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The Most Common Ways Entrepreneurs Accidentally Mistreat Their Team

Sep 10, 2019 | 1 comment

Entrepreneurs take tremendous risks to attain great rewards. They work tirelessly and often alone. At some point, even the most self-motivated person must work for others to see progress. Upon experiencing success, an entrepreneur’s company may grow. Employment opportunities open for those capable of working at a successful startup. Unfortunately, some entrepreneurs allow their genius to slip and treat employees poorly. They do so without even knowing it at times. Here are three such instances.

Capping Commissions

A commission-based pay structure works well for startup entrepreneurs. New business ventures must keep cash expenditures down. Until revenue reaches acceptable levels, the business can’t overspend. Concerns then arise over how to pay quality employees. Sales-oriented companies rely on a commission structure as a solution. Greedy entrepreneurs or ones not thinking things fully through may limit commission payments. Capping commissions means capping employee earnings. Do you think employees will stick around when their income levels hit an impenetrable ceiling? And what happens to a business when employee turnover becomes a problem? The business begins to suffer. Yes, employee turnover can sink a startup. Low morale also creates harm. Don’t play games with employee earnings. Doing so could cause havoc that drags a business down.

Fail to Provide for Employee Safety

Frugally running a business makes sense. Cutting unnecessary costs helps a startup remain on a path to solvency. Taking things too far and cutting things essential for operations is a bad plan. The plan is doubly unfortunate when cost-cutting compromises safety. And remember, no business saves money when hit with a personal injury lawsuit. Take the necessary steps to increase employee safety. Clean up spills immediately. Properly label any cleaners or other hazardous chemicals. Use Andon lights to properly communicate when your production floor is in use. Don’t overlook any potential hazard ever.

Creating a Hostile Work Environment

Entrepreneurs can be great idea people, but they may not always be the most socially adept or best suited for the interpersonal side of management. When placed in a position of authority, they may become tyrannical. Employees won’t tolerate such behavior for very long. Besides leaving the company and its toxic work environment, they could strike back with legal complaints. The person in charge might not intentionally be a tyrant, but intention matters not. Employees won’t react any differently.

Don’t allow your business or employees to suffer due to your misbehavior and poor judgment. Take steps to improve your behavior before irreversible harm occurs.