How Much Does Low Morale Cost Your Small Business?
It’s easy to be happy working in a place like Guelph or Centre Wellington. For an entrepreneur or small business owner, Guelph and Centre Wellington are the perfect towns, with great communities – and the people love supporting local business.
While you may be happy with your profits, sales or other business goals as on owner, do your employees feel the same way?
The bottom line is usually at the top of a small business owner’s mind. However, a happy balance sheet doesn’t always mean happy employees. Especially if a lot of “extra” employee perks are cut out of the budget.
Slashing back employee incentive programs, employee discounts, health benefits, or other employee morale boosters could have some serious costs you didn’t account for.
Happy employees are productive employees. In places with Employee Assistance programs, employees are almost 36% more productive. Turns out, when you help your employees, your employees help you!
When’s the last time you called in sick to something you enjoyed? On average, unscheduled employee absenteeism costs a company 9% of payroll. Employees who don’t feel empowered at work, don’t feel motivated at work, or don’t feel trained at work are all more likely to call in sick.
A local business depends on its community. Your employees are both member of your work community and the your community at large. We’re not that big of city! What employees say about your business can have an impact on your business’s reputation in the rest of the community.
If employees are very unsatisfied with their workplace, they may end up leaving your company all together. As you know, training new employees is an expensive and timely undertaking costing a business anywhere from $10,000 to $30,000 per employee. In 90% of cases, people who lose their benefits will seek other places of employment. You can’t afford NOT to keep certain employee programs around.
5. Losing out on Talent
Let’s say you want to hire a new hot shot Marketing Manager for your business. Only problem is, your competition is looking for someone with the exact same skill set. Getting the best marketing manager means your advertising will be better than your competition’s, leading to more sales.
You both offer competitive salaries. But when it comes to decision time for the new hire, where will they work? The company that offers full benefits, or the one that offers less perks for employees?
The right employees can make or break small business success. Remaining competitive and maintaining respect from the community means giving your community a happy and supportive place to work.
There’s no doubt your employees deserve some perks. Why not give them some? Your balance sheet might thank you for it!