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Calling on Compensation in Australian Call Centres

Published online by Cambridge University Press:  18 September 2015

Gary Crone ,
Lorraine Carey  and
Peter Dowling
Gary Crone
Affiliation:
School of Management and Policy, University of Canberra, ACT 2601, Australia Phone: + 61 2 6201 5640, Email: Gary.Crone@canberra.edu.au
Lorraine Carey
Affiliation:
School of Business, University of Canberra, ACT 2601, Australia Phone: +61 2 6201 5494, Email: Lorraine.Carey@canberra.edu.au
Peter Dowling
Affiliation:
Business, Law and Info Science, University of Canberra, ACT 2601, Australia Phone: +61 2 6201 5995, Email: Peter.Dowling@canberra.edu.au
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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.

Type
Research Article
Information
Journal of Management & Organization , Volume 9 , Issue 3 , January 2003 , pp. 62 - 76
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2003

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