Instituting a new compensation agreement is one of the great emotional challenges for call center management. It’s like playing with matches, lighter fluid, and gasoline in a forest of trees. The wrong agreement can destroy an entire call center culture. The wrong plan usually leads to another wrong plan, which leads to another plan. In a matter of weeks or months, the revolving plans take any steam right out of the job. Agents become distrustful. They don’t have the passion they once had for the job. They simply lose their focus. Management must create a new compensation plan once, and it must be very good; one that can last for the short term, and for the long term. Management must make a strong effort to consider the emotions of their agents in creating the new agreement. A compensation plan is not only a set of numbers that determine pay. It is an emotional pact between management and agent that shapes a culture, identifies the values of a corporation, builds relationships, and constructs the foundation for the future success of the call center.
Perhaps management forgets that they need to develop a compensation plan that works for the call center while also creating a plan that works for the agents. Management may understand they need to look out for their agents. But realistically, they are in management to incorporate the best plan as a whole, and agents can very often come out on the short end of the stick. On the other hand, agents see one point of view regarding compensation plans - theirs! Yet management has a multitude of scenarios they must take into account. If the compensation plan doesn’t motivate agents to do well, the company suffers and the plan becomes an albatross. The entire environment becomes one of complaints, bickering, and attrition. Emotions rage because management has tinkered with the agents’ most prized possession. If the compensation plan compensates agents too well, the company can also suffer, and the plan becomes an “agent vs. management” issue. All of a sudden, management is paying above budget for performance, and bottom lines become affected. Management then takes steps to correct their first error, and raging emotions become prevalent again.
Creating a new compensation agreement involves creating change. From one plan to the next, agents must change their mindset and personal goals to meet new objectives. Because change is considered by many to be unfriendly anyhow, change involving the way one gets paid accentuates agents’ concerns. If the compensation plan penalizes agents in comparison to what they had before, they feel this is retribution, and turmoil ensues. They want to know why the plan has penalized them. They want to know why they should continue to perform at the same level, or even a higher level, when they are being paid less. They want to know how management developed this new plan, and during what timeline management may change it again. The truth is that management almost never changes compensation plans to give their agents more money. They may change a plan because goals have changed. Or they may change a plan to reduce the level of income attainable. But agents and management recognize that changing compensation plans always has some sort of “dent” involved. It may be a change in policy or a change in payment, or a reduction in money or a change in payable terms, etc. When management makes changes, it is nearly always not to the benefit of their agents.
So, when beginning to look into call center compensation, what is the plan? Here are three ideas:
The compensation plan must be centered around a company’s ability to pay
Every company is different when delegating a certain percentage of pay to its agents. Management must be cognizant of how much money and investment the company can make in the call center. Traditionally, outbound telesales agents always earn more commission than inbound customer service agents, because it is believed that outbound telesales agents have the more difficult job of creating new business. But have you noticed that, more and more, member service and retention has played a larger part in growing businesses? Once a finite portion of the market has been reached in a sales campaign, the battle for business comes from achieving winback sales from competition, not creating new sales. Therefore, the ability to retain a member through member service retention and customer service soft selling can become more valuable to a firm than generating new sales. Businesses are beginning to spend a high percentage of their resources on maintaining client relationships so competitors can’t steal their clients away. In many industries, maintaining relationships with current clients is more profitable than farming for new business. Therefore, I ask the question: “Where does a business want to spend its money? Why? What exactly is a firm’s ability to pay?”
The compensation plan must be centered upon demand
Developing a compensation plan in the heart of a large city is quite different from coordinating a plan in the middle of a small town. Simply put, part-time agents located in small college towns demand a different pay scale than full time employees in major cities. What is the demand in your city for call center agents? In addition, demand applies to more than the battle between part-time and full-time agents. There is internal demand as well. As a call center executive, I have seen top employees transfer to other departments, depleting my staff. We were never disappointed if the agent left for better career opportunities. We were always disappointed when they left to work in a department that paid more, even when we felt the value of their work in that department paled in relationship to the value of their work in our department. My philosophy has always been that it is better to overpay an employee a little than to lose an employee of value because you paid too little. When designing a plan, ask about the demand within the company for quality employees. Observe the demand within your industry. Weigh whether it is valid to pay a little too much, or a little under par, for your agents.
The compensation plan must be centered upon job requirements
The job duties for agents are completely different from project to project. No two call center jobs are the same. Some duties involve answering incoming e-mails, others involve making outgoing telesales calls. Just because an agent has “XYZ” job duties in one call center or in one project does not mean his job duties will be exactly the same on a different project or in a different call center. A compensation plan must be centered on the objectives of each particular job. Requirements to explore include:
“What skills does an agent utilize on a daily basis?”
“How does this role differ from other roles in the organization?”
“What type of candidates are we looking to attract?”
“Is the position inbound or outbound?”
“Is the position full time or part time?”
“What hours will the agents be working?”
“What are some of the key skill sets required?”
“How much of a factor does technology play in the role?”
“How critical is the role to the effectiveness of the organization?”
For more information on how Call Center Today can craft a compensation plan with your contact center please call us at 888-835-5326 x111 or email MyCallCenter@CallCenterToday.com. Or visit us at www.CallCenterToday.com.
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