A large metropolitan
newspaper has a 300 seat call
center.
Every 90 days, on average, it
turns over every one of those
seats. Its annual telesales
representative turnover rate is
400%, costing an estimated six
million dollars. Twelve hundred
new people have to be recruited,
trained, and terminated to
enable this behemoth to simply
keep going.
Internally, a large
infrastructure of trainers and
call monitors must be
maintained, simply to service
the demand for telephone-ready
personnel. It is not in the
interest of these people to tame
the telesales turnover problem.
It is this very problem that
gives them ongoing employment
and job security.
In fact, it serves their purpose
to be incompetent, because if
recruits are never sufficiently
trained, they'll be more likely
to come and go, feeding this
lumbering labor machine again,
and again. The remainder of the
human resources staff also
benefits from the incessant
recruiting, interviewing, and
related start-up tasks involved
in bringing new people aboard,
purging them, and replacing
them.
There is a simple solution to
the turnover problem: double the
pay of the telesales
representatives.
That's what six million dollars
could do, overnight. People will
not willingly leave a much
better paying job.
Yet, this is the last thing that
a company of this kind would
consider.
Why?
(1) It wouldn't look good on the
balance sheets. It is easier to
justify large recruiting
expenses, which appear
temporary, than to have a
higher, apparently permanent
payroll. For a similar reason,
outsourcing appears to the bean
counters to be cheaper, though
in reality it can be pricier
than maintaining employees on
your own books.
(2) There is a fundamental bias
against paying telesales
representatives more money.
Because many of them are young,
old, students, single parents,
handicapped, they seem marginal,
and so they're underpaid,
under-rewarded. If you think I'm
wrong, compare the pay of
outside versus inside
salespeople, and then try to
logically justify the striking
differences.
(3) There is the generalization
in place that turnover and
telesales simply go together:
you can't have one without the
other. Yet when you ask, as I
did the other day, a manager how
long the average rep stays
aboard, he'll say one month. In
the next breath, he'll tell you
that his best producers have
been with him two and three
years, respectively. Why are
they making it, while others
aren't? Obviously, some people
can do the job well, and like
it.
(4) There is fear in management
ranks that a bidding war for
personnel will break out if one
company pays above-average
wages. This thinking is
spurious. The money is already
being spent, again on the
lumbering labor machine. Higher
pay simply redirects it, while
staunching losses.
There are other ways to attack
the turnover problem, including
significantly better,
professional training, and
professional management. No
matter how you slice it, these
improvements also require
redirected financial resources.
Telesales turnover can be tamed,
and it will be, when senior
management opens its eyes and
starts to seriously address the
problem.
Soruce: Dr. Gary
S. Goodman