There are many factors that have dramatic impacts on the financial well-being of a company. To assist in maximizing profit at every opportunity for a client’s automotive business, one of the many things we addressed was operational costs and the associated expenses involved with hiring new staff.

Ultimately it is the goal of most individuals to increase profit and reduce costs. With a corporate structure, it is a director’s fiduciary duty to act in the best interest of the corporation, which is often the bottom line: money. It is beneficial to avoid a high employee turnover rate if you have an interest in reducing operational costs. It is known that people leave managers not jobs, so it is important to impart some wisdom on your management team about how to keep good employees loyal and reliable. This reduces costs and has potential to increase profit. It is costly to regularly hire and train new staff, and compensate for the mistakes of staff who are inexperienced and unfamiliar. In the process of avoiding the costliness of a high turnover rate, it is possible to increase productivity via staff that is more satisfied, and a less toxic work environment. There is also a more direct benefit. The longer employees remain with the company and have an opportunity to develop personalized methods of accomplishing their tasks at work, the more they become practiced and efficient.

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There are behaviours that management should avoid in their daily functions to keep employees satisfied, and they can even be implemented in your company policies. Three such behaviours are:

  1. Avoid communicating condescendence or “speaking down” to anyone if possible.
  2. Never ask someone to do what you are not willing to do. If you must, then do it with them.
  3. At every opportunity, do not publicly shame an employee whether the audience is customer or coworker.
  1. If spoken down to, people become defensive. This makes for a hostile environment, and it does not give incentive for people to stay. On a psychological level, people respond better to reward than punishment, so this is not effective for accomplishing goals in the workplace. It is important that your management team approaches things from a perspective of equality. Whether it be an entry-level position, or salary management position, both parties are human, and both bleed the same. Once management forgets this fundamental truth and approaches a situation without equality, this causes tension that pushes people away. This can ultimately add to the possibility of employee turnover. We understand the necessity of assertiveness from those in a position of authority, but this can be accomplished calmly without belittling individuals or behaving condescendingly.
  2. When delegating tasks to employees, managers should not be understood to favour some employees, nor single out an individual that is seemingly disliked. This can add to the toxicity of a work environment and deplete loyalty and work ethic from valuable employees. Situations like this can be mitigated by not selecting an individual to do undesirable tasks. If exigent circumstances arise where a task is unenjoyable to the extent that a manager would avoid the work themselves, it is important to show solidarity by offering to assist with the task alongside those it is being delegated to. This helps to increase mutual respect among all levels of employee and maintain loyalty, positivity, and work ethic. These are all factors key to avoiding employee turnover and the related unnecessary expenses.
  3. If a mistake is made, or if an employee deliberately defies policy, it is important that management deal with the situation quickly and efficiently for damage reduction and correction; however, this should be done in private. If there is need to take disciplinary action or point out unintentional errors, there can be costs associated with having an audience. If customers witness this, it can impact their decision to do business with your company. If employees witness this, it can impact their willingness to respect that manager’s authority. More importantly, the individual being singled out will be in a position of alienation and embarrassment. These factors can have more impact on an employee’s decision to leave than most managerial errors. As a form of damage-reduction, this situation can be dealt with much easier by taking the individual aside and calmly addressing the problem away from any form of audience.

Remember:

  • public humiliation leads to alienation and embarrassment but can be avoided with privacy
  • favoritism takes away from loyalty and work ethic but can be avoided by working cohesively
  • condescendence communicates inferiority and causes defensiveness and resistance, but can be avoided by equal treatment
  • stripping these damaging behaviours from a management team increases employee work ethic, loyalty, positivity, team-work, and respect for authority
  • these traits in employees can increase productivity, and in turn, profit
  • this process reduces employee turnover and therefore reduces operational costs for your business

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