Career Column:
The Cost of Poor Supervision: Part II — Unexpected Costs

The cost of poor supervision goes beyond employee turnover and low productivity. It includes another little-known offshoot — theft resulting from low morale.

Theft: Offshoot of Supervisee Morale

Did you know that the FBI points to employee theft as the fastest growing crime today? Whether it's internet-based identity theft or the lifting of material goods, employee thieves can stop a small business in its tracks, contributing to the failure of 1/3 of small businesses, according to the US Chamber of Commerce. Costs for big business, such as the retail industry, have amounted to $40 billion or more every year. Employees with high morale are less likely to steal. Effective supervisors use communication and coaching skills that foster employee morale —the kind of high morale that makes employees think about honoring the company rather than stealing.

Reducing the Costs

A strategic, cost-beneficial approach to supervisory development is as important as executive management in increasing productivity, lowering theft, and reducing the costs of employee turnover. A study by NAPA (National Association of Public Administrators) on what to do about poor supervision led to recommendations that include balancing the early development of high-touch (i.e., people) skills with high-tech skills. Supervisory skills training in communication, conflict resolution, decision-making and project management are keys to more effective supervision.

Want to learn more? Visit future Career Columns and ask about our seminar on "Better Supervisory Relationships...in a Day".