1) Baseline: Customer Service Representative wages
According to the U.S. Bureau of Labor Statistics Occupational Employment data, Customer Service Representatives earn median annual wages that vary by state and industry. Use this as your baseline fully‑loaded wage before taxes and benefits.
BLS — Customer Service Representatives (OES 43‑4051) (link).
2) Turnover and replacement costs dominate
Industry reports commonly show 30–45% annual turnover at call centers, with higher rates in certain segments. Replacement costs (recruiting, training, ramp time) routinely run five figures per agent, and the downstream impact on service quality compounds the bill.
| Driver | Typical Range | Notes |
|---|---|---|
| Annual turnover | 30–45%+ | Higher in outsourced/high‑stress segments |
| Replacement cost per agent | $10,000–$20,000 | Recruiting, onboarding, training |
| Lost productivity | $5,000–$8,000 | Ramp time to full performance |
Benchmarks: TechRepublic Call Center Statistics (link), Insignia Resources — 2025 Turnover Rates (link).
3) People vs. AI: illustrative monthly cost model
| Line Item | People‑Only | AI‑Augmented |
|---|---|---|
| Base labor (1 FTE CSR) | Wage ÷ 12 | — |
| Turnover amortization | $10k–$20k ÷ 12 | Lower (coverage by AI) |
| After‑hours coverage | Overtime / extra FTEs | Included (24/7 AI) |
| Training/ramp | Ongoing | Minimal |
| Software/telephony | Per‑seat tools | Included in AI platform |
In practice, AI handles repetitive calls (order status, returns, FAQs) and keeps a human available for exceptions. This reduces staffing peaks, overtime, and churn pressure—while giving customers instant answers.
Try the hybrid model
Publish a phone number, route common calls to AI, and escalate edge cases to your team. You’ll improve service quality and stabilize costs.