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Why Companies Fail

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Why Companies Fail

Man Standing on Street in front of Office Building

As an employer, there is a question that you constantly have to ask yourself everyday:

“Am I leading a good company?”

If the answer to this question isn’t an immediate and resounding yes, then we have a problem.

“But all companies have their own pro’s and con’s!” you argue.

You’re not wrong. But think about this: If you ask any one of your employees if they would recommend your company to another friend, how certain are you that their answer will be a confident “yes”?

You might think that failing lies in the numbers or in the reputation you wish to uphold. But at the end of the day, the real downfall of businesses are dissatisfied employees.

You can’t think otherwise when they are the heart of your company.

For companies out there that tend to forget a few simple things, here are a few signs to keep in mind:

1. You treat your employees as numbers and contracts.

Man and Woman Working Together

Photo by rawpixel on Unsplash

Employees are people.

This much is obvious, of course. But how obviously are you putting this knowledge into use, really?

Human beings need basic rights, respect, and rest.

You can’t impose unreasonable work hours and workload on them, with minimal breaks, complete with a high-pressure environment, and expect them to perform well throughout.

Human beings aren’t contracts. They have needs and expectations that a simple contract can’t summarize.

According to, “An engaged employee who performs well and who is loyal to your company requires a workplace that encourages development, rewards performance and delivers on obligations (pay, leave, benefits and policies).”

How about you? How well are you delivering?

2. You’ve been judging them like it’s The Final Judgment.

Man Writing at Desk in Office

Photo by rawpixel on Unsplash

“It can’t be helped,” you answer. “Employee performance evaluations have been here for a while now, and everyone goes through it.” Again, you’re not wrong. But just because things are practiced traditionally by a lot of people doesn’t make them right. I’m sure we’ve all seen enough of the news to know that.

Does this mean performance evaluations are wrong? Not at all.

But while performance evaluations do keep employees on their toes and also keeps them from being complacent, there’s really no need to make this more difficult than it already is, is there?

Company practices and norms have turned these evaluations into completely competency-based tests. More than honing the individual’s needs and strengths, companies focus instead on weeding out the test-based incompetents and retaining those who “pass”.

Again, we go back to the first point: Employees are human. They are not test scores.

The company should focus on fostering a more encouraging work environment in order to bring out the best in every employee. And while these evaluations are helpful in measuring each individual’s strengths and skill sets, they shouldn’t be formatted to feel like a threat to the employees’ jobs.

This brings me to my next point:

3. Your working environment is too negative.

Man Stressed With Work Sitting at Desk

Photo by Peter Alfred Hess on Flickr

Nobody likes staying, much less working, in an environment that makes them feel bad. So what do you expect your employees to feel when their colleagues are being dropped left and right?

Seeing people laid-off every other day doesn’t really make for a motivating atmosphere.

Many Glassdoor reviews report that while there may be several positive aspects to certain companies, such as salary, location, and learning opportunities, bad office atmospheres are ultimately a deal-breaker.

As an employer, financial benefits shouldn’t be your only focus. Focus inside and take care of your workplace atmosphere as well as your workers. A good way to start is to invest in workplace wellness programs.

Workplace wellness ranges from simple check-ups and vaccinations to events like sports and fitness contests.

It also emphasizes the importance of the office ambiance itself. Avoid making your office look gloomy with these simple tips:

  • Try introducing plants, big or small, within the workplace to help destress the atmosphere of the office.
  • Open your windows and let a little bit of sunshine in.
  • Don’t be afraid to add some colors to those walls.

And because sitting for long hours can be detrimental to the health of your employees, encourage them to take walking breaks and to stretch inside the office. Interruptions to prolonged sitting are vital to the health of white-collar workers.

Woman using the Stance Pro 31' Desktop Riser at Work

You can also introduce standing desks in your office to encourage movement without interrupting important tasks. Use of standing desks have been known to be beneficial to many of the companies using them.

You might think these reminders are silly or are a matter of common sense, but haggling between the rights of the employees and the benefits of the company is no easy task when confronted with a problem.

Regularize your systems with an employee-first mindset and you’ll be able to steer clear of any misunderstandings or future mistakes. Always remember that ethical and moral ideologies should be at the heart of every business.

heading photoPhoto by Matthew Henry on Unsplash

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