The Mediating Role of Financial Distress in the Career Alignment of Customer Service Representatives

Despite extensive research on stress, burnout, and health issues among customer service representatives (CSRs) in the Philippine BPO industry, limited scholarly attention has been given to the financial struggles experienced by CSRs and how these financial pressures influence their long-term career fit. Existing studies often position financial challenges as secondary concerns, leaving a gap in understanding how Financial Distress directly shapes career decisions, job commitment, or transitions toward higher-value career pathways. This study aligns with Sustainable Development Goals (SDGs): SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 3 (Good Health and Well-Being). These SDG connections demonstrate that improving Employer Financial Support mechanisms can strengthen Career Alignment and reduce economic strain experienced by CSRs. Using quantitative research design employing a combined purposive-snowball sampling, the researcher surveyed 200 CSRs working in Muntinlupa City, ensuring that all respondents met inclusion criteria despite the absence of a centralized CSR database. Descriptive aanalyses showed that CSRs generally agreed that they experience moderate levels of Employer Financial Support, Financial Distress, and Career Alignment. Regression and mediation analyses revealed that Employer Financial Support significantly reduced Financial Distress (B = 1.095, p < .001), and Financial Distress strongly predicted Career Alignment (B = 0.895, p < .001). Mediation testing confirmed that Financial Distress fully mediated the relationship between Employer Financial Support and Career Alignment, supported by a significant indirect effect (B = 0.982; 95% CI [0.893, 1.063]) and a Variance Accounted For (VAF) of 91.4%. Moderation effects of monthly income and dependents were not significant. The findings demonstrate that Employer Financial Support enhances long-term Career Alignment primarily through lowering Financial Distress among CSRs. This highlights the strategic value of financial wellness initiatives in strengthening retention and supporting sustainable career development within the BPO sector.
Keywords: Financial Distress, Career Alignment, BPO Industry, Customer Service Representatives, Conservation of Resources (COR) Theory, Mediation Analysis

Human Resource Management (HRM), Organizational Behavior

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