Harold Jackson discusses one of the major issues that the franchise industry struggles with: employee turnover and how to combat it.
Despite the difficult economy, think of how many of your employees left in the last year or two. For all franchise owners, employee turnover is a major issue that affects quality of service, staff morale and brand reputation. But for multi-unit owners hoping for future growth within the parent organization, the bottom line implications of each employee departure make it even more of a priority concern. Many franchisees only calculate turnover as a cost derived from time spent interviewing, finding a new employee and training them, but in practice the costs are far greater. In fact, one of the largest expenses can be incurred when customer service slips because of mistakes from a new employee, mistakes which wouldn’t have been made by a veteran employee. When all factors are added together, did you know that each departing employee that walks out your door has likely cost you between $700-$1,000?