.



Recruitment, training and coaching of contact center personnel set apart the best
operations. Remote call center agents can be used effectively.



Key Performance Indicators (KPIs) are used extensively to ensure customer
satisfaction, promote efficiency and to recognize high productivity.

ii. Survey of 53 State UI Agencies
In order to establish a baseline of current state call center operations, a Quick Turnaround
Survey methodology was selected. Survey questions focused on several areas that were ofinterest to OUI and the Coffey team. They covered:







Functions performed currently by UI call centers
Methods currently available to claimants to file claims, find out about UI benefits, anddetermine the status of individual claims
Technical configurations and systems being used by call center staff
Processes and strategies used by states to forecast, track and manage changing
volumes of claims for benefits
Staffing dedicated to call center operations
KPIs used by state managers to monitor and manage operations

In May 2015, OUI requested the Director of eachstate UI program to complete a survey containing 25
questions, i.e., the Unemployment Insurance Call Center
Survey for States. SurveyMonkey was used to administerthe online survey, and most of the UI Programs
responded online. Five state UI agencies provided hard
copy responses to the questions, and every statesubmitted a response. Each state’s responses wereplaced into Excel spreadsheets, enabling analysts to determine the nature and scope of UI call
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 8center operations in the state and to compare responses among all 53 states on each of the 25
questions. Twenty tables of data were prepared for use in the analysis of the data collected.
These data provided a rich database of facts and supporting information about current UIcall center operations nationwide and enabled the Coffey team to cost-effectively investigate
how each state utilized call centers to carry out its UI mission. The survey results were useful in
preparing to conduct each interview and set a framework within which state-specific findings
could be captured and analyzed.

iii. Interviews with Administrators in 53 UI Programs
Collection of information on current UI call center operations was completed primarily byinterviews with UI managers in the states. After a review of ETA’s original 13 research questions,and the completion of the Literature Search of studies on the contact/call center industry, theCoffey team developed a series of questions designed to learn the most about UI call centerorganization, configuration, operations and management. The questions were organized into an
Assessment Guide that could be shared with the states when scheduling interviews with UI
Directors and other knowledgeable staff.
The Assessment Guide was organized into five sections:
1.
2.
3.
4.
5.

Current State – Call Center Operations
Technologies and Tools Supporting Call Center Operations
Call Center Management
Performance Management and Measures
Future State – Call Center Operations

In order to make each interview as efficient and productive as possible, individual state
responses to the May 2015 Survey were inserted into each state Assessment Guide in appropriate
places. Copies of the state-specific Assessment Guides were provided to UI Directors before theinterviews to ensure State Administrators could identify the most appropriate staff to provide a
review/summary of each topic, as well as provide data to support the description of call center
operations in the state. Interviews ranging in length from 2 to 2 1/2 hours were conducted byphone, between July 21, 2016 and October 25, 2016, with teams of interviewers asking questions
and recording state responses. Responses were summarized immediately afterward so they
could be reviewed by the entire study team.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 9

All 53 state UI agencies participated in the interviews. UI Directors in the six state UI
agencies/programs2 that do not currently operate call centers for their UI claims program wereinterviewed to determine their reliance on self-service methods of claims filing (e.g., by the web),the role that local service centers play in claims processing, and what they consider best practices
in claims administration and customer service. Interview results from the 53 UI programs werereviewed to determine the current state of UI call center operations and management, identify
best practices in call center operations, assess UI program use of technologies and tools
prominent in the call center industry, identify metrics states use to monitor and improve
performance of call center personnel, and to explore plans that states have for future operations.

2

The six states include West Virginia, which uses a four-person call center solely for its interstate claims
operation.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 10

Chapter 2. State UI Call Center Operations and Management
a. Current State of UI Call Center Operations
As stated, there are 110 UI call centers in the 47 states which utilize call centers to operate
and/or support the UI program. Most states operate more than one call center, enabling themto maintain a system that can continue to process claims for benefits when an economic
downturn in one part of the state or a natural disaster overwhelms capacity in the main UI
program service site.

What Call Centers Do
Across the country, 47 of the 53 state UI agencies utilize call centers in some manner tofacilitate the UI claims process. Forty-five utilize them to support the initial claim process, theadditional claim process, and the reopening of claims. The methods by which states utilize callcenters to support these processes varies somewhat.
Functions Performed Most Often by UI Call Centers
Share eligibility information
Determine claim status
Reopen Claims
File Additional Claims
File Initial Claims
Resolve Weekly Certifications
Change claimant contact info.
Refer to Reemployment
Refer to Job Services
Process email messages
0

10

20

30

40

50

States

Source: May 2015 Survey of 53 States Conducted by ETA

Almost all (94 percent) of the states with call centers use them to support the traditional
activities associated with UI claims: initial claims, additional claims, and reopened claims;
resolving weekly certification issues and payment problems; and providing eligibility informationand claim status information to workers who file for benefits.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 11

To a lesser degree, 80 percent of the states use the call centers to refer claimants to Job
Services, provide reemployment services to claimants, process emails, or change
contact/demographic information in response to claimant requests.

Filing Claims for Benefits
Methods Used for Filing UI Claims
Web self-service
Call
IVR
In-person
Mail
FAX
Mobile
Other
0

10

20

30

40

50

60

Number of States

Source: May 2015 Survey of 53 States Conducted by ETA

The methods of contact that states offer to benefit claimants for conducting various
aspects of UI activities vary. The following figures represent methods of contact allowed by all 53
states, not just those which operate call centers.







Approximately 87 percent of the 53 states allow claimants to file initial, additional, or
reopened claims by telephone, while 26 percent of the states allow these claims to be
filed in-person.
Web self-service filing of such claims is available in 92 percent of the states.
About 42 percent of the states utilize IVR devices as an initial claim filing option.
A smaller number of states (21 percent) allow initial claims to be filed by mail.
Seven states (13 percent) accept initial claims by facsimile, and six states (11 percent)offer a mobile application which supports initial claim filing.

The methods states utilize for the filing of weekly certifications for benefits tends tomirror the business process for initial claims.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 12








Web self-service is the most utilized option with 92 percent of the states offering suchtransactions.
Interactive Voice Response is used by 81 percent of states for weekly certification
filings.
Call center agents handle weekly certification filing in 58
percent of the states.
About 25 percent of the states allow in-person and/or
filing by facsimile.
Mail filing is offered in 40 percent of the states.
Filing of weekly certifications by mobile device is available in 15 percent of the states.

In Nebraska, state law requires claimants to file weekly claims using the web, and callcenters act as a help desk to encourage customers to fill out web-based self-service claims.

Communications
One of the most frequent and recurring reasons for claimants to contact the state UI
agency is to determine the status of a claim for benefits after the filing of an initial claim andduring the benefit period. The reasons for inquiry are numerous and, at least anecdotally,
consume a significant portion of UI staff resources and time. The following data show the various
ways states offer claimants access to information regarding the status of an individual claim.









The vast majority (96 percent) of states provide such information by phone throughan agent.
Web self-service is offered by 77 percent of the states to handle such inquiries.
Interactive Voice Response is available as a service option in 70 percent of the states.
An in-person visit to make an inquiry is offered by 36 percent of the states.
Making a claim status inquiry by email is a service option in 62 percent of the states.
Social media such as Facebook and Twitter can be used in 28 percent of the states tomake inquiries.
Web chat is available in 9 percent of the states, as are mobile applications for making
claim status inquiries.
Printed material is used by 11 percent of the states for such purposes.

Another source of communication workload for state UI agencies is general inquiry about
the UI program. Such inquiries generally precede the filing of a claim and can be made byemployers, other service agencies, family members, etc. The methods states offer to make suchinquiries generally mirror those available for inquiries regarding claim status.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 13











Calling the UI agency for such general information is an option in 96 percent of thestates.
Web self-service is offered as a service option in 89 percent of the states.
Sixty-eight percent of the states configure their IVR devices to provide such general
UI information.
Email is offered as an inquiry tool by 62 percent of the states.
A walk-in visit to get general UI information can be accomplished in 51 percent of thestates. This happens frequently at One-Stop Centers where computer terminals andphones are available to contact the UI agency.
Facebook is offered in 19 percent of the states and Twitter is offered in 15 percent of
the states as a vehicle for obtaining general UI information.
Printed material containing general information on the UI program is offered by 55
percent of the states.
Mobile applications are offered in 11 percent of the states for such purposes.

