Two Biggest Invisible Threats to Business What Makes a Company Succeed or Fail


Sherman Oaks, CA -- (SBWIRE) -- 03/28/2013 -- Research showed that 95% of employees, when asked, see good communication as the reason for their success. When asked what makes a company fail, again over 95% of employees expressed that poor communication was the reason for the failure. Clearly communication amongst managers and their work force becomes a key factor for achieving either success or failure. Lack of proper communication causes job stress and employee disengagement, costing companies billions of dollars per year.

Job stress
In the absence of clear communication, for knowing what the manager is really thinking, employees imagine all kind of things. Hence, the employee may experience an exaggerated fear based on assumed threat, rather than facts, that they may become jobless. Moreover, lack of communication can create resentment among employees, leaving them to speculate as to what is really happening with the company. Concerns about whether they will retain their job or get fired increases insecurity and real fear. All of this creates job related stress.

Job stress is estimated to cost US industry more than 300 billion dollars a year in absenteeism, turnover, diminished productivity and medical, legal and insurance cost. According to American Psychological Association just insomnia, as a byproduct of stress, costs 2,280 dollars per worker in lost productivity, totaling 63.2 million dollars nationally.

Employee disengagement
It is also estimated that the employee dissatisfaction and disengagement cost American business between 254 billion and 363 billion dollars per year.

Frequent problem, causing employee disengagement, starts when managers fail to communicate with their staff in a transparent and clear manner. Often, out of their own fears, managers’ lack of clarity, responsibility, scope of work and priorities are reflected on their workers behavior and performance. They infuse their fears unto the workers by becoming impatient, punitive, not listening or hearing what are the employees’ needs, fostering preferential treatment, bullying and/or supporting other coercive behaviors.

By failing to communicate their expectations or set consistent deadlines clearly they create apprehension in their work force. Lacking clarity and direction causes workers to experience fear and apprehension as well. Not knowing what their expectations are raises a sense of uncertainty and confusion. Real fear is intensified especially when priorities for deadlines, or change of goals, are shifted or dismissed without receiving an explanation for these changes.

All of this leads to workers becoming disengaged. Employees end up hesitant to work with managers; they don’t keep managers properly informed when problems arise; or don’t give them appropriate information in a timely matter. Employees refuse to take appropriate responsibility and use time productively. Constant complaining becomes a common occurrence. The Gallup research reported that decreased productivity of each disengaged employee cost employer 3,400 dollars to 10,000 dollars in salary. And, according to The Economist, 84% of senior leaders say disengaged employees are one of three biggest threats facing their businesses.

Managers’ commitment
It is vital to ensure that managers are engaged themselves first because if they are not inspired, how can they inspire others. The ultimate goal is to make managers and employees engaged together. When they are engaged they are excited and enthusiastic about work they do and are focused on accomplishing the task at hand. They are not easily distracted and work extra hours if that’s what it takes to complete the task. They eagerly volunteer for difficult assignments, and do significantly more than the job requires. They encourage each other to achieve higher level of performance and seek ways to accomplish projects and tasks as a team.

Engaged managers and employees, on average, rate 86% higher with their customers; have 70% more success in lowering burnout; are 70% more likely to have higher productivity; enjoy higher profitability, better safety records and deliver grater earning per share to their stockholders.

About Dr. Ivan Kos
In a world where negative thinking, self-criticism and fear often dominate the day, To Dare: It is Easier to Succeed than To Fail offers an antidote that empowers people with the ability to learn from fear, overcome negativity, and transform lives. To Dare explores the fears that we feel, day in, day out. Some fears are real and should be respected, but fears that are exaggerated and unfounded keep us from truly experiencing our lives and becoming fulfilled individuals.

In To Dare, we discover how to use fear's energy to work for us rather than against us, and become the winners - personally and professionally - that we were born to be. Appealing to the same audience drawn to such bestsellers as What's Holding You Back, Feel the Fear and Do It Anyway, and The Power of Positive Thinking, To Dare holds the key to the action solution for transformation. As a psychotherapist, lecturer, consultant and professor, Dr. Kos specializes in workshops on fear, leadership, optimal productivity, personal responsibility, and communication. Dr. Kos is a fellow of the American Psychological Association and a member of the International Association of Applied Psychology, among others, and lives in New York City.

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