Call centers look to locate a site for a new center but some markets given consideration are over-saturated with call centers. And many companies choose to move in across the street from competitors, boasting better wages, employee benefits, work environment, etc. But this is not a strategic plan for the majority of call center companies, as the larger markets can cause call centers to aggressively compete for labor, profits and competitive wages.
Potential issues of moving into saturated markets include:
• Wages. It means that wages from competition can cause the labor cost to exceed the economics of the location.
• Labor worries. Too few employees in the labor pool due to competition can increase the worry that positions will not be filled and will not be filled with skilled employees.
• Unproven market success factors. It is useful to know that many times saturated markets are unsuccessful ventures for call centers because of high wages and low labor pools.
• Competition from other industries (wages, benefits, retention). In highly competitive markets, not only are you competing for experienced call center labor at reasonable wages, but the same individuals are being sought for other job opportunities in the market as well.
• Creating call center careers. The potential to create jobs for individuals who are willing to seek a call center career is minimal. But only with high competition for employees.
However, there are advantages to moving into undiscovered tertiary markets. So, for example, you do not have to compete with high minimum wages. But you have a better chance of receiving economic incentives and tax abatements because economic development councils are more excited to work with a large opportunity in a smaller community.
If you become the employer of choice in a tertiary market, you have a higher retention rate. As you are not competing with other call centers, but with other minimum wage businesses in the area, competitive wages are not an issue. But you can create "buzz" for the company.
There are major opportunities in secondary markets to change a community and shape a state's region economically. And you have the opportunity to influence a community's work force by providing computer and telephone skills as well as training. Remember that minor initiatives have a greater impact in untapped markets!