Sarah, an operations director at a Phoenix-Ariz.-area healthcare contact center, used to focus on KPIs and coaching her team. Now, she stares at empty workstations, dark screens, silent headsets, and a growing customer queue.
“We used to get 50 quality applications a week,” she says, refreshing her recruiting dashboard for the hundredth time. “Now we’re lucky to see 10.”
Sarah’s words echo the fears of an industry on the brink. Declining populations, shrinking workforce participation, and a widening skills gap aren’t just challenges; they foreshadow a looming crisis.
The struggle extends beyond Sarah’s center and Phoenix. It’s a global reality. As customers demand faster, smarter, more empathetic service, the people capable of delivering it are vanishing.
For contact centers, the question is no longer how to hire but if there will be enough quality talent to hire at all.
Korn Ferry estimates that by 2030, the global workforce will face a shortfall of 85 million skilled workers, equal to the combined populations of Canada and Germany. For contact centers, the heartbeat of customer experience (CX) isn’t just a troubling forecast; it’s a siren blaring.
If the industry doesn’t act now, the silent storm of talent scarcity could render contact centers the weakest link in CX, threatening brand loyalty, operational efficiency, and long-term success.
But survival is possible. This article explores bold, innovative strategies to help contact centers navigate this crisis and thrive in a world where traditional talent pipelines are drying up.
For contact centers, the question is no longer how to hire but if there will be enough quality talent to hire at all.
Part 1 (this issue) overviews labor force trends and how to connect with undertapped populations, looking at aging, Indigenous workers, and childcare issues. Part 2 (next issue) looks at those whose circumstances and, yes, actions have created walls: individuals with disabilities and those who have been incarcerated, with a conclusion.
Troubling Labor Force Trends
We live in a world where algorithms reward outrage over accuracy, amplifying sensational headlines that stoke fear and false hope instead of delivering facts. Piercing through this fog of misinformation is essential to understanding the contact center industry’s talent crisis.
Contact centers recognize that skilled, customer-facing employees are the cornerstone of exceptional service.
Yet the struggle to recruit and retain top talent has long been a pressing issue. And it is poised to escalate dramatically in the coming decades, threatening the industry’s ability to meet rising customer expectations.
Labor force growth data from 10 of the largest contact center markets paints a troubling picture (SEE FIGURE).
According to our research, the global contact center labor force is projected to grow at an anemic annual rate of just 0.26% over the next several years, only to plunge into two decades of negative growth. This trajectory poses a significant challenge to the industry’s future as the availability of talent shrinks just as customer demands expand.
As labor forces tighten and skills gaps widen, recruiting teams face mounting pressure to secure customer-facing talent.
Business process outsourcing (BPO) companies endure a staggering 87% annual turnover rate (COPC, 2022), while U.S. business and professional services firms report 63% churn yearly (Bureau of Labor Statistics, 2023). This relentless cycle of replacing lost workers amplifies risks, jeopardizing the industry’s ability to deliver consistent, high-quality service.
Adding to this challenge is the growing skills deficit among entry-level workers. While STEM-related skills gaps dominate headlines—leaving tens of millions of jobs unfilled annually due to a lack of qualified candidates (Tracy Phillips, 2023; Codesubmit) —the contact center industry faces an even more urgent issue: a critical deficit in social and emotional skills.
Nearly half of executives (49%) report that entry-level workers lack essential soft skills such as communication, collaboration, and adaptability (General Assembly). In an industry that thrives on personal connections, these deficiencies create unprecedented risks to service delivery and customer satisfaction.
Overcoming Childcare Barriers
The contact center industry has historically relied on women as its primary workforce, particularly those of childbearing age. However, the lack of affordable and accessible childcare is a growing challenge that hampers recruitment and retention efforts.
This issue is especially critical for work-from-home (WFH) agents working in distraction-free environments and on-premise workers who need childcare near their workplaces. One study highlighted that over 60% of U.S. working mothers find childcare a significant barrier to employment (First Five Years Fund, 2021).
Contact centers are beginning to address this challenge through innovative solutions. Some companies offer childcare stipends or partner with local childcare providers for discounted rates. Others are integrating on-site childcare facilities into their operations, enabling on-premise workers to remain close to their children during work hours.
For remote/WFH agents, flexibility is key. Offering split shifts or adjustable work schedules allows parents to balance work and caregiving responsibilities. Additionally, employers can provide resources such as virtual parenting support groups or access to backup childcare services to mitigate unforeseen disruptions.
By investing in childcare solutions, contact centers enhance employee satisfaction and strengthen their ability to attract and retain a critical workforce segment. Addressing childcare barriers is not merely a supportive measure; it’s a strategic imperative for building a sustainable and inclusive talent pipeline.
Tapping Undertapped, Underrepresented Workforces
The challenges of shrinking labor forces and widening skills gaps seem daunting, but they present an opportunity for revolution.
