Calling on Compensation in Australian Call Centres

Abstract

ABSTRACT While there is a growing body of research on telephone call centre management in the U.K. and the U.S.A., empirical studies in Australia are at an embryonic stage. To date, most of the studies have focussed on the management of employee performance. The principal aim of this study was to provide data on current compensation practices in Australian call centres and to determine the extent of their strategic and best-practice orientation. A second aim was to explore whether the strategic management of compensation can help to balance the tension between commitment to customer service and commitment to employee motivation. Using data collected through a mail questionnaire survey of telephone call centres operating in a range of industries in Australia, the paper explores the effect of compensation practices on employee performance, absenteeism and turnover. Following a review of the literature on call centre management and the literature on compensation strategies, the findings are presented. Key findings include: a) a significant negative correlation between annual salary and the number of calls handled by full-time customer service representatives (CSRs); b) a significant positive correlation between casual CSRs' pay rates and turnover; c) a significant negative correlation between full-time CSRs' pay and absenteeism; d) a highly significant difference between the compensation strategies currently practiced in Australian call centres and the strategies call centre managers think should be practiced and e) Australian call centre managers report their compensation strategies are not very effective in increasing performance or employee satisfaction.