Seventeen of the states operate a single call center, while the other 30 operate multiple
call centers. California, for example, operates 15 call centers. No other state operates more thaneight (Pennsylvania operates eight centers). Ohio operates five call centers, and three states(Maryland, Missouri and Texas) operate four centers. Six states (Alaska, Connecticut, Florida,
Maine, Massachusetts and New Jersey) operate three centers, while the remaining states
operate two centers.
State UI Call Centers in Operation
One call centerTwo call centers
Three call centers
Four or more call centers
0

5

10

15

20

States

Source: Interviews with 53 UI Programs in 2016

Of the 30 states operating multiple call centers, 28 have developed a system where calls
to the multiple centers can be integrated and managed as one “virtual” workload to allow

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 14

shifting of calls between the centers to balance workload and improve response time. (In Maine,
an online adjudication schedule automatically sends claims with issues to the next available
adjudicator regardless of location.)

Many State UI Call Centers Operate Differently Today Versus 2008 When the
Great Recession Workload Emerged
About 75-80 percent of initial claims are filed today using Internet sites created by thestates, and unemployed workers are frequently urged by UI staff to file on the web. Many of
those customers end up contacting the call centers during their UI benefit collection period, andsome states require discussions with claimants who file on the web. For example, in Alabama, 45
percent of web filers needed UI staff intervention in order for the UI staff to complete theireligibility determination.
Some states have made significant changes in the organization and staffing of their callcenter operations in recent years. For example, Ohio has downsized from ten to five locations,introduced teleworking for certain staff, and placed a huge emphasis on cross-training of staff.
Currently, all staff are trained to perform all functions, and there is now only one grade level forcustomer service representatives. In 2013, the Louisiana Workforce Commission rolled out the
Benefits Analysis Team (BAT). This consists of 10 teams with 10 supervisors, two managers and a
Chief of Benefits. Analysts are graded at Levels 1-4: Level 1 consists of new trainees; Level 2 does
60 percent phone work and 40 percent adjudication; Level 3 is 40 percent to 60 percent; andLevel 4 is 20 percent to 80 percent. Currently, there are 86 analysts. As workloads vary, these
proportions of phone and adjudication work can be varied. In November 2015, Louisiana
implemented web-based claims processing and BAT added the function of reconsiderations.
Tennessee operates what the state describes as a One Touch service/business management
system. The overall system is called Zendesk, which agency staff described as "a mall with many
stores" (i.e., applications). Tennessee operates a ticketing application within its overall system.
The ticketing system routes a UI customer to the individual who has handled the claim in the pastand includes in that routing all information about that claim. This contact can be through e-mail,phone, IVR, chat, and text. Claims-takers perform all functions except adjudication, which is
performed by adjudicators who work in the Knoxville call center and in Nashville.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 15

Staffing Patterns Vary and Organizational Structures Today Differ fromState-to-StateIn most states, UI call centers house three organizational units: initial claims-taking,customer service and adjudication. In some states (e.g., Illinois), the adjudication function iscarried out in regional or local offices.
Staff in UI call centers primarily work in teams with a supervisory span of control of 5-20.
Teams most often contain 10-12 staffers. Each team may contain a trainer or a subject matter
expert. Some states maintain a more traditional organization structure. For example, Nebraska’s
call center has a work unit headed by a manager, supported by a trainer, and staffed by 22 claims
specialists. Staff are assigned to work within the UI call centers primarily on the basis of theirgrade and technical expertise. In most states, call center staff are cross-trained to become
capable of delivering services across UI programs and functions. In almost half the states, staff
are also routinely rotated among these different UI functions in order to enable them to maintaintheir expertise and contribute immediately to high priority work efforts during peak periods.

Processing of Initial Claims Today Begins with Customers Selecting Optionsfor Service
Customers are systematically routed to staff who can handle their requests, primarily asa result of choices the customers select on the IVR system. California relies on skill-based routingof all calls. In Illinois, callers are given five choices in the IVR system, including English and Spanish
options, along with an option to get answers to their bank or debit card questions. Using thisapproach, most states report a high level of efficiency in capturing all the information and datarequired for them to issue monetary determinations. With consistency, states report that about
75 percent of the initial claims taken in a call center contain all the data needed to determine
whether a customer is monetarily eligible for benefits.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 16

Call Centers Play a Role in Registering Claimants for Work/Re-employment
Services
About three-quarters of the states (76 percent) involve their call centers in work
registration activities and referrals of unemployed customers to Job Centers to seek help in
becoming re-employed.

Benefit Rights Are Provided to Customers Filing UI Claims in Different Ways
Benefits rights are conveyed to claimants through a variety of methods. In some states(e.g., Michigan and New York), call center staff read benefits rights interview (BRI) statements tocallers at some point in the initial claims process. In Wyoming, during the claim interview process,the customer service representative transfers the caller to a pre-recorded message for the BRI.
In other states, benefit rights are placed online and claimants, including those who are filing by
the web, are expected to access and read them. In several states, claimants are mailed printed
materials. In others (e.g., Montana), call center staff do not play any role in presenting benefit
rights to initial claims filers.

Customer Service is Performed as an Identifiable and Important UI Activity
States provide staff who are trained and empowered to identify, explore and resolve
issues affecting a claim for benefits. In Louisiana, agents are allowed to resolve more issues as
they rise through the ranks from Agent I to Agent IV and complete the required training. In somestates (e.g., Iowa), subject matter experts are always available to the agents. Unique among thestates, Georgia contracts with a private corporation to handle all customer inquiries, using
remote (i.e., working at home) customer service representatives who are trained by the UI
agency to respond immediately and accurately to the most frequent inquiries from customers.
The most frequent customer service inquiries are as follows:“When will a decision be made on my claim?”“How much am I going to get paid?”“What is the status of my check (or deposit)?”Some states track the content and flow of customer service inquiries. For example,
Tennessee administrators are able to see customer satisfaction scores for every 100 claims
throughout the workday. In New York, the IVR tracks all incoming calls and a “wrap up” boxenables each UI staffer at the end of each call to code the caller’s purpose and the actual
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 17

resolution of the issue. The result can be seen by supervisors in real time. However, for many callcenters, tracking customer service issues is a manual process and is performed only periodically.
In some states (e.g., Montana, Florida and Ohio), first call resolution is a call center
priority. Other states require supervisory intervention on certain issues such as interstate
benefits matters, changing eligibility issues placed previously on the claim, entering liable
employer determinations when there is no employer number available, etc.

Integrity–related Activities Are Essential to Call Center Operations
States have integrated their integrity related activities into their main call center
operations and typically conduct the following operations as part of the initial claims process:Social Security Administration (SSA) crossmatch, identity authentication, directory of new hirecrossmatches, crossmatches with correctional institutions, overpayment offset, division of motor
vehicles (DMV) match, alien verification, etc.

UI Call Centers Operate Fairly Standard Hours of Operation during Peak andNon-peak Workload Periods
Most UI call centers operate from 8 AM to 5 PM, Monday through Friday and do not
accept calls beyond 4 PM in order to clear the queue and complete work on certain claims. In
Maryland, calls are received from 8 AM until 2 PM, Monday through Friday. Time after 2 PM isused for data entry, follow up on claims issues, and staff training. A few states build in an
adaptable staffing pattern. In Illinois, for example, in order to introduce flexibility into call center
operations, three shifts are used: 7:30 AM to 4 PM; 8:30 AM to 5 PM; and 9:30 AM to 6 PM. Texas
employs multiple shifts to take advantage of multiple time zones within the state, allowing calls
to be received for a longer period of time, in addition to the follow-up time to resolve outstanding
claim issues. One shift ends at 10 PM in the evening.
About half of UI call center operations currently offer a call back option that allows a caller
to leave the queue and receive a call from call center staff when the workload decreases. Almost
90 percent of the states report that call centers are sufficiently open and adequately staffed in
non-peak times to allow all customers to file claims and resolve problems with their UI benefits.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 18

Most States, But Not All, Maintain Continuity of Operations Plans
The major challenge during a sharp seasonal or cyclical rise in claims activity is the necessity
to hire and train additional call center staff quickly and effectively. States agree that one principle
for success is to maintain cross-trained call center staff who can be redeployed as workloads
develop and contribute immediately to claims processing and customer service efforts.
Currently, surges in state UI workloads are most often met with the following strategies:






Changing hours of operation to include weekends
Adding adjudicators to claims-taking teams
Reassigning highly trained UI staff from elsewhere in the agency
Implementing overtime for regular call center staff
Relying on temporary help firm employees for processing initial claims
Strategies Used during
Peak Workloads
Schedule staff overtime
Reassign UI staff
Hire outside temps
Use outbound return calls
Limit inbound calls
Limit hours of operation
Use external call centers
0

