THE BENEFITS OF A PROFESSIONAL TEAM BUILDING PROGRAM.
Avoiding the 7 areas of financial loss
There are 7 major areas of financial loss when companies fail to create an environment that fosters effective communication, teamwork, and motivation.
1. Wasted Time & Restructuring
Studies have shown that up to 42 percent of a managers’ time is spent dealing with interpersonal conflicts.
If just 3 employees wasted 1/2 hour each day in a year due to conflicts, and each had a salary of $75,000, their squabbling would cost their company more than $15,000.00 a year.
In addition, interpersonal conflicts lead to lower productivity in the time spent actually working and ineffective decision-making. There are times when an office has to be restructured or rearranged so that the employees who have had conflict problems do not have to work together.
This can lead to redesigning the workplace in an inefficient manner as well as higher costs, both of which negatively impact your bottom line.
2. Absenteeism, Conflict & Demoralization
Disgruntled workers can affect the productivity of fellow employees by causing stress and tension in the work environment, which can lead to decreased job motivation.
This decline in productivity can and will show up through lost sales, turnover, and/or increased absenteeism. Increased absenteeism can be especially troubling because some employees would rather miss work than deal with a difficult coworker.
A new survey from the National Institute for Occupational Safety and Health reports that half of all U.S. workers see stress at work as a huge burden. And according to the second annual “desk rage” survey, one in ten Americans say they work in an atmosphere where physical violence has occurred because of stress, and one in four have been driven to tears because of workplace stress—not exactly motivation at its best.
The good news is that motivated top performers usually outperform their peers by well over 2:1!
3. Lawsuits
Conflicts, which can cause stress in the workplace, lead to ineffective decision-making. Conflicts within the workplace can cause people to withhold information leading to uninformed decisions.
Another important issue involves conflict between team members working together to make a decision for the company. The costs can be enormous if infighting between the members leads to making an improper decision.
This is especially true for teams that come together mainly to perform routine repetitive tasks. In fact, 1 out of 3 business will be sued this year for an employee-related issue.
4. Increased Health Costs
Conflicts that cause either harm or illnesses can take a toll on a company’s expenses through higher health insurance premiums.
Not only are health insurance premiums affected, but there is also a loss in productivity due to the employee’s absence from work. Absenteeism and substance abuse costs even small businesses tens of thousands of dollars per year.
Office stress is giving 30 percent of Americans sleeping problems, and driving 23 percent to consume alcohol excessively.
Not my problem, you say. Think again: Stress is costing your company money.
According to the American Institute of Stress, U.S. companies lose $300 billion annually due to absenteeism, turnover, poor morale, and lost productivity—plus medical, legal, and insurance fees—related to job stress.
5. Workplace Sabotage, Theft & Violence
Disgruntled employees who have had problems with their coworkers or managers may sabotage other employees’ work, waste materials, and/or steal company property.
In addition, mishandling performance reviews and/or involuntary terminations can greatly exacerbate the potential for workplace violence. Employee theft costs business 10 times what customers steal.
6. Turnover
People don’t usually just leave a company; they leave a team and specifically, a manager.
The costs for an employee who resigns due to interpersonal relationship problems are extensive.
Some studies indicate that the costs are up to 3 times the departing senior employee’s annual salary. The U.S. Department of Labor estimates that front line employee turnover costs a company at least one third of a new hire’s annual salary. At an annual wage rate of $30,000, turnover costs a company $10,000 for each departing employee. Turnover is likely costing your company tens of thousands of dollars per employee.
7. Lost Customers & Revenue
Employee satisfaction is directly correlated with customer satisfaction. Happy and motivated employees lead to satisfied customers who continue to do business with your company. The loss is at the margin, meaning that the most profitable portion of the customer base is lost when employees are unhappy.
THE RIGHT TEAM BUILDING & TRAINING ALWAYS PAYS FOR ITSELF
Long-term growth and profitability start with employee satisfaction, loyalty and productivity.
Employee training, motivation and satisfaction today equals customer satisfaction tomorrow equals growth and profitability the day after tomorrow.
Teambuilding is an investment in your future.
The most successful and profitable companies invest substantially in team morale, team communication, team stress management and team motivation and find that investments in their people often yield significantly higher returns than any other investments they make in their business.
Call Professional Teambuilding, chat, or email us and find out more about how our corporate team building and motivational programs can help you build a more satisfied, motivated and productive workforce.