ILR Impact Brief - Ownership Status Matters: Call Centers, Employment Systems, and Turnover

Abstract

"Each type of call center (i.e., ownership status) is associated with particular strategies and systems, which in turn influence quit rates. In-house call centers typically focus on service quality and adopt quasi-professional employment systems (higher pay, more opportunities for employee problem-solving, minimal performance monitoring). Cost control, by contrast, is the strategic driver of outsourced and offshore call centers, which favor low-commitment employment systems that depend on close monitoring and limited on-the-job discretion. Turnover, a major problem for the entire industry, is lowest at in-house call centers and highest at outsourced facilities."