5

10

15

20

25

30

35

40

States

Source: May 2015 Survey of 53 States Conducted by ETA

Some states have developed workload management strategies that have provenparticularly effective in recent years. For example, Texas uses UI call centers in nearby states tohandle surges in Texas calls. North Dakota relies on seasonal hires (November to April) who arewell trained in basic UI functions. Louisiana uses Texas UI call center staff who are trained inLouisiana UI law. Nebraska has negotiated with Nebraska Administrative Services for an expedited
hiring process when workload demands require it. And, Michigan stated that being able to movecross-trained staff to points where they are most needed is key to effective caseload management.
Managers in Minnesota prefer to add staff instead of changing the hours of operation.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 19

States Report that Many Lessons Were Learned from Managing the Claims
Workload that Arose during the Great Recession
In general, hiring new employees took too long and redeployment of adjudicators toanswer phones was not a good solution, as backlogs developed later when eligibility issues wereidentified and had to be resolved by adjudicators. Washington State found that classroom
training was difficult to conduct and complete during periods of rapid hiring, as there were too
many people in the classrooms. A better solution was developed – hiring people in groups of 1012. Oregon and Pennsylvania discovered that staff hiring was not the best solution. A better
solution was to use part-time staff or intermittent workers who can be brought up to full-timestatus quickly when the workload requires it. Ohio found that relying on the consistency ofpermanent staff is the best solution. Texas was able to hire quickly by using the Workforce Boards
and found success with calling back retirees. Louisiana UI management determined that theagency needed to reorganize the entire benefit function. Tennessee recommended a focus ontechnical deployment (not just human resource management) as a key to success. Montana
reported three lessons learned:
1. Train temporary employees better;
2. Do not add another call center; and3. Do not set up a separate queue for problem claims.

Virtual Operating Environments Are Common in the States that Rely on UI
Call Centers
Almost all states that operate more than one call center support a virtual environment inwhich workloads are easily and routinely moved to centers and staff that can best handle thoseinquiries. A few states operate with remote staff who work from home or other locations. For
example, California supports 12 adjudicators with IT support and ongoing UI training and staff
make outbound calls only. Ohio has 33 customer service representatives who work from home.
Louisiana has six staff who work in other state agency buildings. Tennessee supports a few UIstaff who work in Job Centers. But use of remote staffing is not a widespread management
practice in the UI system, unlike the pattern found today in private sector call centers.

Some States Operate without UI Call Centers in 2016
Six states–Arkansas, Delaware, Hawaii, New Hampshire, the U.S. Virgin Islands and West
Virginia–do not use call centers. Two of these, Hawaii and New Hampshire, operated complex,
but ineffective, IVR systems which both states abandoned – New Hampshire in 2001, Hawaii after
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 20

the last recession. Neither state plans to initiate call centers in the near future. Of these six states,
only Delaware, expressed an interest in moving to call centers in the future.
Arkansas is typical of states that do not use call centers. Most initial claims are filed
through the Internet in 30 local offices. The state prefers to handle claims in person. Fact findingis accomplished in these offices, but nonmonetary determinations are completed by the State
Office. Arkansas contends its staff are experienced and complete the UI processes with fewer
problems than if they used a call center operation. While the agency does not intend to
implement call centers in the future, it does have two or three cubicles in each office with aphone that can be used to dial-in to a “hotline” number. These are used if the office is busy, andthe call is routed to an available workforce specialist in another office, a process that helps theagency leverage resources.
Delaware takes initial claims online and continued claims by IVR or online. While there
are no formal plans to initiate call center operations, informal talks are taking place. The agency
would consider developing call centers contingent on adequate funding.
West Virginia has never considered initiating call centers. All intrastate claims are taken
in person with a claims examiner entering claims data provided by the claimant into the computer
system. Local office staff are cross trained to deliver employment service as well as UI-related
services. Even in this in-person operation, about 60 percent of initial claims are web-based but
filed in local offices.
The U.S. Virgin Islands has never operated a call center. Staff indicated that the agency’s
culture of emphasis on personal service is reflected in the U.S. Virgin Islands’ law that prohibits
offering state services by telephone. Claimants are directed first to employment service for job
registration in the local offices and then sent to UI for manual claims taking.

b. Technologies and Tools Supporting Call Centers
States Have Formed Relationships with Multiple Vendors to Maintain andUpgrade Call Center Infrastructures
Primary operating systems in the states are supported generally by major vendors in thecall center industry: Avaya, Cisco, and Genesys. But states depend on many other smaller
vendors, as well as their local phone company, for many applications. Few states rely entirely on
in-house IT technology and expertise with customer interactions.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 21

Configurations within the State UI Call Centers are Similar but Not the Same
Most (88 percent) UI call centers make use of IVR3 and automatic call distribution (ACD)
technology to interact initially with claimants and route calls to agents prepared to handle them.
IVR systems complement calls center technology. The majority of states use quality management
and call recording tools to monitor staff interactions with UI customers, and almost half reportusing virtual queue technology to give claimants the option of receiving a call back instead of
waiting on hold.
Configurations within UI Call Centers
Interactive Voice Response
Automatic Call Distributor
Quality Mgmnt & Recording
Virtual queue technology
Workforce Mgmnt Tools
Wall mounted display boards
Automated outbound calls
0

10

20

30

40

50

States

Source: May 2015 Survey of 53 States by ETA

Significant upgrades in technology have taken place in many states in recent years, e.g.,
Florida, New York, and Oregon in 2016; Montana and Ohio in 2015; Texas in 2013 and 2014; andLouisiana in 2011. In some cases, states replaced legacy technology; in others, they added newcase tracking tools and customer relationship software to their operations. For example, Oregon
recently added call recording and monitoring tools. But, as normal practice, states do not track
usage statistics.
Most states, including Florida, Massachusetts, Pennsylvania and Texas, maintain a central
control to monitor and manage operations. Ohio has two dedicated staff persons in the call center
who monitor daily reports in real time for staffing and scheduling decision-making. In Louisiana,
Cisco tools produce daily reports that enable management to determine staffing needs.

3Interactive voice response (IVR): computerized telephone system that allows a caller to respond to a menu of
choices (spoken by an 'electronic voice') by pressing the appropriate buttons on the pad of a touch-tone phone.
Also called audiotex. Source: http://www.businessdictionary.com/definition/interactive-voice-response-IVR.html

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 22

Customers Can Contact Call Centers by Means Other Than Phone
Claimants, employers, and theirrepresentatives can often contact UI staff
through several methods: email, web“contact us,” fax, and mail delivered by
the U.S. Postal Service. Seventy percent
rely primarily on email communication. A
few states (e.g., New York and Virginia)
offer live online chat options. Mobile
applications are available for call center customers in 11 states. Many more states are currently
considering their value as they plan modernization efforts.

States Manage Both Inbound and Outbound Calls
Nearly all states report using real time tools to manage inbound call volume. Almost 40
percent reroute calls within the UI agency, while only four states reroute calls outside the UI
agency. Once they are in the queue, customer calls are rarely dropped. Almost half of the state
UI call centers make use of automated technology to reach out and contact claimants. For
example, California uses automated calls to remind claimants of their approaching hearings date.
One-third of the states still rely on agents to initiate and complete calls to claimants.
Methods for Making Outbound Calls
Automated outbound call technology
Call center Agents make all calls
0

5

10

15

20

25

States

Source: May 2015 Survey of 53 States by ETA

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 23UI Systems and Integrated Operations
In 80 percent of states, UI call center personnel rely on multiple systems to complete their
mission. In those states, staff must open and navigate multiple systems to accomplish daily tasks(e.g., access claimant profiles, determine status of a claim or an appeal, enter missing contact
information, etc.). These systems often contain software that is outdated or incompatible withnew software used by the UI call centers.
UI Call Center Systems in Use
Staff use multiple systems

Staff use one system
0

5

10

15

20

25

30

35

40

States

Source: May 2015 Survey of 53 States by ETA

In nearly all states, the UI call center system is integrated with the UI benefits system.
However, only 28 states maintain integrated benefits and appeals systems. In fact, in the 22
states that allow claimants to file appeals through the call center, only half of those states
operate with fully integrated UI systems.
Call Center Systems Integration
Integrated with Benefits

Integrated with UI Tax

Integrated with Appeals
0

10

20

30

40

50

States

Source: May 2015 Survey of 53 States by ETA

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 24

Most States Are Managing the Risks Associated with Operating Call Centers
In general, states have not found their current physical facilities to be a barrier to effective
operations. Most states have ready access to information technology experts, either as part ofthe in-house call center staff (e.g., in Iowa, Massachusetts, Oregon and Texas) or available froma centralized IT department (e.g., in Louisiana and Montana).
Most states have business continuity/disaster recovery plans that rely on readily
accessible facilities and equipment, e.g., generators, and are tested regularly. Oregon, forexample, has agreements with Idaho and Washington State to assist them in the event of anatural disaster or other event that interrupts call center operations. Mobile devices will enablestaff to work from home. Florida recently tested its system when floods forced the closing of twoof its six centers. The workload was shifted seamlessly to the other four centers. South Carolina
maintains “UI in a Box,” an actual metal box that holds laptops, extension records, and otherequipment that can be used in an emergency to operate a mobile UI operation. Few states rely
on arrangements with other state agencies for continuity of call center operations.
Many states have addressed the risks associated with information integrity by putting inplace software that detects and oversees IP addresses, multiple users from the same IP address,
and other identity verification systems to prevent fraud.

c. Management of Call Centers
UI Call Centers Pose Significant Management Challenges
Several states reported the following as the most pressing management issues:
Retention of call center personnel must be a priority when there are limited
opportunities for advancement, which often is the case. This challenge is exacerbatedwhen promotional opportunities arise elsewhere in the UI organization and theparent workforce development organization. Additionally, low pay is not a strong
motivational factor. Turnover rates for customer service representatives run as highas 25-50 percent in some states. Finally, some states have no succession plans, andmany call center staff are close to retirement.



