Today, the thought crossed my mind that it really doesn’t matter if RGIS loses clients over the next several years. RGIS, LLC is owned by the Blackstone Group, a private equity and mergers and acquisitions company. If RGIS can demonstrate significantly better profitability for a couple of quarters, it becomes a much more attractive company to sell. The Blackstone Group isn’t in for the long haul but, of course, in the short haul, the increased profits are nice.
Given the push for productivity and the pay cuts that were effect on April 25, 2009 in our district (and I assume our division), RGIS is already showing significant increases in profit.
Today, I was at a big box store inventory with around 40 of my fellow employees. One of them and I guesstimated that given who was at this inventory, the average labor cost was reduced by approximately $2.00 per hour per auditor. Unfortunately for everyone involved the store was an absolute mess (but that is a subject for another post) and productivity did not rear its handsome head. Even the “Top Guns” were counting at the “Auditors” level.
I reckon because of the reduced labor cost all was not lost despite the 10 hour length of the inventory. I think there were 40 auditors for about 6 hours at the inventory (40 x 6 x $2 = $480 savings) and about 30 for the next 4 (30 x 4 x $2 = $240) for a total labor savings of $720 for this inventory. It is possible that the labor cost savings could even greater than that because it is possible that overall we were more efficient this time because of the “Count or Die” program.