27.07.2017

The cost of doing nothing

The cost of doing nothing

The connection between leadership practices and employee productivity is well documented and presents the largest opportunity for most organizations today.

In this context, let’s consider voluntary turnover. This is a type of turnover that occurs when employees willingly choose to leave their positions. Employees might choose to vacate their jobs for a variety of reasons, however, this article is focused on poor leadership and lack of continued training within the workplace.

As a result, voluntary turnover can be very expensive for an organization because of the costs associated with recruiting and hiring a new employee.

In a 1995 study of nearly 1,000 firms, Mark Huselid of Rutgers University in the US, found a statistically significant correlation between high-performance work practices and intermediate employee outcomes such as turnover, productivity and overall corporate financial performance.

Additionally, according to David Witt, a senior researcher and program director at The Ken Blanchard Companies, poor leadership practices can cost companies hundreds of thousands of pounds in lost revenue each year by negatively impacting employee retention, customer satisfaction and overall employee productivity.

Witt goes on to say:

·      Less-than-optimal leadership practices cost the typical organization an amount equal to as much as 7% of their total annual sales.

·      As much as 32% of an organization's voluntary turnover can be avoided through better leadership skills.

·      Better leadership can generate a 3% to 4% improvement in customer satisfaction scores.

·      Most organizations are operating with a 5% to 10% productivity drag that better leadership practices could eliminate.

If you’re concerned about the cost of doing nothing, call Jim Gibbons on 07885-286077 at Strategic Growth Solutions. I can support you in developing a leadership and management culture that will grow your revenue stream and have positive outcomes in staff retention. 
  • Training and Development
  • Recruitment
  • Leadership & Management
  • Training and Coaching

Jim Gibbons Profile

I set up Strategic Growth Solutions in 2014. Based in Cheshire, my company possesses a wealth of…

Comments

Accountancy

Do You Have An Ambitious And Challenging Business? We...

Do you have an ambitious and challenging business? Do you have temporary gaps in staffing…
Marketing & PR

GDPR: What it Means for Google Analytics & Online Marketing

The General Data Privacy Regulation (GDPR) went into effect on 25 May 2018 and online…
Marketing & PR

Why a Good USP is Vital to Generate New Clients

What makes you more unique, more valuable, and more visible in the market?A USP is one of…

More Articles

Marketing & PR

Six reasons why the Royal’s PR machine reigns supreme

Last month year (May 31 2018) I visited Buckingham Palace for a garden party accompanying…
Financial Services

Buy or sell a business

Selling a businessTo sell successfully, prepare early to maximise the value of the…
Financial Services

Supporting UK Exports

According to the latest independent statistics, released by the ONS on Monday, 11 June,…

Would you like to promote an article ?

Post articles and opinions on Manchester Professionals to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.

Find the right professionals in Manchester

View The Full Index

Search By:

Submit your Enquiry here

Enquiry Details

Contact Details