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How much are people problems costing your business?

Your workforce is your greatest business asset. A cohesive and engaged team that communicates effectively, understands their individual roles, as well as how they fit into the big picture are crucial to achieving your organizational goals.

Conversely, a team that isn't functioning well takes a toll on the organizational culture as well as individual creativity and motivation. When employees are not energized it impacts productivity and ultimately the bottom line of your business.

Harvard Business Review endeavoured to quantify how much people problems actually cost. They asked eighty-three executives (70 percent male; 87 percent with more than ten years of work experience, with 45 percent having ten years or more senior management roles) to estimate the daily costs their companies incurred due to a variety of people issues such as interpersonal conflicts, unproductive meetings, hiring the wrong employees; and ineffective training programs. Here are the remarkable findings:

While these findings are based on perceptions, not scientific measures, they still reveal significant lost value. The executives estimated an average daily waste of $7,227.07 per line item, collectively totaling $144,541.30 per day. That translates into the astronomical amount of $52,757,574 of lost value and potential per year per organization on people problems!

Source: Putting a Price on People Problems at Work, Tanya Menon and Leigh Thompson August 23, 2016, Harvard Business Review, Adapted from the HBR Press book Stop Spending, Start Managing: Strategies to Transform Wasteful Habits by Tanya Menon and Leigh Thompson.


Lumina Team can help foster a culture of teamwork, trust and integrity.

  • Developing Self-Knowledge: Allowing your employees to understand where they fit within the team

  • Building Rapport: Through increased understanding of both their own and their colleagues communication preferences

  • Valuing Diversity: Celebrating the unique personality traits of colleagues and recognizing how each of them complement the team, and each other’s strengths

  • Co-Creating Results: Achieve measurable goals by more effectively aligning team strengths to job roles and processes

Click here to learn more about how Lumina Team can contribute to improved team dynamics and achieving your organizational goals.

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