Poor management: how it can cost your business.
“Our people are our most important assets.” If you’re anything like us, you’ll have heard that statement a million times, from everyone from small business owners right through to HR managers of giant corporations.
Our view is that it’s OK saying it, and it’s great if you believe it… but it’s only really worth something if you act on it. And acting on it means understanding what makes your staff tick, treating them properly, solving issues quickly and ultimately building a good relationship with your people.
It makes a lot of sense once you get past the common misconceptions. For example, lots of businesses and managers think their employees are only driven by salary – or worse, that their motivation for coming to work rests on the threat of them losing their jobs. In fact, the underlying driver of positive attitudes and professional behaviours in the workplace is simply making sure that you manage your staff in the right way.
But if you get that part wrong, your bottom line will suffer. Here’s how…
1) An unhappy environment – unhappy employees tend to gossip, moan, and backstab, and this kind of dysfunctional environment often self perpetuates. What’s more, if it’s allowed to continue, your people will not enjoy their work and might even take more sick days; ultimately leading to sickness through stress resulting from the workplace which could be expensive for you.
2) Reduced productivity – if your employees aren’t managed effectively and are unhappy, they might take longer lunch breaks, arrive at work late, or reduce the effort they put in to their daily tasks. Staff may also show a lack of responsibility in their work through a ‘why should I’ or ‘it’s not my job to…’ attitude. This could drastically cut your productivity and your business or department’s ability to make money will be seriously affected.
3) Staff churn – the ultimate result of poor management and an unhappy workforce is a high turnover. As a business owner or manager, this is the very last situation you want to find yourself in as the costs of covering for lost staff and recruiting new people can be huge – especially if you’re also dealing with a reputation for having an unhappy workforce.
The solution, though, is actually really simple and it all boils down to that original statement. However, it’s not just about remembering that your people really are your most important assets – it’s about treating them like they’re your most important assets.
So, if you manage your people well and lead them effectively, this will result in an improvement in your bottom line.
Here at Ascend Twentyone, we can help you develop the kind of leadership skills that you or your management team needs to treat your people in the right way. So, if you’d like us to point you in the right direction – and help you protect your bottom line – get in touch now.