Pay For Performance (PFP)

As Motivational factor in telemarketing industry in Peshawar

Crestech International, BPO

Outbound Call Center

Introduction• PFP (Pay For Performance)

• Motivation

• Telemarketing

PFP

• Pay for performance (healthcare), an emerging movement in health insurance, in which providers are rewarded for quality of healthcare services

• Pay for performance (human resources), a system of employee payment that links compensation to measures of work quality or goals

• Pay for performance advertising, a new business model used in online advertising whereby an ad agency charges a marketer for the results achieved by the ad campaign

Motivation

• Motivation is the activation or energization of goal-oriented behavior.

• The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation.

• According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting

Telemarketing

• Telemarketing (known as telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.

Literature Review• In this issue, we spotlight several recent

publications regarding pay-for- performance programs and financial incentives for quality care and employees motivation.

• The concept of paying for performance is becoming increasingly popular in telemarketing industry. 100 incentive-based programs have spawned across the globally, driven mainly by purchasers and payers such as the government, employers, and employer groups. To date, little is known about the impact of these nascent initiatives.

• The true impact of pay-for- performance would be seen more long term. As pay-for- performance programs mature, additional studies like this one will help elucidate whether paying for better quality is truly increasing motivation in telemarketing industry.

• Performance-based pay is about motivating people, and developing performance-oriented cultures. Employees, who are not motivated by financial rewards, can be encouraged with non-financial rewards

Methodology• As PFP is a very broad topic, so we have applied it in

telemarketing industry in Pakistan, Peshawar. The age segments of employees (dialing agents) vary from 21 to 28. Data will be collected through different types of methods which includes short interviews with the calling agents and their management as well. We will also collect data with the help of questioners and experts opinion regarding Pay for Performance in telemarketing industry.

• To understand the impact of PFP we will also compare the traditional salary method with it, and its comparison with other telemarketing firms in the same geographical boundary (i.e. Peshawar).

• We will also collect secondary data from difference sources which include different websites, newspapers, articles, marketing magazines, and primary data from online outsourcing experts.

Objectives• To understand the determinants of effective PFP

systems.• Identify the critical variables related to the

selection of the most appropriate PFP• System.• Review the evidence on the effectiveness of

different PFP system.• Determine the relative advantages and

disadvantages of the various PFP systems.• To understand the term motivation and its

relation with PFP system.

• To study the impact of PFP on employees motivation in telemarketing industry

• Measurement of increase/decrease in sales

• Employees satisfaction; whether they are satisfied with PFP or not

• Pay Per Performance Verses Hourly paid Telemarketing

Interviews Conducted

• Top Management (C.E.O Rizwan Khan)• Middle ManagementFloor Manager (Waseem Shaikh)Floor Supervisor (Jason Asterada)

• CSR/TSRNew AgentsExperienced

Crestech International and Lords Telecommunication

Levels PFP Traditional Salary

PFP Motivates (YES)

PFP Motivates (NO)

Management

23 % 67% 92% 8%

New Agents

7% 93% 97 % 3%

Experienced Agents

79% 21% 100% 0%

Questioner for Motivation in Telemarketing

• Do you know what is expected of you at work? • Do you have the materials and equipment you need to do your work right? • At work, do you have the opportunity to do what you do best every day? • In the last seven days, have you received recognition or praise for doing

good work? • Does your supervisor, or someone at work, seem to care about you as a

person? • Is there someone at work who encourages your development? • At work, do your opinions seem to count? • Does the mission/purpose of your company make you feel your job is

important? • Are your associates (fellow employees) committed to doing quality work? • Do you have a best friend at work? • In the last six months, has someone at work talked to you about your

progress? • In the last year, have you had opportunities at work to learn and grow?

References• http://en.wikipedia.org/wiki/

Pay_for_performance

• http://www.workforce.com/section/09/article/23/53/40.html

• http://en.wikipedia.org/wiki/Motivation

• http://performance-appraisals.org/faq/indexemployee.htm

• http://en.wikipedia.org/wiki/Telemarketing

• Crestech International (Staff)