25th Jan 2018
Tesco recently announced its plan to cut 1,700 customer-facing floor jobs from its stores nationwide. This month also saw an additional 1,100 employees cut from the business’ Cardiff call centre.
Responding to the news, Jo Causon, CEO of The Institute of Customer Service, said: “In the world we’re living in there is increasing pressure on organisations to reduce costs and raise revenue, but it is disappointing to see that customer service roles will be at the forefront of the latest cuts.”
Causon believes that the link between a company’s performance and its staff engagement is important. “Our own research demonstrates that consistently achieving higher levels of satisfaction than competitors and peers is linked to stronger turnover growth, profit and employee productivity. It means that leaders and executive boards have a responsibility to meet short-term business needs, yet also ensure their organisation is able to meet customer needs in the future.”
Over three years, Tesco’s executives believe the job losses will translate into cost savings of £1.5bn. These cuts will be made both in the UK and in the group’s international businesses.
In the latest UK Customer Service Satisfaction Index, Tesco’s score of 80.2 is just below the average for the retail (food) sector, which is 81.3. Waitrose has the highest mark in the sector, with an average of 84.2.
To read the new UKCSI report, click here.