Rosenbluth seeks to reduce its own travel spend

Monday, 13 May, 2002 0

Rosenbluth International is using an online meeting tool so that its employees in different countries can work through the same training programmes without having to travel.

Use of the new tool, called PlaceWare, was pioneered by the travel management firm in the UK as a way of cutting costs following the September 11 terrorist attacks and is now also being used throughout Europe. Employees on the training courses not only see the same pages on their computer screens, but are also linked through conference call technology so they can speak to each other and discuss problems.

Rosenbluth general manger for HR strategy and associate development Stephen Filby said there was no contradiction in a travel management firm seeking to reduce its own business travel spend. He told TravelMole: “As a travel management company you are targeted to reduce travel spend. We can introduce this tool to our clients on a shared saving basis.

He added: “I have done training with staff in Sydney when its 9pm at night here and 8am in the morning there and it’s worked fine. There are only 60 people in Australia so it doesn’t warrant a full time training programme.”

Rosenbluth has also looked at ways of reducing staff turnover as another way of keeping its costs down in a difficult economic climate. Managers are being given training in motivating, coaching and teambuilding and Rosenbluth claims the courses have had a marked improvement on staff retention levels. Between January and July 2001 3% of employees working under managers who had completed the course left the company, while the exit-rate was four times higher (12%) for staff working under managers who had not been on the programme.

Mr Filby said: “We estimate it costs about six months salary to replace someone who has left the company so this has saved the organisation millions of dollars.”

For more on Rosenbluth, see this week’s TravelMole Interview.

See previous stories:
22 Mar 2002: Zero commission hits agents in US
06 Feb 2002: Rosenbluth and BTI address post September 11 security fears
16 Oct 2001: Rosenbluth implements 10% pay cuts