Want to make more money? Consumers will pay more for better service.

How's business deal with an improving economy?  December hiring stats.

Where's the labor shortage?  SHRM Pres. says : Hiding in the economic cycle.

What's the next big thing? A tidal wave of turnover?

Astronology:  Comp and benefits brilliance in the Big Apple

Press coverage  and miscellaneous notes:  Find out who's winning  awards.

Customer Service suffering:
Consumers will pay more if it's better

Cincinnati Enquirer, December 2003

In a wide ranging survey  about customer service,  49 percent of Greater Cincinnati shoppers say customer service has deteriorated over the past few years, while only 24 percent say service has gotten better. Respondents'  main dissatisfaction ? A shortage of knowledgeable workers who can answer questions, take returns and handle complaints.

Three-quarters of holiday shoppers in Greater Cincinnati responding to the poll said it is hard to find trained staff to help them.  The situation is so disconcerting that 67 percent of those in the survey said they'd be willing to pay more at a store that offered good customer service.

"I'd definitely pay a little more for better customer service," said one consumer.
"In the long run, it would probably end up saving me money. I know it would save me time."

The business cycle  involves  economics  and human nature, too. 

When the economy slows, or contracts,  employers cut costs:   they terminate the use of employees' services, either permanently or temporarily. 

When the economy starts to boom again, employers try to meet increased demand  without adding employees. 

Consumers react to poor service  by "voting with their feet", when possible:  going  where the service is better, even if it costs more.

Conclusion:  Cutting costs often cuts revenues more. 

Pending Labor Shortage

HR MAGAZINE  December 2003

A former president of  the Society for Human Resource Management says that net additions to the workforce will continue to drop for at least a decade, as they have for the past decade. The likelihood of shortages of crucial talent is so substantial that "we cannot afford to err" and wind up unprepared.

"The relatively low unemployment rate for the most recent recession is additional evidence, I believe, that the labor shortage is still with us."  he  says. "When the economy improves, we have less 'room' before we experience another labor shortage."

The labor shortage "is still here, hidden by the economic cycle. The message is clear. When the economy improves, the labor shortage will be back, with gusto."

A  Cold  December
Cincinnati  Enquirer      Jan 2004

The U.S. economy created just 1,000 new jobs in December, as businesses lacked the confidence in the recovery needed to add workers.

Local businesses backed that up. Radac Inc. of Dayton, Ky., which makes radiators for vehicles and big engines, is looking at a 5 percent to 10 percent increase in sales this year, but comments: "Right now , we're not adding workers.  We think we've got the right work force".

Krehbiel Printing says business has been improving, so they are putting workers on overtime and farming out work to other shops.

Economists expected 150,000 new jobs in December and an end to the job losses in manufacturing.  Instead, employment rose only 1,000, staying essentially flat at 130.1 million.

From company reports:

Procter & Gamble - Hiring some 500 professionals nationally.

Mercy Health Partners - expects modest growth, has more than 200 openings.

Fifth Third Bancorp- Has 600 open positions.

Kroger- Will add jobs to the extent it adds stores.

GE Aircraft Engines - Plans to cut 350 salaried jobs  worldwide.

Cincinnati Bell - Plans to cut workforce by 125.

But business can't hold off forever because the economy is getting stronger, and sales are rising, says an economist with the Conference Board in New York. "They need the people. The business is there, it's piling up, and there's no way to continue unless they get some more help. December's weak job growth doesn't change the upbeat economic outlook for 2004."

Stemming Turnover  of  Front Line Staff

Customer Service News  December 2003

Watching customer service reps (CSR's) arrive, learn the ropes, burn out, and leave, managers often feel they're caught  in  a revolving door. High turnover is common in the stressful customer service environment, with rates of 100 percent and higher. With high turnover, the typical CSR is inexperienced, and service quality and productivity suffer.

Over the last three years, when unemployment trended upward, employees were more cautious about leaving jobs, and turnover rates dropped.

But employee attitudes have not changed. 15 percent of employees, nationwide, are at high risk of turnover as soon as the labor market tightens. "There's a pent-up tidal wave of turnover," says Karl Corbett, President of Sasha,  a retention consulting and training firm in Cincinnati. "Companies should deal with it now rather than later."

Corbett recommends a customized approach:  survey current and former employees to find out what they like and dislike about their jobs, then make changes that address the most prevalent issues. A well-designed survey will produce more than a 'laundry list' of problems. It will actually rate the company's performance in meeting employee's motivators, and point to specific retention systems that need work.

Investors.com

The share of those fearing they, or someone in their household, will lose a job in the next year has fallen  to 14 percent in January 2004.

That's the lowest level since President Bush took office, down sharply from its 23 percent peak in September. 

“The fear factor is steadily diminishing”, said one pollster exec.
 

Michael Maciekowich and Jennifer Loftus were, as usual, at the top of their game. They are pictured  (center)  with Astron financial analysts.