New FMI Educational Package Addresses Turnover Costs in the Food Retail Industry

WASHINGTON, DC – October 25, 2000 – Measuring store turnover by position and department to achieve maximum productivity and customer loyalty are key strategies highlighted in a new educational program from the Food Marketing Institute (FMI). Titled Calculating and Managing Turnover Costs, the program was developed to measure and manage turnover rates in the supermarket industry, which have increased along with other industries as a result of the booming economy and changing workplace demographics.

“Food retailers today are more committed than ever to attracting and keeping a loyal, trained and highly skilled workforce to increase store productivity and customer loyalty,” said Ernie Monschein, director of education and human resource development at FMI. “This program will provide supermarket managers with an easy-to-use set of tools to gather and analyze information critical to obtaining a competitive advantage.”

The package includes a CD-ROM, instructional manual, online workbook, Power Point presentation and spreadsheet formats for exporting and importing turnover calculations. Specifically, the program instructs food retailers to:

• Calculate the true cost of turnover by position
  
• Calculate the total annual cost of turnover
  
• Calculate the rate of turnover by position and by total company
  
• Take the first steps in solving the turnover problem by analyzing and determining the major causes of turnover and developing plans to attack those true causes.
  

     The program goes a step further in providing instruction in the calculation of both direct and indirect costs, which studies have shown are negatively impacted in companies with high turnover. Direct costs are those basic costs associated with terminating and replacing a checker or courtesy clerk. Indirect costs are those costs incurred through lower productivity, training expenses and lost customers.

“This program will help retailers of all sizes understand and address one of the most critical challenges facing the food retail industry,” Monschein added. “And it is a timely addition to FMI’s growing library of instructional programming designed to help retailers with their recruiting, training and retention efforts.”

To purchase Calculating and Managing Turnover Costs, and to learn about other FMI training programs, please contact FMI Publication and Video Sales at (202) 452-8444 or click below. The price for FMI members is $125; for non-members, $250.