No business can survive without its employees, and this goes for your company as much as any other. A chain, as they say, is only as strong as its weakest link, and your company needs strong employees in order to be successful. There will always be some workers who are stronger than others, but the cost of poor employee performance is a real concern that business owners need to evaluate and consider. Is the cost of poor employee performance dragging your company down? Would you be better off letting go of certain workers and bringing on new hires? These are important questions that need to be addressed.
Productivity is endlessly important in business. Think of your business as a machine that produces a product. Unless every piece of the machine is well oiled and properly maintained, the machine can’t function to its fullest potential. Every employee in your business is an important part of the machine, and each one deserves attention. Poor employee performance is costing your business money by hampering productivity, and one of the primary goals of any business is to be profitable. Evaluating your business for employee performance will help you pin down how much poor performance is affecting your bottom line.
One of the most detrimental aspects of poor employee performance is the negativity that it can cause for the whole business. When employees aren’t performing up to standards, other workers may have to take on more than they can handle. Poor employee performance by one individual makes for a workplace full of unhappy sentiments, bitterness and negative behavior. This leads to stress and burnouts, and causes workplace morale to plummet. In this way, poor employee performance can spread throughout your business and affect every aspect of the company’s productivity.
It’s difficult to measure this cost, as your losses can only be estimated by the potential gains that you could be missing. Consider also the cost of bringing your poorly performing employees up to standard with the rest. This could mean additional training and management attention, which both cost the business money. The alternative, of course, is replacing your poorly performing employees. This route also brings up significant expenses. The cost of severance on its own may be high, as a laid off employee might require additional compensation or unemployment. Considering the additional costs of recruiting, hiring and training a new employee, this route could end up being more expensive that dealing with poor employee performance in other ways.
Depending on the size and scale of your business, poor performance in employees can have a highly variable cost. An online reputation management service like Reputation.com may not suffer the same financial detriment as a brick and mortar retailer or a customer service oriented business. If you feel that your business is not living up to its potential, evaluate every aspect carefully. If your problem is poor employee performance, but you try to remedy the problem by sinking more money into marketing, you could be wasting additional hundreds or thousands. Consider the cost of your employees when judging the overall performance of your business to reach your fullest potential.