Bossy managers bring down company's profits
By Suman Ravikumar, SiliconIndia   |   Friday, 19 November 2010, 22:18 IST   |    21 Comments
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Bossy managers bring down company's profits
Your boss might be a best performer in the company. But did many companies look into the fact that how much the ego costs to the company? Bangalore:"Employees leave bad bosses, not bad organizations" is one true statement. The ability to work with your bosses is an important factor .But this is not easy because bosses have idiosyncrasies. They come in all size and shapes. Why is it so difficult for a Boss to be a good Boss? I mean it's not rocket science. Everyone wants to feel that their Boss can handle the job, whether they are a worker on the factory floor, a salesperson, a mid level manager, an athlete or a volunteer. Do bad bosses really drive away employees? HR experts say that many employees quit as they find humiliation and abuses by the boss the most intolerable. The first time, an employee may not leave, but a thought has been planted. The second time he strengthens that thought and third time, he moves to a different job. A check on the quarterly results of public organizations like TCS, Wipro, Infosys and Cognizant have shown an attrition rate of 12.5 percent, but the percentage of employees leaving because of their boss is unknown as when contacted people from the related department did not want to share the reasons for the attrition or measures/activities to retain the existing employees. A question which arises is why do employees leave and what is the reason that the companies are not able to hold them back. Well, the most obvious reasons that come to our minds are higher pay, work timings, career growth or higher education. But, the above mentioned factors constitute only 20 percent of the reasons that people identify while leaving an organization. The most important reason that a person quit an organization is because of their immediate management. For better assimilation SiliconIndia analyzed five employees who want to quit an organization and their current Cost to the Company is INR 2 LPA. Strategic formula to calculate the Turnover cost for an employee = Separation cost+ Replacement cost +Training cost. Calculating each of the components we have, Total separation cost = 95276, Total Replacement cost = 411662 and Training cost = 166000. Keeping the above figure in mind, it costs a company a whopping INR 6, 72,938 for just 5 employees. If this is the cost incurred for just 5 employees, imagine a company of 2000 is hit by an attrition rate of 12 percent in each quarter where about 240 employees leave. Even if we take 1 percent of them complaining about their boss then it sums up to 24 people who are not happy about their boss. The amount of money is unimaginable in replacing them. With that same amount a company could provide its employees all kinds of services / stress buster activities and use it for more productive causes but unfortunately, many senior executives busy traveling the world, signing new deals and developing a vision for the company, have little idea or rather no idea of what may be going on at home. Deep within an organization that otherwise does all the right things, one man could be driving its best people away.

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