Average handle time (AHT) is a key performance indicator (KPI) that has been used for decades in contact centers. It’s simple to measure, linked to operational costs, and helps with forecasting. But in an era focused on customer experience, some argue it’s lost relevance.

The reality is more complex. AHT still plays a critical role, but only when used with the right goals and supporting metrics. Here's why it still matters, and how to use it the right way.

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In this article:

• What is average handle time?
• Why some critics say AHT is outdated
• Why AHT still matters
• How to use AHT the right way
• Make AHT count: Add context to drive improvement
• Frequently asked questions

What is average handle time?

Average handle time is one of the most fundamental metrics in any contact center. It refers to the average amount of time an agent spends on one interaction with a customer, from start to finish.

The basic formula for AHT is:

Talk time + Hold time + After-call work (ACW)

Talk time refers to the time spent actually talking with the customer. Hold time includes any time where the agent has put the customer on hold while they access information or get clarification from a colleague. After-call work includes note-taking, entering data into CRM fields, and completing any other work related to the call.

Why some critics say AHT is outdated

Some in the industry argue that AHT puts too much focus on speed and not enough on the quality of the interaction. When agents feel pressured to keep calls short, they may rush customers, skip important steps, or avoid fully resolving the issue, just to hit a target.

It’s no surprise, then, that alternate metrics have become popular: CSAT (Customer Satisfaction), NPS (Net Promoter Score), FCR (First Call Resolution), and CES (Customer Effort Score) are some of the most common. They all speak to one thing AHT cannot: the customer's actual feelings about the interaction. They encourage service organizations to focus on outcomes over efficiency.

Over-optimizing for AHT can backfire. It may lead to repeat contacts, longer resolution times down the line, and frustrated customers who feel they weren’t heard. It can also create a stressful environment for agents, who are forced to choose between doing what’s right and meeting the clock. When AHT becomes the only metric that matters, service quality tends to suffer.

Why AHT still matters

Average handle time remains an important metric because it gives operations teams a clear, measurable view into contact center performance.

Operational efficiency

AHT is a critical metric for ensuring that contact centers staff and schedule their agents efficiently. With AHT, you can plan for volume, allocate resources more effectively, and optimize schedules to prevent both overstaffing and missed service levels. It’s one of the key factors in accurate planning, especially in call centers with unpredictable call spikes.

Cost control

A lower AHT generally means lower cost per contact. In a high-volume call center, even a few seconds shaved off of each contact can add up quickly, directly impacting labor costs and ultimately, margins.

Process improvement indicator

In many cases, an increase in AHT can also be an indicator of process problems. Perhaps agents are spending too much time navigating legacy systems or searching a knowledge base that doesn’t surface the right content.

Maybe it’s a training issue. Whatever the cause, changes in AHT act as an early warning system. They help teams identify process bottlenecks or inefficient tools before they become bigger problems.

Balancing speed and quality

Used in isolation, AHT can create the wrong incentives. But when combined with CSAT and FCR, it provides a more complete picture. It tells how fast agents work and how that speed impacts customer experience and outcomes. The goal is to find the right balance where efficiency supports a positive customer experience.

How to use AHT the right way

Average handle time is only useful if it’s applied with context. Setting hard time limits without considering the complexity of different interactions can push agents to cut corners or deliver robotic service. That’s not helpful to customers or to your brand.

Focus on quality first, then coach on efficiency. So if an agent has longer call times across the board, but high CSAT and resolution scores, that can actually be a strength. Pushing that agent to speed up could negatively impact their performance.

Look for trends. That’s the real value of AHT. Do certain types of calls take longer on average? Do newer agents take more time? Do certain systems or processes bog everyone down? Those patterns can highlight where to invest, such as in coaching, more efficient workflows, or even automation tools like AI chat or an improved knowledge base.

Make AHT count: Add context to drive improvement

Average handle time is still one of the most effective tools for managing performance, controlling costs, and improving processes in the contact center. But it works best when it’s used in context, making it one essential piece of a much larger puzzle.

CallMiner delivers deep conversation analytics help you add critical context to AHT and other key performance indicators. The CallMiner platform surfaces the root causes behind long handle times, from agent knowledge gaps to confusing processes or poor knowledge base design. It helps you spot trends across thousands of interactions, coach more effectively, and identify automation opportunities grounded in real data.

More importantly, CallMiner gives you the context to balance speed with service quality. You can correlate AHT with CSAT, FCR, and sentiment analysis to get a full picture of what’s working and what’s getting in the way of great customer experiences. Request a demo to learn how CallMiner can help you improve AHT without sacrificing quality.

Frequently asked questions

What is a good average handle time for calls?

A good average handle time (AHT) typically ranges from 4 to 6 minutes, but this varies by industry, call complexity, and customer expectations. The best AHT balances efficiency with service quality.

What causes high AHT in call centers?

High AHT is often caused by poor agent training, complex customer issues, inefficient systems, or a lack of access to relevant information. Repeated transfers and manual processes can also increase handle time.

Should AHT be used for agent performance evaluations?

AHT can provide useful insights, but it shouldn't be the sole metric for agent performance. It’s best used alongside quality scores, customer satisfaction (CSAT), and first call resolution (FCR) to ensure a balanced view of performance.

How can I reduce AHT without hurting customer satisfaction?

To reduce average handle time without hurting customer satisfaction, focus on improving agent training and streamlining internal processes. Equip agents with quick access to accurate information through an optimized knowledge base and real-time guidance tools. Removing inefficiencies and enabling agents to work smarter helps them resolve issues faster while still delivering a positive customer experience.