Tuesday, February 19, 2008

Customer Service: Employment & Job Outlook

EMPLOYMENT

Customer service representatives held about 2.2 million jobs in 2006. Although they were found in a variety of industries, about 23 percent of customer service representatives worked in finance and insurance. The largest numbers were employed by insurance carriers, insurance agencies and brokerages, and banks and credit unions.

About 14 percent of customer service representatives were employed in administrative and support services. These workers were concentrated in the business support services industry (which includes telephone call centers) and employment services (which includes temporary help services and employment placement agencies). Another 11 percent of customer service representatives were employed in retail trade establishments such as general merchandise stores and food and beverage stores. Other industries that employ significant numbers of customer service representatives include information, particularly the telecommunications industry; manufacturing, such as printing and related support activities; and wholesale trade.

JOB OUTLOOK

Customer service representatives are expected to experience growth that is much faster than the average for all occupations through the projection period. Furthermore, job prospects should excellent as workers who leave the occupation will need to be replaced.

Employment Change. Employment of customer service representatives is expected to increase 25 percent from 2006 to 2016, which is much faster than the average for all occupations. This occupation will have one of the largest numbers of new jobs arise, about 545,000 over the 2006-16 projection period. Beyond growth stemming from expansion of the industries in which customer service representatives are employed, a need for additional customer service representatives is likely to result from heightened reliance on these workers. Customer service is very important to the success of any organization that deals with customers, and strong customer service can build sales, visibility, and loyalty as companies try to distinguish themselves from competitors. In many industries, gaining a competitive edge and retaining customers will be increasingly important over the next decade. This is particularly true in industries such as financial services, communications, and utilities, which already employ numerous customer service representatives. As the trend towards consolidation in industries continues, centralized call centers will provide an effective method for delivering a high level of customer service. As a result, employment of customer service representatives may grow at a faster rate in call centers than in other areas. However, this growth may be tempered by a variety of factors such as technological improvements that make it increasingly feasible and cost-effective for call centers to be built or relocated outside of the United States.

Technology is affecting the occupation in many ways. The Internet and automated teller machines have provided customers with means of obtaining information and conducting transactions that do not entail interacting with another person. Technology also allows for greater streamlining of processes, while at the same time increasing the productivity of workers. The use of computer software to filter e-mails, generating automatic responses or directing messages to the appropriate representative, and the use of similar systems to answer or route telephone inquiries are likely to become more prevalent in the future. Also, with rapidly improving telecommunications, some organizations have begun to position their call centers overseas.

Despite such developments, the need for customer service representatives is expected to remain strong. In many ways, technology has heightened consumers’ expectations for information and services, and the availability of information online seems to have generated more need for customer service representatives, particularly to respond to e-mail. Also, technology cannot replace human skills. As more sophisticated technologies are able to resolve many customers’ questions and concerns, the nature of the inquiries handled by customer service representatives is likely to become increasingly complex.

Furthermore, the job responsibilities of customer service representatives are expanding. As companies downsize or take other measures to increase profitability, workers are being trained to perform additional duties such as opening bank accounts or cross-selling products. As a result, employers increasingly may prefer customer service representatives who have education beyond high school, such as some college or even a college degree.

While jobs in some industries—such as retail trade—may be affected by economic downturns, the customer service occupation generally is resistant to major fluctuations in employment.

Job prospects. Prospects for obtaining a job in this field are expected to be excellent, with more job openings than jobseekers. Bilingual jobseekers, in particular, may enjoy favorable job prospects. In addition, numerous job openings will result from the need to replace experienced customer service representatives who transfer to other occupations or leave the labor force. Replacement needs are expected to be significant in this large occupation because many young people work as customer service representatives before switching to other jobs.

This occupation is well suited to flexible work schedules, and many opportunities for part-time work will continue to be available, particularly as organizations attempt to cut labor costs by hiring more temporary workers.

Source: US Department of Labor (http://www.bls.gov/oco/ocos280.htm#emply)

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