H&R Block, Inc. Message Board

  • stamo stamo May 7, 2005 2:38 AM Flag


    I believe that earnings are down because of the reduduction in compensation, ie, we didn't
    get paid to sell rals and racs so we didn't push them. Additionally, there has been so much added to the tax interview, ie mortgage
    ira,financial it takes longer so we can't do as many returns per hour.

    Management has cut our compensation two times
    in the last few years. Will they do it again
    to improve the bottom line? If so, they will continue to see a decline in morale and an I don't care attitude.

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    • " ... we didn't get paid to sell rals and racs so we didn't push them." (stamo)

      Not pushing RAL's is basically a good thing, imho.
      First, if you are pushing RAL's, there is the ethical problem of encouraging clients to do something that is not generally in their financial best interest. [On the other hand, there is no problem with providing RAL's for those clients that want them with no encouragement from the preparers.]

      Then, from the company's standpoint, there is the adverse publicity associated with RAL's. Fewer RAL's decrease the chance -- or the strength -- of media complaints about the company.

      Next, there is the time required to explain the product to the clients, and to complete all the required paperwork.

      Finally, there are the problems and client complaints that RAL's generate.

      Now, if you were referring to providing RAL's to clients who already want them and even trying to bring in more RAL clients, I fully agree. Neither the preparers nor the company can afford to turn away business -- and we should try to provide the clients with what they want and need.

      But if you are talking about converting a non-RAL client into a RAL client, the ethical and practical disadvantages make this undesireable, whether or not the preparers are compensated, imho. [There are, of course, exceptions for special situations.]

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