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Benefits December 6, 2000
High Turnover Leads to Low Customer Satisfaction
December 6, 2000 (PLANSPONSOR.com) - Employee
turnover not only hits the bottom line - a new study confirms
that it can impact customer satisfaction as well, and plan
sponsors can expect increased interest from senior
management.
Reported by Nevin E. Adams
The findings were particularly acute in service-related industries, such as financial services, telecommunications, insurance and investments, according to the joint study by The Unifi Network, a division of PricewaterhouseCoopers, and Roper Starch Worldwide.
More than 80% of survey respondents were less than satisfied with the service they received from companies in one or more of the target industries, more than 80% perceive employee retention as a problem. Personnel problems were most cited as the biggest barrier to meeting customer expectations.
Over half (57%) said that low employee continuity and training impacted the ability to get high-quality service.
According to Tom Casey, the leader of Unifi Network’s Talent Management Practice, “The negative effects of the increase in employee turnover are no longer being felt exclusively by the human resource managers. It is apparent that consumers are directly impacted by turnover as well. As a result, turnover is now a principal concern of CEOs because it directly affects the bottom line.”