... | |October 1, 2010 | NCO Financial Services is worldwide outsourcing company. They operate in North America as well as In Mexico and Australia. NCO’s motto is “Your career is our investment…imagine your future”. For the purpose of this report we will be focusing on the Edmonton branch. The Issue In the last six months their attrition rate has skyrocketed. In February 2010 the rate was 4.23%, March 4.97%, April 6.12%, May 7.93%, June 8.17%, July 8.45%, August 10.67%. High attrition leads to higher compensation costs for the company. If the organization hires someone, they have not only spent money on training, but also on the cost of recruiting as well. If an employee leaves abruptly, then the company has not had time to recoup the money spent on the training and recruiting. The process will have to start over again and if this happens to often then the organization may put a freeze on dollars given for recruitment. Poor retention not only affects the company’s bottom line but also moral of the current employees. The burden of picking up the slack falls on current employees. This can cause extra strain on the relationship the employee has with the organization. This is a fast paced industry and can be very stressful at times. It is believed that the retention problems NCO faces are due to the stress the employees faced every day while collecting money from delinquent accounts and...
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