Contact Center Solutions Featured Article

Study: Proper Compensation Protects Contact Center Base

May 20, 2008

To properly motivate contact center employees, managers often look to training processes, incentives, contests, dress-code alternatives and other methods. An element sometimes forgotten is total compensation packages.
Vurv Technology today completed a study, with Aberdeen Group, that evaluated the increased interest and use of total compensation programs. The resulting report, “Total Compensation Management: Taming Costs and Rewarding Employees” provides Best-in-Class strategies to effectively implement and manage a total compensation program.

The report defines total compensation as “all of the awards and rewards that each employee receives – including merit raises, bonuses, on-the-spot rewards, tuition reimbursements, training, perks and benefits, gift certificates or vouchers, stock programs.”
To ensure Best-in-Class status, companies must focus on total compensation programs that are competitive in the local job market, contain performance benchmark goals that are obtainable and that reward the right employee at the right time for the right reasons, according to the study.
The study said that 87 percent of Best-in-Class organizations have either partially or fully integrated compensation with other workforce management applications. These organizations are more aggressive at recognizing, acknowledging and rewarding individual performance, according to the study. This approach aids in the strategy of being perceived as an employer of choice as it makes employees feel more appreciated and they are more likely to stick around, according to the study.

Retention concepts are an important focus within the call and contact center as this industry is wrought with high attrition for a number of reasons. As such, those organizations operating centers often face higher costs due and lower customer satisfaction, according to the study.

With the proper compensation package in place, the center will not only properly reward those that are putting the effort into the job, but also will encourage higher productivity and efficiency, while fostering an environment where the employee can focus on advancement, according to the study. Such an approach provides the necessary tools for the employee to succeed, according to the study.

Taking such an approach can seem overwhelming to contact center management, but the payoff is too great to ignore, according to the study. Performance and compensation management software is available to help these organizations to execute a pay for performance plan.

Vurv offers Vurv Perform and Vurv Compensate to provide managers with access to critical performance history data right from the budget worksheet for merit pay increases and bonuses. Such applications allow managers to seamlessly define goals, measure progress and align compensation.

While not every employee will have the same focus on compensation, human tendency is to associate pay with value to the company, according to the study. If the employee feels that he or she is not considered to be valuable to the contact center, he or she is much more likely to look elsewhere for employment, according to the study.
Susan J. Campbell is a contributing editor for ContactCenterSolutions and has also written for To read more of Susan’s articles, please visit her columnist page.
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