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04-06-02
Roy Griffaw
RTO Online Triple digit employee turnover rates are common in retail.
Most large Rent to Own chains experience between 50% and 80% turnover for hourly
employees, and 25% to 50% per year in store-level management. Employee
turnover is a prime concern for Rent to Own professionals. It is an even bigger
concern for customers. The
relationship between an RTO customer and a store/account manager is a
necessarily close one. Constant communication is key. While slow change can be
good for any relationship, sudden change is very, very bad. As
an owner in a relatively small market, I can count on a temporary bump in
agreement count anytime there is a management change at a competitors location.
The comments I here from customers are always the same...."When 'Jane'
was there, things were OK". That's not to say the new manager is doing
anything wrong,...there just different, and to a customer, change is bad. I have been a salesman of some kind all my life.
My father, a furniture rep for 40 years, took me on the road with him when I was
young. One of the first lessons I learned was "A customer buys from a
salesman, not from a company". This is a fundamental, unchanging fact for
all industries, including Rent to Own. Maintaining consistency in personnel will
increase all aspects of your bottom line, from keep rate to BOR. The
cost of high employee turnover
According to KE Inc. (Keep
Employees Inc.) a Human Resource company specializing in reducing employee
turnover, the loss of each hourly employee can cost between 0.5X and 1X the
salary plus benefits. The cost of losing a manager is even greater. This loss
can be determined by multiplying the annual salary plus benefits by 1X to 2.5X
depending on the level of the position. The higher the position, the higher the
multiplier. Keep Employees Inc. has
developed an online form that automatically calculates your 'Cost
of Turnover'....the results will, at best, open your eyes...at worst, scare
you to death.
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