The success of a team or organization boils down to the strength of its leader, whether that is the owner or a manager. Regardless, there are some situations where even with strong management, the business seems to be failing.
More often than not, this is due to senior staff members forgetting to add a human element to their business. Employees start to become treated like another statistic rather than a person. This, as well as other factors, leads to a business being understaffed.
Here are some of the ways understaffing can negatively affect your business:
Damage to your company brand
Your brand image goes further than a logo. It is all about each interaction a client has with your business. It includes everything from your logo to the after-sale customer service your company provides. Your company brand will take time, money and hard work.
Unfortunately, all of your investment, both time and money, can be ruined by one unsatisfied client. Poor customer service can lead to somebody posting a tweet, or a negative review on business pages. With so many people checking the quality of a business or service online beforehand, it is crucial that every comment about your business is positive.
Employees that are burned out
At first glance, cutting back on your staff will save you costs. Your bank balance will likely look better on paper but there is a stronger possibility of your employees becoming tired and overworked as they take on the excess work.
Not only will your staff be under excessive pressure, but they will also get sick more often as the stress plays a part in their overall health. Millions of working days are lost per year and this results in billions of lost revenue.
The idea of saving money is very appealing in the beginning but as you can see, it will cost you in the long-run. Another thing to consider, even if your staff aren’t completely burned-out, they will not be working at their full capacity, neither will they be happy in their work.
Recruiting becomes a nightmare
For many managers and business owners, the thought of beginning the recruitment process is not a pleasant one. It takes time away from other jobs you could be doing and it can interrupt the productivity in your location.
Exhausted staff who do not feel like their work is appreciated are going to seek employment elsewhere. The worst-case scenario is that your negative staff have been talking amongst themselves and your staff start to leave in the masses.
When things like this start to happen, you run the risk of gaining the reputation of being a bad employer. And so the recruitment wheel of death begins. You will find it harder to recruit new staff.
One solution to reduce the risk of these potential dangers is to hire temporary staff. They are a good way to hire qualified staff quickly and keep your costs down. It will also keep your current staff from bearing the extra workload, in turn maintaining a happy working environment.