Salary hikes in call centers becoming unsustainable
Written by Jesus F. Llanto
Wednesday, 15 July 2009
Mar Roxas: Don’t price the Philippines out of the market.
Call centers may have increased their employees’ salaries too much too soon in the last 5 years that the practice may become “unsustainable” despite the the double digit growth that the industry is expected to post this year.
During the Call Center Conference & Expo 2009 in Pasay City, experts said that while industry is expected to post “healthy double digit” growth of 15-20% despite the economic crisis, companies must address the high salary inflation of call center agents.
Benedict Hernandez, president of the Contact Center Association in the Philippines (CCAP), said that salaries of call center agents increased annually by 10 percent, starting in 2004, when the industry experienced rapid growth as the Philippines became a preferred outsourcing destination.
“When you hear 10% year-on-year salary inflation, whether you’re under a global economic crisis or not, that is simply unsustainable,” Hernandez said. He advised companies to instead focus on giving performance-based incentives to their employees.