Forecasting software and tools for analyzing staff utilization and workloadvolumes/patterns are inadequate.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 25More attention has to be paid to releasing personnel for advanced training as well as
consistent funding of trainers in cost centers.



Adequate staffing is required in both peak and non-peak times to deliver good service
and to keep wait times down to expected levels.

More IT staff are needed to implement process improvements envisioned or desiredby call center managers.

Managers need to be more creative in filling vacancies and managing change when
new business processes are being introduced.

Operating reports are prepared manually.

Addressing technology issues: some legacy mainframe systems were last updated in
2000. Some UI systems are not compatible with call center systems.



There is a need to improve staff capacity versus current workload. Process
improvements cannot be implemented because staff cannot be taken off phones totest changes.

Automated messages are insufficient to meet the needs of some claimants who needto talk to a “live” person.

Insufficient tools exist to manage the queue.

Staffing and Deployment: Recruitment, Onboarding, Training and Coaching
States expend considerable resources to recruit, orient, train and supervise call center
personnel. Recruitment of new personnel centers from external sources, such as civil service lists
and state agencies, represents an effort to attract people with prior call center experience (e.g.,
Iowa, Michigan, Oregon, and Rhode Island). Using a
Workforce Development Plan prepared three years
ago, Ohio does both. Michigan has developed an
onboarding sequence that works and monitors eachagent’s career development. Most states, however,report that recruitment and hiring is a lengthy processthat often begins after the need has arisen.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 26

States use classic employee training strategies, including classroom sessions lasting from
one to three weeks, covering topics such as, “What is UI,” “Initial Claims” and “Customer Service.”
These sessions are usually followed by on-the-job training, shadowing of experienced agents,
supervised claims taking, mentoring by successful UI staff for two weeks, and coaching by theirsupervisors. States are nearly unanimous in asserting that it takes six to eight months for a newagent to become proficient in taking UI claims and responding appropriately to other customer
needs. In Florida, the objective of training is to ensure that the new employee “hits the groundrunning.” But in most states, the new employee takes initial claims before going on the phone tohandle all kinds of inquiries. Training manuals are available in almost all states (e.g., California,
Illinois, and Montana). Ohio offers a web-based, modular training resource to all personnel.
Louisiana has developed an approach to personnel management that is effective both inmanaging limited resources and responding quickly to changes in workloads. The Benefit Analysis
Team (BAT) employs four levels of agents:






1a. Agent answers customer calls 100 percent of the time;
1b. Answers calls 80 percent and performs Adjudication 20 percent;
2. Answers calls 60 percent and performs Adjudication 40 percent;
3. Answers calls 40 percent and performs Adjudication 60 percent; and4. Answers calls 20 percent and performs Adjudication 80 percent.

California limits customer calls to four hours per day (i.e., 8 AM to 12 Noon) in order toensure completion of follow-up work required to fully process each claim. To enhance staff
productivity, the state uses a recording at the end of each call, which saves four minutes per call.
In Washington State, all agents are off the phone some part of every day, three to four days of
the week. Taking seasonal claims in person takes a lot of pressure off call center staff for thosecalls. Ergonomic workstations are offered with sit/stand options and large monitors.

Monitoring the Effectiveness of Call Center Personnel
The supervisory span of control in UI call centers ranges from 7 to 33, but most supervisors
are responsible for 8-12 agents.
State

Call Centers in Operation

AgentsSpan of Control

California

15

1,667

10-12

Illinois

2

97

22-33

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 27

StateCall Centers in Operation

AgentsSpan of Control

Iowa

1

14

14

Louisiana

2

79

8-12

New Jersey

3

103

8

Ohio

5

325

8-10

Oregon2

178

12Rhode Island

1

15

7

This is a narrower span of control than is found today in many organizations, where
reduced management ranks and increased digital access to employee workloads and daily output
have resulted in considerably wider spans of control when personnel being supervised are all
engaged in the same function.
States reported various methods that they use to establish work protocols and processes.
Some, such as Michigan, New Jersey and Ohio, maintain current operations manuals to help
supervisors in training employees and overseeing their work activities. Others, such as California,
Iowa and Louisiana, rely on support from human resources and IT personnel to establish
appropriate procedures and identify divergences that should be corrected.
States report varying degrees of success in monitoring the quality of work actually doneby agents on a daily basis. In some states such as Iowa, Ohio and Rhode Island, supervisors haveaccess to recorded calls and quality ratings sheets derived from agent behavior that has been
documented. In many other states (e.g., Illinois, Michigan and New Jersey), management isunable to record calls and use them as the basis for performance feedback and personal
development. Additionally, management’s ability, in some states, to monitor individual calls isgoverned by a contract with the employee union.

Providing Services to Populations with Special Needs
States address customer access challenges created by language issues primarily by
employing multi-lingual staff (28 states), enabling IVR applications offered in multiple languages
that connect customers to agents who are proficient in their language, and contracting withlanguage translation services and language lines (38 states). For example, in Rhode Island several
languages are available for translation by staff members: Spanish, Portuguese, Cambodian, Mon
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 28

and Laotian. In at least 30 states, teletypewriter (TTY), translation, and video relay services areoffered to customers with special vision, hearing or mobility needs. Customer needs are
addressed in different ways. For example, in Illinois, call centers use Next Talk, TTY, and video
relay. In Louisiana, staff are trained specifically regarding assistive services and how to accessthem. Arizona used dedicated staff in a claimant advocate unit to handle disability claims on the
web with assistance. California adjudicators take these customer calls. Only half the states report
some type of training of call center staff to enable them to provide assistance to individuals withspecial needs.

Several Strategies Are Used to Process Work during Peak Periods
As workloads increase, states continually look for ways to deal with the increase in thenumber of customer calls and claims filed. The following strategies were identified as being used
to process work during peak periods: 1) staff overtime, 2) reassignment of staff, 3) hiring outside
temporary staff, 4) use outbound return calls, 5) limiting (block) inbound calls, 6) limiting hoursof operation to enable staff time for processing activities, and 7) use external call centers.
Strategies Used during
Peak Workloads
Schedule staff overtime
Reassign UI staff
Hire outside temps
Use outbound return calls
Limit inbound calls
Limit hours of operation
Use external call centers
0

5

10

15

20

25

30

35

40

States

Source: May 2015 Survey of 53 UI Programs by ETA

Thirty-five states, including California, use overtime as a means to handle the increase incalls and claims. Thirty-one reassign staff from other areas of UI to supplement existing staff inthe call center while 27 states, including Louisiana, hire temporary help. Several states havesuccessfully used retirees with UI experience. As technology improved, states have been able touse outbound calling as a means of coping with the increase in workload. Twenty-five states used
outbound calling as a means of processing work during peak periods, while 20 limited or blocked
inbound calls.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 29

Twelve states use the four most frequently used means to handle the increase (overtime,
reassignment of staff, hire temporary help and outbound calling). Seven of the 12 states also
limited inbound calls. States often expand the hours of part-time staff to full-time. Georgia uses
a contract with Xerox Corporation to expand its ability to handle surges in inquiries, as Xerox can
expand capacity rapidly by adding more customer service representatives who work at home.
Georgia’s training manuals are made available to Xerox personnel.

States Rely Primarily on Full-Time UI Agency Staff during Peak Workloads
The most common strategy of dealing with peak workloads is staff overtime, while thesecond most common approach is the reassignment of other UI staff to call centers. Assuming that
adequate cross-training has been done, in order for “other” UI staff in Adjudication and Quality
Control units to participate in call center operations, most states (including Michigan and Oregon)
have a fairly large talent pool from which to draw during peak workloads. However, Ohio reported
it is very important for call centers to stop relying on adjudicators to deal with surges in workloads,
as that widely followed practice negatively affects productivity and creates nonmonetary
determination backlogs and customer service issues. Vermont assigns call center staff to otherunits during slow periods and reassigns them to call center duty during peak claims periods.

