ICMI's Customer Management Insight - September 2007 - (Page 14) S T R AT E G Y tors have taken notice of this dynamic, and have brought enforcement actions against companies whose compensation programs were too heavily skewed toward bonus payouts for completing sales. One way to encourage compliant behavior is to develop programs that are: 1) weighted more heavily toward base salary (60 percent or higher base salary is a good target); 2) comprised of individual and team incentives; and 3) incorporate other factors indicative of quality customer experiences, such as customer survey responses, low call-back rates or lack of consumer complaints. The compensation program for site-level supervisors and management also can play a crucial role in compliance. Tying supervisor and manager compensation to compliant behavior by agents provides a strong incentive for compliance at all levels. Management also should regularly review agent compensation reports for irregularities. Higher-than-normal bonus payouts or unusual changes in payout amounts from month to month may be indicators of non-compliant behavior. Do maintain and enforce disciplinary policies that provide clear guidelines for violations of company policies and procedures. Detecting and reporting and reviewing compensation reports alerts agents that the company views compliance as a high priority. Consistent application avoids perceptions of discrimination or favoritism, reduces the likelihood of confusion among agents, and, again, sends a clear signal to agents regarding a company’s commitment to compliance. To ensure consistent application of disciplinary policies, discretion in applying penalties, particularly at the site level, should be limited. It is also important to maintain employee records regarding all disciplinary actions. Documentation of violations followed by detection and application of disciplinary policies shows that a company understands its compliance obligations. These records also may be extremely helpful in the event of a regulatory investigation or litigation. rals to consumer organizations, the Better Business Bureau or state and federal law enforcement agencies, are sure to attract attention. Companies should set benchmarks for responding to complaints received directly from consumers to head off referrals to these agencies. Companies that receive repeated referral complaints should have a dedicated team ready to respond promptly and comprehensively to the issues raised. Don’t underestimate the importance of quality representatives. A single rogue, non-com- violations of company policies and consistent application of disciplinary provisions is critical to compliance. Developing written standards of conduct for all employees (agents, supervisors and management) ensures that baseline policies and procedures are known to all. Following up with a system that detects violators and includes, but is not limited to, monitoring calls icmi’s insight pliant employee can expose a company to extensive liability, particularly in a high-volume environment. Care must be taken to ensure that every agent meets required standards and that he or she abides by company policies and procedures. It is also important to note that an agent never knows the true idenDon’t think that outsourcing tity or profession of a caller. Many customer service will relieve questions have been raised (and your company of liability. Out - likely more than a few investigasourcing customer service func- tions opened) by regulators who tions does not necessarily alleviate experienced first-hand compliance a company of legal liability. In fact, issues in their personal interactions regulators have found numerous with customer service representacompanies liable for statements tives. Agents should assume that made on their behalf by third-party they are speaking with a regulator service providers. Contracts with (or the CEO of the company) at all outsourcers should contain provi- times. sions requiring compliance with company policies and relevant laws. Companies should also closely monitor the activities of outsource providers. • Don’t fail to respond to consumer complaints in a timely and comprehensive manner. Consumer complaints are generally the single most important factor in a regulator’s decision of whether to instigate an investigation. High levels of complaints, particularly refer- JEFF KAUFFMAN is an Associate in the Advertising Law Practice Group of Kelley Drye Collier Shannon. jkauffman@kelleydrye.com. | SEPTEMBER 2007 www.icmi.com 14 http://www.icmi.com
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