By reimagining recruitment strategies, forward-thinking contact centers can overcome immediate talent shortages: and position themselves as employers of choice in an intensely competitive industry.
This shift begins by tapping into historically underrepresented (yes, diverse) talent pools that bring unique skills and perspectives to the workforce. Read on to discover how amplifying recruitment efforts among them can transform the contact center industry.
Power of Experienced Aging Workers
The global workforce is at a crossroads, with demographic shifts reshaping labor markets and presenting both urgent challenges and transformative opportunities.
Slowing population growth, declining fertility rates, and a rapidly aging population place unprecedented pressure on labor supply. By 2032, individuals aged 75 and older will be the fastest-growing demographic in the U.S., while workers aged 55 and above will increasingly participate in the workforce out of necessity and choice (Bureau of Labor Statistics, September 2023).
For industries like contact centers, where empathy, communication, and problem-solving drive success, older workers represent an untapped reservoir of talent. Particularly for organizations whose customer base spans multiple age groups.
By reimagining recruitment strategies…contact centers can overcome immediate talent shortages…
Older individuals possess a wealth of career and life experiences that enable them to assess issues and potential opportunities from the perspectives of having “been there/done that.”
After all, a younger person does not know what it is like firsthand to be old. But an older person remembers what it was like to be young.
Despite pervasive myths—such as the belief that older workers are more expensive or less technologically adept—data show that these employees are highly reliable, possess broad skills, and adapt well to modern workplace demands (Center for Retirement Research at Boston College, 2019).
Older workers are nearly identical to younger workers in health, education, and technology proficiency, making them an invaluable resource for closing labor and skills gaps. After all too, the older generation created or laid the groundwork for the advances in these fields.
Engaging this demographic requires companies to dispel myths and adopt targeted strategies to attract and retain older workers, such as the following:
- Educating hiring managers and recruiters about the value of older workers is critical. Particularly to challenge the misconception that they are more costly or less adaptable than younger employees.
- Phased retirement programs, part-time roles, and flexible, including work-from-home (WFH) schedules can help meet the needs of older employees while enabling them to contribute meaningfully.
Creating an inclusive workplace culture that explicitly values age diversity and integrates older workers into training and leadership opportunities is equally essential.
Moreover, companies can enhance job design by offering ergonomic workstations and accessible technology to accommodate physical needs and simplify onboarding processes.
Organizations can mitigate labor shortages and build a more inclusive, resilient workforce by recognizing the aging population as an asset rather than a liability.
Engaging older workers is no longer optional: it is a strategic imperative for contact centers navigating an evolving labor market and striving to secure long-term success.
Engaging Indigenous Peoples in the Workforce
Attracting and hiring Indigenous peoples can open untapped candidate pools while fostering greater workplace diversity.
Indigenous individuals often encounter systemic barriers to employment, including limited access to education and vocational training, higher rates of discrimination in the workplace, and underrepresentation in managerial positions.
Indigenous populations often reside in rural or remote areas, limiting their access to metropolitan hubs and contact centers. In the United States, 45% of tribal households are in rural areas, compared to 19% of nontribal households (Mejia, 2024; U.S. Census Bureau).
A digital divide compounds geographic separation; limited broadband access on tribal lands hampers the feasibility of remote work, which might otherwise bridge the gap between distance and opportunity. In 2021, 71% of American Indian and Alaska Native households on tribal land had broadband access, compared to the national average of 90% (Mejia, 2024).
Contact centers have a unique opportunity to recruit Indigenous candidates and leverage their talents actively. Implementing culturally sensitive recruitment strategies is key.
Contact centers must invest in infrastructure and partnerships. Collaborating with government initiatives and Indigenous organizations to advocate for improved broadband access is critical.
There are programs that provide opportunities for businesses to support local infrastructure development, such as:
Beyond connectivity, contact centers can offer satellite offices or mobile work hubs near Indigenous communities, creating localized employment opportunities without requiring long commutes.
Tailoring recruitment to the unique cultural contexts of Indigenous populations can establish trust and build engagement.
Contact centers have a unique opportunity to recruit Indigenous candidates and leverage their talents actively.
Building relationships with community leaders, partnering with Indigenous employment agencies, and designing inclusive job descriptions that resonate with these communities can enhance outreach.
Additionally, fostering a workplace culture that celebrates Indigenous traditions—such as offering time off for cultural events and incorporating Indigenous practices into company operations—can promote retention and job satisfaction.
To ensure sustained engagement, employers should invest in leadership development programs tailored to Indigenous employees and provide mentorship opportunities to help them thrive. Building partnerships with Indigenous communities and supporting local initiatives can strengthen relationships and establish contact centers as inclusive employers.
By addressing these barriers and implementing inclusive practices, contact centers can open doors for the unique perspectives and skills that Indigenous employees bring to the workforce. These steps drive corporate social responsibility and strengthen organizational performance and innovation.