Most States Have Specialized Support Staff Dedicated Exclusively to UI Call Center
Operations
There were three major categories identified in this section: training, IT staff, and external
services. The source most frequently identified as providing exclusive support for call center was
external services such as language lines and TTY/TTD. Twenty-eight states reported that theyused external services exclusively for their call centers. Twenty-four reported that they had IT
staff dedicated exclusively to the support of the call center(s), while 21 states reported thattraining staff were dedicated exclusively to the call center. Fifteen states identified all three
categories dedicated exclusively to supporting the call centers.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 30

Few States Use Call Center Industry Software Tools for Planning/Estimating theVolume of Inbound Calls
There were three strategies reported by states for planning/estimating the volume of
inbound calls and scheduling staff:
1. State uses forecasting tools (i.e., workforce management software) to forecast
volume and schedule staff;
2. State uses spreadsheets and databases to manually forecast volume and schedule
staff; and3. No formal process is in use, but trends from previous periods are reviewed andanalyzed.
Planning and Estimating the Volume of Inbound Calls
No formal process
Use spreadsheets and data bases
Use forecasting tools
0

5

10

15

20

25

30

States

Source: May 2015 Survey of 53 UI Programs by ETA

Twenty-four states reported having no formal process for planning and estimating thevolume of inbound calls. Seven states use forecasting tools (workforce management software)to plan for an anticipated increase in workload, while 18 states use spreadsheets and databases
to manually forecast the anticipated increase in call volume.
Only three of the seven call centers using forecasting tools rely upon staff overtime as a
strategy to process work during peak workloads. Three use staff reassignment to process theincrease workload, and one state uses both staff overtime and staff reassignment.
With respect to using spreadsheets and databases as a means of planning for increased
workload, 15 states rely upon staff overtime to process the increase in workload. Fourteen states
use forecasting tools and databases for staff reassignment to process workload, and 12 states
use both staff overtime and reassignment to process the increased workload. Sixteen states, withno formal process for planning/estimating workload, use staff overtime to process increased
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 31

workload while 14 states use staff reassignment to process the additional workload. Ten statesin this category used both.

Managing Change in Today’s State UI Call Centers
State managers shared many ideas and proposals for ways to improve the productivity ofstaff and the quality of services offered to customers of the UI system who currently rely on callcenters for service:











Place a priority on achieving first call resolution when training new call center staff
and deploying new tools and technology
Learn the needs of younger customers and determine what kind of technical solutions
will work best in the future
Invest in and upgrade the front end processes of UI systems to offer better service,e.g., add CHAT and TEXT features in a secure manner
Implement integrated unemployment benefits systems
Encourage and require more use of self-service by customers, support web chat, andreduce phone hours
Offer staff quality monitoring, coaching and frequent feedback on their performance
to improve retention of staff
Upgrade technology to continually enhance call center effectiveness and efficiency
Prepare and test disaster recovery plans for call center technology
Embrace a management style that enhances agility and a willingness to try newprocesses
Introduce technology that would help states generate operating reports, professional
documents, and other electronic reports

Some states are conducting pilot operations to introduce changes in processes designed
to achieve specific objectives, e.g., improving time lapse performance. For example, in New
Jersey, adjudicators are using fact finding templates that contain questions to guide the creationof a document for the staff member that can be saved on a central database. Questionnaires arebeing sent by email so they can be completed the same day rather than waiting for mailprocessing. When an issue (nonmonetary or other) arises, the questions “pop up” through an
online application so the answers can be captured right away, and an adjudicator can resolve theissue quickly. New York utilizes LEAN (waste reduction) methodology to assess possible changes
to call center processes.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 32

d. Performance Management and Metrics
Key Performance Indicators (KPIs)
Research confirmed that KPIs are intended to measure the contact center’s ability to deliver
the level of service required. When establishing KPIs, management should concentrate on four key
areas to maximize customer satisfaction and maintain a high performing call center [ICF4]:
1.
2.
3.
4.

Telephone benchmarks (e.g., average speed of answer)
Efficiency benchmarks (e.g., adherence to schedule)
Human resource benchmarks (e.g., absenteeism)
Service benchmarks (e.g., first call resolution rate)

UI call centers currently focus on some, but not all, of these industry standards. The
centers make extensive use of telephone benchmarks. Nearly all UI programs (96 percent) use
claimant wait time as a KPI. Many states display wait times to the call center staff throughout
the day and rising wait times can trigger the engagement and use of UI staff who normally workin other UI functions. Three out of four states measure and monitor average speed of answer,
which takes into account all calls answered by agents, even those calls answered beyond therequisite service level. Almost the same amount of states (73 percent) measure the percentage
of calls abandoned while the claimant is waiting to speak with an agent. However, less than halfof the states (44 percent) use service levels, e.g., 80 percent of calls answered within 20 seconds,
as a KPI. This is in direct contrast with the private call center industry, where service levels are
the most commonly used KPI.
Efficiency measures are currently used throughout state UI call center operations. Talk
time (i.e., call duration) measures time spent actually speaking with claimants about theirunemployment claims and related matters, and 88 percent of states use that KPI to manage
performance. Almost the same number of UI programs (i.e., 83 percent) monitor agent
utilization, i.e., the time during a work shift when agents are logged into the system and available
to take calls. The majority of states also monitor post-call agent behavior, i.e., the time spent
after the call is completed to finish forms, update the system, and perform other activities
associated with the call.

4

International Finance Corporation (IFC). Measuring Call Center Performance: Global Best Practices.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 33

Number of States Using KPIs
Average wait time
Agent talk time
Agent utilization
Average speed to answer
Abandoned call rate
Post call work
Service level
0

10

20

30

40

50

Human Resources KPIs are not measured often nor reported regularly by UI call centers. KPIs
such as agent absenteeism and staff attrition are used extensively in private call centers to
identify replacement and training needs (and costs), as well as motivation and stress issues.
Service benchmarks are not produced regularly in state UI call center operations. Private
call centers focus on first call resolution (i.e., the degree to which calls are resolved in the firstattempt, without the agent needing to refer the customer to a colleague or a manager, or callthe customer back). Recent research suggests that no single KPI has a bigger impact on customer
satisfaction than does first-call resolution (FCR).5
In private industry call centers, customer satisfaction is a critical benchmark. A threepronged approach to measuring customer satisfaction is recommended that combines quarterly
customer surveys conducted by team leaders with independent third party analysis, and quality
assurance measurements. The global metric for customer satisfaction is 90 percent.6
There is no standard method for calculating customer satisfaction:
Customer satisfaction measurement has evolved beyond mail surveys (deliveredby post) and phone interviews days after the customer's interaction transpired. The big
trend now is to survey callers immediately after the interaction occurs, when theexperience is fresh in the customer's mind and before problems can escalate. Top centers56

http://www.icmi.com/Resources/Metrics/2011/02/Seven-Metrics-to-Watch-for-Call-Center-SuccessInternational Finance Corporation (IFC) World Bank Group. Measuring Call center Performance: Global Best
Practices.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 34

typically do this via IVR-based post-call surveys, similar to the type described in theprevious section on first-contact resolution. Callers are asked a series of questions about
their interaction with the agent, their feelings about the organization and their plans tocontinue doing business with the company. They are asked to rate each question on anumeric scale (often 1 to 5) for easy customer satisfaction calculation. Many surveys also
feature a couple of open-ended questions for more detailed customer feedback.7

Many customers now contact call centers by email or chat, not by phone. Companies canmonitor patterns of interaction with customers to gain a better understanding of the customer
experience they are providing:8“Low cost and ease of modification make surveys the overwhelming favorite formeasuring past and present patterns. E-mail-based surveys are superior to paper-based
ones because they can be more easily shared; they allow rapid distribution; they give thesurveyor the flexibility to extend or abbreviate the questioning according to the wishes of
the respondent or the substance of the response; they minimize delays in analyzing theresults; and they lead to quick action, such as a referral to a general manager should
scores fall below a predetermined level. E-mail surveys can also be more easily tailored.”

A few states do conduct quality assurance activities, measuring the quality of completed
UI calls against a set of criteria that an agent is expected to cover during the call. This includes,
but is not limited to:
1. How the agent answers the call
2. How they navigate the caller to a resolution
3. How they end the callStates recognize the importance of quality assurance and that much more could be done toensure quality services. This is an ongoing challenge and new ideas are surfacing.

