How to Reduce Average Handle Time

Average Handle Time (AHT) is a core contact center metric that measures the average duration an agent spends resolving a customer interaction. It is calculated as (total talk time + total hold time + total after-call work time) divided by the total number of calls answered. For example, a single 10-minute call might comprise seven minutes of talk time, two minutes of hold time, and one minute of after-call work; time spent waiting in queue or on agent breaks is explicitly excluded.

AHT directly drives workforce planning because total workload equals call volume multiplied by AHT, and it is a key input for determining staffing levels needed to meet service-level goals, such as answering 80% of calls within 30 seconds.

There is no universal "good" AHT. It varies significantly by industry—financial services typically resolve simple balance inquiries faster than healthcare organizations explaining clinical test results—and self-service can actually inflate AHT because simple, low-handle-time calls are deflected, leaving agents with more complex, time-intensive issues. Crucially, AHT must be balanced against First Call Resolution (FCR) and customer satisfaction; overemphasizing speed can cause agents to rush calls, leave issues unresolved, and drive down CSAT.

Practical Levers to Reduce AHT

Practical levers to reduce AHT fall into three categories:

1. Talk Time

Talk time improves through coaching that blends efficiency with empathy, reducing agent turnover to retain tenured staff who handle calls faster, and deploying agent-assist technology that provides real-time guidance and scripting. Managers can also review call recordings to identify repetitive explanations and standardize responses for common inquiries without sacrificing personalization.

2. Hold Time

Hold time drops with continuous training, proficiency in internal knowledge bases so agents avoid placing callers on hold while searching, and streamlined automation with logical system flows. Offering callback options can also reduce perceived hold time and improve the customer experience.

3. After-Call Work

After-call work shrinks when speech transcription automatically converts conversations into written case notes loaded into the CRM, eliminating manual wrap-up typing. Simplifying disposition codes and using auto-populated CRM fields can further reduce the time agents spend on post-call documentation.

Approach for SMBs

For SMBs, the recommended approach is to establish a baseline AHT, segment it by call type and channel, and optimize each component individually while monitoring FCR to ensure speed does not come at the expense of resolution quality. Technology adoption should be phased: start with a knowledge base and call recording, then layer in speech transcription and agent-assist tools as volume justifies the investment. Regular AHT reviews—weekly at the team level and monthly by queue—help operations managers spot process friction before it affects service levels. Outsourced or hybrid support models can also help SMBs access trained tenured agents and speech analytics without building an in-house contact center from scratch.

Common Pitfalls to Avoid

Reducing AHT should not come at the cost of customer trust. Common pitfalls include setting aggressive AHT targets without agent input, ignoring repeat contact rates, and incentivizing short calls over accurate resolutions. Teams should track AHT alongside FCR, CSAT, and net promoter score to confirm that efficiency gains are genuine and sustainable.

Case Study: Reducing AHT in a Financial Services Firm

Consider a financial services firm that initially had an AHT of 12 minutes. By implementing a phased approach to reduce AHT, they achieved the following results:

After these phases, the firm's AHT was reduced to 8 minutes, resulting in significant cost savings and improved customer satisfaction.

Not sure which customer support model fits your growth stage? Consider speaking with a contact center operations consultant for a workflow assessment tailored to your volume and complexity.