The data helps explain why smaller companies generally provide better service, but it doesn't explain why Zendesk's data shows that large companies provide the best service.
One explanation is that Zendesk grouped companies into different categories than the Temkin Group. Zendesk's data separates companies with 500 - 4,999 employees and 5,000+ employees, while the Temkin Group's largest categories are 100-1,000 and 1,000+.
It could be that employees in companies with 5,000+ employees are more engaged than in companies with 1,000 employees. (Personal note: I doubt it.)
Another explanation is that engagement isn't the sole driver of customer service quality. Other factors play a role such as the product, processes, and policies. Big companies tend to do this better than mid-sized companies, which can sometimes experience growing pains. Small companies are often small enough to continue operating informally.
Still one more explanation is team size.
Team Size Matters
There's some anecdotal evidence that suggests the size of a team can have an impact on service.
Let's go back to the Temkin Group data on employee engagement. Teams in small companies tend to be small because there aren't a lot of employees in general. Work teams tends to grow as employee counts grow.
Why is this important? A lot of great customer service comes from teamwork. Teamwork comes from creating strong relationships, which is hard to do in larger groups.
Look at how many relationships are created as a team expands from 2 employees to 10.
- 2 = 1 relationship
- 3 = 3 relationships
- 4 = 6 relationships
- 5 = 10 relationships
- 6 = 15 relationships
- 7 = 21 relationships
- 8 = 28 relationships
- 9 = 36 relationships
- 10 = 45 relationships
A team with 100 employees has a whopping 4,950 individual relationships between all it's members. Here's the formula if you want to do the math on your team:
# of Relationships = (x-1) * (x/2) where x = the number of people on your team.
But, what about large companies? In very large companies, it's not uncommon for employees to form tight relationships with people on their work team while employees in other departments or locations remain relatively anonymous.
For example, Amazon lives by what CEO Jeff Bezos calls the Two Pizza Rule. The idea is that teams shouldn't contain more people than you can feed with two pizzas. That generally works out to about eight people.
Inside FCR's Small Team Approach
FCR is a U.S. based contact center outsourcer. They have 1,400 employees who are spread out over six contact centers in Oregon. Part of their strategy is limiting the size of their contact centers to approximately 350 employees.
I asked Jeremy Watkin, FCR's Head of Quality, for some insight into why the company has so many small centers.
He gave me a few reasons. The first was practical. "If you look at our centers, they all have a very similar feel. They are typically in an old warehouse, department store, or grocery store space and we use every square inch."
The second was strategic. Locating their contact centers in small Oregon towns gives FCR access to a strong labor market while keeping costs relatively low. However, being in a small town also means that there are only so many potential employees to fill those jobs.
The third reason is culture. FCR is deliberately trying to create a strong, customer-focused environment where people enjoy a collegial atmosphere. In fact, colleague is FCR's name for employee.
Watkin told me that people coming from larger contact centers are usually surprised when they join FCR. "At FCR, they feel like people know their name and that they matter."
Interview With Jeremy Watkin
I wanted to learn more about FCR's approach to team size. Thankfully, Jeremy agreed to let me interview him via Google Hangout. I hope you can join us.
- Date: Thursday, December 3 2015
- Time: 10:00 am (Pacific)
- Coordinates: Google Hangout
We'll be discussing how team size can impact customer service. Jeremy offers a unique perspective since he led the customer service function in a company with less than 50 employees before joining FCR.