Northwest Arkansas Telemarketers Fill Empty Seats

Overcoming the tight northwest Arkansas labor market, a group of telemarketing businesses have widened their potential employee base by targeting high school and college students.

National Account Systems Inc., Premier Telecommunications Inc. and Automated Research and Marketing Inc. use students for about 60 percent of their combined workforce. Separate telemarketing entities under shared management in Fayetteville, the companies have all enjoyed considerable growth using their hiring strategy.

In 1999, with four employees on the roster, Automated grossed less than $100,000. Company president Steve Baker projects gross revenue for 2000 to top $1 million with 150 employees.

At least 75 percent of Automated’s roster includes students, said Curtis Riggs, vice president of the contracted sales operation.

NAS’ 1999 figures show gross of $1.8 million compared to a projected $2.5 million for 2000, Baker said. Premier’s gross revenues also increased from $325,000 in 1999 to an expected $400,000 this year.

Employing students with complex and variable schedules poses problems for many businesses, but Automated bypasses most of the trouble with a pool schedule.

The flexible system works well for students, because they are only required to work one six-hour day per week. Aside from their required shift, employees can work any extra hours they want, provided they come in for at least two hours at a time. Most of the students work about 18 hours each week, Baker said.

“We have a certain amount of seats available,” Baker said. “If they can come in and sit down to work, it’s good for us.”

Seating in the calling room includes 141 stations that the three businesses share. The high ceiling of the 8,000-SF room diminishes the noise level. Automatic dialers with headsets and computer terminals equip each marketer for his shift.

Pool schedules allow for the employee fluctuation that accompanies massive student employment. Mid-term exams, holidays and summers pose considerable challenges. The recent football game in which the University of Arkansas played the University of Georgia left the stations almost empty.

Employees are only asked to maintain a set schedule for 30-day increments. NAS and Premiere require regular part- or full-time schedules from employees.

Premier is a contracted answering and ordering service, and it offers shifts around the clock and every day of the year.

Riggs said turnover for the businesses depends heavily on when the University of Arkansas is in session.

In an effort to raise retention rates, NAS gives two weeks of classroom training and two weeks of on-the-job training before requiring production standards from the collectors. Automated trains three days in the classroom and up to two weeks on the job.

Still, the employers expect 100 percent turnover each year, with each worker lasting an average of about 5 months.

“Our turnover is lower than the industry right now,” Riggs said. Between 2 percent and 3 percent turnover each week is average, but summers bring 10 percent to 15 percent turnover.

Originally established in 1967 in Lincoln, Neb., NAS is a contract collection agency that was bought by Steve Baker’s father, Darwin, in 1980. In 1990, Darwin Baker moved the headquarters to Fayetteville. Providian Financial Corp.’s credit card division, SunCom and Mercy Health System are three large clients for NAS.

The other two telemarketing ventures started in the late 1990s, and last August, the businesses moved from a 7,000-SF space with 60 stations to 15,675 SF with 141 stations.