Compass Money: The Gig Economy – Inside the World of Work-at-Home Customer Service

Arise Virtual Solutions—a firm that connects large businesses such as Disney and Comcast with individual customer service agents—has reportedly exploited its gig workers and has not provided proper benefits.

Like many gig work firms, Arise consists of independent workers that can set their own schedules and work from anywhere. On its website, Arise tells prospective agents to “BE YOUR OWN BOSS. SIGN-UP!” 

Founded in 1994 to create jobs for people with disabilities, the company has continued to direct its advertisements towards those with limited options or mobility—such as stay-at-home mothers and military spouses. The COVID-19 pandemic and the following demand for remote work, however, increased the company’s agent network to 70,000 in April.

From Arise Virtual Solutions’ Facebook page. (Facebook)

While the company itself is relatively unknown, Arise’s clientele, past and present, include large corporations including Amazon, Apple, AT&T, Barnes & Noble, Princess Cruises, and more. The “biggest benefit” of Arise, according to former Arise CEO John Meyer, is its “ability to squeeze wastage out of a typical workday.” Meyer explained, “A typical employee has a utilization rate of 65 percent because you’re paying for their lunch, breaks, and training…we are substantially more cost effective.” The pandemic also prompted the closing of many physical call centers, contributing to the need for services offered by Arise.

However, much of Arise’s value to large corporations stems from its invisibility: an Arise company manual emphasizes to its agents, “The confidentiality of information related to Arise and its clients must be maintained forever.” To keep their job, Arise’s agents must make callers believe that they’re actual employees at large companies. If an agent receives calls for Disney, they should sound like they’re in Cinderella’s castle, even if they live in Arkansas. These customer service representatives are thus not directly employed by the large corporations—but they’re technically not employed by Arise, either. Like Uber or Lyft drivers, they’re defined as independent contractors. 

For Yvonne Corder, working for Arise as an independent contractor meant being treated like an employee without receiving any employee rights. Seeking a job that allowed her to home-school her two kids, Corder initially viewed virtual customer service as a “fun and an easy way to make money.” She signed up on Arise’s website for a three-month training that cost her $295 and “four hours a night every night of the work week, plus homework.” 

The table above displays items from a 40-item checklist used to score Barnes & Noble customer service agents. (ProPublica)

Corder also purchased a phone headset, second phone line, special computer, and fax machine. After three months of training, she took the final exam composed of practice customer service calls and a written test—and she failed. After paying for another three months of training, Corder finally got a job for Disney.

While working for Disney, Corder’s calls were constantly monitored, reported, and graded on a point system. Not only was she “constantly nervous about losing her job,” but when she received her paycheck, she saw a fee of $19.75 deducted by Arise every time. Corder didn’t know whether she was even making minimum wage.

Many similarly dissatisfied agents have individually taken legal action against Arise for misclassification and won. Because Arise’s contract includes a class-action waiver, however, the collective action necessary for impactful change has not occurred. 

While work-at-home customer service may appear like a creative remote work solution during this pandemic situation, the experiences connected with Arise reveal the importance of accurately understanding the costs involved in such work.