A Look at the Calls of Call Center Agents
Cheaper in the Philippines than Any Part of the World
Sep 15, 2009
According to XMG, a Canada-based IT research firm, call center workers call for higher pay rates. The same research firm also stated that 70% of the total workforce are actively looking for other jobs with better pay rates and working conditions. However, companies do not admit that employee retention is now a common problem in call centers. In fact, call centers have gained an attrition rate of 19% as per the Call Center Association of the Philippines.
Call centers can be unfair places to work, at least from the point of view of those who were unhappy and move out. Low pay, disappearing incentives, and poor mentoring are some of their issues. According to Emerson Fababaer, a research statistician at XMG, the attrition rate indicates that there is a genuine call of call center agents for an increase in the cash component of their remuneration.
Call Centers Lead Generation
The Philippines is by far the largest and fastest growing call center and BPO destination in Asia Pacific. Call centers grew by 15% last year and have flourished not only in Metro Manila but also in outlying regions such as Central Luzon, Central Visayas, and Southern Mindanao. By the year 2010, local call centers hope to provide work for 1 million workers and to serve a bigger portion of the world’s BPO market.
At present, the majority of call center agents are members of the younger generation. Call centers can benefit from their dynamism and exceptional skills. For that reason, it is essential for call centers to adopt retention strategies to lead in the BPO generation.
Call Center Pay Rates
In general, call centers in the Philippines pay agents a daily wage of $9, save for some BPO companies that pay their workers $14 dollars a day or $1.75 per hour.
Rep. Raymond “Mong” Palatino mentioned in his privilege speech on August 17, 2009 that the BPO industry has made strong contributions in terms of jobs and revenues in 2008. It created 372,000 jobs and contributed $6 billion to the national revenue in year 2008.
The assembly member also stated that it looks like call centers are exploiting the Philippines’ low-cost labor force. The average annual salary of a call center agent in the Philippines is $3,964. This is lower than Thailand’s $4,874, Malaysia’s $5,199, and Singapore’s $16,884.
In Australia, the average annual wage for a call center position is about US$38,000, and the median salary for a typical call center representative in the United States is $28,510, a pricing report prepared by Certified Compensation Professionals.
Call Center Agents Call Conversion Rate
The work life in a call center is far from normal. However, agents say life is good despite the fact that call center employees have unusual work hours, a stressful work culture, a nerve-racking environment, and an uneconomical work rate.
A brilliant tech receives $13 a day. A pay rate that is high to people who are not aware of the increasing disparity between wage and cost of living. $3 pays for an agent's home cooked meal of rice and a viand. They also commute to work taking the bus or jeep, which normally costs them about $3, bringing the daily expense to $6 dollars per day. What is left of their daily pay after expenses will not suffice if one has to pay for house rent and basic utilities.
Competitive pay rate is a primary consideration of those who queue for call centers and BPO jobs. However, the call of duty makes local agents submit to local rates, which are lower than the rates paid to their counterparts in Asia. In fact, it is only one-fifth of the US and UK agents' pay rates.
Call Center Call of Duty
“Therefore, there is a need, Mr. Speaker, to bust the myth surrounding the so-called sunshine industry. Because behind the seemingly improving figures are tales of exploitations, false hopes, and dim working conditions,” added Rep. Raymond “Mong” Palatino.
It is true that the BPO industry has created more than 150,000 jobs for Filipinos, a number that keeps increasing every month. Their excellent skills in patron service and proficiency in English have made the Philippines the preferred destination for call centers and BPO.
Rep. Raymond “Mong” Palatino said, “I hope that more people will become conscious of the disparity in pay rates between the Filipino call center agents and their international counterparts.” However, it is a call of duty to the government of the Philippines to push for a higher base pay, and better working conditions today while there is a great demand for their skills and services worldwide.
Conclusion of Analysis
While many Filipinos queue to the call of call centers, few people are aware of the repercussions of working in a call center. Working at night can cause various health problems such as eye strains, musculoskeletal disorders, voice strains, and hearing problems. To try compensating for this, call centers give medical coverage to agents after they become regular employees. How about giving call center workers healthy meals, instead of cups of coffee?
Outsourcing has also changed the world of work. It has changed how, where, when, and for whom people work. People working in night shifts shut down their systems at daybreak and go live at sundown. Therefore, if agents at call centers sleep during the day and work most of the night, the $8 to $12 daily rate of voice-based agents is an insult to the highly skilled and educated call center workforce.
The disparity in pay rates is just one of the streaks of ghastly indifference from underneath the so-called ‘sunshine industry.' Unable to negotiate for better working conditions, the call center agents become dumb in a workplace for knowledge workers . . . voiceless in a voice industry.
Raymond Palatino is the Kabataan Party-list representative in congress and one of the most brilliant youth leaders today.
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