When Managers Do Not Understand the Real Cost of Ego
Sometimes the management does not understand that the cost of ego is exuberant. It is even higher than the cost of changes in the management itself.
The management focuses on profitability and productivity. They do not focus on efficiency to achieve productivity with good quality. In their view, results are more important than process. Also, results are more important than human resources.
Human resources now become just only a resource. The mental health and work-life balance of employees are overlooked. We are only resources; nothing more. We are replaceable. Take it or leave it.
Work Long Hours Is a New Norm
As the cost of living has been skyrocketing for the past two years and there is no sign of getting down, management holds the power of employees. Employees work longer hours with more load of work.
The management continues to tighten up expenses, resources, and any support for employees. The management only cares about the client’s satisfaction and job deliverables. Employees’ feedback goes to deaf ears.
The management always demands the employees’ commitment, but in return, employees receive empty promises from the management. As working long hours is a new norm, gradually it affects employees’ mental health.
Psychosocial Hazards at Work
The management seems to ignore the fact that overload work and lack of support are part of the Psychosocial Hazards. Some employees receive worse Psychosocial Hazards such as:
- Low reward/recognition
- No opportunity to learn and grow.
- Being Isolated
- Being blamed
When employees raise concerns about unfair treatment, instead of being receptive to feedback, analysing and executing better change to boost efficiency, productivity, and employees’ well-being; the management starts to protect their ego.
No Work Safe
The employees who voice the unfair treatment would be punished severely. The meeting that was supposed to be conducive and robust changed into a war zone.
There is no work safe for the employees to voice liberally for their well-being. No empathy for employees, and even worse employees who already have mental health issues, now are being targeted by the management for the price of ego.
The Monetary Price of Ego
In the eyes of management, any troublemakers must be punished severely. They seem to forget about the employees’ contributions and achievements to the company. The number one priority is their ego.
15% of employee turnover is considered normal. There is nothing wrong with the management. Everything is translated into numbers. Let’s calculate the real price of ego.
The below data is based on reports.
Calculation
In this exercise, we use AUD 100,000 for the company with 100 people.
15% turn over x 100 people = 15 people
The real cost of 15% employee turnover is as follows:
15 x 1.5 x AUD 100,000 = AUD 2,250,000 per annum.
Break-downs Key Factors to Replace an Employee
This breakdown of key factors is based on the Deloitte’s report.
- Recruitment costs include job ads, time spent for interviews, screening, and hiring.
- Onboarding costs include training and management time.
- Loss of productivity — it may take a new employee one to two years to reach the productivity of an existing employee.
- Loss of engagement and morale of the remaining team members.
- Loss of institutional knowledge
- Customer Impact
Conclusion
The Management needs to be receptive to employees’ feedback and increase the retention of employees. The cost of replacing existing employees is far expensive than retaining an employee.
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