Bad Habits of Small Business Owners that make their Employees Quit


Small business owners understand the value of good employees—after all, they’re hard to find. But keeping those employees around is not just a matter of making sure they get paid when they’re supposed to. Employees may ultimately provide a number of reasons why they want to work elsewhere, but many of them boil down to one thing: poor management.

Employees’ relationships with their bosses are often the thing that makes or breaks a job. A fairly humdrum job can be made enjoyable through the efforts of a strong manager, while a seemingly ideal job can be turned into an exercise in misery when the wrong boss is involved.

As a small business owner, a key element of your job is to do right by your employees. Here are some ways business owners and managers end up encouraging their employees to start hunting for new work:

Bad Habits of Small Business Owners that make their Employees Quit

When we were first starting off, our journey would have been so much easier if we had someone there to give us guidance, knowledge or even simple encouragement. This is why we dedicate ourselves to helping small business owners stay motivated and achieve all of their business goals. We believe that your needs should always come first, and our “give first” mentality of customer service ensures that you will always have a dedicated team of small business professionals helping you find success. Let us serve you in any way we can to help you achieve your marketing goals and improve the efficiency of your business.

• They do not understand a key metric: A small business owner hires employees to service the needs of customers. They expect their business to grow from that hire and from providing such a service.  Just like a new product line or a new asset, new employees can and should add revenue, either by direct selling or by taking tasks away from another employee that does sell directly. This can be measured by a metric called Net Revenue per Full-Time Equivalent, which is calculated as a company's total net revenue, divided by the number of its full time equivalent. It shows how much revenue each regular employee generates. This ratio provides information on a company's efficiency within the peer group. What does this metric have to do with employee morale? It is tool to gauge employee effectiveness. Effective employees are those that are well trained and in the right position — having fun!

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•  They overwork them: While wanting to get the most out of a great worker seems sensible, overloading employees can backfire quite easily due to diminishing productivity and buildup of resentment. When increases in responsibility are not accompanied by a promotion or raise, people are likely to grow disenchanted.

• They fail to develop good relationships: Spending time working closely with employees should result in quality relationship building, but many business owners are so fixated on productivity and making money that they fail to get to know their employees. Because this can come across as though they don’t care about their employees as people, it can have disastrous results when it comes to retaining good workers. Teach, Train, Mentor, Lead, Develop, Implement and bring Results.

• They reward the wrong people: Whether it’s a seemingly small reward (such as verbal acknowledgment of a project successfully completed) or a big one (a promotion), employees want to be recognized and rewarded for doing good work—and they deserve to be. Playing favorites, failing to stop and recognize hard work and hiring and promoting inferior workers can hamper morale. This also holds true with vendor and third party relationships. Do not tolerate a vendor relationship that undermines the moral of your employees.

• They don’t push them to be better: Business owners who are not interested in giving their employees the freedom or the opportunity to learn new skills or take on new responsibilities are not just holding their employees back—they’re also limiting what’s possible for the business. Giving employees freedom, along with responsibility, helps encourage people to improve and grow, increasing the likelihood they will be happy in their work.

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For some small business owners, breaking these habits can be a struggle, as doing so often requires real change to their overall approach to managing their business. However, the payoff can be a happier and more productive workforce and employees who stick around for the long haul.

For more information about how to break bad habits and retain your best employees, get in touch with the team at Viral Solutions today. You require and deserve the best tools available to achieve your goals and find success for your business. You deserve to work with a company that will not compromise your professional or personal ethics and integrity. Simply put, you have a right to the best business advice available, and we have a duty to provide that to you.

by Christine Kelly

CEO and Queen Bee | Viral Solutions LLC

Copyright 2015 Viral Solutions LLC

Prior to joining Viral Solutions, Christine held executive leadership roles at some of the largest small business consulting firms in the USA. Her experience includes leading direct reports of over 130 remote sales agents who generated $38mm in annual revenue. She obtained her Marketing degree from British Columbia Institute of Technology. Bring her C-Suite experience to your small business. Although our company is virtual, and we can work with you wherever you are located, she is located in Denver, Colorado and owns a second home in Vancouver, BC Canada.

Viral Solutions LLC is a Digital Marketer Certified Partner and an Infusionsoft Certified Consultant.

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