Increase Your Business Profits: Why Your Business Is Not As Profitable As You Would Like

Business is all about the bottom line, and good leaders are always looking for ways to increase that bottom line figure. Increased marketing, maximizing cash flow, and streamlining processes are common methods for achieving success. Unfortunately, these methods leave out one of the most important assets of any business – staff. 

Gallup polls found that 70% of Americans are dissatisfied with their jobs, and that dissatisfaction costs businesses money. When employees are unhappy at work they are disengaged – they are less productive, they take more sick days which reduces productivity, they are sick more often which raises health insurance costs, and they are very likely to quit which costs the company more money.

The Cost of Replacement:

• Entry-level employees cost between 30-50% of their annual salary
• Mid-level employees costs approximately 150% of their annual salary
• High-level or highly specialized employees cost 400% of their annual salary

Unengaged staff eat away profits that can be hard to re-coup if your company has issues in leadership, management, and/or company culture.

Employee Happiness = Company Profits

As an employer, it’s not your job to make sure your employees are happy, but doing what you can to help them will pay off in the long run. Developing a team-centered culture instills trust, reduces conflict, and increases collaboration among the team. Additionally, providing employees with the support they need to effectively deal with issues and conflicts creates a more balanced and productive team-member. Supporting employees through personal and professional workshops and coaching can bring out your employees’ full potential.

The Benefits of Employee Coaching:

• Coaching focuses on the inherent value of an employee and helps them improve personally and professionally
• It develops mutual trust which increases communication
• It encourages personal learning, responsibility, and analysis which leads to a more self-motivated and autonomous employee

However you decide to increase profits, make sure your employees are part of the solution. Their well-being adds value and profit to your business.