78

http://www.icmi.com/Resources/Metrics/2011/02/Seven-Metrics-to-Watch-for-Call-Center-Success
Christopher Meyer and Andre Schwager. “Understanding Customer Experience.” Harvard Business Review.
February 2007.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 35

Setting Targets for Certain KPIs
Several states set performance targets for the
UI call center staff to meet. Almost half the states
report (44 percent) setting targets for two KPIs:
average wait time and agent talk time (i.e., averagecall duration). Forty percent set expectations foragent utilization. Fourteen states set targets foraverage speed to answer and post-call work. Only 10
states set targets for service level, the most common KPI in private industry. Less than 10 states
focus on achieving a certain rate of abandoned calls. Sixteen states do not set targets.
Number of States Setting Targets for Certain KPIs
Average wait time
Agent talk time
Agent utilization
Post call work
Average speed to answer
Service level
Abandoned call rate
0

5

10

15

20

25

States Measure and Share Information about Their Performance
California UI has 400 agents on the phone and tracks their success with some clear metrics:
Key Performance Indicators in Place

Current Levels of Performance 2016

Average time agents wait for calls to be routed<5 minutes

Average talk time

8.8 minutes

Agent handle time

9.2 minutes

Initial claims processed within 3 days

100 percent

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 36

Key Performance Indicators in Place

Current Levels of Performance 2016

Online inquiries processed within 5 days

100 percent

Determinations appointments scheduled on a timely basis

95 percent

In Iowa, UI management has a focus on these critical measurements:
KPIs

Current Performance 2016

Answer rate

93.81 percent

Abandon rate

6.19 percent

Wait time

1.32 minutes

Handle time

4.53 minutes

KPIs in use are part of a new vendor’s package. A 2016 goal is to achieve a handle rate of 95
percent or greater.
Michigan relies on daily real time monitoring and includes call attempts, calls answered,calls abandoned, average talk time, average speed of answer, average handle time, number of
agents, number of calls on virtual hold, number of accepted virtual hold call backs and declined
call backs (remain on hold). Measurements are shared twice a day. Average handle time(measure of call talk time + call hold time + after call work time) is closely monitored. Handle time
efficiency increased by 18 percent from 2014 to 2016. With the modernization of the UI software(MiDAS), data were collected for a period to determine metrics for work tasks completed in themodernized system. Additional areas were surveyed for items completed outside the software
to determine metrics for completing those items. All of Michigan’s KPIs relate to federal
performance standards, even if indirectly.
In Oregon, the main focus of management is on average speed of answer, average wait
time, and post call work. Staff are continually reminded of the importance of wait times andhandle times and their impact on the public. All major UI functions have KPIs: claims processing,answering calls, handle times, adjudicating claims and UI quality. Oregon sets high standards forcall center operations to ensure achievement of federal U.S. Department of Labor UI Standards.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 37

In Ohio, managers track both the number of calls (e.g., 1,800 per day) and the number
handled (e.g., 1,400 per day). Speed of answer is a focus area. Managers no longer track thepercent of abandoned calls, as the introduction of virtual hold and call back options offered madethat KPI a non-issue.
Minnesota has set KPIs as follows: service level, average speed of answer, average wait
time (about 30 seconds), abandon rate (not currently a concern for Minnesota), talk time, post
call work, agent utilization, and transfer rates. But all KPIs are not equal. For example, Minnesota
managers do not constantly monitor the average wait time because it is so low.

The KPIs in Place Can Drive Performance Improvement
Many states have data-driven process improvement teams that focus on areas where achange in performance would have a beneficial effect on both customer satisfaction and agency
success. Call center staff play a role in both identifying the problem properly and generating
realistic, cost-effective solutions.
In California, a Business Process Innovation (BPI) group focuses on operational
improvements that connect directly to federal UI standards, such as first payment timeliness andnonmonetary determinations timeliness, as well as other KPIs established based on agreementswith the State Legislature. UI call centers conduct quarterly field office basic evaluations andidentify root causes of nonperformance in measured areas. Staff provide process improvement
suggestions to the BPI team, which works with the call center staff to identify possible solutions.
In Iowa, the customer service managers in tax and benefits identify and fix issues that
directly affect the performance of the UI center by reviewing data and finding solutions, including
those offered by the UI Call Center agents. The main focus is on answering calls quickly,
completing everything required in one call and responding to email inquiries from customers
within 24 hours.
In Montana, call monitoring has a direct effect on quality and accuracy in UI Call Center
operations. Putting most staff on the phones for intake and answering questions is sometimes
necessary, but it has an adverse effect on Montana’s timeliness by creating backlogs.
In Oregon, workgroups identify root causes of poor performance and develop solutions.
Louisiana connects UI’s Benefit Timeliness and Quality (BTQ) goals with KPIs to ensurethat all necessary information is captured in order to complete the claim process timely, with
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 38

quality and accuracy. Louisiana reports that handle time is the KPI that relates most directly tothe federal UI performance standards.
Minnesota says that KPIs have an indirect influence on a state’s ability to achieve federal
UI standards. Doing well on the KPIs means that overall performance will improve, which should
ensure federal UI performance standards are met.

Customer Service
Most states see a direct connection between efficient customer service and claimantsatisfaction. Some set their operational standards to change call center agent behavior. Louisiana
recently set a goal of achieving a five-minute maximum hold time, driven primarily by a new
executive management focus on customer service. This goal replaced a 20-minute hold standard,
and it was adopted after a review of the standards in similar industries. But the agency standards
have to be published and taught. Some employees understand the KPIs immediately, whileothers require detailed explanations of why their work is so important to the UI mission.
California’s Employment Development Department (EDD) captures feedback fromclaimants and employers relative to their satisfaction with services offered/delivered. UI has a
Customer Service survey component that is tracked and reviewed to identify process
improvements. EDD’s Public Affairs Branch tracks social media traffic and conducts an annual
customer service survey for UI. EDD received the 2016 Best of California award for recognition of
public sector professionals for innovative technology and solutions in state and local government.
Iowa recently established goals for customer service. The objective is to answer 90
percent of the calls that come in on the Iowa Workforce Department’s customer service line.
Montana call center managers perform customer satisfaction survey with claimants andemployers and share information with staff who interacted with those customers. Montana
broadcasts unsolicited positive feedback from customers across the Bureau.
In Michigan, quality service is confirmed when positive customer service comments arrive
during periods when the agency is meeting federal standards for timeliness.

Performance Appraisals
Most call center employees are affected directly by the KPIs and other standards adopted
to manage their behavior and performance against organizational objectives.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 39

In Montana, data are shared monthly and used in mid-term and final performanceappraisals. When new employees are on boarded, the manager explains in detail how the data
are gathered, what they mean, and the importance of the data to Montana’s operational goals.
Each employee has a performance measure in his/her appraisal. An individual’s performancedata are compared to the call center average for like positions and scored accordingly.
In Ohio, staff are evaluated for courteous, accurate customer service. Managers measureboth soft and business skills. Calls are selected and evaluated weekly and the results are sharedwith agents on a monthly basis. Performance goals for all staff appraisals include soft skills,
business skills, and adherence to schedules.
In Louisiana, call center metrics are tied to personnel evaluations for merit increases. A
great job is acknowledged when first call resolution is achieved, i.e., the call is answered quickly,
staff understand the issue and resolve it while the claimant is on the phone, and a payment, if
warranted, is posted to the account within 48 hours.
In Michigan, the average handle time (AHT) for calls is used as part of a standard for callcenter performance. Metrics such as AHT are revisited for potential adjustment as workforceschange and work task modernization occurs.

