Customer Service Representative

Customer Service Representatives are one of several important marker office and administration jobs with employment in every sector of the United States economy. There are now almost 2.1 million total jobs as customer services representatives, which is the 9th place job among America’s jobs. The largest share of Customer Service Representatives, or just over a quarter of them, work in the Finance and Insurance sector. Customer Service Representatives handle customer inquiries and resolve customer complaints. Specific work will vary some depending on the industry. In finance they may access a computer to look up account or loan information or resolve customer complaints. In insurance, they may help with policy applications, or answer questions about policy coverage and reporting claims. At utilities they most explain and handle service accounts. Automated computerized voice mail systems do some of the routine customer service work, but not enough to decrease employment because the number of jobs keeps growing, up more than 175 thousand since 2000. These jobs are going up and not down.

Customer Service Representative jobs do not require college degree training, but they are not walk on jobs like a cashier. For starters, people in these jobs need to speak clearly and grammatically. They have to explain many varied service options and service plans that are increasingly complex and the job requires computer skills since they routinely access computer database information. The skills required help keep the pay higher than most office-based employment. Like so many office occupations beginning salaries are low with 46 states reporting 10th percentile wages less than $20,000 for May 2005. The beginning salaries are only slightly higher than jobs as clerks or receptionists. However, successful work as a Customer Service Representative assures advancement and pay in the 90th percentile rises into the high forties and as much as the low fifties in some of the states and metropolitan areas. Receptionist pay does not rise that fast so there is little opportunity for advancement as a receptionist but there is as a Customer Service Representative.

Unlike autoworkers, who have to be at the auto plant to do their work, Customer Service Representatives can be anywhere they have a computer and a telephone. Working from home saves commuter costs and space on already clogged highways. Telecommuting saves business the expense of providing office space, which gives incentive to increase their staff working at home at least some of the time.

In addition, office space for Customer Service Representatives could be moved to low rent small towns, rural areas or abroad to work, but as of 2005 over 80 percent of Customer Service Jobs are in metropolitan areas. The claim is made that business is transferring Customer Service jobs abroad, but it is unlikely their numbers would be steadily increasing if many of these jobs were being moved abroad. Given the complexity of America’s many service plans in loans, credit cards, telecommunications, health care and other areas Customer Service work will not be decreasing anytime soon. The annual compounded growth rate has been 1.6 percent since 2000. There is good reason to think it should continue at about the same rate. A continuation of that rate means an increase of about 400 thousand of these jobs over the next 8 to 10 years. If employment in these areas begins to decline then it will be a blunt message that these jobs are being moved abroad.

Given the importance of the work, the skills necessary and the importance of on the job experience, wages should remain relatively high compared to other office administration and support employment. If wages decline for Customer Service Representatives, or fall relatively to other office work, it will reflect a much larger surplus of labor than anyone expected.