INSIGHT OF THE WEEK
What is the cost of unhappy employees? Why keeping your current staff (and keeping them happy) bodes well for your business and how to do so.
The Cost of Unhappy Employees
According to a study conducted by the Society for Human Resource Management, it costs over $4,000 (in advertising, interviewing, screening, etc.) and it takes an average of 42 days to hire someone new. Additionally, replacing an employee can cost six to nine months of their salary.
Consider the other costs too, like training or costly mistakes new hires may make. Then there’s the impact of unhappy employees leaving your team. The company culture can shift, and the remaining employees may question why they left and also decide to jump ship.
Alternatively, sticking with your current staff bodes well for your business. They know the drill, they make less mistakes and they have the confidence to grow. They want interesting and challenging work and they want to move up the ladder.
So how do we keep our existing employees around? By keeping them happy.
Here are a few ways to keep ‘em smiling:
Micromanaging their team is a trap that many leaders fall into. They don’t trust their team and feel the need to constantly point them in the right direction. They may even take over some of their tasks themselves. On the flip side of the coin, macromanaging means to manage from afar. While you don’t want to remove yourself from the equation, delegating and empowering your team will leave them feeling important and performing at their best.
Assume Positive Intent
We all make mistakes sometimes. How we handle the mistakes our employees make speaks to who we are as leaders. When someone messes up and we berate them, they feel twice as badly as they did in the first place. But when we assume positive intent – meaning to believe that they meant well and tried their best – we can address the issue while leaving their ego intact. Our employees want to see our business succeed. It’s their livelihood too.
Focus on the Good
If you’ve followed us for long enough, then by now you know our motto, “What You Focus on Grows.” When we focus on our people’s weaknesses, they show up poorly, time and time again. But when we focus on their strengths and share our positive view of them, they learn to play to their strengths and their results will almost always reflect that.
Engage in a Coaching Dialogue
Your role as a leader is not just to lead your team, but to coach them. Your coaching conversations can be as structured or as lax as you’d like. What is most important is that your employees feel heard. To do so, be attentive, listen to their story, ask questions, identify their limiting beliefs and challenge them.
The cost of unhappy employees is considerably high, while empowering your team is completely free. It all stems from how you think about them. To learn more about how this works and how we help our clients get the best out of their people, start by taking our assessment.