Management ReportingIn nearly all states, KPI data are shared among senior managers on a monthly basis. A few
share these data outside the UI agency. For example, California’s KPI performance is reported
regularly to agency senior management and to the Senate and Assembly. In Iowa, performancedata are shared monthly and quarterly with staff, senior management and the Governor’s Office.

e. Future State of Call Center Operations
The Great Recession and its aftermath
had a profound impact on the Unemployment
Insurance system in the United States andparticularly on the individual states that
operate the UI program. While the official
recession period as defined by the National
Bureau of Economic Research lasted until
June 2009, the impact of increased workloads
continued through the end of the Federal
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 40

Emergency Unemployment Compensation program, which was January 1, 2014. All states
reported that the recession influenced their decision-making and provided valuable lessons forthe future of call center operations. These lessons had an effect on technology utilization, claims
taking procedures, organizational structure, staffing and training, planning for the future, andworkload forecasting.
Most states reported that the recession affected their thinking about technology morethan any other single factor. Many states reported that the recession pointed out the need formore self-service (Alabama, California, Colorado, Iowa, Maryland, Massachusetts, New Jersey,
New Mexico, New York and Utah). This usually took the form of increased use of the Internet,
but it also included deploying more sophisticated IVR technologies. Some states emphasizedusing more Internet-based initial claim filing (Alabama, Iowa, Maryland, Massachusetts andMissouri), while others favored installing or expanding IVR capabilities to allow more self-service
with less agent intervention (Colorado, New Jersey and New Mexico). Most states acknowledged
the need to improve these technologies to make them simpler, easier to use, and morecomprehensive. If claimants could provide most of the intake function by self-filing, call center
staff would have more time to respond to inquiries, provide customer service and complete
adjudications.
The increase in workloads resulting from the recession highlighted the inadequacy oflegacy mainframe computer systems operated in many states. The systems could not be reprogrammed fast enough to keep pace with the evolving federal Emergency Unemployment
Compensation program, and they did not integrate effectively with the client server systems that
support modern technology such as IVR and Internet-based processes. As an illustration, staff in
Missouri stated that their UI system was 48-years old. Twenty-five states indicated their intention
to modernize their UI systems. (See table at the end of this section.) Eight of these states plan tojoin a consortium, while the rest will either develop the new system in-house or contract for thisactivity with a vendor. Some of these upgrades involve incremental changes. Others reflect
complete system replacements. Twenty-one states indicated that they plan to change or upgrade
their call center technology. Some are upgrading the current system, while others are changing
vendors (North Carolina and Oklahoma). Most of these changes include smoother integration
with the UI mainframe system.
Pressures from the Great Recession caused many states to examine UI claims taking
procedures. In one notable example, Georgia contracted with a vendor, Xerox, to perform mostof its telephone customer service activity. Two states (Mississippi and South Carolina) noted thatin-person claims-taking failed totally in the recession as a viable procedure, and they abandoned
it for more technology-based alternatives. Rhode Island characterized its current system at the
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 41

time of the recession as inadequate to handle the workload. Several states observed thatfeatures of telephone claims needed to be improved. Iowa decided to record all calls and try toanswer them when they are received. Iowa also utilized a procedure that should be noted as abest practice. The state utilizes telephone hold time to play recorded messages such as
frequently asked questions or Benefits Rights Interview messages.
Connecticut contends that a UI intake system should be developed that does not require
UI expertise in order to enter data. In Connecticut’s proposed system, intake would be performedby data entry clerks, freeing up UI experts to respond to inquiries and resolve problems. New
Jersey echoed this procedure by stating that more information should be taken through the IVR
freeing up agents to resolve problems. Some states reported modifications to Internet filingdesigned to reduce the need for call center intervention in the filing process (Florida, Indiana,
Maryland, New York and North Carolina).
Many states reported engaging in some form of process reengineering to improve
operations. For example, Rhode Island applied LEAN Manufacturing principles to improve its
operations. Adapted to government and other programs from the manufacturing sector, LEAN
Manufacturing reengineers processes to reduce unnecessary and redundant steps whileproviding optimal customer service. North Carolina employed process improvement techniques
to lead to fewer manual calls.
Perhaps the most comprehensive procedural change emerged in Pennsylvania where theagency combined all of its UI functions into an Operations Center. All UI functions, including
claims processing, adjudication, appeals, tax operations and benefit payment control arechanneled through 15 different queues to initiate whatever activity is required.
Recessionary workloads also exposed organizational barriers to efficiency. Functions
performed in siloes, limited the flexibility of states to move staff to meet workload fluctuations.
Many states reorganized call center staff into teams rather than individual specializations. These
teams contained staff at all grade levels and with expertise in all call center operations, enabling
resources to be applied where workload demanded. Montana and Louisiana are two of several
states organizing staff into teams. Ohio rebuilt its operations from the ground up involving staff
at every juncture. It merged UI delivery and call center operations and created a tiered
classification system to afford flexibility in claim processing.
The Great Recession forced many states to make changes in the way they hire, train andretain staff. Most states agreed that to be productive and effective, hiring and training staff took
more time than the rapidly escalating workloads afforded. Consequently, many states had to
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 42place staff in jobs without thorough training or knowledge of operations resulting in mistakes,
duplicate work, and the accumulation of tremendous backlogs. For example, at one time,
Tennessee was receiving 800,000 phone calls per month. After major organizational,
technological and procedural changes, it now receives about 15,000. Almost all states found it
necessary to hire additional staff, although Tennessee argued that technological improvements
would be a better response.
Many states indicated that they responded to staffing problems by hiring temporary staff,
some directly (Massachusetts and Michigan) and some through temporary hiring agencies(Louisiana). Other states (Ohio and Tennessee) said that states should operate smarter with thestaff they have and not hire temporary staff. Massachusetts retains lists of part-time staff forrecall when workloads increase. This practice reduces the training requirement. Connecticut
plans to develop a system of claim intake so simplified that detailed UI knowledge is not required.
In this type of system, only temporary clerks will be employed to staff call centers.
Even though most states reported staffing considerations as a major lesson learned fromthe Great Recession, they differed widely on approaches to this problem. Some states decided
that they should expand staff capabilities so that all staff could perform all functions related toclaims-taking including intake, inquiry, adjudication, customer service and back office functions(Iowa, Minnesota, Montana and North Carolina). Several argued for a team approach to handle
workload changes where team members could perform multiple functions (Iowa, Mississippi, andSouth Carolina). Other states concluded that high levels of specialization in areas such as
adjudication assured that there would be fewer mistakes and reduced inquiries and follow-up
actions (District of Columbia and Pennsylvania). States also specified that they brought inadjudicators to staff their call center functions (Indiana).
Many states noted that the sudden increase in claims volume, coupled with the adventof new, incompletely trained staff, led to mistakes and the accumulation of extensive backlogs,
often but not exclusively, in the adjudication process. These backlogs tended to negatively affectprocessing in all areas of claims taking and problem resolution. Michigan noted that anticipating,predicting and processing backlogs became a major problem.
Onboarding new staff requires the training of that staff. In an environment that normallytrains limited numbers of staff primarily in an on-the-job environment, providing effective training
quickly to such large numbers of staff taxed most states’ existing training programs. Some states
noted that they could not train staff fast enough (Alabama, Iowa and Montana). Responses to thetraining conundrum yielded many innovative training methods. Nebraska recognized the need forexpedited training requiring weeks, not months, to attain proficiency. Several states recognized the
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 43

need to cross-train staff to enable them to perform multiple functions (Arizona, California, Florida,
Rhode Island and Utah). California identified the need to hire and train staff in small groups of 10
to 12. Oregon decided to move to modular training employing technological modules. States cited
developing training plans for all levels of training and coordinating these plans with anticipatedstaffing needs, whether temporary or permanent staff.
The lack of adequate preparation and planning for a recession of the magnitude of theGreat Recession constituted the most poignant lesson learned. Maryland staff said that statesshould be prepared for anything. Virginia staff noted that they were not prepared to react quickly
enough. Nebraska staff added that states needed to be prepared for the possibility of anotherbad recession. The District of Columbia, Illinois and Massachusetts said that states should have aplan in place to react more rapidly to a future recession. Several states noted that planning should
be augmented with better methods to predict and forecast future workload needs. Louisiana andVirginia said that workload tracking needed to be improved.
Twenty-eight states reported having strategic plans in place to guide call center
operations, although several of them focused on the State Quality Service Plan required annually
by ETA. Some states’ strategic plans involved statewide processes (North Dakota and Tennessee).
A few involved coordination within the state agency (Arizona, Kentucky and Pennsylvania), andsome were standalone (Delaware, Oklahoma and Texas). Oregon described a traditional strategicplan including addressing agency-wide operations, service strategies, technology upgrades andmanagement development. This plan is developed by senior executive leaders and updated
quarterly using standardized reporting tools.
Most reported plans contained elements of claims taking improvement with some
focused on web process changes, and others dealt with call center upgrades. Alabama expects
Internet usage to grow as its customer base becomes more computer literate. Several statesagreed that future plans involve expanding self-service through improvements in Internet
accessibility and clarity as well as improvements in IVR. Arizona intends to distribute as muchinformation as possible to educate the public in self-service. Colorado plans to move away from
telephone claims; 70 percent of its claims are self-service, and the goal is to be completely webbased. Iowa anticipates moving to web-based self-service and to use its call center as a support
service for claimants who may have difficulty navigating the Internet. Altogether, at least 33
states reported plans to increase the number of web-based initial claims. Nevertheless, most willcontinue some form of IVR capacity, although enhanced to require less agent intervention, whilesome states, such as Maryland and Oklahoma, intend to retain their call center operations toprovide in person customer service when needed.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 44Although a few states reported low interest
among customers in using Internet filing (Connecticut
and Missouri), many reported that most initial claims
are filed on the web (Louisiana – 80 percent,Massachusetts – 80-90 percent, Montana – 80 percent
and Mississippi – 70 percent). It should be noted that
almost all states file continued claims either by IVR orInternet with very little need for agent intervention.
The trend for the future is toward Internet filing, although many states intend to retain someform of telephone claim filing capacity.
As the dizzying pace of technological change continues and new methods of accessing
files emerges, many states have tried to include new application features in their processes. For
example, some states indicated that they are already deploying mobile applications to accessinitial claim filing and other intake processes (Indiana and Tennessee), while 25 states indicatedthat they are either considering mobile applications or have definite plans to initiate them.
Mobile applications, as used herein, mean the state having the software necessary to make claim
filing and other communication readily available and easily used on hand-held devices including
smart phones.
Many states described detailed plans for changing call center functions. California is
working with Verizon on a system that would enable all staff to take claims from any location.
The agency anticipates this will enable more staff to work from home. Several states plan toreduce call center activities. Connecticut moved all activity into a single call center; Florida isconsidering outsourcing “basic calls” similar to the way Georgia contracts out customer service
calls to Xerox; Michigan has adopted a work processing function called “NICE” that will help phaseout manual operations in the centers; Missouri plans to change fact finding dramatically so that
it will be accomplished through the web or IVR; New Mexico has eliminated the need for clericalstaff in call centers by retooling paperwork processes; and Tennessee’s Zendesk operating system
has revolutionized its work processes and is updated every Thursday. Some states havesubstantially increased and expanded activities in call centers. Indiana added 28 part-time staff
to handle the volume after consolidating customer services into call centers; Montana’s callcenter functions as the entire Benefits Section; and North Carolina expanded its call center
operations in Charlotte. There is a changing mix of call center vendors and currently, most ofthese major call center vendors have contracts with states.
Closely related to changes in call center management and technology, many states haveengaged in significant changes in their foundational UI computer systems, as reported earlier.
Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 45

