Compensating Customer Service Jobs
Customer service representative compensation plans fall into three categories:
Hourly wage only
Wages plus an individual performance bonus
Wages plus a team performance bonus
Two factors influence a company's decision about which compensation approach to take for its customer service jobs: (1) the role of the job in the customer relationship management process and (2) the compensation philosophy of the company. This type of job has traditionally been considered an hourly nonexempt job that is not eligible for incentive pay. However, the introduction of advanced information systems, new customer requirements, and changes in job accountabilities all contribute to the use of new approaches to pay for this job.
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