Survey of call centre rewards 2005

CALL CENTRES

Survey of call centre rewards

The fourth annual report on pay and contact centre terms and conditions conducted by IRS and the Call Centres Association shows that pay rises of around 3% last year were supplemented by many organisations in response to labour market conditions.

But the study shows that one in three call centre operators (32%) had to go back and revise pay rates in mid year for at least one group of staff. With nearly two-thirds of organisations (63%) reporting that they had increased staffing levels this year, the indications are that the tight labour market is feeding through into better pay rates for employees -- particularly for those on the lower grades.

What you will find in this report

The research by IRS and the Call Centres Association covers the reward packages of 191 organisations which operate in excess of 400 centres and employ an estimated 150,000 staff.

The report examines salaries, pay awards and bonuses, as well as data on HR policy and practice, labour turnover, flexible working arrangements and expectations about the year ahead.

Respondents were asked to provide information on their current salary levels, indicating whether staff were paid on a salary scale or a single spot salary, for six key call centre positions:

  • trainee

  • customer service representative on lower or standard rates

  • CSR on higher rates

  • team leader

  • call centre manager

  • support specialist.

Key findings include:

  • 43% of call centres provided an across-the-board pay increase in the past year, worth 3% at the median. Others operate individual or team-based merit pay systems.
  • Almost a third of organisations (32%) reported making changes to their salaries outside their usual annual pay review.
  • Lower level CSRs (customer service representative) formed the largest staff group to see changes to their pay rates; almost one in five (19%) organisations uprated pay levels for these staff. However, the median mid-scale salaries of all occupations have increased ahead of this figure, with CSR and team leader positions experiencing the largest salary increases of between 7% and 10%.
  • Median mid-scale annual salaries by occupation range from £12,500 for a trainee, to £34,618 for a call centre manager.
  • Almost two-thirds (63%) of survey respondents increased their staffing levels during 2004.
  • The public and not-for-profit sector pays higher starting salaries than the private sector for all positions. Public sector starting salaries are between 4.2% and 9.6% higher than their private sector counterparts.
  • The biggest regional differences in pay were recorded for higher-level CSRs, where the gap between the lowest paid region (West Midlands) and highest paid region (London) was £3,663 a year.
  • London has the highest median starting salary for CSRs, team leaders and managers.

A final word

"The increases to pay rates can be explained by the nature of pay in the sector, which is able to react to changes in the market. Call and contact centre managers have scope to increase individual pay packets using individual and team-based merit awards -- operating in 57% of centres -- linked to the annual pay review, achieving financial targets or attaining set competency levels. It is also likely that these changes to pay rates reflect the industry's need to attract new recruits and retain staff at a time when many local labour markets are experiencing extreme skills shortages and very low levels of unemployment." -- Mark Crail, IRS Employment Review.

Want to know more?

Title: "Call and contact centre pay and benefits", IRS Employment Review 818/Pay and Benefits, 25 March 2005.

Availability: To purchase this report contact the subscriptions department at IRS in London, tel: 020 8686 9141 or visit www.irsemploymentreview.com