Depending on availability of resources, states may pursue different paths toward upgrading theirmainline computer systems. These may include contracting with vendors, making changes within-house state staff, joining consortia of other states for joint efforts to upgrade systems, or somecombination of these approaches. The chart below sets forth the ways that various statesindicated that they plan to upgrade their UI computer systems. The use of a “Y” after the statename indicates that the state intends to upgrade its call center system simultaneously. Some ofthese changes are partial.

State Methods Used to Upgrade UI Computer Systems
Contract Out

In-House

Consortia

Other

Alabama (Y)Colorado

Connecticut

Kentucky (Y)Arizona (Y)D.C.

Georgia

Maine

California (Y)New York (Y)Iowa

OregonFloridaMaryland (Y)Louisiana (Y)Mississippi (Y)Massachusetts (Y)Missouri (Y)Oklahoma

North Carolina (Y)Pennsylvania (Y)South Carolina (Y)Texas (Y)Rhode Island (Y)Virginia (Y)Without question, the Great Recession and its accompanying effects, dramatically
impacted state UI information technology systems. In response to this cataclysmic economic
event, many states accelerated their efforts to automate claims-taking functions and to deploy
the latest technologies, including expanded IVR software and Internet claims filing. Future plans
appear to emphasize these emerging technologies, including mobile access, over traditional callcenter operations. However, many states intend to retain some form of call center operations
both for claims intake and for customer service. And, the strain that the recessionary workloads
placed on many of the UI legacy computer systems demonstrated the urgent need to upgrade
and replace those systems.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 46

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 47

Chapter 3. Conclusion
a. Best Practices in Call Center Operations
States across the country are able to identify and describe in detail many management
initiatives and successful technology enhancements that could be studied and adapted to other
UI programs. A sample of states reveals what they consider to be best practices:
State

Best Practices in Call Center Operations

Connecticut

Rely on staff with a lot of UI experience who came through the ranks

Florida

New agents are trained to "hit the ground running"

Minnesota

Designing and integrating as if one big system
Getting the right call to the right person

Missouri

Organization of staff in rotating teams that cover all functions, from intake
through adjudication

MontanaPlanning a system (Lexus-Nexus) that will access most public record data bases,
such as DMV, to affirm the claimant's identity online at time of filing
Issues and problems will be addressed early in the process, and a positive decision
can be made to investigate or to proceed with the claim



North
Dakota

Email and text messaging to claimants
Training agents in all phases of work
Completing work within expected time frames

Ohio











Telework
One call resolution
In-house build and maintenance of technical call center solutions
Dedicated staff monitoring central control
Chat online
Disaster recovery plan for technology
Lean program to reclassify CSRs
Mobile device screen configuration and text messaging
NICE quality monitoring and coaching feedback

Tennessee

Zendesk work flow support and tracking system, esp. the ticketing feature

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 48

StateBest Practices in Call Center Operations

Texas



One of our best practices is our management style that embraces agility and awillingness to try new processes

Utah






Our organizational structure
Integrity check with DMVLive chat with multiple claimants
Reemployment services coordination with Job Centers

VirginiaOrganization of our intake process
Business continuity plan

WashingtonAll agents are off the phone some part of every 3-4 days of the week
Use of SharePoint for business processes
Taking seasonal claims in person takes a lot of pressure off call center staff for
those calls
Ergonomic workstations with sit/stand capability and large monitors

b. Opportunities for Technical AssistanceStates operating call centers today have many ideas for improving the effectiveness of
their current operations. Most of the recommendations focus on better use of technology (bothcall technology and web self-service) and strategies for engaging and retaining staff who delivercustomer service and make decisions regarding a claimant’s eligibility for benefits. A
representative group of ideas follows:
State

Recommendations to Improve Call Center Performance

California

Better scheduling
Identifying trends

Iowa




Use adjudication vacancies to convert them to claims processing positions
Staffing, training and technology improvements

FloridaMore customer utilization of available automated tools
Improved retention of staff

Louisiana

Pay call center staff more and enable permanent appointments
Provide more opportunity for career advancement

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 49

StateRecommendations to Improve Call Center Performance

MinnesotaProviding more information about the web service to reduce calls
Better inform people how to use the web site

Montana

Knowing who our new, younger claimants will be and what kinds oftechnological solutions will work best for them

NebraskaMore management, reducing the current span of control
A more robust training program, more professional training techniques, andmore online training

New Jersey

Upgrade technology for effectiveness and efficiency

New YorkMore staff to shorten wait time
Constantly using lean strategies to become more efficient
Be more proactive with claimants, getting them to self service
Review the reasons for inquiry calls to ascertain whether automated messages
can be revised to make them simpler and thereby reduce the number of calls

North DakotaHave an integrated UI system
Use more self-service
Train and deploy more staff

Ohio



Force more use of online filing by those able to do so

Pennsylvania

Technology that would generate reports and professional documents

TennesseeContinue to deploy the latest technology

Texas




Implementing a new integrated unemployment benefits system
Implementing performance-based incentives program

Rhode IslandTechnology upgrades
Increased staff onboarding

The ideas offered by the 47 states that operate call centers generally fall into three areasthat could become the basis for productive engagement in UI call center development efforts:
Modern technology. With national vendors providing a wide variety of technology andtools to states, UI managers should be able to introduce cost-effective systems designed to bothenhance the success of customer interactions and enable claimants to achieve their goals
through the growing array of self-service applications being offered by states. Just as importantly,

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 50

UI managers need to become skilled in using the industry software that has been developed toforecast call center workloads, schedule staff for work, and enable managers to use performance
metrics that focus on productive deployment of staff assigned to interact with customers.
Training and development of personnel.
Because of the high turnover of agents providing frontline assistance to claimants, and the need to rapidly
recruit, onboard and train personnel unfamiliar with the
UI system, states have a common staff training anddevelopment need that could possibly be met througha core approach with similar learning objectives, criticalelements (e.g., classroom, blended learning andcoaching) and customized units to accelerate knowledge and skills development. Behavioral
outcomes measures can be designed to achieve desired performance.
Organizational design and deployment and retention of personnel. There are just over
100 call centers in operation nationwide and teams of experienced managers dedicated to callcenter operations who can benefit from networking with other states and sharing best practices
in managing operations and delivering team-based services to customers. State-to-statecollaboration and visits to other states are greatly encouraged. With growing emphasis on firstcall resolution of customer service issues and increased reliance on teams of UI specialists who
can handle all claims-related functions, all call center managers need to become adept atmanaging change, empowering staff to fully resolve customer concerns, and engaging staff inmanaging their career development.

Unemployment Insurance (UI) Call Center Study Final Report
Coffey Consulting, LLC

January 27, 2017
Page 51