Are Workforce Challenges Hurting Your Business Profits?

Well, Fall is upon us. Is your workforce ready for the challenges ahead in 2019?

Do any of these management challenges look familiar?

Astute business executives know there are many challenges in managing a workforce in today’s competitive marketplace. Here are the most common workforce issues and how they affect business profits:

Workforce Challenges and Their Impact on Success and Profits  

  1. Turnover and absenteeism leads to increased Costs – from direct (recruitment expenses) and indirect factors (productivity losses, quality issues)
  2. Low discretionary effort/motivation has a negative effect on productivity and performance.
  3. Poor teamwork and collaboration negatively affects the organization’s ability to meet customer concerns & their goals. Decreases internal communication/teamwork.
  4. Poor work quality/high error/scrap rate increases costs and affects company brand and competitiveness
  5. Lack of ideas, efficiency and innovation decreases ability to implement cost control measures or find solutions to internal and client concerns. Causes increased costs dues to poor workflows & duplication of work.
  6. Low accountability and alignment leads to increased costs from missed deadlines, inability to prioritize & reduced productivity.
  7. Customer service issues causes loss of valuable clients and negatively impacts organization’s brand.
  8. Workplace accidents increase workplace insurance (WSIB) premiums & lost time incidents increase labor costs.
  9. Disturbing incidents – extreme anti-social behaviour increases costs since poor morale & higher stress levels reduce productivity.
  10. Poor execution of strategic plans (missed targets/poor allocation of resources) reduces an organization’s ability to achieve its objectives, e.g. profit, growth, etc.

Is your company dealing with any of the issues identified in the table above?

If you answered ‘yes’ it is definitely in your best interest to know the causes of these issues. Here are some of the most common causes:

  • Lack of recognition/appreciation
  • Work does not have purpose or meaning
  • Limited opportunity to grow and advance– employees feel “stuck”
  • Few positive relationships with colleagues, managers and leaders
  • No autonomy or flexibility in roles,
  • Micromanagement
  • Mistrust between management and employees
  • Poor communication channels
  • Lack of role clarity
  • Managers cannot manage effectively because they don’t have proper training, tools or support

Have you faced any of these issues? Are you aware of the costs and negative impact it has on your organization and its ability to grow and succeed? Would you like to discuss effective solutions to these issues? If so, contact us! We can help! It’s what we do!

Also, stay tuned for our next several blogs in which we will introduce some effective solutions to these issues.

If you are seeking improvements in your workforce challenges, contact us! We look forward to hearing from you.

We can be reached at 519-500-0251 or info@engaged2perform.ca.

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