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QICID: 21346
Title: Talent Show
Copyright: ASQ
Author: Leatherbury, Jon
Organization:
Subject: Human resources (HR), Employee retention, Business results, Customer service, Cost-benefit analysis, Six Sigma, DMAIC;
Series: Quality Progress, Vol. 41, No. 11, November 2008, pp. 48-55
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Abstract: At Hewitt Associates, a Lincolnshire, Illinois based human resources outsourcing business, many traditional HR services once provided by the company are now delivered through an outsourcing model offered by Hewitt to its customers. Two years ago the company was losing customer service representatives at a rate close to 100%. The remaining internal HR professionals put together a team to convince senior leadership of the value of retaining its CS representatives. It takes time and money to train proficient CS representatives, and while leaders may acknowledge this fact, it is hard to quantify the true cost of turnover. A Six Sigma define, measure, analyze, improve and control (DMAIC) project was put into place to illustrate how the hard cost of turnover affected the profit-and-loss statement of the company. By targeting salary increases as a retention incentive, Hewitt avoided losing 80 CS representatives, saving $1.9 million in separation costs, or a return on investment of 217%. Reluctant leaders were convinced by hard data, involvement from line management, and a proposal from the HR team that helped them see the problem differently.
Number of pages: 8
Price for ASQ Members: $5.00
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