Poor work culture costing local businesses $2.6 billion

Poor work culture costing local businesses $2.6 billion

Surveys suggests half of employees don’t trust their bosses

Poor work culture and a lack of workplace leadership are costing the local business sector more than $2.6 billion a year, according to new figures released by Leading Teams this week. Research shows less than half of employees trust their bosses, and one in four workers don’t care about their jobs.

Leading Teams managing director Paddy Steinfort says it’s astonishing that businesses are allowing so much money to be wasted at a time when financial pressures are greater than ever.

“These figures suggest employees are spending a significant amount of time at work second guessing, resisting or even undermining their work team’s plans instead of implementing them, which hits the bottom line severely in unproductive wages,” he says.

Steinfort adds that he cost of one unproductive team along to the average New Zealand business is around $140,000 every year.

The two online independent surveys of 1500 employees found less than half (45 per cent) of all employees have trust and confidence in their leaders at work while less than half (47 per cent) of employees felt their leaders’ management style improved their productivity. More than a quarter of employees under the age of 40 aren’t clear on, or simply don’t care about, their organisation’s goals.

The Warehouse CEO Ian Morrice, which employs 8000 people nationwide, says its own research compares favourably with local benchmarks.

“Over 70 per cent of The Warehouse team members have confidence in the leadership of the organisation.

“That’s why at The Warehouse there are three things we constantly focus on: building an overall culture of performance, building the skills and capability of our leaders and managers, and making sure that everyone is very clear about our strategy and goals.”

Steinfort says a structured approach like that implemented at The Warehouse is vital in the current financial climate.

“Our experience with both sports and corporate teams shows us that simple, relatively cheap investments like these from leaders minimise the huge costs of unproductive team cultures.”

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