Selasa, 05 Maret 2013

Cutting Costs- Curtailing Services- Can Produce Crappy Customer Service

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    I hope this Navigator finds everyone well. One easy way to retain employees is to affirm their value to the company. My mother-in-law owns and manages a large florist/greenhouse business in Lawrenceville, GA. Every Mother's Day my wife Cathy helps her take orders, arrange and deliver flowers. I volunteered one day and I was exhausted at the end of the day. You can only imagine how busy it is at a florist on Mother's Day!

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Cutting Costs - Curtailing Services -  

Can Produce Crappy Customer Service

    In uncertain economic times, it's common for businesses to focus their time and energies on ways to cut costs. However, many of the decisions to cut back have generated unintended, and in some cases, disastrous consequences.

    Some of these knee-jerk reactions can have a negative impact on a business' performance and growth. We are seeing increased rates of employee turnover, because people have learned the only way to make more money is to quit and find a job somewhere else. When a business shortchanges their labor or quality - its products, services, or level of customer service can suffer.

    To weather economic storms, businesses must continue to invest in their leaders and employees - and hire, train and retain the best people with greatness in mind. This means planning for training and setting realistic goals so employees can do their jobs and produce the best results for the company. If businesses take the time to invest in their employees and allow them to build relationships with their customers, they will see the rewards in greater profitability, customer loyalty and employee engagement.

    Here are five principles to keep you on track:

  1. Hire the right people. According to a survey conducted by Harris Interactive for Careerbuilder.com in September 2012, 40 percent of companies said they lost upwards of $25,000 per bad hire in 2011, and a quarter estimated the cost was more than $50,000. Meanwhile, 69 percent of businesses surveyed said their business had been negatively impacted from a bad hire. Hiring the right people saves businesses time and money. Businesses succeed when they take the time to screen, research and place new hires.
  2. Equip your staff. Regardless of their position in the company, new and current employees need training. Managers need leadership training that equips them to succeed. A third of new managers fail in the first 18 months, and the reason is often lack of training, direction or mentoring. Frontline employees need training. Their personal and professional skills are key to making connections, and establishing loyal customers that will come back and refer their friends.

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Industry Facts and Figures

 People tend to hire new employees based on cultural and social similarities, according to a December 2012 study from Northwestern University entitled "Hiring as Cultural Matching: The Case of Elite Professional Service Firms." The study showed that hiring managers were more likely to pick applicants who shared the same hobbies or background as themselves. As a result, HR could be missing out on more qualified applicants. "Employers really want someone they can bond with, who they will feel good around," says Lauren A. Rivera, an assistant professor of management and organizational sociology at Northwestern University. "As a result, employers don't necessarily hire the most skilled candidates."

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