[View Point] Turnover costs me what?!?!

This month’s cover story, “By the Numbers,” (page 24) is sure to generate some discussion at your firm and among others in the industry. I know there are folks out there who will disagree with the numbers we’ve reported on as those that will “make or break” a business, and that’s fine. We’d love to hear from you about your company’s benchmarking figures and how you plan your road to profitability. But we think one number discussed in the story deserves some added attention — employee retention.

Bob Wanzer, president and COO of HomeTeam Pest Defense, a $100+ million pest control firm, hits the nail on the head with one of his quotes in the story. “The tenure of your employees has a tremendous impact on the tenure of your customer base,” he said.

In a service-based industry, people are what make a difference to your customers. No matter how good your price and no matter how catchy your advertising jingle, customer retention boils down to whether or not your firm provides what the customer perceives as good customer service. Homeowners tire of opening their door every quarter to a fresh-faced service technician they’ve never seen before.

But do you know what your company’s annual costs of employee turnover are? Click here for a chart to help you begin to think about how employee turnover affects your bottom line — I bet there are some costs you don’t normally think about. Take a few moments to review the information below to see what turnover really costs you — besides headaches. (Thanks to the Washington State Child Care Resource & Referral Network for this information.)

The author is editor of PCT magazine.