5 Signs You Need Management Training For Running Your Startup
Proper workplace and management serve as a solid foundation for a company, and yet so many businesses either overlook the practice or don’t invest enough time or money into it each year. As of 2023, 59% of employees have no workplace training as per Skill Ademia. Statista also reports that the leading reason for decreases in management training is due to budget cuts and economic uncertainty. Without proper training in place, it could lead to larger problems for a company in the future, including its ability to generate revenue.
If you’re running a new business or are elevating your current company, take a look to see if your organization may need a boost in management training based on these five signs.
1. There’s high employee turnover.
According to Mercer, there was a total reported 17.3% voluntary employee turnover within the US, which is a decrease in comparison to the 24.7% turnover in 2022.
When there is a high voluntary employee turnover, this signals that there may be one main or several negative factors contributing to employees wanting to leave a company. If there is a turnover of over 20% within an organization, this is considered high and should be looked into as early as possible to get to the root of the problem. In some instances, it could be a relatively simple fix— which will save time and money for both the company and its employees.
2. Customer satisfaction has dropped.
When there’s dissatisfaction in the workplace, it can trickle down to the discontent of customers. For instance, poor management skills could lead to customer details getting lost, important messages being overlooked, and appointments/meetings being late or missed altogether. When tasks aren’t delegated and managed into a streamlined process, this could cost the business a significant amount of money down the line.
3. Onboarding processes are inadequate or don’t exist.
Paychex surveyed 1,000 new employees in 2023, and 80% of them reported that they didn’t have their needs met at onboarding and planned to quit shortly. Onboarding is one of the major areas where new employees develop a first impression of a company. If this experience for them isn’t positive, then they’ll be more likely to leave— which will increase the turnover percentage as a result.
Plus, if onboarding moves too slowly, then new hires may leave quickly to jump on other employment offers providing a more efficient experience.
4. Company size has doubled, but output hasn’t.
When the output levels don’t meet the size of the company, then economies of scale are out of balance. While not all external economies of scale can be anticipated, management is largely responsible for internal economies of scale. This includes operational strategies, accounting, and information technology.
To manage these levels, it’s best to run routine audits so that any inaccuracies can be caught early and save the business from any potential revenue losses.
5. Schedules are not on track.
From falling behind on product releases to missing weekly catchup calls, the strategy in a business can only function when the objectives are met. When the timeline doesn’t go according to plan, this will inevitably cost the company money. This will result in slower sales and revenue generation to keep the organization afloat.
On the other hand, if employees such as leaders or managers are putting forth too many hours of work, then this can lead to burnout and an unhappy work environment. 21.7% of leaders work 60 hours per week or more as per Clockify.
When a strong management team is in place, they’ll work to hold colleagues accountable and ensure tasks are completed within the allocated schedule.
