5 Ways Unhappy Employees Can Cause Corporate Insolvency

Leila Dorari 3m 839 #unhappy

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The Results of Unhappy Employees

Man and woman outside cafe

Having unhappy employees and not doing anything about it can lead a company into a downward spiral and cost them a lot of money due to lost revenues, damages and other arising issues. Eventually, it can lead a company to bankruptcy.

Employees can be dissatisfied for a lot of reasons and it’s important to be aware of them and know how to deal with it. What’s also important is to know just how damaging actions of an unhappy employee can be.

1. Decreased productivity

Every displeased employee won’t have enough motivation to complete the job properly or in time. He/she will usually put off work and wait until the last minute to rush everything. This inevitably leads to low-quality products or services, unsafe products and in the end a danger to customers.

This is why the supervisory staff should pay attention to the employees, their progress, and their overall satisfaction. Offering an anonymous poll to the employees on a weekly basis could be a good idea. This is an easy way of getting insight into the current issues the employees are dealing with and all the things they believe should be improved or put into action. Actively listening to the employees could lead to overall productivity and high-quality standard because happy employees are hardworking and productive employees.

2. Dissatisfaction with the salary

Every employee wants to be paid fairly for his/her work. If the employee feels that isn’t the case, it is quite probable that he/she will leave after 18 months or so, as the research shows that’s what 46% of new employees do. It is important that the employee can approach the employer and reveal his/her dissatisfaction with the current salary. If the salary is really low or if the employee shows prospect of giving high productivity, an increase in salary would be an excellent motivation and a reason for staying. Still, if the company doesn’t currently have the budget for the increase, it would be best if the manager dealt with the employee’s dissatisfaction directly and explained the situation.


3. Tarnished reputation

An unhappy employee can do a lot of damage to the company by simply making comments or taking an action that can appear on the web and then go viral. After that, the company’s reputation can be significantly damaged. The greater the exposure of the event/comment is, the worse the company’s reputation gets. Speaking from experience of the leading corporate insolvency firm, this can be one of the causes of bankruptcy. It is necessary for a spokesperson or an ethics officer to speak up in the company’s name and discredit the event/comment. Also, this person should confirm that the issue is not a part of the company’s standard and inform the concerned parties that all the necessary measures have already been taken. This can help the reputation to heal, as well as help to recover from the financial loss.

4. Injuries caused by neglect

If employees aren’t happy at work, it’s quite possible that they will leave some tasks unfinished or they will do them sloppy. Life’s distractions are a usual reason for causing hazards at work, and any kind of unhappiness is a significant distraction. This can lead to some serious consequences, such as unsafe buildings, wet stairs or dangerous objects that can injure people. These injuries, caused by a worker’s neglect, can be direct or indirect, but nevertheless – they can seriously harm the company’s reputation and consequently affect the income. Serious injuries or even death caused by a worker’s negligence often end in heavy settlements which can greatly damage the financial stability of the company. That’s why it’s important for the managers to notice an unhappy employee and react in time.

5. Decreased Company Loyalty

If employees are unhappy, it affects their loyalty to the company they work for. The reason can be that they are unhappy with the upper management. A possible solution could be a change in the supervisory staff. The problem with decreased loyalty is that it’s less likely the employees will support the company in the moment of need. What’s worse, one or a few unhappy employees can transfer their frustrations and toxic comments onto others, creating unproductive and unfriendly atmosphere, which is really hard for the company to deal with.

The truth is that not every job is suitable for everyone. The task of the HR experts is to train those employees who show appreciation for the company and work hard. On the other hand, it is also their duty to recognize the unhappy employees or those who are just not the right fit and seek a professional way to create a win-win situation.

Image source: https://unsplash.com/photos/Y9nzl9tA3Lw

About the Author

Leila Dorari is a business consultant and a freelance writer from Sydney. She has been working with different companies for 5 years now. When taking a break from making new marketing slogans, she is either window shopping or exploring new ways to make her life more meaningful.