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Up until relatively recent times, there has been a general mindset in companies that if employees were at odds, or worse, a manager and an employee were having issues, that it was not the problem of, nor the role of the company to intervene.

Companies that have successfully understood the power of increasing workplace relationship cohesiveness are enjoying lower staff turnover, decreased sick days, increased project success, increased customer/client satisfaction and an overall increase in productivity and profitability.

Right now, there is a growing trend towards what I would call “Conscious Companies”. That is, companies that care deeply about more than just bottom line profits. Topics such as the overall health and wellbeing of their staff, inter workplace relationships, social, economic and environmental issues are on the forefront of these companies minds.

It’s certainly no coincidence that the companies taking charge of their growth towards becoming “Conscious” are also the ones that are experiencing the most growth in all areas of their business operations.

As a significant part of this, one of the major issues that many companies and corporations are starting to wake up to is the health of inter-workplace relationships. In this article, I am going to point out just how significant the impact of these issues are to the overall health of your company.

The Real Impact of Poor Workplace Relationships

As an employee at one stage or another during  your working life, I’m sure that you’ve felt the impact of working with a manager that has permitted their personal life challenges to filter through in their work.

I’m certain you’ve also felt the effects of having work colleagues that you just don’t vibe with, or managers that are downright hostile. So much of what you do in your day to day work is affected. However, as a company owner, have you thought about what the real world, tangible costs of not paying attention to the quality of relationships within your environment are?

This article details a list of some of the more obvious ways companies are being affected as a result of poor inter-office relationships.

If, after reading through this list, you determine that your workplace is actually in need of a Relationship Health Checkup, then we encourage you to get in touch with our Consultancy to arrange a time where we can come and evaluate what needs to be specifically done in order to get you to the next level.

Increased absenteeism

When workplace relations are suffering, regardless of the reasons, employee motivation suffers. The flow on effect of this can (and usually is) quite hefty to the daily operations of most companies. Recent studies have shown that an unmotivated employee is 40% more likely to call in sick than an employee that is highly motivated to perform in their job. A study performed by the CDC demonstrated that unwarranted sick days are costing companies approximately $1685.00 per employee, annually.

Poor customer service

When inter-office relationships suffer, there is a real trend of a flow on effect to the customer/client. Traditionally, companies have prescribed to the belief that they must nurture their customers/clients, while staff where just a part of the machine.

This belief is being smashed by a new understanding that if a company looks after and nurtures its staff, the staff will look after and nurture the customers/clients. A recent study revealed that an improvement in employee attitudes resulted in a marked increase in customer satisfaction, which as a result, drove an increase in company revenue.

Employee turnover

When you lose staff, you lose money! Whether you’ve put resources into bringing an employee up to speed within their position or not, is irrelevant. The fact is, employee replacement costs can run as high as 3X a persons annual salary. Companies that have developed solid inter-workplace relationship tools have been shown through various studies to have (up to) 50% less turnover than companies without these tools written into their SOP’s.

Failed projects

Relationship breakdown has been repeatedly quoted as the primary reason that two out of three projects started by a company meet with failure. Cost blowouts and budget overruns resulting in total project failure are not a rare occurrence and yet, many of these can be avoided.

Replacing project team members after the genesis of the project is a major cost to companies, and it can be easily avoided by having in place the appropriate tools for inter-team relationship effectiveness.

Workplace injury

The cost of workplace injury is massive. Recent studies have shown that it runs to the billions. According to one study, the leading cause of workplace injury is poor communication due to relationship breakdown within the workplace.

A US Joint Commission for Hospital Accreditation reported that communication breakdown was actually the primary cause of 70% of workplace injury resulting in lost time.

Overall profits suffer

At the end of the day, the real cost of breakdowns in inter-workplace relationships is that the value (both real and perceived) of the company suffers. Whether your company is publicly traded or not, the overall value suffers because of an accumulation effect, which is traced back to a single point – Communication and relationship breakdown.

Companies that have effectively implemented tools to ensure powerful relationships are being built and nurtured, and seeing increases of over 47% in their inherent value.

The reality is, the health of ALL relationships comes back to the health of the relationship you have with yourself. It is a fact that relationship health is not a subject taught in school or college, however it is vital to the health (physical, mental and emotional) of the individual.

It is, therefore, in the highest interests of any company to implement and maintain systems and tools that teach their employees (beginning on the individual level), how to increase and nurture the health of their relationships.

Companies that have successfully achieved this, are enjoying lower staff turnover, decreased sick days, increased project success, increased customer/client satisfaction and an overall increase in productivity and profitability.

We now invite you to arrange a consultation with us so that we can assess, review and provide a customized working solution to increasing the health of your workplace environment relationships.

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